Mortgage fraud

chucky

Cleaver wrote: »

Is there another angle?

A house is worth £40k. It rises in value by 4% a year, and in ten years it's worth £80k.

Not sure where you get a 10% yearly figure from?

i'd leave it Cleaver - you have the patience and the tolerance of a saint... but some people just aren't worth saving...

Cleaver

Graham_Devon wrote: »

Correct, if you are looking at it from a different angle, i.e, looking ahead.

But what was said was looking backwards. Not forwards.

I think we all know we are simply creating arguments here though by purposely looking at it from a different viewpoint to make a point.

I think you're ace Graham.

1984ReturnsForReal_2

lets all argue about maths involving house price inflation on a mortgage fraud thread....

Graham_Devon

Cleaver wrote: »

Is there another angle?

A house is worth £40k. It rises in value by 4% a year, and in ten years it's worth £80k.

Not sure where you get a 10% yearly figure from?

Parents bought a house in 1997. They paid 50k.

They sold for 320k in 2007.

(This is real by the way).

On the price they paid, how much "profit" in percentage did they make...

Now, average that out over the 10 years.

This is what people are talking about when they flippantly state "house went up 200%, thats 10% a year". It's just simple averages. It's not dissected to death in the real world as people have no need to get one over on each other.

Cleaver

Graham_Devon wrote: »

Parents bought a house in 1997. They paid 50k.

They sold for 320k in 2007.

(This is real by the way).

On the price they paid, how much "profit" in percentage did they make...

Now, average that out over the 10 years.

Ahh, I'm only having fun Mr Devon. I actually have no idea if my maths is correct, it's like going back to GCSE days.

I reckon that their house went up, on average, 18.39% each year during the ten year period. Their house increased in value by 6.4 times. Christ, where was this house?

Do I win a prize? Is there anyone who understands maths that can mark this? I can show my working if needs be...

Emy1501

HammerSmashedFace wrote: »

It never ceases to amaze me that people will lie to take on debt, to pay for something that is way over-valued.

Never underestimate the stupidity of people.

I know someone who took out a liar loan in 2004 sold in 2007 for about a 300K profit. Moved somewhere else and bought pretty much mortgage free.

I suspect there are still people who believe in the wilson theory of house prices double every 7 years

Graham_Devon

Cleaver wrote: »

Christ, where was this house?

Devon.

My working life started in 1998. Could explain my views on HPI and why I'm in Shared Ownership

Cleaver

Emy1501 wrote: »

I suspect there are still people who believe in the wilson theory of house prices double every 7 years

Someone posted a link to this Love Money article before, but it has a look at this myth.

This article shows that property prices only doubled on 22 seven year periods out of a total of 49 up to 2007. I would imagine that even with the recent falls, this would now be 24 out of 51 periods. Can't see there being another 'double in seven year period' for quite a while though.

They also state that property prices would need to increase 10.4% a year for property to double every seven years, but the compound rate since 1952 is 'only' 8.7%.

nearlynew

inflation is theft

debt is not wealth

Cleaver

nearlynew wrote: »

inflation is theft

debt is not wealth

slogans are pointless

tea is not coffee