Anecdotal - compare now to 18 months ago

Batchy

im sure you know what im talking about by gearing. The reason I raise it for you is... your trying to increase your gearing. ie release some equity.

At the moment they have a good bet with you even thou you have a large amount of equity.

If they gear you up, then THEY being the banks take on more risk, and you take less risk. They lose Capital, you gain some CASH.

It all used to make a lot of sense, but in the current year, it just doesnt appear to be black or white.

Kenny4315

Batchy wrote: »

im sure you know what im talking about by gearing.

Non habla .... although I am a qualified CIMA ... and did get an A in my Strategic Financial Management paper ... but it was a while ago .... over 10 years. One of the main reasons I want to gear higher is because of the Tax shield it provides, at present my gearing and the resultant interest is tax inefficient. .

Batchy

Hey kenny looks like your 2011 -12% drops never happened but my predictions were ok of stagnation.

Therefore...
ACA 1 - 0 CIMA

Always thought it was a mickey mouse qualification. Friendly banter and all that lol...

Jimmy_31

Kenny4315 wrote: »

There are quite alot of self employed out there .... plumbers, painters, builders, joiners, electricians, etc etc etc and they represent a large chunk of the workforce ... if they can't remortgage or get a mortgage ... that's sure to have an effect.

Being employed doesn't mean anything .... it means you have a job on the day ... that's all ... if you were fired today ... the likely hood is that it would take sometime to find an alternative. If one of my tenants moves out its relatively easy in comparison to find another, in a short space of time.

Maybe you're one of those that get through the million tick box check ..... but that's not the norm at the moment by long distance.

Correct, im self employed in the building game and have zero chance of getting a mortgage no matter what deposit i have got. Lucky for me i dont want a mortgage anymore due to house prices falling in my area.

The banks wont touch anybody in our area because they know exactly whats happening in the construction industry.

More and more people are being forced into cis self employment because the construction firms will not take anybody on cards in anymore.

The area i live in is filled with people who work in the construction industry and since the job losses have started house prices have tanked.

Batchy

This was posted over a year ago lol

gingeralan

Batchy wrote: »

I can see that, but, your missing the point.

Everybody has their own opinion of how safe their job is!
Not everyone will lose their job, maybe Max another 1% of the workforce? to put unemployment up another 1%, but even that is optimistic.

The point I was making, is, even if you havent had a pay rise, houses are cheaper now, than at any point in the future. If you in the mood to buy, maybe its because you was one of the luckier ones, even if you never, its still cheap cash flow wise now, than it has been.

18 months ago I was looking at a 5 year fix at 6.99%, today the same is more like 4.99%, real prices have dropped (forget inflation). So not only is it cheaper capital wise, its cheaper, cash flow wise. Even with food inflation, fuel inflation. etc etc. Rents are very often linked to RPI, |(housing associations for example) so going forward rents with high inflation will only go on to rise even more still.

However, the big point is, its only actually possible... IF you have either equity or a DEPOSIT, available to you.

:rotfl: I think we gotta new mystic Meg here. How can you say property is cheaper now than any time in the future??

Jimmy_31

gingeralan wrote: »

:rotfl: I think we gotta new mystic Meg here. How can you say property is cheaper now than any time in the future??

Get used to it, there are quite a few people on this forum that drive a delorean.

Batchy

I guess I asked for that... Doh