House Price Crash Discussion Thread

ianmr65

!!!!!!? wrote: »

You make a very good point - borrowing represents spending future income so unless you are borrowing to invest in something that's going to generate more of an income for you in the future, it's not a great idea.

Borrowing to buy an overpriced asset (ie. housing in the last few years) or to spend on being an ueber-consumer is just about the worst thing you can do for your future prospects. Better to wait and save the money. You'll end up paying less for the item (no interest to pay on credit, possibly interest earned while you save) and when you get something 'free and clear' with your own money you will enjoy it a lot more. Also, spending your own money makes you think harder about the worth of what you are buying.

Anyone who is stretched to their limit to maintain their current lifestyle and is 1) rowing to do so is in for one massive shock to their system as they start having to pay it all back (with interest of course) and the basic cost of living rises.

The caveat to this is that spending on credit, of the back of increasing house prices, for people who called the top of the market last july, and 1) sold up to rent, and /or 2) sold up to pay off all their debts, and/or 3) sold up to massively reduce their mortgage, as could see the writing on the wall:

1) facillited a much better lifestyle during the boom years.
2) means they are now sitting pretty.



I used to think that succesful romantic seduction, completing a marathon, chemical stimulation or landing a new job were some of the most satisfying expirerences, a human being could have. I have now found that calling the top of a market is better!! The only thing to top it is being present at the birth of your own child.

neverdespairgirl

ianmr65 wrote: »

The only thing to top it is being present at the birth of your own child.

speaking as a mother, I found being present over-rated.

ianmr65

neverdespairgirl wrote: »

speaking as a mother, I found being present over-rated.

80% of female gynacologists, and obstetritians, who become pregnant -have elective cesarian births. Whch are done under sedatives, local anthestetic, and morphine. So you are awake but very happy!!

Elective cesarians are the statistically the safest for mother and baby.

If a male gynacologist, or male obstetritian, or a midwife, claims that the traditional way is 'natural', and better for 'baby' - suggest that next time they go to the dentist to have a tooth out - they take along a piece of string. So the dentist can attach it to a door, and extract the tooth that way. Ideally with no anasthetic - As that's the way it's been done for centuries.

Ian_Griffiths_Halifax

ianmr65 wrote: »

I have now found that calling the top of a market is better!! The only thing to top it is being present at the birth of your own child.

I'd disagree with that statement. Surely being present at the conception of your own child tops it!
:money:

IveSeenTheLight

!!!!!!? wrote: »

You appear to be hoping for some sort of replay of the 1970s where mortgage debts were magically inflated away.

Servicing the debts is going to be a great deal harder under those conditions.

I am not hoping for anything.
I was wondering what was the best outcome for the majority.

I have always maintained, servicing your debts is the best thing to do.

I have two properties. One mortgage is approxiamately 39% of the current valuation, the other is approx 58%.
Part of the reason of the for low LTV's is of course previous years HPI and also partly because I have been massively overpaying the mortgages.
I could sell the 58% LTV property and find that it would reduce my 39% LTV to just under 10%. If I sold the opposite way then I would have no mortgage and some money in the bank, but out of the two I want to keep the 39% LTV mortgage.

I can foresee all the shouts of "sell the properties, be mortgage free" but I have a long term strategy I wish to see out.
Both of the properties are more than covering the mortgages and related costs therefore helping to reduce the mortgages even further.

With tenants servicing the mortgages, why would I want to give this up for maybe a short term gain, but affect my long term income?

chrisandanne

Ian_Griffiths_Halifax wrote: »

I'd disagree with that statement. Surely being present at the conception of your own child tops it!
:money:

Speaking as a mother, I found being present over-rated !! :rotfl:

John_Pierpoint

So speaks a chocoloholic?

secondtoughest

When's the next Nationwide HP'I' report out? Monday?

Paul_N_4

secondtoughest wrote: »

When's the next Nationwide HP'I' report out? Monday?

30th of April (next Wednesday).

pickles110564

IveSeenTheLight wrote: »

I can foresee all the shouts of "sell the properties, be mortgage free" but I have a long term strategy I wish to see out.
Both of the properties are more than covering the mortgages and related costs therefore helping to reduce the mortgages even further.

With tenants servicing the mortgages, why would I want to give this up for maybe a short term gain, but affect my long term income?

Well done but dont give up yet, wait for !!!!!!? to get out his own crystal ball and tell you when we have hit rock bottom and buy some more.
You will then help some more tenants be able to rent quality stock for their long term future.