Interest Rates

chucknorris

iantojones40 wrote: »

Hearty congratulations to all the over leveraged, heavily indebted, financially incompetent buffoons... you've won.

Financially incompetent buffoons will rarely win in the long run, no matter how much luck that they enjoy in the short term. Their problem is that their incompetence will eventually catch up with them. If you weren't a financially incompetent buffoon, you would have already known that.

wymondham

The 'emergency rates' continues then - how bad are things in reality??

westernpromise

iantojones40 wrote: »

Hearty congratulations to all the over leveraged, heavily indebted, financially incompetent buffoons... you've won.

It may surprise you to learn that your sense of entitlement to a really, really cheap house is not the foremost consideration of the Bank of England in setting interest rates, nor even an important one.

When you have absorbed that it's not all about you, you will be better placed to understand the goal, level and hence probable trajectory of UK interest rates. You can then reflect on your sentiments, and consider whether you have been listening to the wrong opinions these last 7 years. And hence perhaps you may alter your arrangements accordingly.

Or you can keep waiting for the 1996 price to return. GLWT, as the young people say.

mwpt

chucknorris wrote: »

Financially incompetent buffoons will rarely win in the long run, no matter how much luck that they enjoy in the short term. Their problem is that their incompetence will eventually catch up with them. If you weren't a financially incompetent buffoon, you would have already known that.

The financially incompetent over leveraged landlord buffoons at property118 are doing their level best to deny the reality of their flawed business plan. It must be the fault of the government, or someone, anyone else really. But then, I suppose the government did bail them out last time, so the narrative was planted at that point.

chucknorris

mwpt wrote: »

The financially incompetent over leveraged landlord buffoons at property118 are doing their level best to deny the reality of their flawed business plan. It must be the fault of the government, or someone, anyone else really. But then, I suppose the government did bail them out last time, so the narrative was planted at that point.

Why must it be the fault of the Gov? Tax and legislation are part of the risks that you take on board when you invest in property. Landlords are perfectly capable of being financially incompetent, don't make the mistake of thinking that I will leap to the defence of buffoon landlords, I don't belong to some sort of landlord old boys club. Of course there are some moronic financially incompetent landlords who are over leveraged, just like there are some buffoon bears who think that all landlords are over leveraged.

mwpt

I think you guys on here are mostly existing owners, and most probably fairly long term. You are out of touch with the 'word on the street' in London, is my guess.

Of my London social circle, ages in range from 20s, 30s, 40s, most do not own property. And almost all of them express a feeling property might be in a bubble, or might crash and a lot of them are deeply suspicious about low interest rates. The narrative was that these are emergency low interest rates. What message is it sending to keep them this low?

I don't generally preach about my property theories to friends because it the topic is too sensitive and people need to reach their own conclusions. If I do give advice it is to buy value and early, so you can make the most of the lodger rules to help with paying down a chunk while you still can share.

These are feelings that are around on a wider level amongst non owners. HPC might seem like a nut house to you guys (well, to me too) but the toned down message of the site is actually more prevalent in London than you'd think. Even people who do own (most at my previous work place, a finance house) were thinking that something was wrong with the market.

You're celebrating low interest rates, but there are millions of people who are really quite unhappy about them.

wotsthat

mwpt wrote: »

You're celebrating low interest rates, but there are millions of people who are really quite unhappy about them.

Your friends suspect low interest rates are pushing up prices so, be amazed, they'd like them to rise to reduce prices.

Interest rates rise and, maybe, prices fall so they buy..

... prepare to be further amazed, they'll start moaning about how lucky people were to get a cheap mortgage just a few years previous.

You might not believe this but I suspect a lot of people think the right thing to do is that which happens to be in their own self-interest.

Dandytf

chucknorris wrote: »

Back in 2009, I hoped for 3 years of the base rate at 0.5%, so everything else is just a bonus for me.

Sept 2009 I was called mad for moving to my current flat, considering I was almost 7 yrs in previous flat/mtg.

It wasn't until after I moved, shortly after I thought 'knowing my luck interest rates will rise quickly to +4.75% early 2010.

Here I am praying interest rates stay low into mid 2017 when my existing 5 year fix rate ends.

mwpt

wotsthat wrote: »

Your friends suspect low interest rates are pushing up prices so, be amazed, they'd like them to rise to reduce prices.

Interest rates rise and, maybe, prices fall so they buy..

... prepare to be further amazed, they'll start moaning about how lucky people were to get a cheap mortgage just a few years previous.

You might not believe this but I suspect a lot of people think the right thing to do is that which happens to be in their own self-interest.

They're just regular people, wanting to buy a house. You can read as much as you like into it, but like I say, you're out of touch.

cells

mwpt wrote: »

They're just regular people, wanting to buy a house. You can read as much as you like into it, but like I say, you're out of touch.

I would agree with that most of the base of hpc are normal people the problem is they have created a den of confirmation bias and sillyness.

If they were honest to themselves they would find out that hpc is mostly a gang of men who want to buy the above average house on a below average wage and only by themselves.

As such you get gems like people in Telford a very cheap area arguing that prices are unaffordable because you know they were cheaper 20 years ago!

Good luck to all of them. I honestly fell sorry for most of them.