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Debate House Prices


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12 reasons to not buy a house

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Comments

  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 15 February 2012 at 1:33PM
    MrReweird wrote: »
    Lose your job renting but with a house deposit fund and you'll end up paying to live out of that deposit. Lose your job having paid down that deposit and bagged yourself a home and you will be eligible for SMI. But the crashaholics don't want you to know this. Buy now with rates at their lowest and secure your future. Dot waste your money having to live off it.
    That may not be favourable in future if everything breaks down in the Eurozone. There are quite a high proportion of people with mortgages that have had to rearrange their terms to avoid arrears. This will get a lot worse as this route is becoming difficult now, there will be no help. This system has not saved people before when things got tough and we know PPI was a farce too. Also tieing the money into investments takes it out of the bank account/cash.
  • robmatic
    robmatic Posts: 1,217 Forumite
    AndyGuil wrote: »
    If you can pay it off before renewing it then you're safe. Eurozone breakdown will mean high rates for a long time.

    If you're convinced that's going to happen, surely the smart move will be to fix now for 10 years? Rather than waiting until you have no option to settle for a high rate.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    robmatic wrote: »
    If you're convinced that's going to happen, surely the smart move will be to fix now for 10 years? Rather than waiting until you have no option to settle for a high rate.
    Buying cheaper will save more money.
  • robmatic
    robmatic Posts: 1,217 Forumite
    AndyGuil wrote: »
    That is incredibly naive. This is the greatest threat to the housing market there is. The cost of countries and banks to borrow will become very high and this will causes a large increase in mortgage interest rates. It will also cause a credit crunch like nothing seen before.

    Right, you're convinced that Credit Crunch pt. 2 is on the way and you think waiting until after it happens before attempting to obtain finance is a smart move?

    Genius.
  • robmatic
    robmatic Posts: 1,217 Forumite
    AndyGuil wrote: »
    Buying cheaper will save more money.

    I'm guessing that you're not very comfortable with compound interest calculations?
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    purch wrote: »
    No, that was me :eek: (37 actually, :o but close enuff !!!!)

    I'm not sure if I will ever truly retire in the full sense of the word, I went part time when 40 (plus running a couple of businesses). Then retired at 42 (but running two businesses), when I sold one of the businesses 3 years ago I started a new career as a lecturer the following year. I did so because I like it (I think, it depends what day you ask me).

    I don't think I could ever just do nothing (work/business wise), but maybe when I get to my mid 60's (I'm 54) I will slow down enough for hobbies to totally fulfil me, or maybe when I take up golf in the Spring that may change things?
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    robmatic wrote: »
    Right, you're convinced that Credit Crunch pt. 2 is on the way and you think waiting until after it happens before attempting to obtain finance is a smart move?

    Genius.
    It is what comes after. Credit crunch pt 2 will make pt 1 look easy. It will drive a large correction in prices.
  • robmatic
    robmatic Posts: 1,217 Forumite
    AndyGuil wrote: »
    It is what comes after. Credit crunch pt 2 will make pt 1 look easy. It will drive a large correction in prices.

    Like credit crunch pt 1, that large correction in prices isn't particularly helpful if you can't raise the finance.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    robmatic wrote: »
    I'm guessing that you're not very comfortable with compound interest calculations?
    A mortgage is for the very long term, fix for 10 years is extreme and you won't get a good rate doing that. Let the mess happen, the prices fall, then the credit crunch is relieved and interest rates are favourable. The markets will obliterate Europe quickly and then it will move on. It will hurt things that are vulnerable to this such as house prices because they rely on interest rates, employment and credit. Not everyone has a fixed mortgage never mind a long term fix.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    robmatic wrote: »
    Like credit crunch pt 1, that large correction in prices isn't particularly helpful if you can't raise the finance.
    Prices will still be correcting whilst there is a crunch, you're buying too early if you try then. Buy the dip. As soon as the credit crunch relieves move in.
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