Bought a new build and may be price drops in neighbouring properties

nelly_2

mystic_trev wrote: »

There seem to be an ever increasing number of stupid questions asked on MSE forums. Someone on the Travel Forum was complaining they couldn't get their money back from a Flight booked on Expedia. Reason? They made a mistake and booked a flight from Birmingham, Alabama instead of Birmingham England!:rotfl: Why? Because it was cheap! No such thing as a stupid question? I don't think so!

lmao yeah I remember that one too

I prefere the ones on the travel where people ask - I just booked a 3 week florida holiday that cost £2000 I bought my disney tickets for £1000 and got £2000 spending money!.......anyone know where to get cheap suntan lotion?

HenryWeston

franklee wrote: »

Talking of new builds I'm puzzled by this:

http://www.rightmove.co.uk/viewdetails-5714004.rsp?pa_n=3&tr_t=buy

1. Why would anyone want to build flats that ugly?

2. Why sell them as a job lot?

3. Who would want to buy 98 ugly new build flats in Luton for £17,000,000

Isnt that a Travel Inn ?:rotfl:

jonewer

franklee wrote: »

Talking of new builds I'm puzzled by this:

http://www.rightmove.co.uk/viewdetails-5714004.rsp?pa_n=3&tr_t=buy

1. Why would anyone want to build flats that ugly?

2. Why sell them as a job lot?

3. Who would want to buy 98 ugly new build flats in Luton for £17,000,000

Reminds me of an episode of the Simpsons where Homer is having Boudoir picture taken of himself for Marge. The photographer slaps a load of vaseline on the lens to "soften things up a bit" :rotfl:

jonewer

Generali wrote: »

True. It amazes me that borrowers aren't going for a 25 year fix at the moment.

Depends on if you want to pay the minimum for 25 years like a sheep. If this is your plan then a 25 year fix is what you need.

On the other hand if you want to make maximum overpayments, save a massive lump sum for overpayment on re-mortgage with a view to paying the whole thing off in 5 to 7 years, then a 25 year fix is not what you need.

Kez100

frugalista wrote: »

10 years is almost certainly plenty to put you beyond the negative equity danger zone. If I buy in the near future I am going for a 10 year fix.

Even with a 5-year fix you are pretty damn safe I reckon.

But quite a few people on mortgages with a short initial beneficial term are going to be hit by a whopping SVR at a point when they are still in negative equity. Especially newbuilds as these are often sold at a premium and fail to retain their market value.

frug.

5 years safe? Were you around in the late 80's? We bought in 1991 thinking it was the bottom of the market (prices had been falling for a couple of years) We sold in 1994 at lower again! So, from the top of the market, five years was smack bang at the bottom of the market.

Negative equity this time is going to be like no other because of the degree. We lost 5k. Our mates who bought at the top in the late 80's lost 25k. We thought that was terrible and for them it seemed like there was no future for a while - that'll be nothing on todays prices.

I do think the refinancing will catch many out. It's an assumption you just refinance when a fixed or discount term ends. I don't think many realise you can only do it if the property value stacks up to the total borrowed, and it isn't something people will be warned about when buying as it isn't part of any professionals remit.

25 year fixes wouldn't suit very many. I would have considered it when we bought (so long as it was portable) but now - 16 years into a 25 year term -we are in a very different position to anything we could have ever imagined and we are happy on a low tracker freestyle offset.

Curious_Moose

mystic_trev wrote: »

:rotfl: :rotfl: :rotfl:

http://www.youtube.com/watch?v=jmHwre7CsNY&NR=1

Should've gone to Spec Savers!

I presume that's a microphone bobbing up and down in the foreground?

Grade_A_Reject

CROWN wrote: »

Could I have the address and sales office details of these properties that are going to double in value please.

A doubling in value in 10 -15 years wouldn't be unusual. At 5% net interest your principal in a savings account would double in roughly the same time span.

PasturesNew

Curious_Moose wrote: »

Should've gone to Spec Savers!

I presume that's a microphone bobbing up and down in the foreground?

I hope so, else it's the head of a very small boy or household pet!!

(did I go too far with that one?)

Grade_A_Reject

franklee wrote: »

Who would want to buy 98 ugly new build flats in Luton for £17,000,000

Easy. You don't call them "flats" you call them "luxury apartments" and suddenly everyone wants one. :rolleyes:

BrandNewDay

jonewer wrote: »

Depends on if you want to pay the minimum for 25 years like a sheep. If this is your plan then a 25 year fix is what you need.

On the other hand if you want to make maximum overpayments, save a massive lump sum for overpayment on re-mortgage with a view to paying the whole thing off in 5 to 7 years, then a 25 year fix is not what you need.

I'm confused... are you saying that you can't make overpayments on a fixed mortgage? Or remortgage in a few years, anyway?

If we don't pay down our mortgage in 5 to 7 years, it's not because we're mindless sheep, but because we don't have the money for that. We can afford to overpay some, but not that much.

There's something to be said for peace of mind, too. I read an article about this and a woman said she got a 25-year mortgage fixed at 4.99% a couple of years ago. I think that's brilliant. I wish we could do that.