A postcard from the 70% club

Pobby

" Reality ". What a good word to use. The very opposite of what`s been going on over the last decade.

rotate

A poster asked why future interest rate will rise.A short answer is the goverments huge borrowing requirement and the uncertantity about UK credit rating.
Most of our debt is held by overseas buyers,we have huge borrowings that we have got to sell.The likes of the Chinese and Middle East goverments are going to want a premium to buy this debt from an almost bancrupt country.The premium is a higher interest rate for sterling debt,this will impact on domestic interest rates.I would see interest rates start to move up Q1/2010.
As we have out of control public borrowing then which ever goverment is in power will have to slash public spending by around 25% to stop the country going totally broke and becoming a 3rd world economy.
This double whammy of rising interest rates and a contracting economy will surely hit house prices.
By how much I cannot guess.But the medium term economic outlook for UK plc is dire.

Renfro

chucky wrote: »

are we - they're still at 2006/2007 where i am

Same where I live.

ciano125

Renfro wrote: »

Same where I live.

Asking or selling prices?

chucky

ciano125 wrote: »

Asking or selling prices?

selling for me

ad9898_3

chucky wrote: »

selling for me

You must live in an area of real dumbasses chucky if they are still paying 2006/2007 prices, may I suggest you sell your own place to one of said dumbasses for 2007 price, move to somewhere that has fallen to Spring 2004 prices, and retire.:D

Radiantsoul

rotate wrote: »

A poster asked why future interest rate will rise.A short answer is the goverments huge borrowing requirement and the uncertantity about UK credit rating.
Most of our debt is held by overseas buyers,we have huge borrowings that we have got to sell.The likes of the Chinese and Middle East goverments are going to want a premium to buy this debt from an almost bancrupt country.The premium is a higher interest rate for sterling debt,this will impact on domestic interest rates.I would see interest rates start to move up Q1/2010.
As we have out of control public borrowing then which ever goverment is in power will have to slash public spending by around 25% to stop the country going totally broke and becoming a 3rd world economy.
This double whammy of rising interest rates and a contracting economy will surely hit house prices.
By how much I cannot guess.But the medium term economic outlook for UK plc is dire.

No most UK debt is not held by Chinese or Middle Eastern governments. It is held by pension funds and the like.

chucky

ad9898 wrote: »

You must live in an area of real dumbasses chucky if they are still paying 2006/2007 prices, may I suggest you sell your own place to one of said dumbasses for 2007 price, move to somewhere that has fallen to Spring 2004 prices, and retire.:D

lol - here's what i did. i've lived in one of my BTL's since 2007, waiting for an opportunity and bought in February. the price of the property was purchased in late 2004 for as my new residential please. sellers had the place on the market for 8 months - it took 4 offers for them to accept.

i don't do the affordable thing too much. maybe because the area i'm in has different factors not just salary. i see what people are prepared to pay for the property they want to live in as the driver.

my planned retirement is at 45.

here's the 2006/2007 prices - that's with the lag not taking into account the rises in the last two months...


http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=E%26W%2DALL&ac=London&s=01%20January%202003&e=01%20March%202009&t=4

Thrugelmir

Radiantsoul wrote: »

No most UK debt is not held by Chinese or Middle Eastern governments. It is held by pension funds and the like.

To fund this tax years PSBR with gilt issues. The estimate is that international investors will need to take up around 70% of the issues.