Housing Affordability has peaked, now decreasing

jojo1964

treliac wrote: »

High demand for housing doesn't necessarily translate into ability to buy, either for self or as BTL. I doubt the influencing factors as you perceive them.

The fact that most people have been largely unaffected by recession currently is, imo, down to the govt's artificial propping up of the economy. That will change.

Of course, there will always be winners and losers but I think the winners will be fewer and fewer as we go ahead.

It would be interesting to know how many have really benefited from lower interest rates and, of those who have, how many have used the money to put themselves in a stronger position for the future.

I dont disagree with your point about the govt. propping up the economy, and expect to be taxed to the hilt for the rest of my working life to pay for it, but my tax would have to rise by almost £100 a week just to counteract the decrease in my mortgage payments, and i expect increases to be through indirect taxation such as fags and booze, so it will be my choice as to whether or not i pay the extra.

Although i dont expect interest rates to stay as low as they are for more than another 12 months.

chucky

Graham_Devon wrote: »

Bingo!

Ridiculous prices.

The demand argument has been pushed so far, that some were even talking of 50 year mortgages. Thats all fine and lovely, but when you have these places just sititng here, and it will be the same all over the country, I cannot relate to the supply and demand (and supply being too low) being the be all and end all.

agree Graham; you need to look at Aggregate Demand - the total for demand for property in a period of time and price level adding credit availablity to that.

Graham_Devon

jojo1964 wrote: »

I dont disagree with your point about the govt. propping up the economy, and expect to be taxed to the hilt for the rest of my working life to pay for it, but my tax would have to rise by almost £100 a week just to counteract the decrease in my mortgage payments, and i expect increases to be through indirect taxation such as fags and booze, so it will be my choice as to whether or not i pay the extra.

Yes, but tax will rise for a long time, i.e, once the rises have come in, they won't fall again very soon after.

In the meantime, your mortgage may go up if rates go up. I'd be willing to place a hefty bet that rates will go up before taxes come back down.

That's when we all become poorer.

Now, today, is fine. But today we have it possibly the easiest we will have it for a very long time.

jojo1964

Graham_Devon wrote: »

Yes, but tax will rise for a long time, i.e, once the rises have come in, they won't fall again very soon after.

In the meantime, your mortgage may go up if rates go up. I'd be willing to place a hefty bet that rates will go up before taxes come back down.

That's when we all become poorer.

Now, today, is fine. But today we have it possibly the easiest we will have it for a very long time.

I added that i expect IR to rise, possibly as you were posting, and yes i expect to pay heavily over the next two decades.

treliac

jojo1964 wrote: »

I dont disagree with your point about the govt. propping up the economy, and expect to be taxed to the hilt for the rest of my working life to pay for it, but my tax would have to rise by almost £100 a week just to counteract the decrease in my mortgage payments, and i expect increases to be through indirect taxation such as fags and booze, so it will be my choice as to whether or not i pay the extra.

Ah, well you see, my SVR didn't reduce much at all. Having said that I've now remortgaged - took advantage of a good 5 year fix earlier in the year. That, however, was only available to those with good credit histories.

Again I wonder, in this 'have it all society,' how many have gained and how many of those have been wise with their gains.

I also expect the mortgage rate to go up again in the not too distant future, alongside direct and indirect taxation.

jojo1964

chucky wrote: »

i didn't even notice the 1990s recession to even mention affected by it - luckily i haven't been and none of my family have been affected by this recession so i'm not sure about that.

So how many on here have been affected by the recession?

I live in the South East and work for a company still recruiting staff, not a specialist company in any way, have recieved pay rises every year, and personally know nobody who has been affected, job losses have been limited to the likes of Woolies, borders etc.

chucky

jojo1964 wrote: »

So how many on here have been affected by the recession?

I live in the South East and work for a company still recruiting staff, not a specialist company in any way, have recieved pay rises every year, and personally know nobody who has been affected, job losses have been limited to the likes of Woolies, borders etc.

to be fair and i hope that i'm not patronising or come across arrogant in any way but in the South East we are luckier than most being where we are. places like Swindon and parts of Wales are probably getting hurt hard at the moment.

jojo1964

treliac wrote: »

Ah, well you see, my SVR didn't reduce much at all. Having said that I've now remortgaged - took advantage of a good 5 year fix earlier in the year. That, however, was only available to those with good credit histories.

Again I wonder, in this 'have it all society,' how many have gained and how many of those have been wise with their gains.

I also expect the mortgage rate to go up again in the not too distant future, alongside direct and indirect taxation.

I was one of the extremely fortunate ones, who through luck am now paying .19% above base rate for my mortgage, giving me a rate of 0.69%, have had some bad luck through injury last year, but have come through mainly because of the low mortgage rate, so for me the recession has been a godsend, otherwise i would probably have lost my house by now.

treliac

jojo1964 wrote: »

I was one of the extremely fortunate ones, who through luck am now paying .19% above base rate for my mortgage, giving me a rate of 0.69%, have had some bad luck through injury last year, but have come through mainly because of the low mortgage rate, so for me the recession has been a godsend, otherwise i would probably have lost my house by now.

Well, good luck jojo - I wish you well.

All our stories are different, some win some lose........... guess life won't change there. We just have to do our best to put ourselves in as strong a position as possible.

jojo1964

treliac wrote: »

Well, good luck jojo - I wish you well.

All our stories are different, some win some lose........... guess life won't change there. We just have to do our best to put ourselves in as strong a position as possible.

In my case i won some (low interest rates), and lost some (illness), so if neither had happened i would be in no different position to the position i am in now.