Perma prop bulls, are there any left?

The-Joker

Pobby wrote: »

Just a few minutes ago radio 4 had a program about debt. Once again we are just about coming up to the level before the 2008 crash. A bit startled to hear that a rise of only half a percent could be the last straw for some people.

half a percent will force a hell of a lot of foreclosures

imagine a few percent raise....................

padington

The-Joker wrote: »

half a percent will force a hell of a lot of foreclosures

imagine a few percent raise....................

Then they won't raise them.

The-Joker

Malthusian wrote: »

Of course they are, if they weren't we wouldn't have debt charities to report on them. People have spent beyond their means for as long as they have had access to credit.

Yes but with ultra low interest rates the problem gets exasperated beyound measure,

when interest rates go back up to normal the problem is not as bad

Filo25

The-Joker wrote: »

half a percent will force a hell of a lot of foreclosures

imagine a few percent raise....................

Really? because rates were .25% higher just over a year ago and there weren't a hell of a lot of foreclosures then, I doubt that extra 0.25% will make a massive difference.....

Anyone buying a property recently had to pass the new affordability rules anyway, anyone who bought them a while ago probably has a fair amount of equity in the property, I'm not seeing a massive risk of huge amounts of foreclosures anytime soon, no matter how much the crash fetishists want to see it.

I wouldn't be surprised to see a correction in housing over the coming years, but its not likely to be the armageddon that some seem to want to see.

Filo25

The-Joker wrote: »

Yes but with ultra low interest rates the problem gets exasperated beyound measure,

when interest rates go back up to normal the problem is not as bad

Why on earth would rates go back to whatever you perceive "normal" as anytime soon?

Given the state of the underlying economy and the debt burdens of governments as well as individuals, any rate increases will be a very long and slow process, I have doubts as to whether it will be back to historical averages in my lifetime.

westernpromise

Filo25 wrote: »

Why on earth would rates go back to whatever you perceive "normal" as anytime soon?

Given the state of the underlying economy and the debt burdens of governments as well as individuals, any rate increases will be a very long and slow process, I have doubts as to whether it will be back to historical averages in my lifetime.

I don't, but then I consider historical averages to be about 3% which is where base rates have been for most of history.

The dumbest thing of many dumb things crashtrolls believe is that 10 to 15% rates were normal, and that we are heading back there. In fact base rates were only over 10% in 20 of the last 300-odd years - and all 20 were between 1970 and 1995.

There's nothing new about a new normal of about 3%. The anomaly was when rates were higher.

Meanwhile, fill yer boots. At 3% AER you can pay off 15% of a repayment mortgage in 5 years. Between this and your deposit this makes you crash proof.

The-Joker

Where is hammish the only perma prop bull left?

Well if he has gone then the question has been answered

there are no more perma prop bulls left..

padington

The-Joker wrote: »

Where is hammish the only perma prop bull left?

Well if he has gone then the question has been answered

there are no more perma prop bulls left..

The Guardian are still recommend people buy now if otherwise they will rent. Also many parts of the country are booming. Never underestimate the lack of new land and the demand of more and more and more people.

Agreed though it's probably not a good time to buy in London ... or sell for that matter.

economic

padington wrote: »

The Guardian are still recommend people buy now if otherwise they will rent. Also many parts of the country are booming. Never underestimate the lack of new land and the demand of more and more and more people.

Agreed though it's probably not a good time to buy in London ... or sell for that matter.

And we should all listen to the guardian because they are experts in property......

chucknorris

The-Joker wrote: »

Where is hammish the only perma prop bull left?

Well if he has gone then the question has been answered

there are no more perma prop bulls left..

There never were any, except in your head. Property has been an excellent performer for me over the last 26 years, but never once did I think that house prices always go up.