May Nationwide MoM +0.3% YoY -1.2%

ILW

Whty would anybody buy a house in the spring when they cost more?

Blacklight

Orpheo wrote: »

No, but I did max out my borrowing on an IO mortgage. Can't go wrong, bricks 'n' mortar 'n' all that...

Good idea.

If you bought a £120k place on IO at 5% you'd be looking at £500 a month in payments.

You could then afford to pay up to £1000 per month of the capital off (assuming up to 10% pa allowed by the lender).

So make over payments with your spare cash while interest rates are low. If they rise, just lower your capital payments to fit. Interest rates go down, you get a pay rise, start paying up to £1000 a month off again.

Can't go wrong, bricks 'n' mortar 'n' all that...

shortchanged_2

Blacklight wrote: »

Good idea.

If you bought a £120k place on IO at 5% you'd be looking at £500 a month in payments.

You could then afford to pay up to £1000 per month of the capital off (assuming up to 10% pa allowed by the lender).

So make over payments with your spare cash while interest rates are low. If they rise, just lower your capital payments to fit. Interest rates go down, you get a pay rise, start paying up to £1000 a month off again.

Can't go wrong, bricks 'n' mortar 'n' all that...

If you read it properly backlight you will see that orpheo 'maxed out' his borrowing like so many others, so he ain't going to have any spare funds to overpay his IO mortgage. :rotfl:

ruggedtoast

I would have thought this would have more posts by now.

I've ceased to pay much attention to these reports.

My part of the SE seems to be ticking along sales wise, as you'd expect for the Spring. Still not much coming on the market, anything that could be construed as good value going STC quickly. The people my age without hefty deposits, or any way to get them, have pretty much given up hope of ever owning.

We're either in the eye of the storm or over the worst in my opinion, I have no idea which. My main observation over the last 5 years is that there are no lengths to which the government wont go to subsidise high house prices. It seems to just be factored into the cost of the bank bailout now.

If the housing market were an export every other country would be screaming to the WTO, there isnt even any obvious reason or overall benefit to it. You could presumably have let prices correct, paid off the negative equity of the comparatively few people who had bought between 2005 and 2007, and it would have worked out cheaper than this.

geneer

Nationwide: "House prices increased by 0.3% in May, only just offsetting

the 0.2% fall recorded the previous month"

woo hoo!

"While the outlook remains uncertain, sideways still appears
the most likely trajectory for house prices over the remainder

of the year"

Shocker! So best case senario, no nominal changes with rocketting inflation.

Or what they called a crash back in the 90s.


Little change to the YOY rate of fall though. I remember a certain aberdoomian who used to love YOY.

debtistheft

geneer wrote: »

Nationwide: "House prices increased by 0.3% in May, only just offsetting

the 0.2% fall recorded the previous month"

"While the outlook remains uncertain, sideways still appears
the most likely trajectory for house prices over the remainder

of the year"

Shocker! So best case senario, no nominal changes with rocketting inflation.

Or what they called a crash back in the 90s.


Little change to the YOY rate of fall though. I remember a certain aberdoomian who used to love YOY.

Ha! Another Bull thread put to the sword. Bulls 0 Bears 1.

geneer once again flexes his intellect and destroys the bull's, throwing their own beloved YOY back in their faces. :rotfl:

Generali

ILW wrote: »

Whty would anybody buy a house in the spring when they cost more?

Because nobody is dumb enough to sell one in the winter when they cost less!

debtistheft

Generali wrote: »

Because nobody is dumb enough to sell one in the winter when they cost less!

An intelligent home owner is an oximoron. Plenty of houses up for sale over winter with home owners virtually giving them away in desperation. Serves them right for buying intto the false dream. Idiots.

Bear A-Team 1, Bulls 0.

:rotfl:

chucky

shortchanged wrote: »

If you read it properly backlight you will see that orpheo 'maxed out' his borrowing like so many others, so he ain't going to have any spare funds to overpay his IO mortgage.

well actually blacklight is right.

only an idiot would think that a house price would be lower than the initial mortgage amount 25 years later on an I/O mortgage.

you obviously think it won't. good luck with that thinking.

Graham_Devon

Oh noes!! They changed the graphs on the BBC. They are now interative....hmph, can't post them no more.

http://www.bbc.co.uk/news/business-13568334

It's there though, groovy interaction and all.