Patience is a virtue

macaque_2

oldvicar wrote: »

Patience is a virtue.

He who hesitates is lost.

Look before you leap.

You've got to speculate to accumulate.

Don't put all your eggs in one basket.

A pastor was leaving his area and was saying farewell to his congregation at the Church doors for the last time. He shook the hand of an elderly lady as she walked out. She said "Your successor won't be as good as you." "Nonsense", said the pastor, in a flattered tone. "No, really", said the old lady, "I've been here under five different ministers, and each new one has been worse than the last."

Loughton_Monkey

oldvicar wrote: »

Patience is a virtue.

He who hesitates is lost.

Look before you leap.

You've got to speculate to accumulate.

Don't put all your eggs in one basket.

... and Time is just nature's way of preventing everything from happening at once.

yertiz_2

armour wrote: »

Patience is a virtue but it could cause one to miss out on the (inevitable) next upswing in the property market.
I believe that there are many people who have been patient, saving up sizable deposits (earning next to nothing in interest), paying high rents whose patience is running out and will be jumping into the property market before too long.

WARNING!! Read this from headline in The Times today..."Households feel the pinch as mortgage rates increase"

http://www.thetimes.co.uk/tto/news/

i8change

Originally Posted by Loughton Monkey
3. Despite having bought my house in 1973 at a sort of 'high' in prices, I have enjoyed 40 years of significant real growth in equity. I have frequently upsized. At the same time, I have coughed up the interest, but watched the capital value erode significantly away by inflation. To my benefit, I never paid a penny capital back (always interest-only mortgages) and unltimately was able to pay it all off [offset it] out of savings without hurting (since when, as above, I have taken it all out again). The amount of equity I now have is brilliant, but of even more importance, the thought of having to pay rent for the next 30 years would have been excrutiating!

Different times. Youngster haven't got the benefit of large wage inflation.

Any Mortgage taken out in '73, although painful at first, would quickly become very manageable.

Borrowers beware.

chucky

i8change wrote: »

Different times. Youngster haven't got the benefit of large wage inflation.

Any Mortgage taken out in '73, although painful at first, would quickly become very manageable.

Borrowers beware.

I hope you realise that inflation isn't just about wage inflation.

i8change

Originally Posted by chucky
I hope you realise that inflation isn't just about wage inflation.

I don't have to realize anything. I was there (1983) and had the benefit.

Mortgage capital is fixed, when wages shoot up you win.

It's then time for nice holidays and/or a bigger house, start the cycle again.

With low wage inflation, the Mortgage capital will be significant for a very long time. I feel sorry for my childrens generation, unless thing change.

chucky

i8change wrote: »

I don't have to realize anything. I was there and had the benefit.

Mortgage capital is fixed, when wages shoot up you win.

It's then time for nice holidays and/or a bigger house, start the cycle again.

With low wage inflation, the Mortgage capital will be significant for a very long time.

Ok, have a think about it this way as well.

A mortgage loan is a fixed amount that isn't affected by inflation, a fixed rate mortgage is also not affected by inflation plus you're making capital repayments. Rental payments are affected by inflation and as you can see have increased recently.

Should borrowers beware or renters beware?

Graham_Devon

chucky wrote: »

Ok, have a think about it this way as well.

A mortgage loan is a fixed amount that isn't affected by inflation, a fixed rate mortgage is also not affected by inflation plus you're making capital repayments. Rental payments are affected by inflation and as you can see have increased recently.

Should borrowers beware or renters beware?

You can't dumb it down to just that simple question though.

There are so many other factors to consider.

i8change

Originally Posted by chucky
Should borrowers beware or renters beware?

The current generation of Mortgage borrowers have to be much more cautious than those taking out Mortgages in periods of high wage inflation.

Moving from renting to Mortgage is now riskier because the "painful" and dangerous period is much extended. Unless there is a return to high wage inflation.

Both have always needed to be aware.

IronWolf

There is no question really whether buying a house for yourself is a good investment or not. We can argue about timing etc, but imo as long as you aren't buying at the peak of a bull market, or when interest rates are at record lows and you can't afford an increase, then you will do fine in the long run. So what if you're £10k worse off than if you'd bought 2 years later.

Think of it this way, when you've retired, do you want to be paying rent, or living in a house you own?