The fed just raised interest rates by .25%

Crashy_Time

Jack_Johnson_the_acorn wrote: »

Jack Johnson the acorn 08-08-2014, 9:13 PM
It's DEC 2011 I'm 25yrs old wanting a place of my own. I have saved £15k. Now I can invest in property and pay £100 less a month than it would cost to rent (mortgage term 25yrs).... or can I pay the extra £100pm in rent for possibly the next 50 yrs till I die.....

What decision do I make.....

Crashy Time 08-08-2014, 9:34 PM
"Buying" in 2011 was probably the worst mistake you are ever going to make.
You bought at peak and are now trying to justify that terrible mistake to yourself.

************************************

Change of tune Crashaholic, are you mellowing as you get closer to retirement?

Well you can afford to pay down the mortgage before rates rise too much and just swallow the capital loss so it isn`t really that big a deal to you? Most people on 50k didn`t buy at two times their income though, and they probably didn`t think too much about rates going up, that is the wider point that affects all the "monthly payments are cheaper" brigade for when they come to sell. If people had done that you would have bought a house for about 60k. I still don`t get why someone with such an easily repayable mortgage though would get so emotionally involved in posting on here most days...........?

Crashy_Time

chucknorris wrote: »

It is worse than him simply not buying, he actually did once own a house, but he sold to rent in the mid to late 90's It is hilarious that he comes on here telling others that they are messing up their finances, you really couldn't make it up, that such a financial fool would do that. Anyone else would be cringing with embarrassment for being such a fool. But it gets even better than that, he first started telling me to sell our properties when they were worth more than £1m less than they are now.

So you knew in the mid 90`s that there would be the biggest property bubble in history ten years in the future, and you come on here at what, 7am or something to post that nonsense? You really need to stop thinking about imaginary wealth for a while and get out more, and I mean that seriously.

mwpt

Crashy_Time wrote: »

So you knew in the mid 90`s that there would be the biggest property bubble in history ten years in the future, and you come on here at what, 7am or something to post that nonsense? You really need to stop thinking about imaginary wealth for a while and get out more, and I mean that seriously.

It strikes me that you think more about imaginary wealth than anyone.

I don't believe in crystal balls, but chucknorris took some calculated risks and has ended up pretty wealthy as a result. I'm sad that the events that caused this have meant that my house when I eventually came to buy was more expensive but I don't begrudge chuck his good fortune. He is very humble about it imo.

wotsthat

Crashy_Time wrote: »

So you are a bit like Fergus, "selling", "about to sell", "nearly sold", "slightly over-sold" :rotfl:
and you don`t mind taking a big hit to the price you get, even although if you had sold earlier (as I told you to) the full bubbletastic price for all your properties could have been yours. Looks like you got into the biggest Ponzi in history, at ground zero (due to an accident of birth) and fumbled the timing of your exit (due to greed, fear, incompetence?) and are now at the mercy of Trump, rates, EZ woes, Brexit, sentiment and all the rest :rotfl: Keep dispensing the "financial advice" on here though, there are, Oh, maybe six people who are all ears :T

You seem more interested in the finances of half a dozen strangers bunkered down in a panic room of despair than you do your own.

You'll never buy because you'll maintain a list of reasons not to do so. As some of them turn out to be unfounded you'll just replace them with the flavour of the month (Trump/ Brexit etc). You must be scared to cross the road.

Of course the elephant in the room is 'the list' only exists because it helps protect you from repeating whatever godawful experience you had last time you owned.

Jack_Johnson_the_acorn

Crashy_Time wrote: »

Well you can afford to pay down the mortgage before rates rise too much and just swallow the capital loss so it isn`t really that big a deal to you? Most people on 50k didn`t buy at two times their income though, and they probably didn`t think too much about rates going up, that is the wider point that affects all the "monthly payments are cheaper" brigade for when they come to sell. If people had done that you would have bought a house for about 60k. I still don`t get why someone with such an easily repayable mortgage though would get so emotionally involved in posting on here most days...........?

Gone up in value by 30% according to the banks last valuation. So it'll need to crash at least 55% from its current valuation for us to lose all equity. What's the chances of a £160k house in the NW dropping to £70k?

Crashy please know that I'd love for that to happen because I have a £20k or 30% deposit of 70k in the bank and I'd snap up another house at that price..... I don't see it happening any time soon though me old mucker.

I'm pretty sure the majority of people understand that interest rates can go up. You seem to be in denial about them.going down though.

Thanks for the laugh Crash.:D

chucknorris

Crashy_Time wrote: »

So you knew in the mid 90`s that there would be the biggest property bubble in history ten years in the future, and you come on here at what, 7am or something to post that nonsense? You really need to stop thinking about imaginary wealth for a while and get out more, and I mean that seriously.

There you go again, with your obsession about house prices! It wasn't about house prices, it was about income, what I knew (in the early 90's) was that profit was available from rental income, the capital growth was simply a nice bonus. My goal was always financial independence, based on income freeing me from eventually having to work.

I was up early because of the test match, what has my wealth to do with what time I come on here? I can't see the correlation. My wealth doesn't really influence what activities I do (yet), my main hobbies are all quite cheap, i.e. bowls, cycling, jogging, taking my dog out, swimming (although I must admit that I have been lax on that for a while), catching up with friends and the cinema.

chucknorris

wotsthat wrote: »

You seem more interested in the finances of half a dozen strangers bunkered down in a panic room of despair than you do your own.

You'll never buy because you'll maintain a list of reasons not to do so. As some of them turn out to be unfounded you'll just replace them with the flavour of the month (Trump/ Brexit etc). You must be scared to cross the road.

Of course the elephant in the room is 'the list' only exists because it helps protect you from repeating whatever godawful experience you had last time you owned.

It is strange how he always focuses on other people's portfolios, rather than on improving his own portfolio. Very soon when I complete on a flat selling (April, next tax year because I have already used up my CGT allowance this tax year) I will have more invested in shares than in investment property.

EDIT: Crashy isn't it about time that you started whinging and moaning about my equities investments and telling me that I should sell them before the next crash?

padington

For the sake of not ruining a decent prospective thread could we
try and not focus on crashy's desire to financially self humiliate and focus a little more on what rising US interest rates might mean to us in the UK.

I don't think we'll see any changes in interest rates in 2017 in the U.K. I think brexit has taken back the clock for us about five years (2011). Which means more low interest rates for longer and possible more above inflation house price rises over this period. Allbeit less than what we would have seen due to higher taxes and a huge temporary loss of our soft power allure and general market confidence due to Brexit ( I need to modify my 2017 prediction to 5% national and Wood Green)

However I also predict a surge of migration, higher than ever before caused by US interest rates bankrupting some emerging markets and the people chasing UK entry before it's too late.

Can anyone bar crashy predict another scenario ?

chucknorris

padington wrote: »

For the sake of not ruining a decent prospective thread could we
try and not focus on crashy's desire to financially self humiliate and focus a little more on what rising US interest rates might mean to us in the UK.

I don't think we'll see any changes in interest rates in 2017 in the U.K. I think brexit has taken back the clock for us about five years (2011). Which means more low interest rates for longer and possible more above inflation house price rises over this period. Allbeit less than what we would have seen due to higher taxes and a huge temporary loss of our soft power allure and general market confidence due to Brexit ( I need to modify my 2017 prediction to 5% national and Wood Green)

However I also predict a surge of migration, higher than ever before caused by US interest rates bankrupting some emerging markets and the people chasing UK entry before it's too late.

Can anyone bar crashy predict another scenario ?

Well the ftse seems to be bearing up, to be honest I haven't got a strong inclination either way. But even if I did, my equities investments are all about the dividend income, rather than looking for capital gain. So even if I was leaning towards think that equities would fall, I would still stay in the market for the dividend income, where else could I invest? Certainly not in property, and I don't particularly like savings accounts or corporate bonds.

Thrugelmir

padington wrote: »

I think brexit has taken back the clock for us about five years (2011). Which means more low interest rates for longer and possible more above inflation house price rises over this period.

Brexit or no Brexit. There were plenty storm clouds on the horizon a while back. That show little signs of dissipating. We could really do with a Captain Sully right now. To run the economy by instinct and land it without loss of life.

Wage inflation doesn't look good. With a squeeze on disposable incomes as well. Not helped by a stronger US $. Where are ordinary people going to find the money to pay ever higher prices?