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The Aberdeen House Prices & Rents thread
Comments
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HAMISH_MCTAVISH wrote: »Click it and find out....:)
Maybe whoever designed the page is trying to tell you something?
:rotfl:0 -
chucknorris wrote: »Where did you hear that Hamish was selling his house? Weren't you telling me not so long ago that my property equity isn't profit until a house has been sold. I don't actually agree with that (due to the extent of the equity), but at least I know where you are coming from. But does that not also work the other way around, in that negative equity isn't actually a loss until the house has been sold?
True, but a bummer if you borrowed the money and have to maintain more debt than you can hope to recover by selling the house, the reason of course that many walked away last time. Super low rates make it much more palatable this time of course, but London and Aberdeen for example are places where the debt needed to get "on the ladder" has been eye watering and any significant crash is going to leave people with no hope of ever breaking even.0 -
Crashy_Time wrote: »True, but a bummer if you borrowed the money and have to maintain more debt than you can hope to recover by selling the house, the reason of course that many walked away last time. Super low rates make it much more palatable this time of course, but London and Aberdeen for example are places where the debt needed to get "on the ladder" has been eye watering and any significant crash is going to leave people with no hope of ever breaking even.
That's certainly an interesting perspective - not sure it's accurate for most though.
The average person that bought in 2007 will have paid off a big chunk of their mortgage by now even if they were daft and didn't overpay anything at all - and all that for much, much less than the cost of rent since.
By the time you factor in the average deposit - you'd need huge falls from 2007 levels - let alone from today's levels - for them to be in negative equity.
And even then it'd have been cheaper than renting since.
Factor back in that cost difference and the falls needed are astronomical...“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Crashy_Time wrote: »50% crash easily on the cards in Aberdeen IMO, but yes you were very very lucky to benefit from the biggest emergency rescue of the UK economy ever, while living in one of the most affluent areas as well, and no doubt you were banking on high oil/high employment/low rates for years to come. Not to be though, but you had a good run Hamish, I don`t grudge you that.
As I said, it'd have to be well in excess of 50% (and that's from 2007 prices, not today's higher prices). And I don't think that's remotely likely.
As for oil - TBH I don't much care about oil prices - I don't work in the industry and have nothing to do with it - for my current job I could just as easily live in Dundee or Edinburgh or Glasgow or Inverness or even England for that matter.
As for local employment levels - Aberdeen without Oil and Gas is the same as any other regional city with the hub of local government and a couple of Universities - But of course it's not a binary on/off switch.
It'll take decades to wind down oil and gas and as long as any of it remains here we're still better off than most other regional cities.
As for low interest rates - well it looks likely I'll have cleared off the mortgage before they rise materially - and based on current trends I'd then need a 100% crash for it to have cost more to buy than rent since 2007.
Lucky? Maybe....
But it's also a pretty obvious concept that the more of your life you spend buying a house for yourself and the less of it you spend buying houses for your landlord the better off you are.
And in my opinion that's as true today as it ever was.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Crashy_Time wrote: »any significant crash is going to leave people with no hope of ever breaking even.
Whereas in your case, even a crash of 130% won't break you even. You stuffed up so bad that even if you were given a house free with £30,000 cash thrown in, you'd still be down compared to buying in 2001.
You'd like others to lose so that you're not the only one, but it's simply not possible for anyone to lose as much as you have.0 -
Only another 120% to go!0
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Can`t find much from Hamish recently, can anyone point me to his latest wisdom?0
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Crashy_Time wrote: »Can`t find much from Hamish recently, can anyone point me to his latest wisdom?
I understood he was looking to buy an additional house and was therefore hoping for lower prices.0 -
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