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Under valued help to buy mortgage valuation, what to do?
Comments
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chucknorris wrote: »But isn't that approximately when you sold to rent? If so, you must have been extremely interested in house prices. Well I'm sure that people were just as interested in house prices back then as they are now.
Someone that bought last year needs to know (although most already will of course) that short term fluctuation in house prices aren't as relevant as how they fluctuate over 25 years and beyond. It is more important to be happy with the price paid and where you end up living, than trying to time the market, you only have to look at your attempts to time the market, to see that.
No, my reasons for renting were to do with mobility, however the main question (again) is why do you think your experience of buying at a very cheap time in the market has any relevance for someone buying now, into an obviously over-heated bubble? A "fluctuation" now i.e a crash will be a disaster for people who have over-extended on debt in a super low interest rate environment.0 -
Crashy_Time wrote: »No, my reasons for renting were to do with mobility, however the main question (again) is why do you think your experience of buying at a very cheap time in the market has any relevance for someone buying now, into an obviously over-heated bubble? A "fluctuation" now i.e a crash will be a disaster for people who have over-extended on debt in a super low interest rate environment.
My answer (again) was:
Someone that bought last year needs to know (although most already will of course) that short term fluctuation in house prices aren't as relevant as how they fluctuate over 25 years and beyond. It is more important to be happy with the price paid and where you end up living, than trying to time the market, you only have to look at your attempts to time the market, to see that.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
Crashy_Time wrote: »No, my reasons for renting were to do with mobility
So when you sold a house, you had no interest in what house prices were? That doesn't make sense, surely anyone who is selling a house takes an interest in what the market is doing?Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »My answer (again) was:
Someone that bought last year needs to know (although most already will of course) that short term fluctuation in house prices aren't as relevant as how they fluctuate over 25 years and beyond. It is more important to be happy with the price paid and where you end up living, than trying to time the market, you only have to look at your attempts to time the market, to see that.
What happens to someone who takes out 300 or 600k worth of debt, then rates rise and the market collapses? The point is, people are not "happy" with the prices paid now, they have not been happy with this for a long time, they were doing it because they thought (or were led to think) that prices would keep on rising. A classic investing mistake is thinking (or telling others) that because it worked for one person (Norris, Buffett etc.) that it can work for everyone in different markets.0 -
chucknorris wrote: »So when you sold a house, you had no interest in what house prices were? That doesn't make sense, surely anyone who is selling a house takes an interest in what the market is doing?
No one is interested much in house prices when you can sell for a small profit or just break even to move and get on with your life, it used to be seen as just a place to live by most people, not an investment, as you well know
During the manias (The last big one was mainly London) people get interested in prices, very interested, but also lose all perspective on what they are doing and tend to over-stretch themselves..... 0 -
Crashy_Time wrote: »What happens to someone who takes out 300 or 600k worth of debt, then rates rise and the market collapses? The point is, people are not "happy" with the prices paid now, they have not been happy with this for a long time, they were doing it because they thought (or were led to think) that prices would keep on rising. A classic investing mistake is thinking (or telling others) that because it worked for one person (Norris, Buffett etc.) that it can work for everyone in different markets.
But obviously when you buy, you have to take into account that rates can rise and the market can fall (but it will rise again). If anyone is foolish enough to buy a house without realising that, they are probably doomed to fail in whatever they do. Being happy with the price you pay, also includes accepting that rates can rise and prices can fall (in the short term).Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
Have found another crash obessessive/misinformationist for my ignore list.:)0
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Guys this is a discussion about a Help to Buy valuation being far lower than the developers price. Can we keep it on topic and help this MSE member save some money and stop drawing away from the topic as it will put people off trying to help.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Guys this is a discussion about a Help to Buy valuation being far lower than the developers price. Can we keep it on topic and help this MSE member save some money and stop drawing away from the topic as it will put people off trying to help.
Point taken, will do.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »But obviously when you buy, you have to take into account that rates can rise and the market can fall (but it will rise again). If anyone is foolish enough to buy a house without realising that, they are probably doomed to fail in whatever they do. Being happy with the price you pay, also includes accepting that rates can rise and prices can fall (in the short term).
They used to say that in Japan I believe........0
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