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Buyers Are Rushing To Buy Properties Now - Times Newspaper Today
Comments
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Hi,
Well, this is what actually seems so good as, the resource you provided is what actually worth for all of us and I will definitely let this know to everyone.
Thanks!0 -
breadlinebetty wrote: »Look love, you don't understand economics do you?:money:
A fixed rate mortgage will stay FIXED. A £1000 repaymrnt now will be the equivelant to about £100 in 25 years! But RENTS will RISE! I thought everyone knew that!
While I tend to agree, I think you are over-simplify things.
You are assuming the next 25 years will be the same as the previous 25 years. In the 80's we had high inflation and high interest rates, which is very different to today. Inflation is currently 1.5% - if it stays like that your £1000 repayment will still be the equivalent of close to £700 in 25 years time.
Rents are related to house prices. However there is also a supply-and-demand factors: the rental market is being buoyed by lack of FTB finance and general uncertainy. In real terms, rents may well reduce in the near & medium term.0 -
And they may not!
You're just guessing, and trying to look 25 years ahead is nigh impossible. You can only go by history and common sense - in the long term prices always rise. Always has and always will.0 -
breadlinebetty wrote: »Look love, you don't understand economics do you?:money:
A fixed rate mortgage will stay FIXED. A £1000 repaymrnt now will be the equivelant to about £100 in 25 years! But RENTS will RISE! I thought everyone knew that!
Sorry to spoil it for you, but salary inflation does not run at 8-15% like it used to. 2% has been more typical in recent years, and we're now looking at 0% or less (earnings falling) in the near future. The mortgage burden will certainly ease over 25 year, but not to peanuts like you claim. At least my economics are in the right era.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
breadlinebetty wrote: »And they may not!
You're just guessing, and trying to look 25 years ahead is nigh impossible. You can only go by history and common sense - in the long term prices always rise. Always has and always will.
I'm sure the japanese used to think that house prices always went up until they experienced 15+ years of price deflation.
Now I'm not saying we are going down the same road but to predict the future based on what's happened in the past is a risky business.0
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