MSE News: Nationwide: House prices creep up 0.7% in March

Conrad

DaddyBear wrote: »

I believe that current lending is normal, with people expected to save up deposits and take out affordable mortgages on proven salaries.

See, this is an example of academic style reasoning. All works on paper but somehow misses the real world pulse, I'll explain.

Prior to self cert mortgages and buy to let people had thier boss write a letter to 'help' them with the mortgage application.

Instead of buy to let, people in thier droves simply bought a second property supposedly to live in but then 'changed thier mind' and were forced to let it. I worked the Enfield / Palmers Green area in the late eighties and early 90s and I can tell you for certain every Greek person I ever met had a string of properties this way. In time the rest of us caught on.

Human beings will always have thier way regardless of what planet the academics inhabit.

Conrad

Percy1983 wrote: »

Eitherway the government can't keep it afloat forever.

The Great British public will ensure rising prices, afterall many of us use HPI for retirment when we downsize and release all that tax free capital.

Pensions are for Germans:eek:

When_is_the_reset?

Blacklight wrote: »

It prevents all the people who have bought property within the last say, ten years from going into negative equity. Some people think having most of the country owing more than they can sell their house for is a good thing.

Personally I think these people are greedy and looking for a bargain buy at others expense because they either can't be bothered to work for something, or they feel they're owed a fortune for nothing.

They are not the sort of people I want to help.

It prevents all people who have bought within the past ten years at stupidly high LTVs from going into negative equity.

Anyway, I am not sure why negative equity is so bad. Living in a house and being able to afford the mortgage and having a bit of spare cash to enjoy yourself is separate from whether you have a low LTV figure. If prices drift down then what the hell.

Wanting prices that require you to use a large percentage of your income is just plain strange.

Unless you are in it for a profit - then you are a professional and should know better than to use leverage at high LTVs. Perhaps it would be best to get a job instead.

nollag2006

Shame that we didn't get into double digit growth YOY yet.

Still, with the drop in stamp duty for FTBs kicking in, along with the usual pick up in Spring activity - we hopefully should get it over the line for 10% YOY next month.

Wow, the bears would be livid with that !!!!

nollag2006

Conrad wrote: »

Tis because you mgiht have overlooked THE key factor that 'experts' miss time and again; Brits are abandoning pensions and tradional packaged investments in favour of bricks, and yes for the zillionth time they can downsize for a tax free sum at retirment.

Time and again this is overlooked.

Excellent point Conrad

Emy1501

Conrad wrote: »

The Great British public will ensure rising prices, afterall many of us use HPI for retirment when we downsize and release all that tax free capital.

Pensions are for Germans:eek:

This is the problem though Conard that many of you can't understand. Aprrovals are 48K when they should be around 100K. The BOE have said mortgages will not be readily available and Kate Barker said recently this will be a problem.

So where is all this money going to come from to support 100K+ mortgages a month which will allow all those who will soon need to sell to fund their retirement. People are going to realise that they need to sell to release equity.

Wihilst there will always be those who can beat the system with liar loans etc these will be few and far between over the next few years

Graham_Devon

Good to see you so active on this thread Hamish. The last 2 house price index threads you didn't seem to partake in

Percy1983

As it is I am looking at a 90% mortgage, as for if I end up in negative equity, so be it. I am looking at houses which have the room for the family I have planned so being 'stuck' isn't too much of a problem.

All I am concerned about is getting a house to live in, with rising prices that may become impossible for many more as time goes on.

I have a mate who bough in the peak with a 115% mortgage, he is very much stuck and his house is worth less now than it was... does he care? not really but he will admit he wishes he waited a bit longer as I will be in a much better position than him.

Are houses investments or homes?

If its an investment it should be taxed heavily to bring it inline with other investments.

As much as the bulls don't care, do they not consider every 'investment' they make is potentially denying a family a home.

Harry_Powell

Percy1983 wrote: »

As it is I am looking at a 90% mortgage, as for if I end up in negative equity, so be it. I am looking at houses which have the room for the family I have planned so being 'stuck' isn't too much of a problem.

All I am concerned about is getting a house to live in, with rising prices that may become impossible for many more as time goes on.

I have a mate who bough in the peak with a 115% mortgage, he is very much stuck and his house is worth less now than it was... does he care? not really but he will admit he wishes he waited a bit longer as I will be in a much better position than him.

Are houses investments or homes?

If its an investment it should be taxed heavily to bring it inline with other investments.

As much as the bulls don't care, do they not consider every 'investment' they make is potentially denying a family a home.

Anyone who spends more than £100k on something and hopes it loses money is a fool.

Anyone who buys a home and doesn't view it as an investment for himself and his family is a fool.

I'm sorry but it's as simple as that for me.

Conrad

Emy1501 wrote: »

So where is all this money going to come from to support 100K+ mortgages a month

I'm finding a heck of a lot of buyers are getting parental help, who themselves are releasing equity - why not - it's free market given money anyhow, so may as well pass some on to your loved ones.

As for liar loans - we've always had them. The last 10 years these were fomalised as self cert. The self cert title has gone but that wont for a moment deter people - they are simply reverting to type just as they always did.

I kid you not, I had a political speech writer in recently and even she had had to 'bring forward' a supposed payrise which a lender accepted on the back of an employers letter. Now I trust the letter was done by HR but for all we know she wrote it herself.

Never underestimate Human will.