Take cover! The housing market is heading for a bloody and protracted crash!

Thrugelmir

DpchMd wrote: »

I assume you've chosen to rent too.

No, never. Probably worked in finance for three times as long as you've been a homeowner though.

DpchMd

Thrugelmir wrote: »

No, never. Probably worked in finance for three times as long as you've been a homeowner though.

Finance? Was that a brag?

I'm glad you used your finance skills to buy instead of rent. I bet you're happy that internet forums didn't exist 50 years ago so that some loon couldn't advise you to rent.

Thrugelmir

DpchMd wrote: »

Finance? Was that a brag?

Not in the slightest. Never cut out to do anything else.

Bigdeflationfirst

DpchMd wrote: »

You completely forgot about equity, which has been mentioned several times throughout this thread.

A £200k house today could conceivably be worth over £400k in 25 years time. The interest-only buyer gets to sell the house for a tidy profit. The renter gets nothing but an argument with the Landlord over deposit deductions.

Even if the house increased by an average of 1% a year over 25 years, the buyer is still likely to be financially better off than the renter.

You forgot about equity, what if the value is falling by a few percent every year for the next 10yrs? Property is now in a bear market, only time will tell how long it will last.

But its looking likely we will not see the bottom until interest rates have normalised and all the repossessions have been cleared out.

DpchMd

Bigdeflationfirst wrote: »

You forgot about equity, what if the value is falling by a few percent every year for the next 10yrs? Property is now in a bear market, only time will tell how long it will last.

But its looking likely we will not see the bottom until interest rates have normalised and all the repossessions have been cleared out.

You can keep saying "Property is in a bear market" but it doesn't make it true.

I assume you've also done the maths and decided that renting is better than buying. Right?

JonnyBravo

Thrugelmir wrote: »

No, never. Probably worked in finance for three times as long as you've been a homeowner though.

Is this relevant? Is it meant to portray your opinion as "worth" more?

Surprisingly this wasn't any guarantee of understanding how mortgages work was it?
I seem to remember you didn't understand how the variation in interest rate affected the rate of capital repayment.

FTBFun

DpchMd wrote: »

You can keep saying "Property is in a bear market" but it doesn't make it true.

I assume you've also done the maths and decided that renting is better than buying. Right?

This person is a precious metals nutter. Probably best ignored IMO. You'll be able to spot them after a while.

RenovationMan

Graham_Devon wrote: »

And lives in a victiorian house with solid wood everything that was already there when they bought it and they never want to do a thing to modernise the house.

Renoman off all people should know about maintenance costs of such properties.

I don't have a Victorian house.

RenovationMan

JonnyBravo wrote: »

Is this relevant? Is it meant to portray your opinion as "worth" more?

Surprisingly this wasn't any guarantee of understanding how mortgages work was it?
I seem to remember you didn't understand how the variation in interest rate affected the rate of capital repayment.

You beat me to it JB, plus there have been other financial gaffes that he's made. Trouble is that he ghosts out of discussions when he's wrong - just like when he accused me of using selective data earlier in this thread and then proceeded to use selective data. :rotfl:

Bigdeflationfirst

DpchMd wrote: »

You can keep saying "Property is in a bear market" but it doesn't make it true.

I assume you've also done the maths and decided that renting is better than buying. Right?

Facts are facts, property is going up less than real inflation. This is a fact, property is in a bear market.

At some point it will be at the bottom of this bear market and will start heading up again, but usually stays down there for a while.

Too right I am happy renting wearing out my landlords property and furniture, waiting for the bottom. I do not think that will be until interest rates normalise and all the repossessions have been cleared out.