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Debate House Prices
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Why are posters so Obsessed with House Prices?
Comments
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Agree with you here - I think the big problem is that very few have the money needed for deposit to enable them to weather any potential interest rate increases over next five or years if they didn't fix (which, of course, increases the interest rate you pay).just thinking about this... isn't it better to know what rate you'll be getting upfront for those 5 years instead of taking the risk in 5 years time?
so for example
buy now = 5 years (known interest rate) + 20 years (unknown interest rates) + fixed property price
or
delay by 5 years waiting for prices to drop = 25 years (unknown interest rates) + uncertain property price
we won't know which is better but i think you'd go for the first one (i would) if the property price was right.30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.0 -
it sort of fits in with what you said in a previous post which i agree with tooAgree with you here - I think the big problem is that very few have the money needed for deposit to enable them to weather any potential interest rate increases over next five or years if they didn't fix (which, of course, increases the interest rate you pay).
the only ones that 'could' miss out are those that have the required deposit amount and could purchase property now.Who is missing out on the record low interest rates?0 -
While I agree with that in part, end of 2008 - 2033 will likely be the lowest IR base rates on average ever recorded.
Between 1685 and 1839 interest rates didn't go above 5.5% (or below 3%).
Between 1867 and 1872 they were mostly 2.5% to 2.5%, hitting 5% for a couple of months.
Between 1883 and 1889, they didn't go above 5%, mostly a lot less.
1891 to 1899, they didn't go over 5%.
1922 to 1929, didn't top 5%
The rate stayed unchanged at 2% from June 1932 to August 1939, then rose to 4% for a month, then 3% for a month, then back to 2% until November 1951.
So they'd have to stay very low indeed to beat the average interest rate ending in the early 1950s, which was 2% almost all the way....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
Who is missing out on the record low interest rates? Nobody can get any near 4.5% without 35%+ deposit and with 10% you're looking at 6%.
Most people, who are wanting to buy, are just saving as much as they can in order to get the bigger deposit.
3 years ago, I could get a 125% mortgage at 5.8% fixed.
Look at these interest rates
http://www.propertyinvestmentproject.co.uk/property-statistics/interestrates.php
In April 1990 interest rates were 15%.In 1985 interest rates were similar.0 -
what a great comparison...neverdespairgirl wrote: »The rate stayed unchanged at 2% from June 1932 to August 1939, then rose to 4% for a month, then 3% for a month, then back to 2% until November 1951.
So they'd have to stay very low indeed to beat the average interest rate ending in the early 1950s, which was 2% almost all the way.
rates were averaging 2%-3% after the worst economic crisis in the 1930s and tragedy of a world war...
we've just had the worst economic crisis since then so rates should be at the same or similar levels... or it's different this time (thought so)
where are those people that think that rates will go up above 3%...0 -
neverdespairgirl wrote: »Between 1685 and 1839 interest rates didn't go above 5.5% (or below 3%).
Who set the rates back in 1685?0 -
Isn't this a little like going to the football365.co.uk website and asking why they don't discuss the cricket for once?
Na it's more like going to football365.co.uk and asking why they are always talking about football.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
borntobefree wrote: »Is that 5% versus 0.2%? Then obviously sofa A is cheapest 'cos the total cost is £605 vs £714.
But it's more like this
Sofa A costs £600 at 4% = £604
Sofa B costs £570 at 6% = £604
The 5% drop in the cost of the sofa is equal to the 2% extra in interest.
Good, I'm glad you said that.
You have changed the purchase price, to a lower price, to make your point.
See why the purchase price matters now?! You HAD to change the purchase price to make your point.0 -
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Graham_Devon wrote: »Good, I'm glad you said that.
You have changed the purchase price, to a lower price, to make your point.
See why the purchase price matters now?! You HAD to change the purchase price to make your point.
Do you see why the interest rate matters or are you still in denial?0
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