house prices continue to drop ....

System

Why would anyone be attracted to any market by falling prices?

I've seen some stupid comments but that takes a biscuit, possibly hobnob.

"Hey look, prices are tanking here, let's invest! WOOO"

nearlynew

Joeskeppi wrote: »

Why would anyone be attracted to any market by falling prices?

I've seen some stupid comments but that takes a biscuit, possibly hobnob.

"Hey look, prices are tanking here, let's invest! WOOO"

Nice one muppet boy.


Your massive debts are your problem not mine.

HPI is not going to save you.

phil_b_2

Joeskeppi wrote: »

Why would anyone be attracted to any market by falling prices?

I've seen some stupid comments but that takes a biscuit, possibly hobnob.

"Hey look, prices are tanking here, let's invest! WOOO"

It's a fair point. Some doomers state prices are bombing hard where they are buying and seem happy about that. Not sure why anyone would want to buy in a place where nobody else wants to buy in. Must be something badly wrong with it.

System

nearlynew wrote: »

Nice one muppet boy.


Your massive debts are your problem not mine.

HPI is not going to save you.

Eh? Ok, not even remotely relevant, your posts are getting worse.

RenovationMan

HOUSE_PRICE_CRASH_GHOULS wrote: »

Why do the bears insist on believing the bulls have massives debts? Fact is most of us are mortgage free sitting on massive posrtfolios. The jealousy is terrible here yet a hpc isn't going to save you or your jobs. Stabilized to rising prices = good for all.

I thought everyone on here was either mortgage free or had a deposit so large that they will be mortgage free when they buy. Except me, I'm massively in debt

gagahouse

RenovationMan wrote: »

Could I ask what price house are you looking to buy and how you managed to save up so that your looking to be mortgage free (and how long you have been saving for)?

I have a blog on the MFW board and I'm always interested in how people managed to get together the huge amount of cash in order to be mortgage free.

I am looking at around £120K mark - I'm fortunate to have been in a position to save 60% of my net so it's taken me 4 years to get to this point without sacrificing too much. When I think how much I will save in mortgage interest cost by delaying the purchase through saving against the opportunity cost had I bought 4 years ago I'm going to be better off by 90K in today's money once you take into account the rent I've paid during that period. I will also save the 650pm rent I am currently paying as long as I own the house for.

I'm also lucky that prices in the area I'm looking at have stagnated since 2006 and are indeed falling so I didn't lose out on the HPI element there either.

Once the house is purchased, my money will go towards building up my self-invested pension pot - saving is a habit I can't break!

Couple what I save on mortgage interest and no longer paying rent, it is a substantial sum to go towards the pension pot.

wherediditallgothen

HOUSE_PRICE_CRASH_GHOULS wrote: »

Stabilized to rising prices = good for all.

Good for all people who are already on the housing ladder and can't see beyond the end of their nose, never mind the bigger picture.

Bad for, erm, everyone else.

RenovationMan

gagahouse wrote: »

I am looking at around £120K mark - I'm fortunate to have been in a position to save 60% of my net so it's taken me 4 years to get to this point without sacrificing too much. When I think how much I will save in mortgage interest cost by delaying the purchase through saving against the opportunity cost had I bought 4 years ago I'm going to be better off by 90K in today's money once you take into account the rent I've paid during that period. I will also save the 650pm rent I am currently paying as long as I own the house for.

I'm also lucky that prices in the area I'm looking at have stagnated since 2006 and are indeed falling so I didn't lose out on the HPI element there either.

Once the house is purchased, my money will go towards building up my self-invested pension pot - saving is a habit I can't break!

Couple what I save on mortgage interest and no longer paying rent, it is a substantial sum to go towards the pension pot.

That size deposit over 4 years means you have put away £18,000 a year, net! It amazes me how well paid and how dedicated at saving a lot of people on this board are.

When you talk about how much you will save over the duration of the mortgage, do you envisage that this will be your one and only house purchase? I thought that when I bought my first house, but then I met my wife and had kids, and that plan went right out of the window.

Hmnnn, I've just re-read your post. Have you managed to save 60% of your £120k purchase price, or did I misunderstand?

ultrawomble

I assume that they've saved 60% of their net salary, so ~30K per year. Well paid job in a cheap area?

RenovationMan

I'm even more confused, did gagahouse say that he had £120k in savings that he accumulated over 4 years. That'd be £30k per year and if that represents 60% of his net, that means his net pay is £50k a year and so his gross pay would be around £75k a year.

Thats a serious income and serious money saving! :eek: