Is that it then, is it all over?

nickj_2

it's probably over until interst rates start to rise
i would imagine that the low interest rates are akin to sticking a plaster over a severed limb

sabretoothtigger

If rates rise it will be because inflation has caused factors that force the hand of government to do so, better to own a house or mortgage with fixed cost then hold cash

If the worst is still to come then house value will probably drop but the british currency value will drop even further hence causing a price rise in housing

Holding cash persistently in order to buy a better house for holding off is I think a mistake

Graham_Devon

I don't get this currency drop thing making ouse prices more expensive I will admit.

I pay in UK pounds for a UK house, sold in UK pounds.

Why would a falling pound make the house price higher? If the house price was in dollars, I'll admit, I could just about get my head around that, but I don't think many would take dollars for their homes.

Although if any of you will, I will happily take a trip to Zimbabwe and bring back a crisp fresh note.

mewbie_2

They mean inflation. 10% a year would make HPC disappear pretty quickly.

Graham_Devon

Should say inflation then, tsk!

mewbie_2

Graham_Devon wrote: »

Should say inflation then, tsk!

Actually I think they did say inflation. You said currency. Are you drunk Graham?

the_ash_and_the_oak

bluey890 wrote: »

It is sold to rent posters like PN & Ad that I feel sorry for.
If there were a few less bears on here, they might not have sold their home, and had the government cover their mortgage debt at 6% of the outstanding balance (assuming they're unemployed).

not necessarily. my gparents STR as early as 2004, working out great for them still (of course it would have been much better if they'd left it another 31 months). orig plan was to rent for a couple of years then buy back in - then they decided to stay renting. as they would be cash buyers, buying has cropped back up on the radar again now. they did pretty well out of HPI all told, so both staying renting or buying back in are options. pretty good lifestyle choice for them the last 4-5 years imo

Graham_Devon

mewbie wrote: »

Actually I think they did say inflation. You said currency. Are you drunk Graham?

Well I am drinking, but I didnt think I was that bad.

Is it too late to simply delete and claim innocence?

mewbie_2

Graham_Devon wrote: »

Well I am drinking, but I didnt think I was that bad.

Is it too late to simply delete and claim innocence?

Most threads are forgotten the next day anyway. Even if Dan looks it up in a year and says "ooh Graham you once made a mistake", I shouldn't worry about it.

setmefree2

Jim O'Neill from Goldman has called the bottom:-

Britain's worst recession in living memory is over, one of the City's leading forecasters proclaimed today.Jim O'Neill, chief economist at Goldman Sachs, said the country had pulled out of the financial crisis and the economy was already growing again.

Mr O'Neill believes Britain also came out of recession in June, although official figures have yet to confirm his views.
Neville Hill, an economist with Credit Suisse, agreed.
He said: "Our view is that the UK is out of recession now and will post positive growth in the second half of the year."

"I think they [politicians] did a good job," Mr O'Neill said. "I continue to read staggering amounts of gloom and doom from all over the place. We have had the biggest amount of economic stimulus the world has seen in modern times. They have kind of got it right."
He conceded it will take some time for the recovery to properly kick in.
"We have lost a lot of growth which it will take a couple of years to recover. But it won't take as long as people think," he said.