Is buying a house a good idea?

buggy_boy

Crashy_Time wrote: »

Do you understand how price (and credit availability) affects volumes?

Do you realise that sales volumes are not directly linked to house prices... You are desperate for a house price crash, that is not happening so you are trying to make a big thing about sales volumes, look at your own post, from 2014-2015 sales fell, what did prices do? continue to rise.

You are way to fixated on sales volumes, as I have told you before, you need to look at number of properties on the market, its quite simple, if those sales volumes had meant more stock on the market then it would have an effect on prices however the amount of stock as not increased thus it has not effected prices..

Crashy_Time

buggy_boy wrote: »

Do you realise that sales volumes are not directly linked to house prices... You are desperate for a house price crash, that is not happening so you are trying to make a big thing about sales volumes, look at your own post, from 2014-2015 sales fell, what did prices do? continue to rise.

You are way to fixated on sales volumes, as I have told you before, you need to look at number of properties on the market, its quite simple, if those sales volumes had meant more stock on the market then it would have an effect on prices however the amount of stock as not increased thus it has not effected prices..

Lower volumes are linked to house prices being too high - Banks don`t want to lend silly prices any more, sellers want to hold out for "what it`s worth" (and low rates allow them to indulge the fantasy a while longer), and potential buyers want to play the Ponzi debt game less and less - Result? A standoff with less and less sales taking place.



http://www.propertyindustryeye.com/transactions-plummet-right-across-the-uk-says-latest-land-registry-data/

hazyjo

Crashy, you've been giving these stats and 'facts' for years - but still prices have increased. They mean nothing. There is no magic formula. You predict a crash like Zoopla values houses!


I've done a far better job of predicting the market on gut feeling, experience, and somewhat historic patterns. I agree Brexit is a new one lol, so let's just wait and see. A lot of the panic has died down already now that people realise the sky won't fall in.

badmemory

I can't really see what difference a price crash makes, unless it puts you into negative equity. If the value of your home goes down & you want to upgrade then the price of that has gone down too. If you want to buy a home (not a property investment) then you will need to pay less. If you are staying put then nothing has changed. If you're looking to make a big profit out of someone else's misfortune, well I can only hope you get caught out too!

hazyjo

badmemory wrote: »

I can't really see what difference a price crash makes, unless it puts you into negative equity. If the value of your home goes down & you want to upgrade then the price of that has gone down too...

Been saying that for years but Crashy doesn't seem to take it on board. Two recessions did me a favour a few times (despite selling at a loss or breaking even a couple of times). Moved to bigger/better properties when it was a buyers' market which I wouldn't have dreamed of owning otherwise. Much better for FTBs too who may finally be able to afford something. I've never wanted prices to increase massively, happy if they stay put. Been nice to make a load of money on a house, but whatever I've bought in its place has obviously risen too. It's all relative really.

Crashy_Time

hazyjo wrote: »

Crashy, you've been giving these stats and 'facts' for years - but still prices have increased. They mean nothing. There is no magic formula. You predict a crash like Zoopla values houses!


I've done a far better job of predicting the market on gut feeling, experience, and somewhat historic patterns. I agree Brexit is a new one lol, so let's just wait and see. A lot of the panic has died down already now that people realise the sky won't fall in.

The headline is from the LR, I don`t write their headlines for them, although it feels like somebody from HPC has hacked the media lately I must admit! Nobody is panicking about Brexit, but it looks like more and more people realise that buying an over-priced house isn`t as great an idea as some would have them believe

Crashy_Time

badmemory wrote: »

I can't really see what difference a price crash makes, unless it puts you into negative equity. If the value of your home goes down & you want to upgrade then the price of that has gone down too. If you want to buy a home (not a property investment) then you will need to pay less. If you are staying put then nothing has changed. If you're looking to make a big profit out of someone else's misfortune, well I can only hope you get caught out too!

It means you are paying interest on debt you will never re-coup, and the higher rates go the worse it will be.

buggy_boy

Crashy_Time wrote: »

It means you are paying interest on debt you will never re-coup, and the higher rates go the worse it will be.

That would only be the case if house prices crashed and then never recovered. The chances of that are pretty much zero....

Agh you going back to high rates, really, on the day Carney is saying Brexit may delay any rate rises... (hmmm who said that was likely months ago, oh yeah me when you were banging on about rates about to rise)

http://www.bbc.co.uk/news/business-44247290

badmemory

As they are only stress testing mortgages to about 7% it seems fairly obvious that absolutely no-one anticipates mortgage rates going up to the 16% I paid. If they were they would be testing to at least 15%. Anyone else remember getting almost 10% on savings? If I was in the business of it is all about me I would say bring that back, but I'm not. But 0.75% for a 2 year fix I mean really who do these banks think they are kidding, but they are not giving high enough interest to crash anything.

westernpromise

Crashy_Time wrote: »

It means you are paying interest on debt you will never re-coup, and the higher rates go the worse it will be.

Meanwhile you've been paying rent for 22 years that you will never get back and you're no nearer owning the roof over your head than you were in 1996.

A lifetime of renting, Crashy. All in hopes of the crash that never came, that you wouldn't spot if it did and that wouldn't get you out of your hole if it did.

On your gravestone it's say "Here lies Crashy. He rented for 50 years waiting for a crash. Has it crashed yet? Just you wait till interest rates go up..."