Reposessions fall to two year low, mortgage arrears also decreasing

IveSeenTheLight

Thrugelmir wrote: »

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.

I don't believe it is different.

When I bought, I stretched myself to the most I could afford, realising that through time, the payments become easier and I got on to the 'ladder' as high as I could.

The property could have lasted me a lifetime, hence the saving by securing the debt which would not increase.

If I had bought a smaller, more affordable property, I would have needed to move again ultimately requiring to pay even more (or take on even more debt) for the property

Thrugelmir

IveSeenTheLight wrote: »

If I had bought a smaller, more affordable property, I would have needed to move again ultimately requiring to pay even more (or take on even more debt) for the property

Not neccesarily. If you paid the same amount into the mortgage on a smaller property as the larger one. Then you'll have repaid capital at a far quicker rate and incurred far less interest. Together with lower running costs of the property which could have been used to repay the mortgage quicker.

RenovationMan

Thrugelmir wrote: »

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.

This isn't a buy to let, this is our dream home, and so how do I put a price on sitting in a nice private garden with the kids, having a beautiful home in a nice, safe area with great schools and nice children for my kids to play with and grow up with. I could go on.

To get back to the original point I was making because we seem to have gone off at a strange tangent (probably because you like to answer a question by posing an unrelated question), I intend my house to be part of my pension in as much that when I downsize from a large family home, to a smaller cottage, it will release tax-free cash that I can then use to supplement my retirement income.

You seemed to imply that I wouldn't be able to downsize from my large home into a smaller home and release tax-free cash to supplenment my retirement income. How can this be?

chucky

IveSeenTheLight wrote: »

I don't believe it is different.

When I bought, I stretched myself to the most I could afford, realising that through time, the payments become easier and I got on to the 'ladder' as high as I could.

The property could have lasted me a lifetime, hence the saving by securing the debt which would not increase.

If I had bought a smaller, more affordable property, I would have needed to move again ultimately requiring to pay even more (or take on even more debt) for the property

you've saved yourself another set of transaction costs, stamp duty etc...

by no means it means that you're better off but it doesn't mean your worse off as some try to make people think.

each individual case is different and is not black or white like it is painted.

property will be higher in value in 10 and 15 years - fact.

Thrugelmir

RenovationMan wrote: »

This isn't a buy to let, this is our dream home, and so how do I put a price on sitting in a nice private garden with the kids, having a beautiful home in a nice, safe area with great schools and nice children for my kids to play with and grow up with. I could go on.

That's personal justification for your decision. Absolutely nothing wrong in that.

However investing should be made from the head not the heart.

To get back to the original point I was making because we seem to have gone off at a strange tangent (probably because you like to answer a question by posing an unrelated question

In my first finance job, I was taught and trained to look at the wider picture, never to be constrained by narrow vision. Many factors inter link to impact on the property market. Nothing stays the same for ever. And now is one of those lifetime changing era's.

hethmar

What I cant understand is if houses are so unaffordable, why on earth are we in this area inundated every week with builders applying to build new estates on green land? There are applications in totalling 6000 houses around my small country market town. If there is no one able to buy, why are these companies scrabbling to get permission then?

lvader

Interest rates are going nowhere, any idea of putting them up will have disappeared after the emergency budget.

Thrugelmir

hethmar wrote: »

What I cant understand is if houses are so unaffordable, why on earth are we in this area inundated every week with builders applying to build new estates on green land? There are applications in totalling 6000 houses around my small country market town. If there is no one able to buy, why are these companies scrabbling to get permission then?

Sounds as if you live in a desirable area.

Round here there has been a general slow down, as the area was ear marked for thousands of new houses under Labour plans. Trouble is jobs have been lost and new opporunities are far and few between. So fewer people are moving into the area. So demand has dropped away.

Though its the newer shoe boxes that are suffering with price falls rather than the older established areas.

Thrugelmir

lvader wrote: »

Interest rates are going nowhere, any idea of putting them up will have disappeared after the emergency budget.

Why? Whats changed.

hethmar

Thrugelmir wrote: »

Sounds as if you live in a desirable area.

Well, it WAS desirable We have seen so much building in the last 25 years its become a sprawling dormitory town rather than the beautiful little country town it was.

And they arent just building the tiny Barrett type jobs, I mean they are three storey, 4 bedroom places. Prices start at about £200k and upwards. Cant make it out at all.