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

Blooloo

Bubble_and_Squeak wrote: »

who is your favourite doctor?

David Tenant of course

ukcarper

Bubble_and_Squeak wrote: »

my position is a lifestyle choice
i spent the best years of my life exploring the planet, meeting people, getting into adventures and partying
i could have spent the best years of my life paying a mortgage
had i done so i my financial position would have probably been far better than it is now
but
when i'm lying cancer ridden on my death bed in a few years from now i'm pretty confident i wont have regrets

That's your choice my and others point is that over a lifetime it is cheaper to buy. What if you are fit and on a low pension how much fun are you going to have after paying out for expensive rent you can still enjoy yourself when you are older.

ukcarper

Blooloo wrote: »

cynical reply.

There is no right or wrong general answer.

But what about buying v renting today? Government thinks buying isnt possible for many today and have introduced/continued schemes to help.

why?...maybe banks arent so sure about the return of their capital so much?

A few posts back you were saying banks were bending the rules to lend more now you are saying they are not sure about their returns what is it.

Blooloo

ukcarper wrote: »

That's your choice my and others point is that over a lifetime it is cheaper to buy. What if you are fit and on a low pension how much fun are you going to have after paying out for expensive rent you can still enjoy yourself when you are older.

again...what about buying today?...23rd August 2014.

I guess I have been spoiled in renting such a lovely home for so little money, I guess some renters, like some buyers, just cant choose the right place and take whats available.

Blooloo

ukcarper wrote: »

A few posts back you were saying banks were bending the rules to lend more now you are saying they are not sure about their returns what is it.

another who cant read...

In any case, some of the banks have a big pool of FFL funds to get shot of.

Now, what evidence do you have there are hard rules with the MMR, and where are the rebukes for those pushing the meaning of regulations to the very limit?..

What is the average actual mortgage taken out in August 2014?

wotsthat

Blooloo wrote: »

1999 decision is justified.

Score 1.

How about buying the exact same house, in the exact same circumstances (job, age, status), today?

This might have been explained but there isn't a house buyers crystal ball. It was a step into uncertainty in 1999 and, guess what, that crystal ball still hasn't been invented so 2015 is uncertain too.

The chances are that today's buyer will be just fine. Apart from !!!! happening (which is as likely to happen to renters as buyers) the main risk to the maths going the wrong way is a sharp correction very shortly after buying.

If you're trying to prove that buying doesn't always work out or the future is unknown no one is disagreeing.

Bubble_and_Squeak

ukcarper wrote: »

That's your choice my and others point is that over a lifetime it is cheaper to buy. What if you are fit and on a low pension how much fun are you going to have after paying out for expensive rent you can still enjoy yourself when you are older.

i intend to buy a house before april 2015 so hopefully paying rent when i'm a pensioner won't be an issue
the buy v rent is tiresome

gallygirl

Bubble_and_Squeak wrote: »

my position is a lifestyle choice
i spent the best years of my life exploring the planet, meeting people, getting into adventures and partying
i could have spent the best years of my life paying a mortgage
had i done so i my financial position would have probably been far better than it is now
but
when i'm lying cancer ridden on my death bed in a few years from now i'm pretty confident i wont have regrets

:T Good on you (though didn't you ever fancy settling overseas?) :T. We'll be able to travel from next year with our mortgage paid off and rental income from letting it and we're hopefully not too decrepit hopefully to enjoy life, so I'm happy with our choices (raising a family anyway so couldn't have done what you have).

Re doing it again today - it was around 3.5 times my salary in 1999. If I was in the same job today it would be 7 times my salary so I wouldn't be able to do the same again, so yes, prices have risen out of kilter. However, the salary for the job I had then has increased very little - it was well paid then, poorly paid now, so a truer reflection would be 5 times I think.

Jon Pertwee :T, though I had high hopes for Christopher Eccleston.

Blooloo

The CML said the latest national average income multiple for all home purchase borrowers is 3.22.

Yet the average mortgage is close to 150K

and the average salary is around 25K.

and the BoE is making the number of High LTV limited in numbers after October 1st.

I guess regulation is needed...and there is only two possible reasons for it..first, banks are lending high LTV based on current affordability regardless of risk to a high number of people, or secondly, they arent and the BoE is paying lipservice to a Political aim.

then again, the system did collapse actually in 2007/8...of course, nothing to do with mortgage lending, and overexposure or hidden debt and a light touch regulation because men in suits are totally trustworthy.

Bubble_and_Squeak

Blooloo wrote: »

again...what about buying today?...23rd August 2013.

I guess I have been spoiled in renting such a lovely home for so little money, I guess some renters, like some buyers, just cant choose the right place and take whats available.

YES!
this is an excellent point
personally, i have been in a position to buy since mid 2013
and was looking (possibly not hard enough, possibly too fussy)
i pulled out of the rat race in april when the bubble hit epic proportions
asking prices in forest gate (one of my target areas) have since dropped from around £350k to £300k for a 3 bedder around the sharrard road area
clearly i've been better off renting than buying then, no?