Am i crazy? - rolling the dice?

shaunhouse

Should add the vendor has purchased a new build on a very expensive estate about 450k so not a major kite flyer, nothing sinister just an old woman who has lost her partner and doesn't want a big house anymore.

Crashy_Time

chappers wrote: »

We wouldn't have been the economy is faltering we would have been kicked over the edge, our fairly buoyant housing market and hoiuse building programme is a major part of the economy keeping it's head above water.

The housing market was what was sacrificed in the 1990s. the economy was relatively strong prior to that and the housing market was over heated due to interest rate cuts which were being used to keep the pound lower against the big currency in Europe at the time, which was the Deutsch Mark, when we joined the ERM we were tied to Germany's high interest rates which in turn killed the housing market. The slump was further exaggerated by high unemployment.
When we were kicked out of the ERM the housing situation stabilised

We now have better mechanisms to control all of our markets including the housing market. Mainly the independent power the BoE has to respond to changing conditions and whilst unemployment is low there is no need to squeeze the housing market.

Similarly the BoE will lose "control" of interest rates as soon as the US starts to hike, or there is an uncontrolled event such as a EZ break up.

shortcrust

Some posters on this thread are in my ignore list because they might just as well be bots programmed to churn out the same posts in response to a set of key words. My guess is what they’re saying today is the same as when I bought my house 18 months ago. If I’d listened my life would still be on hold and I wouldn’t have had a fabulous summer in the garden of my very own first house.

Crashy_Time

shortcrust wrote: »

Some posters on this thread are in my ignore list because they might just as well be bots programmed to churn out the same posts in response to a set of key words. My guess is what they’re saying today is the same as when I bought my house 18 months ago. If I’d listened my life would still be on hold and I wouldn’t have had a fabulous summer in the garden of my very own first house.

18 months ago? I wouldn`t get too comfortable just yet :rotfl:Hope you didn`t pay too much for it.

shaunhouse

What do you stand to gain if things go south crashy?

It will be a dark time, I know far more people who have borrowed too much money in my opinion. Cars on lease. If its goes south friends will have a big fall coming or hard times keeping hold of a negative asset(s).

purpleparrotuk

How many years will your mortgage be over? I can’t work out how you will only be paying £700 per month on a £210k mortgage.

chappers

Crashy_Time wrote: »

Similarly the BoE will lose "control" of interest rates as soon as the US starts to hike, or there is an uncontrolled event such as a EZ break up.

Rubbish, we will to a certain degree be led by world economics, but we won't have to make meteoric rate rises neither will the rest of the world.
We will need to keep control of our interest rates so we don't over heat the pound , particularly with what is going on in Europe at the moment.
As I said previously I would expect some modest rises pretty soon to try and inject a bit of life into the economy, possibly also a cut in reserve requirement to try and keep some of that money in the market

shaunhouse

purpleparrotuk wrote: »

How many years will your mortgage be over? I can’t work out how you will only be paying £700 per month on a £210k mortgage.

Its over a 35 year period. The monthly payment is 690 a month approx.

Crashy_Time

chappers wrote: »

Rubbish, we will to a certain degree be led by world economics, but we won't have to make meteoric rate rises neither will the rest of the world.
We will need to keep control of our interest rates so we don't over heat the pound , particularly with what is going on in Europe at the moment.
As I said previously I would expect some modest rises pretty soon to try and inject a bit of life into the economy, possibly also a cut in reserve requirement to try and keep some of that money in the market

I didn`t say they would be "meteoric", I said they would lose control, i.e the present ludicrous situation isn`t going to be sustainable, however when some countries/ regions within the EZ start demanding their own currency again, all bets are off regarding interest rates IMO. Either way I am just glad not to be attached to a large debt burden

shaunhouse

What is your situation if you don't mind me asking Crashy?