House Price Crash Discussion Thread

pickles110564

m00m00 wrote: »

or some of 'us renters' have made investments elsewhere which have paid off handsomely, so we could buy a house outright whenever we wanted to, we just choose not to.

Dream on:rotfl:

PasturesNew

tomstickland wrote: »

Can anyone be bothered to sift through old posts and find those where anyone suggesting prices could drop were cast off as idiots? I remember a lot of that happening about a year ago. It's amazing how quickly opinions change.

People kept saying "supply and demand, UK is a small island, population is increasing." What they forgot about was supply of money.

There was some server crash in the last 4-6 months and I believe they only restored or could only restore more recent posts. So there might be a shortage of this evidence.

beingjdc

pickles110564 wrote: »

But when their mortgage term runs out, they will have paid and bought their own home yet you renters have just poured your money down the drain and helped pay the LL's mortgage off.

*Bzzt*. Popular Economic myth #17.

I said the interest vs the rent.

Any 'paying off' of the capital is extra.

If you can pay more than the interest, you can save more than the rent.

Same either way. Only worth saving via a house if prices are going up by more than the difference.

And they're not going up. They're going down. As I mentioned.

PasturesNew

pickles110564 wrote: »

Dream on

I am sitting in a flat where the rent is the same as my loss of interest if I were to buy it outright.

There are two others here, identical to all intents and purposes, which have gone onto the market since mid January. Both identically priced. I'd say one was better than this place, one was worse. So their price is a good indicator.

One has now dropped in price down from £75k to £70k. The other one withdrew from the market "didn't know where the market was going" he said. But he knew the other flat for sale (at the lower price) was better than his I suspect.

So, NOT having bought it, I've earnt £5k in the last 2 months.

Mathematically speaking ... I am earning £30k/year by renting.
And if you doubt that, then you can stop counting YOUR equity as valid because it's based on the same fake rationale that perceived value is "money banked"

pickledpink

PasturesNew wrote: »

I am sitting in a flat where the rent is the same as my loss of interest if I were to buy it outright.

There are two others here, identical to all intents and purposes, which have gone onto the market since mid January. Both identically priced. I'd say one was better than this place, one was worse. So their price is a good indicator.

One has now dropped in price down from £75k to £70k. The other one withdrew from the market "didn't know where the market was going" he said. But he knew the other flat for sale (at the lower price) was better than his I suspect.

So, NOT having bought it, I've earnt £5k in the last 2 months.

Mathematically speaking ... I am earning £30k/year by renting.
And if you doubt that, then you can stop counting YOUR equity as valid because it's based on the same fake rationale that perceived value is "money banked"

LOL PN,

By your reckoning, why not wait 2 and a bit years and the owners will have to pay YOU to buy their house!!!!!:rotfl:

You make me laugh you do:D

Toodlepip!

pickledpink

Rover wrote: »

That may well apply to some Pickles, but certainly not to all. I've been renting less than two years, in that time I've always spent less on rent than I've acquired in interest on my capital.
My current rent does not meet repayments on my LL's mortgage.
I am, effectively, a cash FTB when I choose to enter the market again.
Take your blinkers off Pickles and try to absorb some of the information constantly whizzing past your nose.

I'm interested to know how all you renters insist that the interest on your savings pays your rent?!

What sort of interest rates are you getting on your savings? And what sort of amounts are we talking about?:rolleyes: Round my way the average rent on an ordinary 2-bed flat is about £1000 pm = so you'd need some hefty savings to earn that sort of money each month. Not forgetting, with inflation your savings are worth less, and as you aren't earning compound interest (all that dead rent your paying) how long would it be until you'd be out of the rental market as you wouldn't be able to afford the ever increasing rents?

pickledpink

Supercharge_Me wrote: »

This is amazing, im in the same boat and i was going to post EXACTLY the same thing after reading how certain people have IMO got lucky with property purchases.

I dont believe anyone who comes online and starts talking up their success anyway though, modesty is a word i believe in though.

Be sure to release some equity though so you can pay for some cosmetic work to be done once those big'uns start sagging;)

Oh I won't need to release any equity - I have plenty of ready cash to hand too you know! How d'you think I pay for me necessaries like hols and goodies?:p

And it will be some time before I need cosmetic work on me big'uns - they're lovely and pert and I expect them to stay that way for many years. I'm not an old biddie yet!;)

Hector-The-Inspector_2

I'm interested to know how all you renters insist that the interest on your savings pays your rent?!

What sort of interest rates are you getting on your savings? And what sort of amounts are we talking about?:rolleyes: Round my way the average rent on an ordinary 2-bed flat is about £1000 pm = so you'd need some hefty savings to earn that sort of money each month. Not forgetting, with inflation your savings are worth less, and as you aren't earning compound interest (all that dead rent your paying) how long would it be until you'd be out of the rental market as you wouldn't be able to afford the ever increasing rents?

Don't forget about me:hello:

neverdespairgirl

pickledpink wrote: »

I'm interested to know how all you renters insist that the interest on your savings pays your rent?!

What sort of interest rates are you getting on your savings? And what sort of amounts are we talking about?:rolleyes: Round my way the average rent on an ordinary 2-bed flat is about £1000 pm = so you'd need some hefty savings to earn that sort of money each month. Not forgetting, with inflation your savings are worth less, and as you aren't earning compound interest (all that dead rent your paying) how long would it be until you'd be out of the rental market as you wouldn't be able to afford the ever increasing rents?

I don't think all renters insist that at all.

In our case, we are getting an average of just under 7% on our savings, before tax. Our rent is just shy of £1000 a month, including water. Post tax, our savings do cover our rent, but we are saving extra, so don't rely on that at all.

Tassotti

In the way that we have all 'talked up house prices', the same is now happening that everyone (well all the hopers) are 'talking us into a house price crash'

Unfortunately, the consequences that come with HPC is a recession, so all those that were so keen on reducing house prices may well lose their jobs!!

Does anybody want that?

I doubt it.

For me, it makes no difference, so not too bothered really. Either way, I make money.

I'd prefer you to stop talking them down though..makes it easier for me. (hmm not sure about that actually)

Been talking it down for 7 years now...getting boring

Tass