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The home buyer smells blood
macaque_2
Posts: 2,439 Forumite
For such an august title, one might have hoped for a better analysis.
Richard Northedge has got it half right
On the question of affordability, Richard Northedge's thinking is dangerously flawed.
Mortgages are like dogs. When you get a puppy, you sign up to a 20 year commitment. Mortgage affordability needs to take account of rates in 5, 10 or 15 years time, not just the next two years. If you can only just afford 3.85%, you are going to lose your shirt when rates move back up again.
On the question of sentiment Richard Northedge is right.
http://dofonline.co.uk/blogs/the-edge/mortgages/houses-are-affordable-4565465454/
On a completely unrelated matter, this made me laugh:
Richard Northedge has got it half right
On the question of affordability, Richard Northedge's thinking is dangerously flawed.
.Since property prices peaked in 2007, average mortgage rates have fallen from 5.84 to 3.85 per cent but it is possible to find a two-year fixed loan at just 2.39 per cent for buyers with a 30 per cent deposit.
Mortgages are like dogs. When you get a puppy, you sign up to a 20 year commitment. Mortgage affordability needs to take account of rates in 5, 10 or 15 years time, not just the next two years. If you can only just afford 3.85%, you are going to lose your shirt when rates move back up again.
On the question of sentiment Richard Northedge is right.
The buying market have smelled blood.Now prices have fallen people can afford a home – but who wants to purchase an asset that is falling in value?
http://dofonline.co.uk/blogs/the-edge/mortgages/houses-are-affordable-4565465454/
On a completely unrelated matter, this made me laugh:
http://jcm.asm.org/cgi/content/full/49/3/1193Moreover, we realized after our article had been published that major parts of the text had been plagiarized almost verbatim from Colombo et al.
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Comments
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Ah, I do love a good retraction - especially when they occur in flagship journals vying for Impact Factor ratings.0 -
Mortgages are like dogs. When you get a puppy, you sign up to a 20 year commitment. Mortgage affordability needs to take account of rates in 5, 10 or 15 years time, not just the next two years. If you can only just afford 3.85%, you are going to lose your shirt when rates move back up again.
If you can only just afford 3.85%, you are probably going to struggle paying rent right now.0 -
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