whats going to happen in years to come with interest only mortgages?

OffGridLiving

shortchanged wrote: »

OK Hamish. Will you guarantee my investment for me?

Should I buy, give a lick of magnolia and then sell or should I get into BTL?

You could just buy a house and live in it. That's what the vast majority of people do. Very few are worried/interested in the minutea of various house price indexes. They just buy and get on with living.

Good luck with your purchase and STOP worrying so much!!

shortchanged_2

OffGridLiving wrote: »

You could just buy a house and live in it. That's what the vast majority of people do. Very few are worried/interested in the minutea of various house price indexes. They just buy and get on with living.

Good luck with your purchase and STOP worrying so much!!

I've got a house thanks, I just want to make loads of money from property. What is the best way to do it?

Mr._Pricklepants

HAMISH_MCTAVISH wrote: »

Astonishingly, the Land Registry’s monthly figures are hugely understating the average price paid for a property in England and Wales.

That is because thanks to the wonders of statistical manipulation, it opts to keep all new-build sales out of its monthly report calculations.

If you want to actually find a report that does include all residential property transactions – and thus paints a far truer picture of what people are paying for property – you have to go to the Land Registry’s quarterly report.

The most recent quarterly report puts the average house price paid at £249,958, So that’s only a huge £87,878 gulf between the two.

I wonder why LR chooses to use this methodology for their monthly reports? What's the point of an artificially suppressed monthly report?

Mr._Pricklepants

shortchanged wrote: »

I've got a house thanks, I just want to make loads of money from property. What is the best way to do it?

With interest rates about to skyrocket, maybe you should look into STR?

shortchanged_2

Mr._Pricklepants wrote: »

With interest rates about to skyrocket, maybe you should look into STR?

Cheers for that. I'll make an appointment with an EA now and put my house on the market.

antrobus

Mr._Pricklepants wrote: »

I wonder why LR chooses to use this methodology for their monthly reports? What's the point of an artificially suppressed monthly report?

Because the LR House Price Index is based on repeat sales. That way you can compare the sale value at one point in time, with the sale value at a previous point in time, and work out what's happened to prices in between.

OffGridLiving

shortchanged wrote: »

I've got a house thanks, I just want to make loads of money from property. What is the best way to do it?

Sorry, I'm not the right person to ask as the only property I have is my home. You'd be better off posting something on the housing board. There are a few BTL guys in tere who might be able to point you in the right direction.

Good luck with your investment. I prefer shares, gilts and bonds myself, but each to their own.

shortchanged_2

OffGridLiving wrote: »

Sorry, I'm not the right person to ask as the only property I have is my home. You'd be better off posting something on the housing board. There are a few BTL guys in tere who might be able to point you in the right direction.

Good luck with your investment. I prefer shares, gilts and bonds myself, but each to their own.

What about maxing out on an IO mortgage and downsizing? Is that a good idea?

OffGridLiving

shortchanged wrote: »

What about maxing out on an IO mortgage and downsizing? Is that a good idea?

Are IO mortgages still available?

If you're downsizing (i.e. selling your house and moving to a smaller one) then I wouldn't get a new mortgage unless you can get one without a redemption clause. If you're currently on SVR then you can sell up without penalties.

Plus, there would be no point to 'maxing out' the mortgage because when you sell the house, you'd have to give all that back to the lender. I'd strongly advise you not to release equity (maxing out) in order to invest if you're selling up. This something that needs to be done over a much longer time scale.

grizzly1911

antrobus wrote: »

Because the LR House Price Index is based on repeat sales. That way you can compare the sale value at one point in time, with the sale value at a previous point in time, and work out what's happened to prices in between.

Why does that result in two widely differeing figures for the average? More so if one is so wide of the mark.

It is almost like quoting two exchange rates one can actually get and another one based on the price of tripe.