“I’ve already made 12k in 2 years on my house, in 20 years time I’m going to be rich”

meanmachine_2

hyposmurf wrote:

There seems to be a trend of people oving away from these mortgages now as they feel the interest they could make on their moeny will not be enough to keep up with the property market.

Sorry but that's garbage.

People are "moving away from IO mortgages"? Get real chum.

They've never been more "popular". Something like half of all FTBers are on IOs.

They should be banned.

If you can't afford a repayment mortgage you can't afford to buy the place in the first place.

Inflation ain't going to bail you out - that's why interest rates are so low.

And all this talk of housing being a long term investment - Again I make the point that many studies are pointing to a long, slow fall in house prices from 2010 onwards as the boomers die off.

Yes, buy a place to live in. But don't buy one as an investment. Crazy.

moneywise_2

Hi just want to remind you .. there are actually 2 ways to save more money .

1. one is to keep your expenses very low which i am sure you already expert in that .

2. is to increase your income . try all your possible extra time to find out the ways to earn more .

I think the second one alot of people forgot and they didn't want to find out more way to earn money except working for someone which is their JOB !

hyposmurf wrote:

I spent the past 3 years in a desperate attempt to save for my mortgage deposit.That meant living with my parents until I was 30 and the majority of my friends are in similar suituations.I wouldve laughed if you had said Id have been at home with them until I was 30 say 10 years ago,but the reality is that even if youre a couple looking for a new place you will have to save for a deposit for a number of years and the first time places around my area are about £150000-£160000.
I had to literally spend three years not having much of a life,rarely going out,not buying any new clothes,cheap holiday and looking at every possible way to save money.But it was dam well worth it.Living with my parents wasnt ideal but you have to overlook that and focus on what is important to you in the long term.
With property price increases this year alone, my own property may have increased about £6000 in just over 4 months.How on earth would I have managed to save that extra for my deposit, it just wouldnt have happened.

Its possible the market maybe slow down somewhat so that first time buyers can get on the ladder.Youve only got to look at the amount of new property being built.There are more and more new schemees the goverment are introducing to.

I'd be quite fed up renting all my life.Youre restricted as to what you can do with the peoprty/possibly have to share it with other tenants.Also having your home as an asset is valuable.Paying rent into old age isnt that amazing.

moneywise_2

happenstance wrote:

Erm I dont live with my parents, moved out the week before my 18th birthday and never looked back. I'm just able to still have nice holidays (Thailand & India last year so far this year Cambodia) and great meals out and save money.

I think the way to go is to save money until the House market crashes ! as a lot of us know that 30 years is long time to plan and predict .. so just live your life and wait till house price go down a bit or a lot then jump in and buy 2 houses .

in the mean while you save all the interest for bank and have 2 houses.

tomstickland

People are "moving away from IO mortgages"? Get real chum.

They've never been more "popular". Something like half of all FTBers are on IOs.

They should be banned.

I agree that IO mortgages seem like a bad idea. How are these people going to repay the debt? I wouldn't be happy at all knowing that I was only "renting the loan" as it were.

Woby_Tide

moneywise wrote:

I think the way to go is to save money until the House market crashes ! as a lot of us know that 30 years is long time to plan and predict .. so just live your life and wait till house price go down a bit or a lot then jump in and buy 2 houses .

in the mean while you save all the interest for bank and have 2 houses.

yes everyone, wait till houses crash 40% then buy two, and an aeroplane, and a sports car


AND THE BIGEST ICE CREAM IN THE WORLD

(in the meantime take advantage of the 4% interest on offer at your local friendly bank)

nelly_2

Woby_Tide wrote:

yes everyone, wait till houses crash 40% then buy two, and an aeroplane, and a sports car


AND THE BIGEST ICE CREAM IN THE WORLD

(in the meantime take advantage of the 4% interest on offer at your local friendly bank)

But what if that 4% goes up and houses go down wouldnt it have been much better to wait?

Especially as it seems every countries rates are going up the US by 500% of the last 16 months japan the other day the EU are about too, oh and Iceland whoever thay are?

meanmachine_2

It's very easy to ignore risk in any part of life. I guess it's what makes us human. We ignore the errors of the past.

I was reading a piece in the Mail today and the platitudes being churned out right now - boom time for punters, low interest rates, stability, no more busts - were being said in the early 70s.

I spoke to a chap a few weeks ago who claimed the stock market this year would continue to climb to 8000. He had massively downplayed the risks in the market. He had "tuned them out".

Forget the 70s, today feels eerily like the late 80s. Again, it was presumed that this time we'd "got it right" and that the good times would keep rolling.

According to rightmove, last month the ave house went up by 4,000K. I'd need to be earning 80K a year to be able to keep up with that.

All good things come to an end. And this boom is no different.

Just make sure you haven't borrowed too much when it all turns sour.

Tiggs_2

moneywise wrote:

Hi just want to remind you .. there are actually 2 ways to save more money .

1. one is to keep your expenses very low which i am sure you already expert in that .

2. is to increase your income . try all your possible extra time to find out the ways to earn more .

Agree, when i last moved my IO mortgage was £260k so i considered knocking back my expenses and paying it off ASAP......but in the end i just worked harder and now i earn nearly that in a year i no longer need to worry about the mortgage as my money makes more than the interest on it and the amount (relative to earnings) is no longer a big risk.

i choose to be a moneymakingexpert instead of a moneysavingexpert

meanmachine_2

Yeah, that last post convinces me more than ever that we're back in 80s territory.

Looaaaddsamonnneeeey!

Tiggs_2

meanmachine wrote:

Yeah, that last post convinces me more than ever that we're back in 80s territory.

Looaaaddsamonnneeeey!

sorry, but at least it contrast with 1940's depression feeling that you have drummed up