How I intend to make £'000s

franklee

jamesd wrote:

Buy a place where the mortgage payments are roughly the rent you'd pay. Then you'll be about as well off as you would be if renting but will eventually own the place.

Depends where you are of course but round here gross rental yields are typically around 4%. This means that the rent paid is about the same as or less than the interest on a mortgage would be. So it simply isn't possible to buy a place where the mortgage payments are roughly the rent you'd pay unless you put in a large deposit or have an interest only mortgage. With the large deposit you lose the "opportunity cost" of that capital, most simply the interest it could earn. With an interest only mortgage you won't eventually own the place...

FaTB

arkie wrote:

my motto

---

remember a little knowledege is very dangerous

Thanks arkie, youv'e given me a couple of good laughs on this thread, and if indeed as you say "a little knowledge is a very dangerous thing" then you must be one of the most dangerous people in the country !!

arkie

mr.broderick wrote:

Most of the weirdos on here are expecting (hoping) a crash in the region of 30%, jump on the ladder that they keep insisting doesnt exist, expect interest rates to stay around 5% then houses to propel back to current level within a 5 year period.I wonder if mean machine etc will be on here in 5 years time praying for a crash. Im sick of reading the same !!!!!! every night, someone starts a thread "How can i save 50 pence in 4 weeks?" i'll guarantee you 7 posts later "House prices are going to crash.." Im losing my patience.

here here... if they really want to save money, get another/a job....
You may wonder where mean machine will be in five years... still in rented property ..hoping that houses will crash to £5 each...
get a life
happy new year for all those on the property ladder ... those renting keep paying that rent and making other people money !!!!

tomstickland

Why are those expecting a crash "weirdos"?

What is this mythical "ladder"?

How does writing "get a life" add anything to constructive discussion?

I bought my flat 6 months ago and if there's a crash I'd end up in negative equity. I was lying in bed thinking about it and I essentially stand to throw away all of my money making/saving of the last 3 years if prices dive. However, I'm going to keep the flat and let whatever happens happen.
I know a large number of people in their 20s who can't realistically afford to buy despite having pretty good jobs.

If someone rents for 5 years and then buys after a 20% "correction" then they come out better off even after "paying someone elses" mortgage for 5 years.

I'd prefer not to have a crash, but can see that both pro and anti crashers have vested interests and are both taking a chance on the outcome.

All I'm asking is for you to be a bit more constructive with your posts. Or are you trolling?

meanmachine_2

mr.broderick wrote:

Most of the weirdos on here are expecting (hoping) a crash in the region of 30%, jump on the ladder that they keep insisting doesnt exist, expect interest rates to stay around 5% then houses to propel back to current level within a 5 year period.I wonder if mean machine etc will be on here in 5 years time praying for a crash. Im sick of reading the same !!!!!! every night, someone starts a thread "How can i save 50 pence in 4 weeks?" i'll guarantee you 7 posts later "House prices are going to crash.." Im losing my patience.

Then

1. Stop reading this sh*te

2. Stop responding to this sh*te.


THis thread is specifically about someone wishing to STR. I, and others, have posted specifically in relation to this issue.

The only poster spamming this thread with personal attacks, name-calling and swearing is you.

meanmachine_2

arkie wrote:

here here... if they really want to save money, get another/a job....

Thanks for that brilliant advice.

Thanks for your incredibly insightful posts these past few days.

It's been a real edukaysion.

cwcw

franklee wrote:

This would only be true if both mortgage holders took out fixed rates for the whole term which is very unlikely. Most take fixes of 2-5 years. So after the initial fix ends the first buyer will also be facing a 7% interest rate on his loan which will be larger than the second buyers loan.

In short if you are tempted to take out a large loan due to low interest rates making it look affordable then beware that interest rates can go up. On the other hand if you take out a smaller loan albeit at a high interest rate then you can at least have lower rates to look forward to.

25 years is a long time, look how rates have varied over the last 25 years. There is little to say they won't be just as volatile over the next 25!

But likewise the rate would go up for the 7% mortgage after the initial fix too. The two situations are in parallel universes - one where a crash has happened and one where it hasn't. The point is that the homeowner will always pay a similar amount - the amount they can afford. If interest rates are higher, affordability is brought into reach either through wage inflation or lower house prices, or a mix of both. If interest rates are lower, people can afford too much, and hence the prices are driven up, as has been the case for the last 5 - 10 years. A "soft landing" is possible so long as the Bank of England doesn't cause panic with big increases in the rate.

mr.broderick

meanmachine wrote:

Then

1. Stop reading this sh*te

2. Stop responding to this sh*te.


THis thread is specifically about someone wishing to STR. I, and others, have posted specifically in relation to this issue.

The only poster spamming this thread with personal attacks, name-calling and swearing is you.

Whatever meanmachine...
I see in your next post you are ridiculing another posters spelling ability, more of a personal attack than calling all you people wanting a housing crash "weirdos", in my opinion you are weird, you're hijacking quite a lot of threads that have nothing to do with a crash and leading them that way. We should have a seperate forum designed specifically for a possible house price crash, you could be a moderator meanmachine and spend all your days reading it and replying to it or maybe get a part time job instead and buy a house?

BT_man

Do all you HPI braggers just expect us lot that would like to see a crash because we are priced out to just sit here, agree that HPI is such a wonderful thing and congratulate you all on how clever you have been to be born early enough to buy a property at a reasonable price?

And you say "get a life" ?

You just wan't all us "wierdo's" to keep quiet so as not to change the general publics sentiment that prices always go up.. You dont want to loose any of your precious paper wealth.. (probably because you have MEW'd it all and spent it on holidays and X5's.)

You might say it's the green eyed monster, you wouldn't be far wrong. How lucky you speculators have been in a rising market, lets see how you do in a falling one....

mr.broderick

BT_man wrote:

Do all you HPI braggers just expect us lot that would like to see a crash because we are priced out to just sit here, agree that HPI is such a wonderful thing and congratulate you all on how clever you have been to be born early enough to buy a property at a reasonable price?

And you say "get a life" ?

You just wan't all us "wierdo's" to keep quiet so as not to change the general publics sentiment that prices always go up.. You dont want to loose any of your precious paper wealth.. (probably because you have MEW'd it all and spent it on holidays and X5's.)

You might say it's the green eyed monster, you wouldn't be far wrong. How lucky you speculators have been in a rising market, lets see how you do in a falling one....

So you admit to posting on here to try and change the general publics sentiment and convince them that prices also go down?
I dont post on here and never will that house prices always go up, i am not a speculator, i have always bought homes, it is not my fault that houses have gone up sharply recently and if they fall just as sharp i wont be bothered, like you say its paper money, ill just stay here, ive always bought a house as a home so if i have to live here til the end of my days so be it. Im bored of this now, ill leave all you green eyed monsters to argue it out between you. I have to go and clean my x5 that i bought by working 6 days a week for 13 hours for the past 10 years...