HPC thread of the week

BLTKING

wotsthat wrote: »

It's the equity issue they can't get past. To most people if you buy a house with a 75% mortgage your net position is unchanged. Yes, the balance of assets have changed as has the risk profile.

To the Crashy's of the world they don't recognise equity as 'real' (mainly because it's not cash but also because the value can change). This helps to explain why debt is abhorred and cash adored - a mortgage of , say, £150k 'simply' reduces net worth by £150k. Don't have a particular problem with this because I don't think Crashy would disagree and walks the talk judging by what he says about his lifestyle.

It's the complete hypocrisy of others that winds me up. They sell themselves as freedom fighters and will argue equity isn't real, buyers are idiots for paying current prices etc. but they want to do is play exactly the same game but buy in at lower prices.

If the crew are sat on loads of cash waiting for a crash before buying that's fine - just don't dress up a punt on house prices as something else. If they just can't afford to buy full stop then keep saving and hoping the same as everyone else.

indeed if they have a small deposit and are looking to rent for a few years why not buy ?

i have a few hundred k to buy eventually but nothing seems good value ,

easy to spend someone else's money

mwpt

BLTKING wrote: »

indeed if they have a small deposit and are looking to rent for a few years why not buy ?

i have a few hundred k to buy eventually but nothing seems good value ,

easy to spend someone else's money

Everything depends on the individual situation. If I'm correct, you're living very cheaply at the moment. Buying something would give you a mortgage and presumably larger outgoings. If you're managing to save a large amount at the moment then it isn't as clear cut.

My view is to encourage you to look for value. I had to search around and compromised on area, space and quality from what I thought I deserved (could probably have afforded years ago) to what was a prudent buy. I could have taken a greater risk and bought something > £100k more but I hedged my bets. At the moment, I'm just hoping HPI isn't rampant for the next few years while I build some more equity and trade up eventually. In the event of a correction, well, I have equity ready to buy something larger for cheaper. In the event prices stagnate, that's best case for me personally. In the event of high HPI, well that's not great for me but I'm better off than renting.

TheeMaskedTurnip

You're always better off paying down your own mortgage rather than paying someone else's.

mwpt

TheeMaskedTurnip wrote: »

You're always better off paying down your own mortgage rather than paying someone else's.

Not always.

Crashy_Time

BLTKING wrote: »

no idea only joined up

got banned off HPC after 5 years for saying price drops are fake:rotfl:

Should have said that sales volume drops are real, they might have kept you?

Crashy_Time

Aberdeenangarse wrote: »

Bruce Banner, thecountofnowhere, crashy and Venger are currently mass debating over the latest Buyers strike

Would that be the forced buyers strike in Aberdeen !!!!? :rotfl:

HAMISH_MCTAVISH

Crashy_Time wrote: »

Would that be the forced buyers strike in Aberdeen !!!!? :rotfl:

Aberdeen prices up markedly since 2007 with most buyers paying just 2% to 3% interest on mortgages versus 8% plus on rents.

Aug 2007 Aberdeen average house price £176K.

Aug 2015 Aberdeen average house price £211K.

https://www.ros.gov.uk/property-data/property-statistics/monthly-house-price-statistics

+ 17% against previous peak.

If they're going to go on strike could you ask them to hurry up?

I'd love to buy more properties on the cheap.

BLTKING

Crashy_Time wrote: »

Should have said that sales volume drops are real, they might have kept you?

does that make prices cheaper ?

NO

Crashy_Time

BLTKING wrote: »

does that make prices cheaper ?

NO

Just means less people can get the price they want for their house.

carslet

mwpt wrote: »

Not always.

I love people paying my mortgage