How long can FTB-s afford to wait?

HAMISH_MCTAVISH

asc99c wrote: »

I've not been in negative equity yet, just making standard repayments on a 25 year mortgage. From that point of view, even 2007 was barely a 'bad' time to buy.

By my calculations, if I'd held off buying until now, I'd potentially have £12,000 less on my mortgage, but I wouldn't be able to get anywhere near my 2.5% rate. An extra 2% on the mortgage rate would eat through the whole difference in under three years.

Precisely right. And of course, it'll be 4 years this summer.

The only losers were those who chose to wait and rent instead, thereby adding to their lifetime housing costs.

Herbie_Hancock_I_wish

Perhaps we could have a little balance on this debate.

http://www.bbc.co.uk/news/health-12987539 . What a nice lass, has battled mental illness, JSA, about enough to feed a flea. Before the bulls come rushing in, perhaps she didn`t have NR 125% mortgage. Just on on with it. I know a ton of people that have borrowings, that with a job loss, it will all come tumbling down. About to loose my job but hopefully some compensation is due. However at my age there is zero chance of getting employment.

Could start a business, hmmm official reciever springs to mind.

Seriously, I do not want to fiddle with my pension provisions until 65. Ill health is the reason of my loss of job.

http://www.brightonwired.co.uk/news.php/138741-UK-unemployment-hits-record-of-2-5-million

Not very encouraging is it. I see so many self employed people losing their income. One of my old customers, established 163 years ago, expensive freehold , so I guess that will be sold, however another 18 people out of work.

Fine for the bull and bear debate but explain to me that my home went up 400% in just over 10 years, bottom to top.

The whole thing needs to play out. Fine to say supply and demand however so much cash is leaked from our economy in housing benefits. If houses had stayed in line with inflation , I think the UK coffers would be a lot healthier.

HAMISH_MCTAVISH

Herbie_Hancock_I_wish wrote: »

t explain to me that my home went up 400% in just over 10 years, bottom to top.

Supply and demand.

There is nothing else.

The whole thing needs to play out.

It did.

With the biggest nominal terms crash ever.

Were you asleep?

Fine to say supply and demand however so much cash is leaked from our economy in housing benefits. If houses had stayed in line with inflation , I think the UK coffers would be a lot healthier.

This has already been explained numerous times.

Benefits DO NOT remove cash from the economy, they merely redistribute it.

I really CBA explaining it again.

Herbie_Hancock_I_wish

Supply and demand? Fair play. Don`t fully agree with you but whatever. So what happens when folk get in trouble? Job loss and paying a good old whack on their mortgages. As posted , 2.5 million out of work. In truth most likely a darn lot more.

Where do you think these great salaries are coming from to pay for over valued housing? Take my home town, £200k for a grotty terrace house without parking . As a first time buyer what would that cost. Those places were built over a 100 years ago by Huntley and Palmers, a then famous biscuit making company for its workers.

Where I live right now, a mate bought a new build. I think £180k. Was there last week. It seems that out of 30 flats built only 8 are owner occupied the rest are btl. Goodness me, the oiks coming out of those flats, shouting and swearing. Rubbish chucked of the windows. My mate Pete is going to struggle to get some where near what he paid for it.

HAMISH_MCTAVISH

Herbie_Hancock_I_wish wrote: »

Take my home town, £200k for a grotty terrace house without parking . As a first time buyer what would that cost. Those places were built over a 100 years ago by Huntley and Palmers, a then famous biscuit making company for its workers.

Huntley and Palmer...... Of Reading.

Here's a 2 bed terrace in Reading for 150K.

http://www.rightmove.co.uk/property-for-sale/property-29062867.html

Must be difficult to gauge a market when you think houses are 33% more expensive than they are in reality....

I mean, I could see being a couple of grand out.....

What with being old and out of touch and all.

But 33%???

Crikey.....

HAMISH_MCTAVISH

Herbie_Hancock_I_wish wrote: »

over valued housing?

There is no such thing.

House prices are set where the supply and demand curves intersect.

There is nothing else.

.

Herbie_Hancock_I_wish

Mctavish. Don`t patronise me, how dare you. " What with being old and out of touch and all " Do not either accuse me of being thick . First off, I didn`t stipulate how many bedrooms. Believe you me, I would not want live in that area. Me, I own my own house outright and could also buy that little feller for cash.

What is your problem? You afraid of losing your job? Big mortgage? You go on and on about house prices. I do detect that there is a problem with you down the line.

Anyway in future, don`t be so darned rude .

HAMISH_MCTAVISH

First off, I didn`t stipulate how many bedrooms. Believe you me, I would not want live in that area.

What part of "the price is set where supply and demand intersect" did you not understand the first 100 times it was mentioned on here?

Where there is demand for houses at 200K then thats the price they'll be.

Where there is demand at 150K then thats the price they'll be.

Whether you or I may want to live there is irrelevant.

What is your problem? You afraid of losing your job? Big mortgage? You go on and on about house prices. I do detect that there is a problem with you down the line.

There are a number of irresponsible posters on here giving bad advice, that will cost young FTB-s an absolute fortune if they are suckered into delaying purchase for years like most of them did.

What the economically illiterate don't get is that there can be no sustainable economic recovery without a recovery in house prices. And there can be no significant fall in house prices without causing wider economic damage.

It's as simple as that.

The wider economy and the prospects of a generation of young FTB-s, all depend on keeping the recovery on-track.

Anyway in future, don`t be so darned rude

Yes, fair enough, that was uncalled for so apologies.

asc99c

mcc100 wrote: »

You would only know whether or not you are in negative equity if you've had a valuation ...... see a previous post of mine

True, I'm going off the average changes in house selling prices. For LTV purposes that is exactly what the mortgage company say they do when considering which mortgages I could move to.

No houses have actually been sold on my street since mine. The house across the street has been on the market for £300,000 since I moved in, although they recently reduced it to £270,000, which is what I paid for mine.

So although I could get a valuation, I suspect it wouldn't be particularly accurate. It would still depend on what someone was willing to pay, and the houses along the street all vary from each other, so there is no exact comparison - I'm at the top of a hill so we get a fantastic view over the countryside, but on the downside, most of the garden is on a 40 degree slope ...

replumbed

Joeskeppi wrote: »

replumbed is like doire and naerlynew combined.

Like, some kind of hybrid supertard.

Thanks for that my muppety friend.