House prices suffer biggest drop since 2009 - Nationwide -2.6%

mystic_trev

Mr._Pricklepants wrote: »

...and as predicted by Renoman, his sockie miraculously shows up...

Closely followed by a Prickinpants

chewmylegoff

RenovationMan wrote: »

I keep asking this Graham and you keep avoiding it, is my statement above wrong?

You can keep asking the same question as many times as you like with your various sockies, but the answer is always the same and it's always right. Someone who bought a year ago will be 4% further on in their mortgage than someone who bought today. Simples.

depends. if the person who delayed buying for a year had saved money as a result they may be able to pay off the mortgage in 24 years.

RenovationMan

chewmylegoff wrote: »

depends. if the person who delayed buying for a year had saved money as a result they may be able to pay off the mortgage in 24 years.

More likely that their mortgage is cheaper than their rent if they lived in a comparable property. It's a moot point anyway because no FTBer would get a 24 year term instead of 25.

chewmylegoff

It's not really a moot point though is it, unless you think FTBs aren't allowed to make overpayments...

I think we can all agree that after 1 year of a 25 year mortgage, 1 year will have elapsed in time.

Beyond that, it's impossible to say whether that means a particular mortgagee (or even an average mortgaged) will be better off in a year's time for having taken out the mortgage today ago...

lisyloo

I think we can all agree that after 1 year of a 25 year mortgage, 1 year will have elapsed in time.

Of course, but what is less certain is what people will do with the money in the meantime.
Let's suppose that someone lives with parents for free during that year, so their rent or mortgage payments are available.
I'm sure we would all agree that some people will sensibly put the money that they would have spent on a mortgage/rent aside.
Others will spend it down the pub, on the horses, on a gambling site, on frothy coffees. Whatever they spend it on doesn't matter, but we all know that some people would just spend it.

I believe very strongly that earmarking money can make a massive difference.
So if we exclude the disciplined who can manage their money, the majority who are undisciplined will on the whole be better off with a repayment mortgage. They would be even more better off with a pension that comes out of their salary before they receive it.
Over 20, 30, 40 or 50 years this can make a massive difference which is hard to overplay. For example it could be a whole house after 25 years and yes that can be frittered away on frothy coffees, betting shop, pub etc.

I do actually know people who put off starting a pension.
Those who started have 6 figure sums 20 years later.
The people who didn't start do no have 6 figure sums, they have just spent it.

RenovationMan

chewmylegoff wrote: »

It's not really a moot point though is it, unless you think FTBs aren't allowed to make overpayments...

I think we can all agree that after 1 year of a 25 year mortgage, 1 year will have elapsed in time.

Beyond that, it's impossible to say whether that means a particular mortgagee (or even an average mortgaged) will be better off in a year's time for having taken out the mortgage today ago...

Well it is a moot point if you think that FTBers aren't allowed to make overpayments, but renters are allowed to increase their deposits.

MOOT MOOT MOOT.

chewmylegoff

RenovationMan wrote: »

Well it is a moot point if you think that FTBers aren't allowed to make overpayments, but renters are allowed to increase their deposits.

MOOT MOOT MOOT.

Ah classic Renoman childishly posting silly pictures.

Dan:_4

chewmylegoff wrote: »

Ah classic Renoman childishly posting silly pictures.

I love brit1234's pictures.

shortchanged_2

Dan: wrote: »

I hope so to, but im not holding my breath.

Classic Dan: pretending he wants house prices to fall.

DervProf

chewmylegoff wrote: »

Ah classic Renoman childishly posting silly pictures.

They complement his silly posts rather well, I feel.