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

townendwig

Jack_Johnson_the_acorn wrote: »

The sooner you buy the more you save. This it seems is lost on you.... I will have paid my mortgage off in 9 years, if you continue to rent for 10 years how much will that have cost you? You could be mortgage and rent free in that time.

If you cant afford a deposit or don't fulfill the lending criteria then I'm sorry. But choosing not to buy in an attempt to time the market is extremely unlikely to yield successful results.

Pardon?


We have nearly enough capital accrued to buy outright the house we currently rent at current prices but we've kind of got used to renting and the flexibility it affords, it certainly hasn't stopped us 'getting on with life' (the notion in this country that you're not grown up and getting on with life until you have an eye watering debt of hundreds of thousands to your name still makes me chuckle/grimace when I hear people parrot it) and we have a good relationship with the mortgagee of our current home so have no desire to move our capital into a house just yet. We can even wallpaper paint and put up shelves like real people do!

townendwig

ukcarper wrote: »

I'm not sure we are championing HPI( I know I'm not) we are just telling it as we see it.

Of course, we're all telling like we see it that's what makes life interesting! It might just be a handful of posters who dominate these sort of discussions which makes it seem like the view of the forum I guess.

Jack_Johnson_the_acorn

townendwig wrote: »

Pardon?


We have nearly enough capital accrued to buy outright the house we currently rent at current prices but we've kind of got used to renting and the flexibility it affords, it certainly hasn't stopped us 'getting on with life' (the notion in this country that you're not grown up and getting on with life until you have an eye watering debt of hundreds of thousands to your name still makes me chuckle/grimace when I hear people parrot it) and we have a good relationship with the mortgagee of our current home so have no desire to move our capital into a house just yet. We can even wallpaper paint and put up shelves like real people do!

If this is true then you're in a very strong position....
This is quite obviously not the norm. Most people don't have 150k sitting in the bank. Personally I would be looking to invest this money whilst rates are so incredibly low (as you''ve pointed out)

Instead you're waiting for prices to drop?
How long have you been renting?

townendwig

Jack_Johnson_the_acorn wrote: »

If this is true then you're in a very strong position....
This is quite obviously not the norm. Most people don't have 150k sitting in the bank. Personally I would be looking to invest this money whilst rates are so incredibly low (as you''ve pointed out)

Instead you're waiting for prices to drop?
How long have you been renting?

It isn't all sat in cash!!


Like everyone does in this country we first looked at getting a mortgage a fair few years ago because 'that's what you do its the natural next step' etc. but when I started to look into it more closely it vexed me that two people on well above average wages had to pay such a ridiculous amount for an 'average' house. So we stayed flexible and kept renting and have been able to move where the work is, take extended leave to travel the world etc and move closer to family since we've had the little one.


Of course we have spent money renting, money that we'll never get back (sob) but I don't see it as money down the drain because for a truly balanced view that needs to be offset against the cost of owning, opportunity cost of capital, cost of servicing the debt, maintenance, refurbishment etc.


Have been renting all my adult life so a good few years! and like I say it has afforded me the opportunities to move where the work is and stay flexible.

Jack_Johnson_the_acorn

townendwig wrote: »

It isn't all sat in cash!!


Like everyone does in this country we first looked at getting a mortgage a fair few years ago because 'that's what you do its the natural next step' etc. but when I started to look into it more closely it vexed me that two people on well above average wages had to pay such a ridiculous amount for an 'average' house. So we stayed flexible and kept renting and have been able to move where the work is, take extended leave to travel the world etc and move closer to family since we've had the little one.

Best of luck to you. Sounds like you agree all things equal which they aren't in your case buying is better value than renting.


Of course we have spent money renting, money that we'll never get back (sob) but I don't see it as money down the drain because for a truly balanced view that needs to be offset against the cost of owning, opportunity cost of capital, cost of servicing the debt, maintenance, refurbishment etc.


Have been renting all my adult life so a good few years! and like I say it has afforded me the opportunities to move where the work is and stay flexible.

I'm no hpi junky, I was simply educated enough to know with my circs buying was the most financially savvy option. Prices in the north west are still v v affordable and work in my field is pretty easy to find.

ukcarper

townendwig wrote: »

Of course, we're all telling like we see it that's what makes life interesting! It might just be a handful of posters who dominate these sort of discussions which makes it seem like the view of the forum I guess.

Just because you think it is better to buy and that prices will not crash does not mean you want prices to rise. As far as I can tell the people who want a crash cannot see that.

Crashy_Time

Joeskeppi wrote: »

Is it just me that thinks a thread started 7 months ago entitled "Is Prime London Crashing?" during which time prices have risen, is NOT something to advertise or be proud of?

From Mumsnet;


"What's really quite scary though is the implications of those foreign investors pulling out their money suddenly, leaving a trailing wake of artificially high prices, negative equity and barely-afforded mortgages. Not to mention what will happen when interest rates start to rise, as they inevitably will."

Crashy_Time

padington wrote: »

The lottery is even more addictive, that probably does have a better chance of winning over many lifetimes. However rationally it would probably be better not to have 14 million life times spent chucking your savings down the drain for the chance of one life time of becoming a millionaire

The renter sadly gets 14 million life times of licking the landlords boot and usually never gets even one chance for one life time where this strategy becomes wise.

The only chance a stubborn renter has is to loudly cheers on their horse called 'rent' and hope that somehow there will be a spectacular and unpredendented set of events which could reverse their fortunes.

When this does happen partially though and markets collapse, this 'win' reinforces the addiction (together with perceived false wins) and they instead keep backing the horse called 'rent' rather than locking in any 'winnings' at that point and so never actually win anything.

So the lottery and paying rent are both games for mugs, whilst paying rent might be slightly worse.

Y..a..w..n.

townendwig

Jack_Johnson_the_acorn wrote: »

I'm no hpi junky, I was simply educated enough to know with my circs buying was the most financially savvy option. Prices in the north west are still v v affordable and work in my field is pretty easy to find.

Fair play to you, and for many people taking on a mortgage makes more sense than paying rent. But it isn't the only option. And to suggest the decision is one of cost is a gross simplification. As you rightly point out personal circumstances play a part and there are many factors to take into account.


I read another thread on here about someone who's neighbours are making their life a living hell to the extent they feel trapped in their own home, if that happened to us in our current home, we'd move somewhere else. But because they have a mortgage they are stuck where they are, horrible story and sad to read.

Jack_Johnson_the_acorn

Crashy_Time wrote: »

Y..a..w..n.

Other than entertaining/amusing the more financially astute, you have brought zero to this thread.

If you're going to try and troll the forum at least be witty with it.