But, but, but.... they said it was a bull trap.

mewbie_2

chucky wrote: »

not a HPC cheerleader by the way... i like to see the facts

Try reading something that isn't just pictures then?

chucky

mewbie wrote: »

Try reading something that isn't just pictures then?

oh dear - the [STRIKE]trolling[/STRIKE] stalking has started again

mewbie_2

chucky wrote: »

oh dear - the [STRIKE]trolling[/STRIKE] stalking has started again

Better get reporting it then, run off to teacher again.

chucky

mewbie wrote: »

Better get reporting it then, run off to teacher again.

no need - i feel sorry for you that you log on to this site just to follow one poster around the forum

Thrugelmir

digipeep wrote: »

Shares were 6750 odd in 2007, and similar in 2000.

Nothing to see here, move along.

Not the same shares.

We still have the same aging houses though. :rolleyes:

Thrugelmir

chucky wrote: »

1. Mortgage rates will be higher. the total price of buying a house will be more expensive. an example, paying 2% more interest on your mortgage on a £160k property is £16k more you pay in mortgage interest - that's 10% extra your paying.

On a £160,000 repayment mortgage.

At 6% the total interest charge is £149k over the term of the loan.

At 8% the interest is £210k.

Makes the potential return a lot less like bull feed and more like fertiliser. :eek:

brit1234

Dan: wrote: »

Your silly images will not help you Brit.

House prices are NOT over valued.

Yes they are, or have you forgot all the fraud, dodgy self certs, 125% mortgages, gift deposit fiddles, debt mountain and fast rising unemployment.


We had years of double digit house price inflation for the reasons above all unsustainable. Now house prices safely rise with inflation and above that when you add value such as extentions.

The simple fact that all properties rose at rates way above inflation for years without adding value, hence the market will rebalance back to normal.

House prices are overvalued

HAMISH_MCTAVISH

Thrugelmir wrote: »

On a £160,000 repayment mortgage.

At 6% the total interest charge is £149k over the term of the loan.

At 8% the interest is £210k.

Makes the potential return a lot less like bull feed and more like fertiliser. :eek:

Hardly.

1. Rates of 6% to 8% in the next decade are extremely unlikely... The base rate stayed at 2% for 18 of the 20 years after the last recession this serious.

2. Inflation, even low inflation of around 2%, will massively reduce the real cost of debt service over 25 years.

3. Buying is still a far better proposition than renting over any 25 year period, let alone versus renting for a lifetime. Even buying at peak, and even if HPI is minimal for the next 2 decades. (which of course it won't be)

The only thing worth getting all :eek: about is the concept of renting (paying someone elses mortgage) for any substantial time.

mewbie_2

HAMISH_MCTAVISH wrote: »

Hardly.

1. Rates of 6% to 8% in the next decade are extremely unlikely... The base rate stayed at 2% for 18 of the 20 years after the last recession this serious.

OK I'll run with this thought briefly. What happened to house prices over that period?

HAMISH_MCTAVISH

mewbie wrote: »

OK I'll run with this thought briefly. What happened to house prices over that period?

In the UK? No idea. If I had to guess I'd say they fell or stagnated.

But as only 25% of people owned all the property in the UK, and the other 75% could not afford to buy a house, I'd say it's safe to say they weren't cheap.;)

Furthermore, there was a bit of a demographics problem, seeing as how a large percentage of the male population had just been slaughtered 15 years prior, and another large percentage of them would get slaughtered again half way through the low rates. So by all rights prices should have fallen.

Of course, we don't have that demographics problem today, just the opposite, we have a growing population and a rate of household formation growing faster still due to divorce, etc. (another thing they didn't have much of then)

The MPC will target rates to CPI inflation. House price inflation is not part of the MPC's remit to control. Rates can stay low for a long time, whilst house prices climb.....;)