'We've reached a tipping point' Signs of house price weakness

chucknorris

Blooloo wrote: »

both are headaches if you pay to the hilt.

For me though, lifestyle is more important than the theoretical wealth I could be building up.

So, would you buy in London today? or will it be cheaper to buy in 6 months, a year, maybe 5 years?

maybe our estimator can give us some professional calculated insight?

If past history was all there was to the game, then the richest people would be Librarians.

I will not be buying any more property, it doesn't suit my risk profile, the exception might be if I bought a second home in Sothern Spain or the Algarve, we plan to spend the winter months there following retirement in 18-24 months time. But my preference is probably to rent because you get good value long term rental deals over the winter months and avoid the headache of maintaining a property 1,000's of miles away. It isn't an easy decision though, as renting (with a dog in tow) might not be easy to get everything exactly the way that we want it, decent pool, pet friendly, sky tv and unlimited internet (not always easy to find over there).


PS: I am not an estimator, I am QS/cost planner, although working as a university lecturer now.

Blooloo

wotsthat wrote: »

Yes to pay off a mortgage a plan is needed to err.. pay it off.

You don't know what HEW is by the way.

HEW is many things.

A second mortgage is a HEW, pensioners can mortgage their homes in exchange for cash ( equity withdrawal), businesses can secure a business loan against equity.

It could also be a MEW, a secured loan, a deposit on another property to bring down the LTV, it could be the security for a professional loan...its ANYTHING that assigns equity in your property.

Thrugelmir

ukcarper wrote: »

Those are really week arguments the vast majority of mortgage holders complete there mortgage at sometime.

The jury is still out. The liars boom era of 2003 -2007 has still to work it's way out of the system. So well into the 2020's the true extent of personal indebtedness will become very apparent. As WB famously said "When the tide goes out we'll see who is swimming without any trunks on".

Blooloo

ukcarper wrote: »

Those are really week arguments the vast majority of mortgage holders complete there mortgage at sometime. I took equity release for some home improvements I still completed my mortgage on time and I am now living rent free in a nice house as are most of my friends.

really pleased to see the system has worked out for you.

does that make buying a "no brainer" for everyone else?

Blooloo

chucknorris wrote: »

I will not be buying any more property, it doesn't suit my risk profile, the exception might be if I bought a second home in Sothern Spain or the Algarve, we plan to spend the winter months there following retirement in 18-24 months time. But my preference is probably to rent because you get good value long term rental deals over the winter months and avoid the headache of maintaining a property 1,000's of miles away. It isn't an easy decision though, as renting (with a dog in tow) might not be easy to get everything exactly the way that we want it, decent pool, pet friendly, sky tv and unlimited internet (not always easy to find over there).


PS: I am not an estimator, I am QS/cost planner, although working as a university lecturer now.

You sound a lot like the much maligned Bruce Banner...I gather he retired with the same logic as you...although you wouldnt beleive it from the comments on this thread.

I have family living down there...they warn me it gets pretty cold some winters.

ukcarper

Thrugelmir wrote: »

The jury is still out. The liars boom era of 2003 -2007 has still to work it's way out of the system. So well into the 2020's the true extent of personal indebtedness will become very apparent. As WB famously said "When the tide goes out we'll see who is swimming without any trunks on".

Not it context of our discussion. The jury is still out and people will be in trouble but to what extent is still unclear and I suspect it will not be as bad as some are predicting.

ukcarper

Blooloo wrote: »

really pleased to see the system has worked out for you.

does that make buying a "no brainer" for everyone else?

If they can afford payments and do not want to move to often yes it can work for the majority of people.

wotsthat

Thrugelmir wrote: »

The jury is still out. The liars boom era of 2003 -2007 has still to work it's way out of the system. So well into the 2020's the true extent of personal indebtedness will become very apparent. As WB famously said "When the tide goes out we'll see who is swimming without any trunks on".

Out of interest just how many people do you think aren't going to finish paying off their mortgages? Additionally, do you think people should rent to guarantee they don't end up with a mortgage they can't pay off?

ukcarper

wotsthat wrote: »

Out of interest just how many people do you think aren't going to finish paying off their mortgages? Additionally, do you think people should rent to guarantee they don't end up with a mortgage they can't pay off?

Interesting article


http://www.cml.org.uk/cml/media/press/3890

chucknorris

Blooloo wrote: »

You sound a lot like the much maligned Bruce Banner...I gather he retired with the same logic as you...although you wouldnt beleive it from the comments on this thread.

I have family living down there...they warn me it gets pretty cold some winters.

Didn't he STR? We have 9 properties, 8 of them in London. The only reason that I wouldn't buy another is that there is little upside for me, I will be turning 58 when I retire (in about 18 months) and I really can't see us spending all the money before I die. So I don't see the point in taking on more risk, not to mention work, for something that may not even benefit me and adds to my workload.


We have been down there in the winter and it was just as we anticipated (average high teens, occasionally in the low 20's) that is perfect for me to run, cycle, walk my dog and play bowls. It does get chilly at night, but that doesn't really matter, what I want is to be outdoors midday.