Quarter of Brits on interest only mortgages

shakerbaby

HAMISH_MCTAVISH wrote: »

So which bulls do you think are overleveraged, and why?

I'm not, I can't think of any that are on this board.

You bears like to use sweeping generalisations, but I don't think the reality is anywhere like what you seem to think it is.

Oh don't fear there are masses and masses of over leveraged bulls out there, hence the bubble in the first place. I just hope it's not the ones posting on here (you see bears have humility and decency) who have put the security of their homes, children's future, and potentially their marriages on the line for yet more bricks and mortar. :rotfl:

Time will tell. Meanwhile I'll happily rent, top up my deposit, and wait. :j

Chillax :rotfl:

HAMISH_MCTAVISH

shakerbaby wrote: »

Oh don't fear there are masses and masses of over leveraged bulls out there, hence the bubble in the first place. I just hope it's not the ones posting on here (you see bears have humility and decency) who have put the security of their homes, children's future, and potentially their marriages on the line for yet more bricks and mortar. :rotfl:

Interesting.

Did you just ignore julieq's post on the subject then???

Time will tell.

Yes it will.

Meanwhile I'll happily rent, top up my deposit, and wait. :j

Chillax :rotfl:

Have you actually calculated how much extra you need to save for that strategy to work out well for you with rising prices?

In additional lifetime housing costs, a year of rent is on average around 4% of purchase price. Plus HPI, say 2% or 3%.

So around 7% of a house price per year is what waiting can cost you, JUST TO STAND STILL.....

But hey, it's not my risk, so I'm plenty "chillaxed":rotfl:

wageslave

Hamish, what would you have those like Shakerbaby do other than rent and save?
Seriously would you suggest that they buy in a falling market with an IO mortgage?

HAMISH_MCTAVISH

wageslave wrote: »

Hamish, what would you have those like Shakerbaby do other than rent and save?
Seriously would you suggest that they buy in a falling market with an IO mortgage?

Those like Shakerbaby will never buy.

For normal people though, as opposed to uber-bears, the best bet is just to buy as young as you can. Save the minimum deposit needed as fast as you can, and buy.

The best case, for 17 or 18 years out of 20 on average (looking at the last 3 crashes on average), is that you gain immediately through locking in a lower price.

The worst case, for 2 or 3 years out of 20 on average (looking at the last 3 crashes on average) is that you lock in a lower mortgage rate and greater availability, but deal with NE for a few years. But so what, you still make money in the long run. You just make a little less than someone that bought a couple of years before or after you did.

nembot

Whoever thinks things will return to normal in the next 12 months is absolutely kidding themselves.

Back in the real world, it's clear to see whats really happening, massive job losses across the board, including many thousands where I work. The people I know who are directly affected say there are no jobs out there, after weeks of searching. These are the people who will soon be joining the many other hundreds of thousands in "financial ruin" from just the last six months alone.

The lenders won't wait for the market to pick up, they'll soon just start turfing people out of their homes, thus saturating the market further. There is no shortage of houses for sale, the skewed figures and talk of green shoots is complete rubbish.

Even the rental market is !!!!!!ed (certainly in my area) decent places that flew out within days, are now taking weeks or months to let. As things get progressively worse, we'll see more problems as the BTL brigade struggle to get tenants - not many landlords I know can afford to pay 2 mortgages?

The list of negatives just goes on and on, whilst nothing of real substance is offered to counter what looks like tough times for all but the lucky few.

Forum wordsmiths and Daily Mail headlines are irrelevant here, only the truth matters.


Just to add...

I'm not a total doom maker, don't wish the struggles we will undoubtably face on anyone. I have an 8 year old daughter and i'd rather spare her the dark times I remember from the 70's when I was a lad. Different situation and circumstances obviously, but many I fear will struggle just as families did back then.

wageslave

HAMISH_MCTAVISH wrote: »

For normal people though, as opposed to uber-bears, the best bet is just to buy as young as you can. Save the minimum deposit needed as fast as you can, and buy.

So your honest advice is to lock yourself into the maximum amount of debt you can at the youngest possible age.
Wow.
I am speechless.

shakerbaby

HAMISH_MCTAVISH wrote: »

Those like Shakerbaby will never buy.

For normal people though, as opposed to uber-bears, the best bet is just to buy as young as you can. Save the minimum deposit needed as fast as you can, and buy.

The best case, for 17 or 18 years out of 20 on average (looking at the last 3 crashes on average), is that you gain immediately through locking in a lower price.

The worst case, for 2 or 3 years out of 20 on average (looking at the last 3 crashes on average) is that you lock in a lower mortgage rate and greater availability, but deal with NE for a few years. But so what, you still make money in the long run. You just make a little less than someone that bought a couple of years before or after you did.

Thanks for the advice Dad but I'm happy where I am being debt free, waiting, and pilling on my [STRIKE]vulture fund[/STRIKE] sorry I mean deposit. But I guess that makes you bulls irate for some reason. Sorry I won't be bailing you or any of your pals out of your financial hell. :T

shakerbaby

wageslave wrote: »

So your honest advice is to lock yourself into the maximum amount of debt you can at the youngest possible age.
Wow.
I am speechless.

Our Hamish isn't much of a thinker beyond trying bail out his own asre. :rotfl:

HAMISH_MCTAVISH

nembot wrote: »

Whoever thinks things will return to normal in the next 12 months is absolutely kidding themselves.

I dont think anyone expects things to be back to normal in the next 12 months.

It will take several years for prices to reach 2007 levels again, and longer still for unemployment to return to acceptable levels.

It will take longer still for lending to be accessible to the young, those with less than spotless credit, or people that live in high rental cost areas, by which time prices will have risen beyond their reach.

There will be so many losers from this house price crash, and so few winners. It is tragic.

Back in the real world, it's clear to see whats really happening, massive job losses across the board, including many thousands where I work. The people I know who are directly affected say there are no jobs out there, after weeks of searching. These are the people who will soon be joining the many other hundreds of thousands in "financial ruin" from just the last six months alone.

Agreed, and tragic. Such a shame all this was triggered by banks refusing to lend, even when they were bailed out by taxpayers. The one lesson that I am sure is being learned, is that never again can banks be allowed to stop lending.

The lenders won't wait for the market to pick up, they'll soon just start turfing people out of their homes, thus saturating the market further.

If you believe that then you believe that Turkeys vote for Christmas....

There was a news report today, showing clearly that banks are doing the exact opposite. Forming new companies to take on their property assets to hold until prices recover, rather than letting a flood of properties further lower prices and thus destroy the banks balance sheets.

There is no shortage of houses for sale, the skewed figures and talk of green shoots is complete rubbish.

Well thats open minded of you.:rolleyes:

There are 250,000 households being formed a year, and only 100,000 houses per year being built.

UK population is projected to rise by 12 million people in the next 40 years.

The shortage is obvious even to someone with only the most basic grasp of mathematics. I take it you are slightly better educated than a 5 year old?

Just to add...

I'm not a total doom maker, .

No, of course you aren't.....;)

HAMISH_MCTAVISH

wageslave wrote: »

So your honest advice is to lock yourself into the maximum amount of debt you can at the youngest possible age.
.

Absolutely.

No risk, no reward.