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Debate House Prices
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Why are posters so Obsessed with House Prices?
Comments
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borntobefree wrote: »Do you see why the interest rate matters?
Yup, and never disagreed otherwise.0 -
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.
The interesting point is on that between 1932 and the early 1950's what kind of deficit where we running.
Perhaps that may be an indication of what happens to rates in times of massive government debt.
It is a fair bet to say they will most probably be the lowest for our life time at least, still possibly the lowest ever for a 25 year period (2008-2033).0 -
Originally Posted by borntobefree
Do you see why the interest rate matters?
so what you're saying now is that it's a good time to buy property on a good interest rate...Graham_Devon wrote: »Yup, and never disagreed otherwise.0 -
Thrugelmir wrote: »Who set the rates back in 1685?
the Bank of England from 1685 or so, but not on the govt's behalf, officially, until about 1870....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 -
where are those people that think that rates will go up above 3%...
In the next 20 years? Absolutely unknowable....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 -
It is a fair bet to say they will most probably be the lowest for our life time at least, still possibly the lowest ever for a 25 year period (2008-2033).
I think it's utterly, utterly impossible to make any guesses at all for what'll be happening in 20 years' time....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 -
neverdespairgirl wrote: »I think it's utterly, utterly impossible to make any guesses at all for what'll be happening in 20 years' time.
It's not impossible to make guesses, it would be impossible to give an 100% guarantee:)
That we have seen a base rate of 0.5% for nearly 2 years and not much indication it will be moving even up to 2014.
Add to that what you rightly pointed out rates remain low in times of massive budget deficit, I was just pointing out it was likely a safe bet.
I dare say if you asked on the odds on it (I presume some bookmaker would do it) the odds it being the lowest in our lifetime would not be worth betting on.
Lowest ever for a 25 year period, I would say you would still be looking at a poor return (4-1 or less)
There is no doubt in my mind base rate from late 2008-2033 will have been the lowest in our lifetime.
Another crash like this is unlikely to pan out while we are here (or at least interested:)) other crashes will happen but I doubt government debt will be allowed to get so out of control0 -
Whatever figures you come up with at different interest rates, they're always more favourable when the price is lower to start with."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
the OP didn't have a time machine to go back to 1991 to buy the property at a lower price - they were looking at now and they weren't looking at DFS sofas either...Whatever figures you come up with at different interest rates, they're always more favourable when the price is lower to start with.0
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