property may halve within 12 months. The worst of the inflation storm will come after

Nylontokyo

[FONT=Georgia, Times New Roman, Times, serif]Property was a good place to be if you had a mortgage. This might fly in the face of what we’ve said previously about the weak UK property market. What you need to realise is that we’re saying property may halve within 12 months. The worst of the inflation storm will come after that.

In Germany, inflation pretty much wiped out everyone’s mortgage debt. But don’t get too carried away here...

After the German economy’s recovery, heavy new taxes and the urgent need for cash forced most holders to remortgage their property, often more heavily than originally. In other words, their gains were an illusion. Many Germans were forced into selling property to raise cash. Rents were frozen by the Government, so landlords lost their income virtually overnight.[/FONT]

http://www.fsponline-recommends.co.uk/page.aspx?u=mwkrally1&tc=EMYKK703&PromotionID=2147066252&u=857928&g=0&o=75290&l=170361



So they are saying buy half price property in 12 months on a big fixed rate mortgage. Then inflation will eat away at it, so what you owe will eventually be tiny

Snooze

You're too late fella.

http://forums.moneysavingexpert.com/showthread.html?t=1807191

R

Nylontokyo

OK but this thread is all about inflation.

Whats the general opinion on here about big inflation next few years?

HAMISH_MCTAVISH

Nylontokyo wrote: »

OK but this thread is all about inflation.

Whats the general opinion on here about big inflation next few years?

Define "big"....

Inflation will almost certainly overshoot the 2% target when it does eventually return, and I would have thought 2% to 4% was probable.

Inflation running 4% to 7%? In next 3-5 years? Possible, but not probable.

Inflation running 10% plus? In next 3-5 years? Chances are slim to none.

If I had to bet, we won't see interest base rates any higher than 3% in the next 3 years, and mid 5% range in the next 10 years.

andykn

Nylontokyo wrote: »

So they are saying buy half price property in 12 months on a big fixed rate mortgage. Then inflation will eat away at it, so what you owe will eventually be tiny

Who are they?

carolt

Good spot, OP - already spotted,but it's such a pretty headline, hey.....

mr.broderick

carolt wrote: »

Good spot, OP - already spotted,but it's such a pretty headline, hey.....

Not so pretty if you own a house that is mortgaged carol.
Hopefully when you do finally take the plunge and buy something you aren't faced with these sort of headlines. Quite frightening to be honest.

carolt

That's true - my 'pretty' was (a) ironic and (b) clearly one-sided, but I appreciate also (c) probably a tad insensitive.

mr.broderick

carolt wrote: »

That's true - my 'pretty' was (a) ironic and (b) clearly one-sided, but I appreciate also (c) probably a tad insensitive.

Well i am quite impressed with this new sensitive carolt.

carolt

Why thank you.

BTW, please tell me you're not mewbie (re your sig).

I've made no secret of the fact I think he's v talented & witty, and would be distraught to think I'd actually been thanking you unwittingly for months.... :eek:

And what's with Dan?

Is he the persona you project all your unfunny dull comments on to?

ess0two

mr.broderick wrote: »

Not so pretty if you own a house that is mortgaged carol.
Hopefully when you do finally take the plunge and buy something you aren't faced with these sort of headlines. Quite frightening to be honest.

Cmon Brodders,there are plenty on mse who will be willing to snaffle your house at a knocked down repo bargain.