The big price falls are over.

Thrugelmir

StevieJ wrote: »

I think the defining moment was when Devon removed my forecast of -20% from his footer, hoping I would do the same ( he didn't admit that of course )

He could have added a provisio - based on a fall in real terms allowing for inflation and the cost of money.

loueyn

ad9898 wrote: »

why keep renting ?

Haven't read the whole thread yet so not sure if someone has already answered this but put simply:

Because houses are too expensive.


Mortgage + council tax + gas, water, electricity, phone, home insurance, food (and whatever other expenses I've missed) = no money at the end of the month.

As long as renting is cheaper and it leaves you money left to actually live at the end of the month it is the more sensible option

(That's my two pence anyway!)

kennyboy66_2

ruggedtoast wrote: »

As a regular I'm really shocked at your stance on this Ad.

So was I, but it can't be a million miles off what many people are thinking, particularly if they can get a mortgage offer.

It would not be unreasonable to compare what they pay in rent with potentially what they might pay in mortgage costs.

The problem will be in actually getting a mortgage offer.

If the housing market is like the road-runner then perhaps some current buyers will see their heads turn into cartoon lollipops.

A suckers rally.

Really2

Thrugelmir wrote: »

Which lenders still offer LIBOR loans?

The cost of money reflects the growing cost to the banks. Wholesale rates are rising. Fixed term deposit rates are rising. First direct now offer 5% on a regular savings plan.

Lending is not going to improve for a long long time. Unless we miracarously repay what we've already borrowed in record time.

Non as far as I know.

But Like is said the likely bottom (well actual housing recovery) will be when lending is not as restricted like the moment. EG Fixed being some where near libor.

But in reality I would have got a BOE tracker last sept/oct.;)

But on your last coment on repaying what we owe, I think that is why BOE base will remain low for some years.

Thrugelmir

Really2 wrote: »

But on your last coment on repaying what we owe, I think that is why BOE base will remain low for some years.

Thats the issue there won't be wholesale deposit funds without driving up interest rates to attract overseas depositors. A fundamental issue that isnt going to disappear.

We have a huge debt bubble that has to be tackled.

Really2

Thrugelmir wrote: »

Thats the issue there won't be wholesale deposit funds without driving up interest rates to attract overseas depositors. A fundamental issue that isnt going to disappear.

We have a huge debt bubble that has to be tackled.

Rock and a hard place raise rates make the economy worse. Keep rates low deminish investement.(but overseas depositors do not have to invest at BOE base?)

The best way of tackling in the short to medium term is repaying and that means keeping rates low.

ad9898_3

ruggedtoast wrote: »

As a regular I'm really shocked at your stance on this Ad.

I'm a bear at heart toastie, and always will be. Even after I buy, I will argue the point for low house prices, I'm not much for greed, and I like it even less when it's at someone else's expense (I've seen this from very close quarters within my own family), which makes me even more 'anti' against it. I'm not a BTL'r and never would be, regardless of how much money I had or to invest. To me it's wrong, the government should cover the basic necessities like social housing, not the private sector.

For me the high cost of housing has ripped into the fabric of society, don't be fooled about all these couples working full time and shoving kids into child care, most would love to spend more time with family I'm sure, yet the spiralling cost of houses has undermined this most basic of functions of looking after your own children.

To me, there should be a cap on wage to mortgage lending, this would stop the ponzi scheme dead in it's tracks, the problem is all the law-makers are VI's so it will never happen, and the misery of housing boom and busts will continue.

IveSeenTheLight

Really2 wrote: »

The best way of tackling in the short to medium term is repaying and that means keeping rates low.

Very True.

As long as my tracker mortgage is BoE+ 0.26% and the BoE is as low as 0.5%, I'm massively overpaying.

they can keep them this low for as long as they want
If they do, I'll be able to repay in a much shorter timescale than the 8 years I currently have on plan :T

The_White_Horse

The banks won't lend to keep prices at their current levels. The end.

IveSeenTheLight

ad9898 wrote: »

To me it's wrong, the government should cover the basic necessities like social housing, not the private sector.

Have you not seen the graphs which show as social housing declined and private rental increased, the quality of rental properties has improved.
this must be a positive aspect to private rentals.

I agree that there should be some availability for social housing to cover for those who really cannot afford to rent privately, however I cannot see how you can stop private rental.

ad9898 wrote: »

For me the high cost of housing has ripped into the fabric of society, don't be fooled about all these couples working full time and shoving kids into child care, most would love to spend more time with family I'm sure, yet the spiralling cost of houses has undermined this most basic of functions of looking after your own children.

There are people who wish to stay at home and others who do not wish so.
Are you advocating the return to a time when the woman was commonly known as a housewife?
Society has evolved a long way since this.

ad9898 wrote: »

To me, there should be a cap on wage to mortgage lending, this would stop the ponzi scheme dead in it's tracks, the problem is all the law-makers are VI's so it will never happen, and the misery of housing boom and busts will continue.

I don't think you can ever impose such sanctions on a free market, else its not free.
Market conditions dictate that it will self correct.

Do you think there should be laws against buying shares? they too have boom and busts