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

James_B.

Crashy_Time wrote: »

[
There is insecurity if you have a large mortgage in this deflationary environment though? The debt is just sitting there while the borrower is less able to service it?.

No, that's not right. In both buying and renting you lose your home if you can no longer service the debt/rent, but with owning that is the only way that you can lose your home. With renting you have all the same risk down to your own ability to pay, but also have the additional risk of the landlord deciding that they would like you to leave.

In my case I'm fortunate in that I've investments that could cover the whole mortgage should I require them to, but that does not affect the general case, where renting clearly offers less security.

James_B.

hpifever wrote: »

You overpaid for the lovely rabbit hutch "flat" on the Thames.

Now so, on both points? It's over 2,000 square feet, which is reasonable, if not palatial, and seems likely to be sellable at 400,000 pounds more than I paid for it, if neighbours' selling prices recently are any guide.

Why would you make such a claim, without knowing the specifics of the property?

As I've said previously, I did buy expecting to see it depreciate, but wanted to own. I am surprised by the appreciation, but it's hard to deny that it's happened.

Bubble_and_Squeak

chucknorris wrote: »

That doesn't make any difference, because it depends upon your interpretation of the market value considering all current factors at that particular time, and I already said I think that I overpaid. But I wouldn't expect you to understand anyway because you are not objective enough.

VHAD??
makes a big difference
deflation is a nasty business and its looking more and more likely as we go forward. overpaying slightly (and i wouldn't really call number 58 slightly) will be magnified.
i'd lay even money deflation even registered on your radar in 1992.

chucknorris

James_B. wrote: »

Why would you make such a claim, without knowing the specifics of the property?

I think that you probably already know the answer to that.

chucknorris

Bubble_and_Squeak wrote: »

VHAD??
makes a big difference
deflation is a nasty business and its looking more and more likely as we go forward. overpaying slightly (and i wouldn't really call number 58 slightly) will be magnified.
i'd lay even money deflation even registered on your radar in 1992.

Of course it is, but deflation isn't going to happen, that's what I meant about your attitude to risk. I don't think that you will ever buy, when you can afford to buy you will always find a reason not to, when that reason has elapsed, then prices will have increased and then you can't afford to buy (at least not the same type of property that you could have).

Bubble_and_Squeak

chucknorris wrote: »

Of course it is, but deflation isn't going to happen, that's what I meant about your attitude to risk. I don't think that you will ever buy, when you can afford to buy you will always find a reason not to, when that reason has elapsed, then prices will have increased and then you can't afford to buy (at least not the same type of property that you could have).

i tried to buy many times earlier this year but i didn't have the financial muscle to outbid the bomads.

is there any particular reasons why you think deflation won't happen or is it just a hunch??

Bubble_and_Squeak

chucknorris wrote: »

As I said on the other thread I'm not going to waste my time responding to you anymore.

looks like its just a hunch, then

Crashy_Time

Bubble_and_Squeak wrote: »

looks like its just a hunch, then

Sounds more like a wish. Deflation is already happening.

Crashy_Time

James_B. wrote: »

No, that's not right. In both buying and renting you lose your home if you can no longer service the debt/rent, but with owning that is the only way that you can lose your home. With renting you have all the same risk down to your own ability to pay, but also have the additional risk of the landlord deciding that they would like you to leave.

In my case I'm fortunate in that I've investments that could cover the whole mortgage should I require them to, but that does not affect the general case, where renting clearly offers less security.

If you are servicing debt on a property you don`t own it.

Bubble_and_Squeak

Crashy_Time wrote: »

Sounds more like a wish. Deflation is already happening.

chucky seemed to get upset about my suggestion that property in tottenham may not be worth as much as the government stats say it is and has consequently branded me a fool.
this is what you get when you mess with the hpi police.