Why are posters so Obsessed with House Prices?

borntobefree

I have never understood why the posters on this board and HPC are so obsessed with house prices, since the "actual cost" of a home is only a percentage of the total real cost.

For Example

Cost of house 200,000
int at 5% 25yrs 150,754
Total Cost of home £350,754


Cost of home 200,000
int at 2% 25 yrs 54,313
Total cost of home £254,313


Saving £96,441 from LOW INTEREST RATES!

http://www.guardian.co.uk/money/mortgage-calculator

Interest rates have never been so low! Why are you all so obsessed with house prices?

chucky

because it passes the day in a very dull office winding up a monkey sitting at his computer screen in devon or even wigan

borntobefree

Just for the record I have a tracker that is less than 1% which for the above example house only cost £226,122! a saving of £124,632 over an interest rate of 5% more than half the vaue of said house.


Cost of house 200,000
int at 5% 25yrs 150,754
Total Cost of home £350,754


Cost of home 200,000
int at 1% 25 yrs 26,122
Total cost of home £226,122

doire_2

borntobefree wrote: »

I have never understood why the posters on this board and HPC are so obsessed with house prices, since the "actual cost" of a home is only a percentage of the total real cost.

For Example

Cost of house 200,000
int at 5% 25yrs 150,754
Total Cost of home £350,754


Cost of home 200,000
int at 2% 25 yrs 54,313
Total cost of home £254,313


Saving £96,441 from LOW INTEREST RATES!

http://www.guardian.co.uk/money/mortgage-calculator

Interest rates have never been so low! Why are you all so obsessed with house prices?

They wont stay low for 25 years

Graham_Devon

A tracker will also go up in line with base rates.

There is certainly no point in calculating it over 25 years.

1984ReturnsForReal_2

Cost of House £300,000
Cash in House £200,000

Interest on cash in house
Year 1 -10%
Year 2 +2%
Year 3 -5%............................. Get it?

Really2

doire wrote: »

They wont stay low for 25 years

While I agree with that in part, end of 2008 - 2033 will likely be the lowest IR base rates on average ever recorded.

Blacklight

borntobefree wrote: »

I have never understood why the posters on this board and HPC are so obsessed with house prices, since the "actual cost" of a home is only a percentage of the total real cost.

For Example

Cost of house 200,000
int at 5% 25yrs 150,754
Total Cost of home £350,754


Cost of home 200,000
int at 2% 25 yrs 54,313
Total cost of home £254,313


Saving £96,441 from LOW INTEREST RATES!

http://www.guardian.co.uk/money/mortgage-calculator

Interest rates have never been so low! Why are you all so obsessed with house prices?

The really amusing part of it is that the people who want house prices to come down are praying that interest rates rise in order to do so.

I share your baffledness.

chucky

Blacklight wrote: »

The really amusing part of it is that the people who want house prices to come down are praying that interest rates rise in order to do so.

I share your baffledness.

it's even more ironic is that it's the same ones that claim that mortgage rates are expensive and should come down are the same ones that want savings rates to be higher...

they live in cuckoo land...

Graham_Devon

chucky wrote: »

it's even more ironic is that it's the same ones that claim that mortgage rates are expensive and should come down are the same ones that want savings rates to be higher...

they live in cuckoo land...

Blacklight wrote: »

The really amusing part of it is that the people who want house prices to come down are praying that interest rates rise in order to do so.

I share your baffledness.

Who are you trying ton convince? Apart from yourselves.

Lower prices even with average interest rates works out cheaper in the long run. Simple as that. It also works for more people, instead of a few.

borntobefree

So on a £200,000 mortgage this is the interest you pay over 25 years

1% £26,122
2% £54,313
3% £84,526
4% £116,701
5% £150,754
6% £186,580
7% £224,068
8% £263,089



So what matters more - the cost of the house or the interest rate you pay on your mortgage?

The difference between the 1% and the 8% is more than the purchase price of the home!