Get ready for rates to rocket

lostinrates

julieq wrote: »

you're unlikely to have the choices .

Many many people do not have the choices they thought they had buying, but otherwise I agree with what you said, and was not disputing that part of your rationale. renting in certain situations affords MORE choice. And if you nake that financial provision through working life can be an enjoyable way to spend retirement and that freedom of time: particularly if time pressured professional career took some of the choices of leisure time away while in work.

dopester

wymondham wrote: »

The sooner they go up the better - the current rate is unrealistic and punishes those that are prudent and save.

If you can preserve capital, or even continue saving... even if that saving it going in to a secret piggy-bank at home earning no interest at all, you won't be punished.

You will be rewarded. A lot of stuff should fall in value/price. Pick up great stuff on the cheap. That is why I'm astounded how much money regular people are still splashing out in today's economy during the transition. Standby for bargains.

mewbie_2

By the way? Have you tried folding a piece of paper in half eight times? Can't be done.

julieq

I wouldn't dispute that renting is a good way of being flexible. But if you want choices into retirement, and you have to cover the cost also of living in a nice place, you're in a better situation if you own a house outright than if you have to cover rent. Accomodation is always everyone's major cost and that doesn't change when you retire.

It's an argument in favour of BTL really, lol, the ideal is to own an house at no net cost and have the flexibility that renting gives you. Maybe the BTL brigade were right after all?

Heyman_2

penguine wrote: »

That was the title of the article. Did you even bother to follow the link and read it? Or was that too much trouble?

No I didn't bother because it's patently rubbish, and you would have been better off entitling it 'Here's an example of some crappy journalism'.

lostinrates

mewbie, reading my posts back this morning, I think you might rather need to return the favour. I notice I read more ''animated'' than I am this morning. Its not like me to use the word ''rubbish'' is it? Oh well.....too much coffee this morning I guess.

dopester

confused31 wrote: »

thats why if you are one of those people who have just scraped through, i would sell now asap, because when the rates go up, they will go up for everyone, and everybody will be trying to sell pushing the prices further down.

Those in that situation will do, and apart from some blips, the asking and transactions prices will keep going down - and so will the wider values of all homes, even for those not planning to sell or riding it out.

lostinrates

julieq wrote: »

It's an argument in favour of BTL really,

See, I don't think so. I think the responsibility of BTL, done well, is a huge tie and not a liberator at all!

Plus the tax/management fees if you are letting while living abroad....not for me, thank you. I admitre those who do it well, but not for me, now anyway. I did see a rather tempting offer of 20 flats in a beautiful building we could aford to buy outright this week: and then I thought of the responsibilty of all those tenants, and thought better of it! * caveat: we would need to cash in on something we ''have'' to buy them outright, so thats a stretch of the truth, as I don't think we'd ever do that. We could buy them with a small mortgage though. I still don't think its worth it, though in this case the yield could be rather mpressive and WOULD I admit, out strip any investment I think we would buy in to. But not counting our time.


ETA: If we had a different lifestyle I might consider them. I think I'd me mad not to. I'm newly involved with some charitable work int he area too: which might mean I could often kill two birds with ione stone and use the profit from the BTL to offset against my time given freely. Perhas there is something worng with me I do stuff I'll enjoy and I think worthwhile for a community for free, but don't wan to tie myself to a potentially profit making thing. Maybe I should buy them, retain the free hold and flip the flats?

julieq

Are they going down forever dopester? Is this some sort of "new paradigm"?

In 10 years, prices will be higher than now and anyone with a house will be 10 years closer to owning outright. And they will have had 10 years living in a house. That seems ok to me.

dopester

mewbie wrote: »

8 fold. 8 times. Clearly different. If you fold something it doubles. Now fold it again. Interesting fact. You cannot fold a piece of paper 8 times, even if it were big enough to cover the planet. Not possible.

But I digress. I was just trying to undermine your argument, and your reason for being here. What's the topic? Oh rates going to rocket.

Y'see Julie, the HPI was kept going by artficially low rates. Then when it all went t1ts up, the only reponse from a desperate financial community was to lower (yes lower - lol!!!) the already low rates. In the hope that "something would turn up". Well the lowest rates in history (300 years I believe - lol) have so far had no effect in preventing 20% drops.

I put it to you, and your fellow dwellers in cloud cuckoo land, that when rates go up then the only way for house prices is down. Plummet I'd call it.

Plummet and rocket - has a nice balance to it don't you think. _party_

With private sector jobs being lost at the rate of 100,000 a month.. not including the projections for severe job cuts in public sector..... there will be enough sellers.

Even with very low rates... taxpayers can't support everyone else, and many people will have to lower asking prices or transact lower... in order to sell... prices/values for all being decided by what happens at the margin between sellers and buyers over time.