Reposessions fall to two year low, mortgage arrears also decreasing

IveSeenTheLight

DaddyBear wrote: »

That episode was set in my locality. She and her husband were living in a dream world. They had been looking for TEN YEARS

The positive aspect is that they had finally realised that they needed to adjust their expectations

Thrugelmir

RenovationMan wrote: »

I'm using my current home as part of my pension as I'll be downsizing when I retire to release tax free equity that I can then use to buy a smaller home

You are not alone. Their is whole a generation who prefer property to other investments, and are banking on ever rising house prices. So downsizing may not bring the return you are hoping for.

RenovationMan

Thrugelmir wrote: »

You are not alone. Their is whole a generation who prefer property to other investments, and are banking on ever rising house prices. So downsizing may not bring the return you are hoping for.

I suppose if people stop wanting to buy houses, then they will start to lose their value, but that's the same with any market and any investment. I certainly haven't seen any evidence that UK citizens have moved away from wanting to own their own home, have you?

chucky

RenovationMan wrote: »

I suppose if people stop wanting to buy houses, then they will start to lose their value, but that's the same with any market and any investment. I certainly haven't seen any evidence that UK citizens have moved away from wanting to own their own home, have you?

we're a long way from anything like that going to happen - where are all of these people going to live?

RenovationMan

chucky wrote: »

we're a long way from anything like that going to happen - where are all of these people going to live?

That's what I was wondering, it also seemed a strange statement to say that I may not get returns from an investment because a lot of people are also investing in the same market. Surely it's safer to invest in a larger market than a smaller one?

Thrugelmir

RenovationMan wrote: »

I suppose if people stop wanting to buy houses, then they will start to lose their value, but that's the same with any market and any investment. I certainly haven't seen any evidence that UK citizens have moved away from wanting to own their own home, have you?

Thats not the issue. People want lots of things. However they spend what they can afford.

It may take a decade for the impact of the collapse of the banks, and tightening of capital regulations to be reflected truly in the residential propery market.

Certainly the new bank levy announced in the budget. Is a direct tax on the method by which the failed banks raised capital finance. Banks can either absorb it or pass it on.

IveSeenTheLight

Thrugelmir wrote: »

Thats not the issue. People want lots of things. However they spend what they can afford.

They certainly do and I would hazard a guess that having a place to live is THE most important thing people will prioritise on.

You can always cut back on going out, having takeaways, smoking, drinking etc etc etc.
In fact there are so many things you can cut back on that these will be hit before mortgages or rent will suffer.

In fact there could be an argument that it is good MSE to secure your property debt sooner rather than face increases (either via mortgages or rent) later.

Thrugelmir

IveSeenTheLight wrote: »

They certainly do and I would hazard a guess that having a place to live is THE most important thing people will prioritise on.

That's different to buying the most expensive property you can buy (with the aid of leveraging), in the expectation that it will produce an exceptional investment return.

The first rule of investments is that (unless guaranteed) their value will rise and fall.

Buying a more modest property, which is adequate for need and cost efficent , is a totally different scenario.

RenovationMan

Thrugelmir wrote: »

Thats not the issue. People want lots of things. However they spend what they can afford.

It may take a decade for the impact of the collapse of the banks, and tightening of capital regulations to be reflected truly in the residential propery market.

Certainly the new bank levy announced in the budget. Is a direct tax on the method by which the failed banks raised capital finance. Banks can either absorb it or pass it on.

I'm sorry, but now I'm really confused. Are you saying that my property will be worth less in 10 years time than when I bought it a month ago?

Actually, I will be looking to sell and downsize in about 15 to 20 year's time, so are you saying that my hope to downsize and release capital will not be realised over that timeframe either?

Thrugelmir

RenovationMan wrote: »

I'm sorry, but now I'm really confused. Are you saying that my property will be worth less in 10 years time than when I bought it a month ago?

Actually, I will be looking to sell and downsize in about 15 to 20 year's time, so are you saying that my hope to downsize and release capital will not be realised over that timeframe either?

How much interest are you budgeting on paying, to acquire your investment? As I saw your post on having an interest only mortgage.

Also the true profit isn't calculated merely on the difference between the original buying and final selling price.