London Has Peaked

chucknorris

tkane wrote: »

Yikes, not been to Tottenham Hale recently but it used to be a rather scary place circa 5 years ago!

Yes 400k for an entire house will look like a bargain in a few years. I enquired about the flats for sale in Chobham Manor in Statford - £375k for 1bed and £550k for 2beds. INCREDIBLE.

You could get a full house in Stratford for £250k just a few years ago.

Yes we were looking to buy more and were starting to look at Stratford too, but the crash came. After that because we acted like idiots being too fussy about a 3rd double bedroom, we completely missed the boat. To make matters even worse apart from ISA's, I didn't invest anything in the ftse at rock bottom prices either. I failed miserably making the most out of the recession, for all the good it did me, we might as well have not had the recession. For me that is whole point of a recession to stock up on your investments at bargain prices.

padington

Press reporting of a trillion of QE released over two years ...

purch

wotsthat wrote: »

Isn't the '+' sign

You may need to explain what + means.

I'm not sure these people did too well in CSE Maths.

sdrio

Crashy_Time wrote: »

So would I, so I rent a flat instead.

Let's hope your rent doesn't increase.

stu007

danothy wrote: »

Okay Crashy, give me some life advice. I am currently renting a flat. I have no consumer debt to speak of, just a student loan that is serviced via PAYE. I have some savings which I am adding to each month. The flat below the one I currently live in is identical to mine, for sale, and priced quite optimistically. I have the following options open to me:

Option 1:
Keep paying monthly rent, where I am now or in another property, forever, hoping that in retirement my savings cover my rent and living expenses.

Option 2:
Buy the flat below me with a 25 year capital repayment mortgage using my savings as a deposit. With a 3.5% interest rate the mortgage repayment on the flat below the one I currently live in would be the same as my rent now (assuming I paid full asking price).

Option 3:
Buy some other property (e.g. a freehold 2 bed end terrace in my area) that is priced about the same as the flat below me. Again, uses savings as deposit for a 25 year capital repayment mortgage. With a 3.5% interest rate the mortgage repayment on such a property would, again, be the same as my rent now.

Which option should I take, Crashy, and why should I take it? Bear in mind though before you answer that this is a real life situation and decision. There is nothing hypothetical about it. If you're negligent in your assessment your advice will cause harm.

You are aware that these historic low interest rates most likely won't last the entirety of a 25 year mortgage?

danothy

stu007 wrote: »

You are aware that these historic low interest rates most likely won't last the entirety of a 25 year mortgage?

You weren't asked either.

mayonnaise

I wasn't asked either, but I'd go for option 1.

It's the only option that will allow you to rent a room in the same road as Fred the Shred.

danothy

mayonnaise wrote: »

I wasn't asked either, but I'd go for option 1.

It's the only option that will allow you to rent a room in the same road as Fred the Shred.

You weren't asked, but of the people who weren't asked but answered anyway you are the only one thus far to pick an option and give a reason for that option, which is what was asked for.

stu007

danothy wrote: »

You weren't asked either.

I must have confused this for a public forum

danothy

stu007 wrote: »

I must have confused this for a public forum

Your confusion appears to be regarding what and who was actually asked, not what medium it was asked through.