Irresponsible Borrowers

PasturesNew

darkblue wrote: »

But what do you expect from a country which boasts 50% of people having no pension pot.

That's me that is

StevieJ

Thrugelmir wrote: »

Because many people are vain and obsessed with material obessions and making money with the least possible effort.

.

Seems a reasonable obsession to me

Thrugelmir

StevieJ wrote: »

Seems a reasonable obsession to me

Though only a lucky few find the end of the rainbow.

dopester

PasturesNew wrote: »

I can answer this one ... as a single person who might have to buy a 4-bed detached house.

I don't want or need more than one bedroom. But, downstairs there are things I want.

I want a kitchen diner, a downstairs loo and a utility. Now, to get those, they'd also throw in a living room. Add that lot together for floorspace and upstairs you find four dinky sleeping areas.

I also want a garage, sidegate and shed. By the time a property's got those, it's usually detached.

So, you HAVE to get a 4-bed detached house, just to get the things you want.

They don't build many 1-bed places with: kitchen/diner, utility, downstairs loo, en-suite bathroom, garage, driveway, sidegate, garden shed ..... and if they did, it'd be probably pricier than a standard 4-bed house.

This post has been subconsciously bugging me for a few days. That is a surprising amount of 'want' from you PN. You might want all those things PN but surely you can compromise.

I can't get a lock on what your housing target is. It varies from some real extremes. Sometimes you suggest you only require a micro amount of space for your living arrangements, but when you come to buy you want a 4 bed house? Driveway, garage, utility room and shed.

With the best will in the world PN, I don't see you getting a great personal return if you have to pay out more, or borrow, for a house with kitchen diner. If an adequate house with a smaller kitchen costs you a lot less money. I know you're a whizz with the breadmaking, but somehow I'm not seeing you as a busy Masterchef.

Are you really going to pay a premium for all this "want" in a house just for you to live in? Is that really necessary for one person? (Even if we don't rule out you settling down with a Mr.Right in the future).

You've posted before you're highly self-reliant on making your own pension provision (above state pension). You've also hinted in the past you'd also like a home to assist you with bringing in an income, and I don't really blame you.

Such as that house you looked at where you considered living in the annex and renting out the main home part. I'm guessing this 4 bed house you "want" is pay some of its own way. Because otherwise why else the 4 beds and kitchen diner and all the other want things, just for you. I know I'm having to compromise.

Hope you decide and choose what is really best for you in the end.

MegaMiniMouse

ILW wrote: »

Plenty of people that took out mortgages they could not afford are being bailed out by various government schemes and ultra low interest rates.

The mortgage which I took out continues to be easily affordable.

The ultra low interest rates are in place because they are needed by the banks, who continue to charge prices similar to the prices they charged previously - that's why they are all suddenly making a profit!!!

MMM

PasturesNew

I'm female... of course I don't know what I want!!

dopester wrote: »

This post has been subconsciously bugging me for a few days. That is a surprising amount of 'want' from you PN. You might want all those things PN but surely you can compromise.

I can't get a lock on what your housing target is. It varies from some real extremes. Sometimes you suggest you only require a micro amount of space for your living arrangements, but when you come to buy you want a 4 bed house? Driveway, garage, utility room and shed.

With the best will in the world PN, I don't see you getting a great personal return if you have to pay out more, or borrow, for a house with kitchen diner. If an adequate house with a smaller kitchen costs you a lot less money. I know you're a whizz with the breadmaking, but somehow I'm not seeing you as a busy Masterchef.

Are you really going to pay a premium for all this "want" in a house just for you to live in? Is that really necessary for one person? (Even if we don't rule out you settling down with a Mr.Right in the future).

You've posted before you're highly self-reliant on making your own pension provision (above state pension). You've also hinted in the past you'd also like a home to assist you with bringing in an income, and I don't really blame you.

Such as that house you looked at where you considered living in the annex and renting out the main home part. I'm guessing this 4 bed house you "want" is pay some of its own way. Because otherwise why else the 4 beds and kitchen diner and all the other want things, just for you. I know I'm having to compromise.

Hope you decide and choose what is really best for you in the end.

Anyway, I was going to break that up to answer it. But I'll answer it as quickly as possible here.

When I say kitchen/diner, I don't require any other rooms downstairs. So one open plan room with the kitchen right there and a breakfast bar. Utility for utility stuff. Shed for bike. Garage for car. Simples.

The point I was making is that often by the time you get what I want ... they tend to come with 4 unnecessary bedrooms.

Also, I've changed my mind entirely about having an income from my house .... been living next to a series of most unsavoury holidaymakers, who all brought their own issues. Gone right off people I have...

jamespmg44

MegaMiniMouse wrote: »

The mortgage which I took out continues to be easily affordable.

The ultra low interest rates are in place because they are needed by the banks, who continue to charge prices similar to the prices they charged previously - that's why they are all suddenly making a profit!!!

MMM

So what happens if interest rates return to 5% - is is still easily affordable? If it is, then you're not an irresponsible borrow however there are plenty of folk who if interest rates go up even another 1% are in deep, deep sheight.

They are irresponsible borrowers and have to take some share of the blame.

PasturesNew

Thrugelmir wrote: »

Though only a lucky few find the end of the rainbow.

This bloke did: http://www.dailymail.co.uk/news/worldnews/article-1300955/Pictured-The-moment-photographer-end-rainbow-French-Riviera.html

MegaMiniMouse

jamespmg44 wrote: »

So what happens if interest rates return to 5% - is is still easily affordable? If it is, then you're not an irresponsible borrow however there are plenty of folk who if interest rates go up even another 1% are in deep, deep sheight.

They are irresponsible borrowers and have to take some share of the blame.

Mortgages are based upon the assumption that a property will always sell for the amount of the mortgage (... or more - sometimes considerably more).

The lenders are the experts, the professionals, but they got it wrong...

When they got caught out, they simply turned belly-up, and stopped lending

Result? Nobody can get a mortgage, so nobody can buy a house

Result? Property prices collapse

Result? Banks get bailed out and move swiftly back into profit whilst punters lose their jobs and pensioners lose their hard-won perks...

MMM

jamespmg44

MegaMiniMouse wrote: »

Mortgages are based upon the assumption that a property will always sell for the amount of the mortgage (... or more - sometimes considerably more).

The lenders are the experts, the professionals, but they got it wrong...

When they got caught out, they simply turned belly-up, and stopped lending

Result? Nobody can get a mortgage, so nobody can buy a house

Result? Property prices collapse

Result? Banks get bailed out and move swiftly back into profit whilst punters lose their jobs and pensioners lose their hard-won perks...

MMM

All granted that the banks made a huge mistake in their lending practices however no one held a gun to peoples head and made them borrow money to buy a place they couldn't really afford.

It's a bit easy to blame the banks for all the ills but there needs to be a certain degree of personal responsibility and not being stupid enough to try and keep up with the Coles, Jordans or whatever other chav celeb you choose and try to live a lifestyle you can't afford on the never never.

Harsh as it may seem, anyone who is in serious personal debt is in no way blameless for their own circumstances. Add up all the personal debt of the nation and you get a lot of irresponsible borrowers who have contributed to the large scale problem.