What do you think?

homelessskilledworker

Here is a question/scenario for everyone:)

Just say your monthly mortgage today is £1000 for arguments sake on a property that is worth £xyz purchased last month.

For the rest of the year interest rates double

Now the the property that was worth £xyz has halved in value(approx), but for anyone else buying that same property today the mortgage payment would still be £1000 monthly(no difference).



But my question is, would the property market spring into action and more house sell?

purch

homelessskilledworker wrote: »

for arguments sake

You love your arguments, don't you :eek:

moneyinmypocket

I think people should buy a house if they can afford to and stop hoping for a crash

ukcarper

homelessskilledworker wrote: »

Here is a question/scenario for everyone:)

Just say your monthly mortgage today is £1000 for arguments sake on a property that is worth £xyz purchased last month.

For the rest of the year interest rates double

Now the the property that was worth £xyz has halved in value(approx), but for anyone else buying that same property today the mortgage payment would still be £1000 monthly(no difference).



But my question is, would the property market spring into action and more house sell?

Are you trying to compete with moneyinpocket for most pointless thread.

CLAPTON

there aren't a mass of empty house currently on sale

so even if they did sell it would make no difference to the shortgage of houses as each person that moved out of one house would only move if they bought another

we need to build more house

the ft quoted figures that showed that London was expanding at about 100,000 per year and only 18k properties were being build

wotsthat

If someone bought a house and then immediately saw it half in value whilst their mortgage doubled could be considered indebted and, I imagine, might even be frightened.

The upside would be they'd be a homeowner and would get invited to more homeowner dinner parties.

nicko33

homelessskilledworker wrote: »

Now the the property that was worth £xyz has halved in value(approx),

Why? Has "the market" done that?

IveSeenTheLight

homelessskilledworker wrote: »

What do you think?

I think this is a pointless thread with no merit.
I also think it will end up deleted.

Niv

What a pointless thread, homeless you have reached a new low (and that is saying something), may as well ask, aliens have landed, do you think your insurance will cover you if they blow your house up!

Percy1983

There is one big difference, I know with buying right now the only real way my interest rate can go is up.

On the other side of your argument buying at half the price but with a hefty interest rate may appear the same initially, but the big difference is there is a good chance you interest rate can go down.

IveSeenTheLight

Let's breack this down

Percy1983 wrote: »

There is one big difference, I know with buying right now the only real way my interest rate can go is up.

Of course the likelyhood is that the rate will increase, however the fantastic thing is that you have the opportunity to have a mortgage at lower rates, which over the term can make a huge difference to the interest paid.

Lets face it, there are potentially millions who are benefiting from low rates for the last 3-4 years

Percy1983 wrote: »

On the other side of your argument buying at half the price but with a hefty interest rate may appear the same initially, but the big difference is there is a good chance you interest rate can go down.

First [STRIKE]flaw[/STRIKE] consideration is, house prices need to half in price.
Never say never, but the likelyhood of house prices being nominally 50% lower is extremely slim to say the least.

Second [STRIKE]flaw[/STRIKE] consideration is, interest rates being hefty is not expected anytime soon. At least, it is not expected until the economy is well on the road to recovery and there is sustained growth.
Again, neve say never, but the likelyhood certainly in the short term is not very likely.

If your waiting for option 2, you might be waiting for a very long time, if ever.

Indeed, I'd be willing to stake a heft wager onit not happening.

Best of luck thought to all