The absolute fallacy of the average bull argument.

Batchy

geneer wrote: »

Given that the FTB side of the market appears to be have quite unaffected by the "2009 recovery" I'd say thats looks like an increasingly interesting option for bears sensible enough to have a nice fat deposit saved up.

All I would say is do not misuse the terms.

FTBer is generally someone who has not got much saved up and can be of any age.

Someone with a nice fat deposit, does not necessarily have to be a FTBer for it to be a good thing to do... could have been a STRer or someone with a hell of a lot of equity, or a cash buyer.

I consider myself fortunate, between me and my gf, our mortgage represents less than 20% of our net income. and we have enough savings to either knock another 30% off the value of the house, or to cover the next 5 years of mortgage payments in Cash.

With each month that goes by we can save a mortgage payment each... so effectively we can pay 3 times our level of mortgage, inc repayment and interest which is already at 4%.

Things can change. we both might not be in work soon there is always a risk ( would have a fat redundancy payment anyway, but still it only covers my earnings for about a year), so to have cash is king, having a low equity interest payment is not always as clever. If your not covering the interest, your missing payments. doesnt matter if you have a 50% LTV... you can still get a default. Hence why we havent yet overpaid into the mortgage, not until we have saved another cash lump, and gone on holiday for a break LoL.

geneer

Batchy wrote: »

All I would say is do not misuse the terms.

FTBer is generally someone who has not got much saved up and can be of any age.

Someone with a nice fat deposit, does not necessarily have to be a FTBer for it to be a good thing to do... could have been a STRer or someone with a hell of a lot of equity, or a cash buyer.

I consider myself fortunate, between me and my gf, our mortgage represents less than 20% of our net income. and we have enough savings to either knock another 30% off the value of the house, or to cover the next 5 years of mortgage payments in Cash.

With each month that goes by we can save a mortgage payment each... so effectively we can pay 3 times our level of mortgage, inc repayment and interest which is already at 4%.

Things can change. we both might not be in work soon there is always a risk ( would have a fat redundancy payment anyway, but still it only covers my earnings for about a year), so to have cash is king, having a low equity interest payment is not always as clever. If your not covering the interest, your missing payments. doesnt matter if you have a 50% LTV... you can still get a default. Hence why we havent yet overpaid into the mortgage, not until we have saved another cash lump, and gone on holiday for a break LoL.

Thats more like a coherent arguement batchy.
Theres certainly a point where its worth considering.
Especially as the pragmatic will understand that, if they choose to trade up down the line, and they're not in Negative Equity, further house price falls will likely actually save them money.

[Deleted User]

DervProf wrote: »

Julieq,

To be honest, I am a rather unusual "bear". I have a home, I stand to inherit a home, so you would have thought that I would want house prices to rise. The fact is that I'm not that bothered about my own financial gain from property (I've made myself financially comfortable without the aid of property investment). I look at the property market from a fairly "neutral" position. I am not a FTBer, nor do I rent. I simply own a modest home, bought with a resonable (15%) deposit and mortgage which didn't cause me any financial hardship. I'd like others to have the same opportunity that I did, less than two decades ago. As far as I can see, the average 25 year old will not be able to save a 15% deposit and take on a smallish mortgage like I did. I happen to think this a bad thing, a backwards step for the population of the UK. People who celebrate this seem selfish and greedy, that is how I see it, and I don't mind pointing it out to those who display those traits.

I don't think anyone reading the majority of your posts would consider you neutral.

geneer

whoops.....