Are we in a boom ?

Out,_Vile_Jelly

Dan: wrote: »

mbga9pgf - You belong over at HPC.co.uk with the other minimum wage losers desperate for home ownership. Things tend to be a little more realistic on here.

This is at least the second time you've referred to people not in a position to buy as "minimum wage losers". It is a lazy, inaccurate and quite offensive generalisation.

adr0ck

Out,_Vile_Jelly wrote: »

This is at least the second time you've referred to people not in a position to buy as "minimum wage losers". It is a lazy, inaccurate and quite offensive generalisation.

in fairness though it was in response to someone calling everyone else a f**kin idiot

Dan:_4

Out,_Vile_Jelly wrote: »

This is at least the second time you've referred to people not in a position to buy as "minimum wage losers". It is a lazy, inaccurate and quite offensive generalisation.

Im sorry, but home ownership is not for everyone. Never has been and never will be. Some people, who earn a below average salary, think they have the 'right' to buy property.

MrDT

Dan: wrote: »

Correct. He did respond to my post - with this:

You said that "mortgage rates are likley to rise, and could rise fast - this will end up costing you more by holidng off now"

mbga said that in fact it won't cost him more and put forward his thoughts on what will likely happen should rates rise: "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."

You then state that mbga is "hoping for rapid interest rates rises in order to increase repo's and cause house prices to fall significantly" and that this is a huge gamble.

I can't see anywhere that he's hoping for rates to rise so he can benefit from repos, to me it looks like he's pretty much ok regardless what happens to mortgage rates.

Conrad

mbga9pgf wrote: »

That may not happen, but fact remains I am nailing the saving at the mo, meaning I am wiping years off my future mortgage.

I'm not sure it's healthy to be so focused on money/asset accumulation.

Money is very important for sure, but other aspects, such as putting down roots, and working your own little garden are valuable too.

If you die in 600 days time, will you have lead a full life?

JayScottGreenspan

Are we in a boom?



A bull trap, maybe...

mbga9pgf

Conrad wrote: »

I'm not sure it's healthy to be so focused on money/asset accumulation.

Money is very important for sure, but other aspects, such as putting down roots, and working your own little garden are valuable too.

If you die in 600 days time, will you have lead a full life?

Well, unfortunately due to greedy Sh*ts pricing most of the younger generation out of housing, the dream of working your own little garden are little more than a pipe dream, for many including myself at the moment. Unless you want to live in a flat the size of a postage stamp.

I understand the importance of life and dont think I dont know what you are getting at, I do. I just find it very frustrating at times that the greed of one generation has scuppered the next.

System

Conrad wrote: »

I'm not sure it's healthy to be so focused on money/asset accumulation.

Money is very important for sure, but other aspects, such as putting down roots, and working your own little garden are valuable too.

If you die in 600 days time, will you have lead a full life?

A very good post, Conrad. It seems some people become so caught up with HPC that they'll sacrifice anything if it means saving a few quid a month.

Yakubu22

I've just discovered that the earth is in fact flat, and not round.

Thrugelmir

chucky wrote: »

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.

For a huge number of people accepting a lower wage to protect their job is better than no job.

The 3,500 employees at the Honda plant in Swindon have accepted a pay cut of 3% ( 5% for managers) for the next year. In return 390 jobs will no longer be cut. (Around 1,500 posts have been lost through voluntary redundancy so far).

This is on top of the fact that the employees will work unpaid overtime and not get shift allowances to repay the Company the money they received whilst the plant has been shut.

The obvious spin off is that there is wage deflation which will do little to spark either the local house buying market or rental market in the foreseeable future.