Are we in a boom ?

ess0two

mbga9pgf wrote: »

Which sock puppet are you then? Or is that another, highly informative post from someone up to their neck in BTL?

Just bored s*itless with you rolling out the same graphs time and time again.
BTL,no although this crunch has allowed me to move up,and purchase an city apt for holidaying.

Dan:_4

JayScottGreenspan wrote: »

No need for that. Play the ball, not the man.

Yes there is a need for that........I only attack those who bully others in an agrument, and he is one.

mbga9pgf

Dan: wrote: »

All of your posts are unrealistic, as you will find out in the coming months.

So, if your earn a decent wage and have 70K in the bank then what is stoping you from buying? Average prices have fallen around 20%, interest rates are at record lows and current mortgage products (esp with your deposit) are fantastic right now. Prices will not fall much further but mortgage rates are likley to rise, and could rise fast - this will end up costing you more by holidng off now.

Just worked it out this morning, rates could go up to 10% and I would still be quids in saving, in fact over 2 years, I will shave 3 years off the mortgage and pay 200 a month less for themonthly mortgage. This is for the same mortgage value.The theory goes though, if rates go up significantly, the resulting fall in prices will mean I take out even less of a mortgage and shave far more than 3 years off the total term.

If mortgage rates rise rapidy, repos will spike through the roof and prices will have much further to fall. I continue saving and prices level (as they have done for the past 3 major corrections) I still wipe a massive chunk off the mortgage and have far less to pay. Dan, I take it you know about the Option ARM crisis facing the banks starting at the start of 2010 then?

You want to pose an argument as to why house prices are going to miraculously recover with no significant extra lending, approvals at the lowest level in history and unemployment climbing towards 3 million+? Seriously, If you have one, I will be more than interested.

wolvoman

wolvoman wrote: »

Oh and let me point out that if prices rise in line with wages then they will grow in real terms because wage growth almost always outgrows inflation.

Even now, wage growth is at 3% whilst inflation is at -1.2% (on the measure that is historically used to measure inflation).

Edited as inflation has headed even lower today.

mbga9pgf

wolvoman wrote: »

Oh and let me point out that if prices rise in line with wages then they will grow in real terms because wage growth almost always outgrows inflation.

Even now, wage growth is at 3% whilst inflation is at -0.4% (on the measure that is historically used to measure inflation).

Tell that to all those on 10% pay cuts at the moment... :mad:

lostinrates

Wage growth?
http://forums.moneysavingexpert.com/showthread.html?t=1660199&highlight=wage

chucky

lostinrates wrote: »

Wage growth?
http://forums.moneysavingexpert.com/showthread.html?t=1660199&highlight=wage

it's not exactly the best time to compare wages to house prices during a recession to the year preceding it - probably best to do it over 5 to 10 years.

Dan:_4

mbga9pgf wrote: »

Just worked it out this morning, rates could go up to 10% and I would still be quids in saving, in fact over 2 years, I will shave 3 years off the mortgage and pay 200 a month less for themonthly mortgage. This is for the same mortgage value.The theory goes though, if rates go up significantly, the resulting fall in prices will mean I take out even less of a mortgage and shave far more than 3 years off the total term.

If mortgage rates rise rapidy, repos will spike through the roof and prices will have much further to fall. I continue saving and prices level (as they have done for the past 3 major corrections) I still wipe a massive chunk off the mortgage and have far less to pay. Dan, I take it you know about the Option ARM crisis facing the banks starting at the start of 2010 then?

You want to pose an argument as to why house prices are going to miraculously recover with no significant extra lending, approvals at the lowest level in history and unemployment climbing towards 3 million+? Seriously, If you have one, I will be more than interested.

So you are hoping for rapid interest rates rises in order to increase repo's and cause house prices to fall significantly.......its one hell of a gamble my friend.

Im not saying house prices are going to miraculously recover, im saying they are likely to bottom in the coming months - mortgage lending is on the increase, as it has been for the last few months - this is the key, and will start to show an effect by xmas.

Good luck with your theory, it may work out for you but I have a feeling your miss a good buying opportunity.

Dan:_4

mbga9pgf wrote: »

Tell that to all those on 10% pay cuts at the moment... :mad:

Ahh, bless ya....have you had your salary slashed by 10%???

adr0ck

mbga9pgf wrote: »

You arent listening to me; .

the problem is its difficult to listen to a bully who calls everyone a f**kin idiot

i tend to switch off