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

chucknorris

Blooloo wrote: »

it matters to those borrowed to let to the hilt on their portfolio when the LTV drops to below contract level using current equity to expand.
Windmillers beware.
It doesnt matter to those who bought to let.

People who over extend themselves in any field of business will always be at risk of coming unstuck, but to those with sensible business plans it will not matter. As I said what matters is the price you buy at and the price you sell at.


EDIT: Wicket taken by England, India 3 for 1.

Blooloo

AndyGuil wrote: »

Let me see. So we have long periods of HPI followed by short periods of falls all pccuring in a cycle. We have just had a fall which is clearly over as the house prices have risen like they did straight after the last recession. A sudden kick of HPI at the start, tick, as before. Then a little restraint in the market with sustained increases to the next recession. It is a cycle.

I see, so saving on the purchase price and hence your ongoing costs is irrelevent.

I get it...one needs to drop everything and get on this train, even TODAY. in the next hour if possible.

Inflation is always a player...its true. but so is compounding interest.

I thought a good business model is that you invoice "out" more than you invoice "in". surely reducing the invoice "in" is going to be of moneysaving goodness..And a good way to acheive that is to buy as cheaply as possible, not only the capital item, but its associated costs, like mortgages, insurance etc etc.

The winners model doesnt work quite so well, if at all for the thousands piling in in 2007 in say, Barnsley.

Some Generals only bought in London of course..we will hear from them..We wont hear from the Generals of Barnsley.

Blooloo

chucknorris wrote: »

People who over extend themselves in any field of business will always be at risk of coming unstuck, but to those with sensible business plans it will not matter. As I said what matters is the price you buy at and the price you sell at.


EDIT: Wicket taken by England, India 3 for 1.

Ignore the LTV in the contracts of many if not all BTL mortgage contracts.

Wont apply to London buyers in the last couple of years, but yer Barnsley Buyers might be on the hook...in spite of their equally best calculated plans.

Some people here are making bankers out to be our friends...people are only getting their umbrellas because it is sunny

AndyGuil

Blooloo wrote: »

I see, so saving on the purchase price and hence your ongoing costs is irrelevent.

I get it...one needs to drop everything and get on this train, even TODAY. in the next hour if possible.

Inflation is always a player...its true. but so is compounding interest.

I thought a good business model is that you invoice "out" more than you invoice "in". surely reducing the invoice "in" is going to be of moneysaving goodness..And a good way to acheive that is to buy as cheaply as possible, not only the capital item, but its associated costs, like mortgages, insurance etc etc.

The winners model doesnt work quite so well, if at all for the thousands piling in in 2007 in say, Barnsley.

Some Generals only bought in London of course..we will hear from them..We wont hear from the Generals of Barnsley.

If you can buy then just get on with it. It isn't the stock market, timing an entry isn't needed. If people wait then they tend to miss the opportunity as others take their place.

chucknorris

Blooloo wrote: »

Ignore the LTV in the contracts of many if not all BTL mortgage contracts.

Wont apply to London buyers in the last couple of years, but yer Barnsley Buyers might be on the hook...in spite of their equally best calculated plans.

Some people here are making bankers out to be our friends...people are only getting their umbrellas because it is sunny

Investing in London was not accidental, it was a substantial part of my decision to move to London in 1990 when I graduated (as a mature student). I would not have invested in somewhere like Barnsley, my tenant target market was (and mainly still is) young professional sharers who are abundant in London. In fact my first two properties were rented to my graduate friends at slightly below market rent, it gave them a good deal and me a soft introduction into letting. We discussed that possibility in the final year of our degree, about 2 years before I invested.


EDIT: Another wicket! India now 10:2.

wotsthat

Blooloo wrote: »

The winners model doesnt work quite so well, if at all for the thousands piling in in 2007 in say, Barnsley.

Some Generals only bought in London of course..we will hear from them..We wont hear from the Generals of Barnsley.

It's already been agreed that it isn't a 'no brainer' to buy. The fact that you have to choose Barnsley in 2007 after a decade of unprecedented HPI and just prior to the GFC to prove what has already been agreed shows just how difficult it is for you to find examples of 'losers'.

It's quite desperate really.

Jack_Johnson_the_acorn

Blooloo wrote: »

Ignore the LTV in the contracts of many if not all BTL mortgage contracts.

Wont apply to London buyers in the last couple of years, but yer Barnsley Buyers might be on the hook...in spite of their equally best calculated plans.

Some people here are making bankers out to be our friends...people are only getting their umbrellas because it is sunny

Whilst there are booms and crashes over a 30 year period it doesn't really matter.... That's what you're not understanding. I bought in 2011 prices have increased since, what if they crash again in 2018.... It won't matter because I will have been paying less in mortgage than rent and I'll have built up considerable equity.... On top of that in 5more years I should have no rent or mortgage costs. I'll be around 38yrs of age at this point so hopefully I'll have another 40 years with zero mortgage or rent to pay...... Financially, buying is a no brainer. Can't believe you're still arguing this point.

KR200

Blooloo wrote: »

I like it here...listening to old generals reliving past victories...

Or observing hard done by proles on HPC whining about how they detest boomers and how it's not fair they missed the boat.

When it all crashes X percent they'll all buy naturally.

chucknorris

wotsthat wrote: »

I'd say more sensible decision making than victory but you still don't get it - buying isn't just a past victory - it's an ongoing victory.

Definitely, that is the point, you get into a stronger financial position for the rest of your life. We are both looking to retire quite soon, I'll be 57/58 and my wife 46/47. We've long passed the point of financial danger and I am not looking to take on new risk, so I will not be buying any more investment property, but I probably would if I was younger.

Crashy_Time

Jason74 wrote: »

Leaving aside the question of how likely a serious crash actually is, my short answer to this statement is "so what". Whether my place is worth it's current value of £250k, doubles to £500k, or falls all the way back to the £92k I paid for it is utterly irrelevant in many ways. The fact is, I save about £1,000 per Month, every Month by owning it rather than renting it. And everyone who buys a home eventually reaches a point of making that kind of huge saving.

That is the value of home ownership. Monopoly money capital values really are neither here nor there to the principle benefit of home ownership

Interest rates are of vital importance to those taking on mortgage debt, mortgage rates not base rate, and how many in London recently paid 92k for their gaff?