HPC bears waking up to reality

chucknorris

Thrugelmir wrote: »

Borrowing on only 3 times salary demonstrates somebody with financial sense. Not like the millions who have over extended and will now spend their working lives repaying debt (that they should never of been allowed to borrow in the first place).

It's not as simple as that you are ignoring both timing of the market and your career stage and (long term) interest rates.

For example borrowing 3 times salary at a historically high price in terms of affordabilty at atime of high interest rates when you have reached the peak of your career is NOT preferable to say borrowing at 4 times salary when say just graduated a few years ago and anticipate major salary growth following career progression and just after a property recession (correction of prices) in times of low interest rates.

Blacklight

chucknorris wrote: »

It's not as simple as that you are ignoring both timing of the market and your career stage and (long term) interest rates.

For example borrowing 3 times salary at a historically high price in terms of affordabilty at atime of high interest rates when you have reached the peak of your career is NOT preferable to say borrowing at 4 times salary when say just graduated a few years ago and anticipate major salary growth following career progression and just after a property recession (correction of prices) in times of low interest rates.

Exactly. I see nothing wrong with a first time buyer starting out in a professional career borrowing as much as they can get their hands on knowing full well that there's some really healthy pay rises well in excess of normal wage inflation just around the corner.

System

Bears will be extinct soon

chucky

nice one daddybear - hope it all goes well for you...

Blacklight

June 3 (Bloomberg) -- U.K. house prices rose to the highest in almost two years in May

According to their own analysis it's time to buy:



Fair play to them, they're staying true to their word and getting in now.

DaddyBear

Joeskeppi wrote: »

Bears will be extinct soon

I'm still quite bearish. I've not yet worked out whether I'm a bullish bear, a bearish bull or just confused.

andrewmp

I bought a house in 2008, despite thinking prices would fall over the following 2 years. Obviously that hasn't happened now. I'm still expecting prices to fall but it seems they might now stagnate and inflation will make prices more affordable.

I paid 15% less than the same house sold for in 2004 though, hopefully I won't end up in too much negative equity, fingers crossed.

Blacklight

• Dr Renter (joined 18/11/08) So that's the story, we moved in 2 weeks ago and it's job done.
• James Toney (joined 07/10/05) i agree with all your points, and i think more and more people are changimg their minds about it all. i too am only giving it until the end of the year.
• okaycuckoo (joined 24/06/07) Won't be surprised if it turns out to be a wise decision
• lulu (joined 30/03/06) Personally I think you have made a good move, prices are seriously overvalued but I am now getting round to the believe that they really are not going to fall.
• the stig (joined 01/12/07) Similar story for us. Bought at a decent discount. Life must go on.
• magneticworld (joined 13/11/08) It is a wide spread feeling i.e. patience running out etc etc and jumping in. I'm tempted too....
• richyc (joined 19/11/08 ) We were just about to exchange in de08/jan09 but let the place go. I would have been buying at the bottom, had a lifetime tracker rate of BOE +0.5% and would have saved a lot of money.
• cupidstunt (joined 20/10/05) I bought at the end of last year, for fairly much the same reasons.
• Bug16 (joined 07/09/06) I'll raise my head above the parapit and admit that I also recently bought a house, for similar reasons to the OP. In fact I moved into the property over the Bank Holiday.
• The Masked Tulip (joined 23/08/04) Wish I had bought 2.5 years ago now
• Bloo Loo (joined 27/08/07) Ill buy if I can be bothered
• JamesLondon (joined 17/05/10) Agree with all the reasons and it's the same boat I consider myself in except we haven't found the right house.
• Mrs Bear (joined 17/04/08) we might well take the Mr B line and say, f*ck it, just do it.
• onlybone1 (joined 24/01/08) Agree with most of the comments made. If you are buying now, and I am trying. You need to eek out motivated sellers

Interesting comments. A lot of people seem to have turned a corner all of a sudden.

chucky

i'm just waiting for Bruce Spanner to see the error of his ways - that will be amusing

chucknorris

chucky wrote: »

i'm just waiting for Bruce Spanner to see the error of his ways - that will be amusing

Who's he? is he a diehard bear over on the housecrash website?