Is buying a house a good idea?

51mm5

Funny thing is, if you posted anything on HPC that deviated from the HPC mantra, you be called a troll with minutes and subsequently banned. On here Crashy constantly trolls threads and the someone that is not aware of his history may take his bad advice.

The other funny thing (or not funny) is that there are probably many people over the years who have gone to HPC and taken their advice and have lost tens of thousands or six figure sums. I!!!8217;d hate to work out how much Crashy has lost as you could see it!!!8217;s driven him insane.

Crashy_Time

buggy_boy wrote: »

Im sorry but why do you come on here? All you seem to do is derail all threads to say house prices are crashing, trying to spout the same rubbish as the HPC loons do. Or you comment that someones house is too expensive even though you have not really read the thread and have no knowledge of the area. Or you post some obscure link totally unrelated to the OP question.

You made a huge financial gamble that turned out to be a huge mistake and now you think everyone should take that same gamble.

So the BoE dont up rates like you had creamed your pants about weeks ago and now apparently that does not matter its all about global credit markets... Residential mortgages and BTL mortgages are predominantly based on BoE rates not global credit rates...

It really is sad that you have spent so much time and energy on here trying to spout the same HPC rubbish. if you spent half the amount of time working you would not be in a rented bedsit..

Why do you come on here?

Crashy_Time

dunroving wrote: »

I hope you don't expect to get a logical response. Remember the definition of insanity ...

Trying to sell a house for a silly price then coming on the internet to ask why no one is viewing?

dunroving

Clueless as ever and still obsessed with winding up anyone who owns a house.

buggy_boy

Crashy_Time wrote: »

Why do you come on here?

Because I have a lot of experience in the housing sector, buying and renting and can help others with problems.... You know what a forum is meant to be about..

westernpromise

51mm5 wrote: »

I'd hate to work out how much Crashy has lost as you could see it's driven him insane.

We can roughly work it out.

He's been renting in Edinburgh for 22 years at - he says - about £450 a month. 22 years ago that would have rented you a £100k property and would have paid the mortgage interest on it for the first eleven years.

Interest rates fell to 0.5% in the second eleven years, so if the monthly rent Crashy paid stayed the same, he would be paying more than the interest, i.e. he'd have been giving his landlord enough for the latter to pay down the principal.

Eleven years of that would pay the outstanding balance down to about £60k. Meanwhile a £100k flat in Edinburgh 22 years ago would be worth about £250k today. So Crashy's landlord now has £190k equity in a £250k property, funded entirely by Crashy.

In fact Crashy reckons to have moved 2 or 3 times, so there isn't one individual landlord who has had his mortgage on one individual flat paid off for him by Crashy. There are several landlords and several flats who've all profited by several Crashies. But indicatively, if Crashy had bought the £100k flat in 1996 on a 22-year tracker mortgage he would pretty much own it by now, and it would be worth £250k. Instead, his landlord owns it and it's their £250k.

The effect of being afraid to buy yourself a property is that you buy one for somebody else.

Crashy_Time

westernpromise wrote: »

We can roughly work it out.

He's been renting in Edinburgh for 22 years at - he says - about £450 a month. 22 years ago that would have rented you a £100k property and would have paid the mortgage interest on it for the first eleven years.

Interest rates fell to 0.5% in the second eleven years, so if the monthly rent Crashy paid stayed the same, he would be paying more than the interest, i.e. he'd have been giving his landlord enough for the latter to pay down the principal.

Eleven years of that would pay the outstanding balance down to about £60k. Meanwhile a £100k flat in Edinburgh 22 years ago would be worth about £250k today. So Crashy's landlord now has £190k equity in a £250k property, funded entirely by Crashy.

In fact Crashy reckons to have moved 2 or 3 times, so there isn't one individual landlord who has had his mortgage on one individual flat paid off for him by Crashy. There are several landlords and several flats who've all profited by several Crashies. But indicatively, if Crashy had bought the £100k flat in 1996 on a 22-year tracker mortgage he would pretty much own it by now, and it would be worth £250k. Instead, his landlord owns it and it's their £250k.

The effect of being afraid to buy yourself a property is that you buy one for somebody else.

Where did I say I lived in Edinburgh 22 years ago?

Crashy_Time

buggy_boy wrote: »

Because I have a lot of experience in the housing sector, buying and renting and can help others with problems.... You know what a forum is meant to be about..

Can you break down this article for us then?


http://www.dailymail.co.uk/money/mortgageshome/article-5733321/Beware-red-danger-signs-house-prices-Young-buyers-borrow-record-sums.html#comments

MobileSaver

Crashy_Time wrote: »

Can you break down this article for us then?

http://www.dailymail.co.uk/money/mortgageshome/article-5733321/Beware-red-danger-signs-house-prices-Young-buyers-borrow-record-sums.html#comments

LOL! Did you actually read the article? :rotfl:

Prices are still 2.2 per cent higher than they were a year ago.

House prices have jumped by 32 per cent in the past five years

Whoops! Anyone who chose to rent instead of buy five years ago must be kicking themselves that they made the worst financial decision of their lives...

the proportion of buyers taking a loan at more than four times their income now stands at almost 12 per cent

So the vast majority (over 88%) take out a perfectly normal income-multiple loan...

tough new rules introduced by the City watchdog in 2014 mean that firms must now analyse borrowers' income in precise detail, to see if a loan is affordable ... under rules laid down by the City watchdog.

Ah, so even the small number taking out high multiple-income mortgages have been rigorously vetted for affordability - nothing to see here then...

But he adds: 'I don't think the right conditions are in place for a major correction.'

I don't think house prices will fall unless the economy takes a major downturn. I suspect it's more likely that prices will tread water for a while.

Oh dear, so even your favourite crash-friendly scaremongering click-bait rag is reporting that there won't be a crash... you couldn't make it up Crashy! :T

Crashy_Time

MobileSaver wrote: »

LOL! Did you actually read the article? :rotfl:

Whoops! Anyone who chose to rent instead of buy five years ago must be kicking themselves that they made the worst financial decision of their lives...

So the vast majority (over 88%) take out a perfectly normal income-multiple loan...

Ah, so even the small number taking out high multiple-income mortgages have been rigorously vetted for affordability - nothing to see here then...

Oh dear, so even your favourite crash-friendly scaremongering click-bait rag is reporting that there won't be a crash... you couldn't make it up Crashy! :T

Property market healthy then, nothing to see here, move along, get that fix while you can, don`t worry about the price just the monthly payment :T Judging by the views on this thread quite a few people may think buying a house now isn`t the greatest idea ever......