Why I Love House Prices Crashing

Thrugelmir

mr.broderick wrote: »

Did you have the opportunity in 2004 to buy a house on a 100% mortgage? You could have then sold in 2007 and would probably have banked 5 times more than what you have saved (after paying your rent, council tax bills etc)

By 2004 house prices had already risen by over 100% in the previous 5 years. So the real profits had been made. People were selling out from 2005 onwards.

IveSeenTheLight

carolt wrote: »

Generali made the point that "will the coming pensions crisis force baby boomers to sell at lower prices and move into smaller properties? My bets are on the latter but time, as ever, will tell..." - which seems a very sensible surmise.

There is a growing number who sell their property but remain in it, thus releasing eqyuity but not downsizing.

Initially I think it was not a good idea as you generally do not get such a good deal, but if it is a compromise to remain in your family home.

Of course if they do downsize, there is nothing to gaurantee that they will sell for lower prices and indeed they would end up competing with FTBer's for lower priced properties.

Time will tell

mr.broderick

Thrugelmir wrote: »

By 2004 house prices had already risen by over 100% in the previous 5 years. So the real profits had been made. People were selling out from 2005 onwards.

Really, we bought a house in 2004 which we went on to sell end of 2006 beginning of 2007 to rent instead. We made £57,000 minus selling and solicitor costs.

Thrugelmir

mr.broderick wrote: »

Really, we bought a house in 2004 which we went on to sell end of 2006 beginning of 2007 to rent instead. We made £57,000 minus selling and solicitor costs.

You very fortunate. I always make general rather specific statements.

wolvoman

wolfman wrote: »

A small 1 bed flat from £170k+ in London in a less than desirable area. A single earner or family having a child, would need a salary of around £50k, and a first payment of £35k to get a good mortgage.

I'm around those figures, and want a place, but not at that cost, especially for what it is. Just means I keep saving.

Sorry that's bull.

170k flat.
That will cost max £2k in legals, removals and valuation fees.
So with a £35k deposit it'll mean a mortgage of £137k, or say £138k with the mortgage fee.
Mortgage at 5.5% fixed will cost £850 a month.

Why would you need £50k a year to service a mortgage of £850 a month? Most people could have a mortgage like that and run a couple of Porsches on £50k.

Thrugelmir

wolvoman wrote: »

Sorry that's bull.

170k flat.
That will cost max £2k in legals, removals and valuation fees.
So with a £35k deposit it'll mean a mortgage of £137k, or say £138k with the mortgage fee.
Mortgage at 5.5% fixed will cost £850 a month.

Why would you need £50k a year to service a mortgage of £850 a month? Most people could have a mortgage like that and run a couple of Porsches on £50k.

At least its a sensible amount to be paying out of disposable income.

By the time you've paid service charge, rates, water rates, electric, gas, house contents insurance, tv licence, sky, mobile telephone, car loan, car insurance, gym membership.

Then you'll have something left to enjoy life with. There's more to live than working to pay a mortgage.

Something many have lost track of. In their desire to make a quick fortune and retire early.

Like any ponzi scheme its only those that get in at the beginning that benefit the majority pay the bill.

michaels

Wow - so sky, car loan and gym are part of the essentials before having money left over for 'extras' - I am from a different age

Thrugelmir wrote: »

At least its a sensible amount to be paying out of disposable income.

By the time you've paid service charge, rates, water rates, electric, gas, house contents insurance, tv licence, sky, mobile telephone, car loan, car insurance, gym membership.

Then you'll have something left to enjoy life with. There's more to live than working to pay a mortgage.

Something many have lost track of. In their desire to make a quick fortune and retire early.

Like any ponzi scheme its only those that get in at the beginning that benefit the majority pay the bill.

HAMISH_MCTAVISH

michaels wrote: »

Wow - so sky, car loan and gym are part of the essentials before having money left over for 'extras' - I am from a different age

Yes, why would someone that can't afford a mortgage be wasting £400 a year on Sky, £500 a year on a gym, and £1500 plus a year on a car loan payment?

Watch freeview, go for walks, drive a banger and buy a house !!!!!!.....:D

Thrugelmir

HAMISH_MCTAVISH wrote: »

Yes, why would someone that can't afford a mortgage be wasting £400 a year on Sky, £500 a year on a gym, and £1500 plus a year on a car loan payment?

Watch freeview, go for walks, drive a banger and buy a house !!!!!!.....:D

Read the original post....... :rolleyes:

HAMISH_MCTAVISH

nearlynew wrote: »

This time next year,average prices will be lower YOY.

100% guaranteed.

Get used to it all you HPI cheerleaders and debt junkies.

Only 2 months to go, and unless prices fall by 5% a month, it looks like your guarantee will be broken.....

So how do our readers claim?

Will you be paying them the difference for following your advice?

Seeing as how it was "100% guaranteed".....;)