London Has Peaked

mayonnaise

Crashy_Time wrote: »

You don`t like discussion about the property bubble that has started to burst do you Mayon..NAISE! :rotfl:

I do! I do! If and when it happens, I'll be here to discuss it with you. :rotfl:

lisyloo

It won`t work again until the property bubble is fully popped.

I don't agree.
If you want to pursue a constructive argument, then I challenge you to put up some maths where renting is better than buying over the long term (25 years).

The biggest credit bubble has brought me and may others ultra low interest rates which benefitted mortgage holders but not renters.

You don`t like discussion about the property bubble that has started to burst

We need 3 months minimum of negative indicators before we could agree there is a downward trend.
There isn't evidence that the bubble has started to pop, infact some evidence that it hasn't at all.

Jack_Johnson_the_acorn

lisyloo wrote: »

I don't agree.
If you want to pursue a construction argument, then I challenge you to put up some maths where renting is better than buying over the long term (25 years).

The biggest credit bubble has brought me and may others ultra low interest rates which benefitted mortgage holders but not renters.



We need 3 months minimum of negative indicators before we could agree there is a downward trend.
There isn't evidence that the bubble has started to pop, infact some evidence that it hasn't at all.

In around 3 years when I will have built up significant equity, it would probably benefit me if there was a house price crash, as interest rates would undoubtedly drop further meaning my mortgage would cost buttons, although I'm quite happy with my 3.14% rate fixed for 2 years. Currently paying £150 less pcm than the equivalent rent, although I'm overpaying between £400-£500pcm whilst the sun is shining.... Crashy forgets if you're not selling then house prices mean v little.

lisyloo

Crashy forgets if you're not selling then house prices mean v little

The main thing he's missing is that if you buy a house you don't have to pay for accomodation.
Lanlords aren't in business to make a loss, hence there is a profit element to paying someone else for a service.

ukcarper

I paid off my mortgage 5 years ago the rent on equivalent property is £1400 a month so a saving of £85k probably slightly less as rents were lower 5 years ago. Considering my mortgage was lower than rent most of the time I think I've done OK.

If there wasn't a boom and prices had only increased with inflation the house would be worth half what it is now so rent might be £700 a month still a saving of £42k and hopefully I've got a few more years to go.

Not sure why crashy can't see it.

Jack_Johnson_the_acorn

ukcarper wrote: »

I paid off my mortgage 5 years ago the rent on equivalent property is £1400 a month so a saving of £85k probably slightly less as rents were lower 5 years ago. Considering my mortgage was lower than rent most of the time I think I've done OK.

If there wasn't a boom and prices had only increased with inflation the house would be worth half what it is now so rent might be £700 a month still a saving of £42k and hopefully I've got a few more years to go.

Not sure why crashy can't see it.

Would he buy if there was a 40% crash, surely then he could pay it off in cash with all his savings. Has he ever said what it would take for him to buy. I know he's terrified of the word mortgage and debt...:D

Libber

Bubble_and_Squeak wrote: »

every piece of news on the housing market has been bearish since december

Rightmove index for January: +1.4%
Halifax index for December: +0.9%
Nationwide index for December: +0.2%
Land Registry index for December: +0.6%

Bears like positive numbers, right?

Crashy_Time

ukcarper wrote: »

I paid off my mortgage 5 years ago the rent on equivalent property is £1400 a month so a saving of £85k probably slightly less as rents were lower 5 years ago. Considering my mortgage was lower than rent most of the time I think I've done OK.

If there wasn't a boom and prices had only increased with inflation the house would be worth half what it is now so rent might be £700 a month still a saving of £42k and hopefully I've got a few more years to go.

Not sure why crashy can't see it.

Possibly because at the height of the RBS crisis I rented a house in the same street as Fred the Shred (only knew he was there when all the protesters started turning up) and paid 1000 p,m (split three ways) We reckoned that house would have been 800k to buy at the peak (VERY large garden) So frankly either your figures are off, or you don`t know value, or there is no value where you live (SE?)

ukcarper

Crashy_Time wrote: »

Possibly because at the height of the RBS crisis I rented a house in the same street as Fred the Shred (only knew he was there when all the protesters started turning up) and paid 1000 p,m (split three ways) We reckoned that house would have been 800k to buy at the peak (VERY large garden) So frankly either your figures are off, or you don`t know value, or there is no value where you live (SE?)

What you are failing to grasp is that once house is paid for you live there rent free. My figures are acurate I'm not so sure about yours.

Crashy_Time

ukcarper wrote: »

What you are failing to grasp is that once house is paid for you live there rent free. My figures are acurate I'm not so sure about yours.

Yes, but most people buying into this bubble will take many years to pay off their debt, many who went I.O will never pay it off. Property ownership/debt servitude is over-rated, and that will become very clear when prices correct. My figures are correct, although the owner did say that they were pricing for an immediate and long term rental, and that they were " equity, but not cash rich", so they basically needed the money (a lesson in there for some of the posters here IMO)