Is buying a house a good idea?

dunroving

buggy_boy wrote: »

You have either totally missed the point or as per usual ignored it puts a massive hole in your logic.

Actually its often those with a posh car and big house etc that arguably will be hit by any interest rate rises as usually the posh car etc is on finance.

But again you are obsessed by this fabled interest rise, we have had basically 0.5% interest rates for 10yrs, its not likely that rates will rise very quickly.

<<this>>

For good or ill, the current economic and financial situation means that large, rapid interest rate rises would lead to Armageddon, so why would the BOE do it??

buggy_boy

Crashy_Time wrote: »

:rotfl:Good try. I meant the emergency interest rates we have been on for ten years, if the economy and housing market is doing so well why not properly raise rates? And look how the prediction of immediate collapse after Brexit worked out, and you think people should listen to Carney before getting into 100`s of thousands worth of debt for a house ? :rotfl:

Why not raise rates now? Because just like in Japan the problem is once you have had rates this low for this long it is very difficult to raise rates without harming the economy, the reason returning to historic norms of around 5% will take a long time.

As Brexit looms it will not surprise me if everything goes on hold, including sales volumes as people wait to see what happens, personally I think there will be a window of opportunity in the housing market to take advantage before things get used to the new norm and we get more certainty.

Carney has been warning of rate rises for years, as one of the MPC one said they wanted to vote for a rate rise but only if enough others voted to not raise rates... This sums up the BoE sentiment, they want the effect of a rate rise without actually raising the rates... Carney will have lots of excuses to keep rates where they are because of Brexit, if you expect rates to rise sharply over the next few years your backing the wrong horse.

Crashy_Time

dunroving wrote: »

<<this>>

For good or ill, the current economic and financial situation means that large, rapid interest rate rises would lead to Armageddon, so why would the BOE do it??

https://uk.reuters.com/article/eurozone-bonds/update-2-euro-zone-bond-yields-rise-after-us-10-year-yield-hits-3-pct-idUKL8N1S15QF


When they finally do raise it will be out of their control IMO (already is actually) Won`t take much to pop UK property, it is a bubble just desperate to deflate now.

dunroving

Not interested in your clickbait thanks, pal.

Crashy_Time

Would have thought interest rate expectations were of interest to people buying a house, but maybe not Had any offers on your flat yet?

dunroving

Not interested in your trolling questions, either, thanks. [and I don't have a flat; clueless]

Crashy_Time

buggy_boy wrote: »

You have either totally missed the point or as per usual ignored it puts a massive hole in your logic.

Actually its often those with a posh car and big house etc that arguably will be hit by any interest rate rises as usually the posh car etc is on finance.

But again you are obsessed by this fabled interest rise, we have had basically 0.5% interest rates for 10yrs, its not likely that rates will rise very quickly.

It is for that reason that they may rise quicker than anyone expects IMO.


http://iphonenewsbuzz.com/2018/04/25/major-concerns-as-u-s-10-year-yields-test-3/


If you are thinking of buying someone out of their debt on a 600k London shoebox, now is the time to pause for reflection IMO.

51mm5

Crashy_Time wrote: »

It is for that reason that they may rise quicker than anyone expects IMO.


http://iphonenewsbuzz.com/2018/04/25/major-concerns-as-u-s-10-year-yields-test-3/


If you are thinking of buying someone out of their debt on a 600k London shoebox, now is the time to pause for reflection IMO.

Thanks Crashy I look forward to adding this one to the list of hpc failed predictions causing a house price crash. I remember when your hpc friends worked themselves into a frenzy when the DOW dropped sharply in February. :T

Crashy_Time

51mm5 wrote: »

Thanks Crashy I look forward to adding this one to the list of hpc failed predictions causing a house price crash. I remember when your hpc friends worked themselves into a frenzy when the DOW dropped sharply in February. :T

The Dow dropping on it`s own doesn`t mean much for ordinary house prices, dropping because bond yields and interest rates are rising is a different matter though.......they were last at this level four years ago, not four weeks :rotfl:


http://www.cbc.ca/news/business/us-bond-yield-1.4632871

Filo25

51mm5 wrote: »

Thanks Crashy I look forward to adding this one to the list of hpc failed predictions causing a house price crash. I remember when your hpc friends worked themselves into a frenzy when the DOW dropped sharply in February. :T

To be fair to the HPC crew they did successfully predict the last 2 house price crashes, admittedly they also predicted another couple of hundred crashes that didn't happen as well...

With regards to the original question, I think my only advice would be to save as if you were buying, having the flexibility of that cash in the future will only help even if you subsequently decide buying a house might not be for you.

If there is one piece of advice I wish I could give my younger self it would be to embrace the joys of deferred gratification, save more spend less and you open up a lot more options in your future.