Are the eternal optimists on here still feeling optimistic?

ChopperST

Crashy_Time wrote: »

I don`t care about the hostility, it is laughable and overly defensive, there are obviously people on here who are overleveraged in a deteriorating market. If you have a mortgage you don`t own the property. My financial strategy is to be able to wink at my manager and know that he knows he needs the job more than me

Again you've added nothing to the discussion! Why can't you simply talk in plain English?

I don't get what you mean by people being overleveraged in a deteriorating market? Mortgage rates are actually going down, so the cost of housing is falling for residential property. If interest rates were skyrocketing then what you say would be true but it simply isn't.

I think I've unmasked your secret identity anyway...

MFW_ASAP

Crashy_Time wrote: »

If you have a mortgage you don`t own the property. My financial strategy is to be able to wink at my manager and know that he knows he needs the job more than me

I'm afraid I don't understand your point. Are you suggesting it makes more financial sense to rent accomodation and save a 100% deposit for a home, rather than the standard approach of putting down a deposit and paying the balance via mortgage?

Surely in the vast majority of circumstances you'd be paying more each month for a rental property than you would for a comparable mortgaged property, especially as a few few years go by and the debt repayments remain the same but rents increase with inflation?

Are you suggesting that someone who rents for a 25 year period and put spare cash into savings over that period to buy a house outright is in a more secure financial position than someone who is mortgaged for the same 25 year period and also puts away his spare cash into savings over the same period?

Whether you have rental accomodation or 'rent from the bank', if you lose your job you still need to live somewhere, so surely until you have enough savings to buy a house outright (or have enough savings to pay off the mortgage), you need your job just as much as your manager?

I must admit I'm at a loss to understand your logic, can you help me out here?

Crashy_Time

MFW_ASAP wrote: »

I'm afraid I don't understand your point. Are you suggesting it makes more financial sense to rent accomodation and save a 100% deposit for a home, rather than the standard approach of putting down a deposit and paying the balance via mortgage?

Surely in the vast majority of circumstances you'd be paying more each month for a rental property than you would for a comparable mortgaged property, especially as a few few years go by and the debt repayments remain the same but rents increase with inflation?

Are you suggesting that someone who rents for a 25 year period and put spare cash into savings over that period to buy a house outright is in a more secure financial position than someone who is mortgaged for the same 25 year period and also puts away his spare cash into savings over the same period?

Whether you have rental accomodation or 'rent from the bank', if you lose your job you still need to live somewhere, so surely until you have enough savings to buy a house outright (or have enough savings to pay off the mortgage), you need your job just as much as your manager?

I must admit I'm at a loss to understand your logic, can you help me out here?

It`s pretty simple. If you think rents have been rising with inflation you are living in cloud cuckoo land, and if you have multiple years living expenses saved up you don`t need to work for, well, multiple years.

Crashy_Time

ChopperST wrote: »

Again you've added nothing to the discussion! Why can't you simply talk in plain English?

I don't get what you mean by people being overleveraged in a deteriorating market? Mortgage rates are actually going down, so the cost of housing is falling for residential property. If interest rates were skyrocketing then what you say would be true but it simply isn't.

I think I've unmasked your secret identity anyway...

Somehow I think you do

MFW_ASAP

Crashy_Time wrote: »

It`s pretty simple. If you think rents have been rising with inflation you are living in cloud cuckoo land, and if you have multiple years living expenses saved up you don`t need to work for, well, multiple years.

Interesting, do you think rents in five years or 10 years time will be the same as they are now?

I understand this concept, but what I don't understand is how you seem to be saying that you can only save up 'multiple years living expenses' if you are renting?

Crashy_Time

MFW_ASAP wrote: »

Interesting, do you think rents in five years or 10 years time will be the same as they are now?

I understand this concept, but what I don't understand is how you seem to be saying that you can only save up 'multiple years living expenses' if you are renting?

My present rent is 50 p.m more than it was around 16 years ago, rents have gone nowhere here in Scotland. After a proper housing correction rents will probably collapse, and the mood music is building for a big dummy spit from the voters over the numbers of people coming here to work/live, so I don`t think there is much scope for rent increases in the next ten years or so. Tons of empty BTL here in central Edinburgh. Anyone can save up multiple years living expenses, I just said that I was renting cheaply and doing it. I have no intention of buying into the dying days of the biggest housing Ponzi in history.

padington

Crashy_Time wrote: »

My present rent is 50 p.m more than it was around 16 years ago

So you've almost bought your landlord another property outright with all your hardwork over the years and you're happy about this situation ?

That's a crap outcome, that creates a bigger gap between the rich and the poor. Not something to boast about.

MobileSaver

MFW_ASAP wrote: »

re-adjusting his position via spacetime manipulation when history once again proves him wrong.

I'm convinced the HPC site runs courses on "spacetime manipulation" based on the postings of Bubbles et al on here.

Crashy_Time

padington wrote: »

So you've almost bought your landlord another property outright with all your hardwork over the years and you're happy about this situation ?

That's a crap outcome, that creates a bigger gap between the rich and the poor. Not something to boast about.

As I have had about ten landlords in that time, probably not. There is a tendency on here to see it as all black or white, you are either "buying your landlords house" or "living in a house for fifty years" because maintenance is cheaper than rent. Many of the landlords I rented from have probably gone bust TBH.


A really crap outcome would be to be stuck with a very large I.O mortgage on a depreciating asset in a deflationary environment with no wage rises in sight, so wake me up when I even get close to that level of crap.

Crashy_Time

padington wrote: »

So you've almost bought your landlord another property outright with all your hardwork over the years and you're happy about this situation ?

That's a crap outcome, that creates a bigger gap between the rich and the poor. Not something to boast about.

Of course, as usual, you duck the main issue, which is that rents don`t keep pace with inflation, and landlords can`t just jack up rents as their mood takes them or their financial situation deteriorates.