Rents soar to (another) record high

Crashy_Time

Rents soaring all right, like an eagle that got hit with a bolt of lightning.....:rotfl:

Aberdeenangarse

Crashy_Time wrote: »

like an eagle that got hit with a bolt of lightning.....:rotfl:

It must have missed the eagle and hit your brain

Jack_Johnson_the_acorn

Crashy_Time wrote: »

Rents soaring all right, like an eagle that got hit with a bolt of lightning.....:rotfl:

I'm down to 75% ltv Crashy.... when I previously conversed with your good self you told me of an impending crash I think this was around 2 yrs ago. I live oop North but you stated that the crash would be felt nation-wide. I have no plans on selling but I suppose this imminent crash will affect my ltv next yr when I look to re-fix at another record low rate.

Can you still forsee this great crash? Any ideas on timescales? Your advice is much appreciated.

mwpt

Jack_Johnson_the_acorn wrote: »

I'm down to 75% ltv Crashy.... when I previously conversed with your good self you told me of an impending crash I think this was around 2 yrs ago. I live oop North but you stated that the crash would be felt nation-wide. I have no plans on selling but I suppose this imminent crash will affect my ltv next yr when I look to re-fix at another record low rate.

Can you still forsee this great crash? Any ideas on timescales? Your advice is much appreciated.

I'm approaching two years of owning and with a small overpayment I'll be at 75% LTV (from 80%), without needing to revalue. If I revalue, I won't need to overpay and I'll have around 67% LTV allowing the next lower level of interest rates, which have dropped even more since I bought.

For me, buying has been a great financial decision. It could have been otherwise, but I realised I was rubbish at predicting the housing market. Lucky for me, Crashy is even more rubbish.

Jack_Johnson_the_acorn

mwpt wrote: »

I'm approaching two years of owning and with a small overpayment I'll be at 75% LTV (from 80%), without needing to revalue. If I revalue, I won't need to overpay and I'll have around 67% LTV allowing the next lower level of interest rates, which have dropped even more since I bought.

For me, buying has been a great financial decision. It could have been otherwise, but I realised I was rubbish at predicting the housing market. Lucky for me, Crashy is even more rubbish.

I'm at 4 and a 1/2 yrs. I was making over payments but we've just decided to rejig our payments as we have decided to have a baby.

I don't ever plan on selling as the house is very big and could potentially be a lot bigger. Easily add 2 or even 3 bedrooms. Crashy was predicting a giant crash back then and still is today. What would happen if prices did crash? Would interest rates go up or down? Or would they crash because of a hike in interest rates.

westernpromise

FWIW I think that while periodic price corrections are to be expected, they are likely to be of shorter duration nowadays than in the past.

One reason is that as so many people are now on fixed rates, fewer will be affected by any base rate hike. My rate is fixed for another 8 years, for example. So there will be fewer people who are forced to sell because they can't afford their mortgage any more.

Another is that with rates this low, borrowers can make huge inroads into their mortgage in a very short time. Over the first five years of a 25-year term you pay off 15% of the principal at a typical current rate, for example. In 1990 you'd pay off less than 3%. This means fewer people in negative equity for as long, which means lost of people can still move.

Yet another is that regardless of the proximate causes of any correction, Britain's labour laws mean we'll bounce back quicker from recession and hence will still be the best place to find work - which has helpful implications for house price recovery after any correction.

If if weren't for the scandalous levels of SDLT, I'd be gving serious thought to trading up during any such correction; but in reality, extending is still going to be better value.

cells

westernpromise wrote: »

FWIW I think that while periodic price corrections are to be expected, they are likely to be of shorter duration nowadays than in the past.

One reason is that as so many people are now on fixed rates, fewer will be affected by any base rate hike. My rate is fixed for another 8 years, for example. So there will be fewer people who are forced to sell because they can't afford their mortgage any more.

Another is that with rates this low, borrowers can make huge inroads into their mortgage in a very short time. Over the first five years of a 25-year term you pay off 15% of the principal at a typical current rate, for example. In 1990 you'd pay off less than 3%. This means fewer people in negative equity for as long, which means lost of people can still move.

Yet another is that regardless of the proximate causes of any correction, Britain's labour laws mean we'll bounce back quicker from recession and hence will still be the best place to find work - which has helpful implications for house price recovery after any correction.

If if weren't for the scandalous levels of SDLT, I'd be gving serious thought to trading up during any such correction; but in reality, extending is still going to be better value.

another 'safety net' is that building new homes especially where they are needed which is predominantly London is simply expensive in the UK.

What this means is that in a downturn the British building industry simply downs tools. I recall Taylor Wimpy one of the biggest builders in the UK nearly went bankrupt in 2008. Their share price fell from over £3 to close to 3p

So in a downturn supply will be lower

Crashy_Time

http://www.bbc.co.uk/news/uk-scotland-36141597

mayonnaise

Crashy_Time wrote: »

http://www.bbc.co.uk/news/uk-scotland-36141597

Good to see you Crashy.
We only seem to be bickering over the EU on here recently.

mwpt

Crashy_Time wrote: »

http://www.bbc.co.uk/news/uk-scotland-36141597

Finally, you can buy a place!