Repo's up and some startling numbers

shortchanged_2

RenovationMan wrote: »

No takers?

I see what you are saying RenovationMan in that you are not necessarily financially better off climbing the ladder during HPI but where you gained is probably because you bought earlier and then had more ability to overpay due to cheaper house prices during the earlier part of the chain, you were then able to carry a large amount of equity through from each stage of a sale therefore you were able to put down a considerable deposit each time.

Someone that came into the housing market at a later stage will not be carrying through this large amount of equity plus they would start off with a more expensive mortgage in the first place. i.e people were needing 4, 5 or 6 times mortgages as a 1st time buyer. Bearing that in mind they probably also had a poor LTV so would not get a great mortgage deal, thus also reducing their ability to overpay and reduce the capital.

Can you see where I'm coming from now?

RenovationMan

shortchanged wrote: »

I see what you are saying RenovationMan in that you are not necessarily financially better off climbing the ladder during HPI but where you gained is probably because you bought earlier and then had more ability to overpay due to cheaper house prices during the earlier part of the chain, you were then able to carry a large amount of equity through from each stage of a sale therefore you were able to put down a considerable deposit each time.

Someone that came into the housing market at a later stage will not be carrying through this large amount of equity plus they would start off with a more expensive mortgage in the first place. i.e people were needing 4, 5 or 6 times mortgages as a 1st time buyer. Bearing that in mind they probably also had a poor LTV so would not get a great mortgage deal, thus also reducing their ability to overpay and reduce the capital.

Can you see where I'm coming from now?

I see where you are coming from and I have always understood your point that I am 'better off' buying before the boom than someone who bought after the boom, but being better off than someone doesn't really do my finances any good. I would argue that we should scrap the 'better off' term that was coined earlier in the thread and instead say that anyone who got onto the ladder pre-boom is less worse off than someone who gets on the ladder post-boom. We are all victims of HPI it's just than some are less impacted than others.

If HPI was in line with ordinary inflation people could not only make large overpayments in the earlier part of the chain but also in the latter part of the chain too.

Without HPI people wouldn't need such large deposits because houses would not cost so much.

shortchanged_2

RenovationMan wrote: »

We are all victims of HPI it's just than some are less impacted than others.

Apart from Sarah Beeny and some other lucky property investors as you stated earlier.

RenovationMan

shortchanged wrote: »

Apart from Sarah Beeny and some other lucky property investors as you stated earlier.

Yep. But even BTL landlords would have been better off without HPI. Imagine how many properties they could have added to their portfolios and what their yields would have been without those huge mortgages to cover.

People who bought pre-boom and downsize post boom have also done well, but then if these people have stayed in the same house for more than 10 years, then good luck to them.

RenovationMan

Sarah Beeny has her knockers, but I think she is all right.

Graham_Devon

RenovationMan wrote: »

Yep. But even BTL landlords would have been better off without HPI. Imagine how many properties they could have added to their portfolios and what their yields would have been without those huge mortgages to cover.

LOL. I assume you are trying to take the pee here?

wotsthat

RenovationMan wrote: »

Yep. But even BTL landlords would have been better off without HPI. Imagine how many properties they could have added to their portfolios and what their yields would have been without those huge mortgages to cover.

HPI favours those who are selling and don't need to buy again such as landlords selling at retirement or those selling due to an inheritance.

I can't really think of a suitable way to do sums to prove this one way or the other as there are so many variables. However, I think if you asked any BTL whether their preference would be a single property which doubled in 25 years or two which stayed the same for 25 years I reckon they'd go for the former.

Two sets of tenants to handle, double the maintenance etc. or 100% return with zero effort?

geneer

RenovationMan wrote: »

Your contribution and motivation seems to be to sit on a forum and moan about how hard done to you are. Hence my reply.

You are incorrect. Your assertion says more about your perspective than my own.

RenovationMan wrote: »

If that is not the case then I suggest you drop the chip on your shoulder and post more like Brit and macaque who also want prices to fall but don't feel they need to blame other forum users for their circumstances.

:rotfl:Can't say I've ever blamed others for my circumstances.
Though I do think the bulls should take their share of the blame in creating the [EMAIL="clusterf@ck"]clusterf@ck[/EMAIL] the economy has become.

I've protected myself from the same as best as possible, so have little to be humpy about.

RenovationMan wrote: »

So 'crowing' is saying that I have benefited from low rates and that I hope to continue from them?

Nope. "Crowing" is based on the context and motivation for saying the same.

RenovationMan wrote: »

Just as you 'crow' every time house prices fall, or some other bit of news related to your own VI goes your way. I don't think either of us is unique in this though, do you geneer?

I think that crowing about accurate predictions is warranted.
Crowing about benefiting from emergency measures caused by events you failed to see coming is unwarranted.

Did I not say this already then?

RenovationMan

geneer wrote: »

I think that crowing about accurate predictions is warranted.
Crowing about benefiting from emergency measures caused by events you failed to see coming is unwarranted.

Did I not say this already then?

What accurate prediction have you made?

How have I benefited from emergency measures caused by events I failed to see coming?

geneer

RenovationMan wrote: »

What accurate prediction have you made?

I was of course refering to those who, like myself, considered a housing crash inevitable. Would have thought that was obvious.

RenovationMan wrote: »

How have I benefited from emergency measures caused by events I failed to see coming?

0.5% base rate = emergency measures.
Your benefiting from low mortgage rates is, by your own admission, nothing more than good fortune.