Have I Made a Huge Mistake...

HummingBird76

Smodlet said:

Best of luck with your move, Hummingbird76; please let us know how it goes, won't you?

Thank you   And will do!

Jamaicanmelaff

Congratulations! I’m so glad you’re feeling better about it all and are all set to move in soon!

HummingBird76

@Jamaicanmelaff thank you  

Crashy_Time

eidand said:

RelievedSheff said:

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

Angela_D_3 said:

My personal opinion is that prices will drop, however the people that will be forced to sell and therefore drop their prices will be cash strapped for 12 months leading up to it and therefore the properties maintenance will not be a priority for them.  Houses being a money pit at the best of times i'm not queing up for one of those.   To be blunt people who've !!!!!! up financially tend to not be living in the areas I want to move to, with the best of neighbours.  I know that's a huge generalisation but I reckon you're more likely to go bankrupt in B37 than CV37.  If the crash was just caused by people having to relocate then fine it could work but it won't be, it'll be caused by some poor !!!!!! who's had a crack at living the dream and either their family has broken up or they've had bad luck job wise and they'll be crippled by the consequences.  I don't actually want to benefit from that tbh.

Would you rather benefit from people who can`t manage their money (a fair chunk of the country IMO) having to massively over-borrow for basic shelter? Any correction or crash will be heavily influenced by sentiment, it is a lot harder to convince people that the debt ladder is good when there is job uncertainty and they can see people struggling to sell homes they over-paid for.

Could you enlighten us as to the advantages of your plan to pay rent forever over someone paying a mortgage for 25 years and then owning their property please?

Does the thought of people being turned off large mortgage debt for basic shelter upset you in some way?

I'm intrigued why you believe that renting forever is somehow better than paying off a "large debt" in 25 years and then having no payments for basic shelter.

Do you not count your rent as a "large debt" that will never go away no matter how long you pay it for?

The rent seems to be quite high and in many cases way above what people pay for an actual mortgage.
Yes, it gives you "flexibility" to move, but you're still paying it wherever you are and at the end of the day you have a roof over your head, but it's not your roof.

I don't see how can anyone argue that over long term renting is better. It really isn't as you've got nothing.
But, this said, I am done trying to convince anyone of anything, people can do whatever they want and if they want to pay rent their whole life .... well, I am fine with that as it doesn't really affect me in any way

Sounds every emotive, mortgage type sales talk almost, and I would agree that if the house is in a location and of a type that you love and want to keep for a long time there is a sense of satisfaction in that..........but come on... the average New-Build shoe-box on a Lego estate bought with HTB, I would feel worse with the mortgage than renting it! LOL. BTW where are you getting your rent stats, from private landlords or from the mainstream portals with a VI in keeping up the idea that housing costs need to stay high so that people will advertise their For Sale and For Rent with them?

eidand

HummingBird76 said:

Crashy_Time said:

And the fact that the OP has even posted this thread implies that they are pretty uncomfortable with their decision....?

Wrong!  I just suffer from anxiety and, wrongly, let some negative comments affect me.  I'm actually delighted   Missives concluded yesterday and I'm all set to move into my new house at the end of the month.  I genuinely cannot wait!

enjoy your new place mate, chuffed for you!

Crashy_Time

RelievedSheff said:

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

Angela_D_3 said:

My personal opinion is that prices will drop, however the people that will be forced to sell and therefore drop their prices will be cash strapped for 12 months leading up to it and therefore the properties maintenance will not be a priority for them.  Houses being a money pit at the best of times i'm not queing up for one of those.   To be blunt people who've !!!!!! up financially tend to not be living in the areas I want to move to, with the best of neighbours.  I know that's a huge generalisation but I reckon you're more likely to go bankrupt in B37 than CV37.  If the crash was just caused by people having to relocate then fine it could work but it won't be, it'll be caused by some poor !!!!!! who's had a crack at living the dream and either their family has broken up or they've had bad luck job wise and they'll be crippled by the consequences.  I don't actually want to benefit from that tbh.

Would you rather benefit from people who can`t manage their money (a fair chunk of the country IMO) having to massively over-borrow for basic shelter? Any correction or crash will be heavily influenced by sentiment, it is a lot harder to convince people that the debt ladder is good when there is job uncertainty and they can see people struggling to sell homes they over-paid for.

Could you enlighten us as to the advantages of your plan to pay rent forever over someone paying a mortgage for 25 years and then owning their property please?

Does the thought of people being turned off large mortgage debt for basic shelter upset you in some way?

I'm intrigued why you believe that renting forever is somehow better than paying off a "large debt" in 25 years and then having no payments for basic shelter.

Do you not count your rent as a "large debt" that will never go away no matter how long you pay it for?

Very few people want to be in the same house for 25 years, people embraced the "large debt" because they were sold a story about moving up "the ladder". Rent is a cost, but it gives you the flexibility to move in a couple of days if you want to, and you also take interest rate risk on the large debt because you are renting the money for a long time. Most people expected to move "up the ladder" many will however be stuck in negative equity now for years to come. The best all round solution is cheaper housing costs for ordinary working people across the board, then people can choose the option that suits them without putting themselves in economic distress.

Do you not see that renting a property is not cheap housing? It is a debt that you will be saddled with for life.

Those with a mortgage will pay that mortgage off. They will eventually have no debt, their home will then be the ultimate in cheap housing. 

Yes very few people stay in the same house for 25 years. But as they pay their mortgage they are paying down the balance that is owed plus in most cases the property is increasing in value, therefore their share of the property is increasing giving them a larger deposit for their next property.

There are costs involved in all moves be that from owned property or rented property and if you chose to move from your rented property just days after moving in you would still liable for the rent for the term of the agreement. It isn't as simple as just walking away from the property.

Lets assume a rent and mortgage of £1000pcm. The mortgage payer will pay £300k over the term of 25 year mortgage and then own the home. The renter will pay this amount forever. They could have another 25 years, or more of having to pay for their housing and rent costs are only ever going to go up.

1) We need to wait until early next year at least to see how the assertion in bold might play out for recent buyers.

2) I would suggest, but can`t really prove it with links or whatever, that people who have dived into mortgages because the monthly payments look cheap are likely to be carrying more non-mortgage debt than someone who is building a cash/investment pile, it is more about mind-set than anything else.

3) No one is saying you move from rented days after moving in, I am saying that if you have been there five or ten years and decide to move for whatever reason you can do it by telling the landlord and letting the last couple of rent payments go through, very easy, much easier than the stress of trying to sell for another two years with multiple price drops and angst ridden posts online about photos/cats/Too Dark/Too Light etc.? Much harder to walk away from a mortgage, especially one in NE?

4) What is the interest rate on your hypothetical mortgage, and what are interest rates going to do over the next 25 years? (you don`t need to answer because you can`t answer that with any credibility IMO)

grumiofoundation

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

Angela_D_3 said:

My personal opinion is that prices will drop, however the people that will be forced to sell and therefore drop their prices will be cash strapped for 12 months leading up to it and therefore the properties maintenance will not be a priority for them.  Houses being a money pit at the best of times i'm not queing up for one of those.   To be blunt people who've !!!!!! up financially tend to not be living in the areas I want to move to, with the best of neighbours.  I know that's a huge generalisation but I reckon you're more likely to go bankrupt in B37 than CV37.  If the crash was just caused by people having to relocate then fine it could work but it won't be, it'll be caused by some poor !!!!!! who's had a crack at living the dream and either their family has broken up or they've had bad luck job wise and they'll be crippled by the consequences.  I don't actually want to benefit from that tbh.

Would you rather benefit from people who can`t manage their money (a fair chunk of the country IMO) having to massively over-borrow for basic shelter? Any correction or crash will be heavily influenced by sentiment, it is a lot harder to convince people that the debt ladder is good when there is job uncertainty and they can see people struggling to sell homes they over-paid for.

Could you enlighten us as to the advantages of your plan to pay rent forever over someone paying a mortgage for 25 years and then owning their property please?

Does the thought of people being turned off large mortgage debt for basic shelter upset you in some way?

I'm intrigued why you believe that renting forever is somehow better than paying off a "large debt" in 25 years and then having no payments for basic shelter.

Do you not count your rent as a "large debt" that will never go away no matter how long you pay it for?

Very few people want to be in the same house for 25 years, people embraced the "large debt" because they were sold a story about moving up "the ladder". Rent is a cost, but it gives you the flexibility to move in a couple of days if you want to, and you also take interest rate risk on the large debt because you are renting the money for a long time. Most people expected to move "up the ladder" many will however be stuck in negative equity now for years to come. The best all round solution is cheaper housing costs for ordinary working people across the board, then people can choose the option that suits them without putting themselves in economic distress.

Do you not see that renting a property is not cheap housing? It is a debt that you will be saddled with for life.

Those with a mortgage will pay that mortgage off. They will eventually have no debt, their home will then be the ultimate in cheap housing. 

Yes very few people stay in the same house for 25 years. But as they pay their mortgage they are paying down the balance that is owed plus in most cases the property is increasing in value, therefore their share of the property is increasing giving them a larger deposit for their next property.

There are costs involved in all moves be that from owned property or rented property and if you chose to move from your rented property just days after moving in you would still liable for the rent for the term of the agreement. It isn't as simple as just walking away from the property.

Lets assume a rent and mortgage of £1000pcm. The mortgage payer will pay £300k over the term of 25 year mortgage and then own the home. The renter will pay this amount forever. They could have another 25 years, or more of having to pay for their housing and rent costs are only ever going to go up.

1) We need to wait until early next year at least to see how the assertion in bold might play out for recent buyers.

2) I would suggest, but can`t really prove it with links or whatever, that people who have dived into mortgages because the monthly payments look cheap are likely to be carrying more non-mortgage debt than someone who is building a cash/investment pile, it is more about mind-set than anything else.

3) No one is saying you move from rented days after moving in, I am saying that if you have been there five or ten years and decide to move for whatever reason you can do it by telling the landlord and letting the last couple of rent payments go through, very easy, much easier than the stress of trying to sell for another two years with multiple price drops and angst ridden posts online about photos/cats/Too Dark/Too Light etc.? Much harder to walk away from a mortgage, especially one in NE?

4) What is the interest rate on your hypothetical mortgage, and what are interest rates going to do over the next 25 years? (you don`t need to answer because you can`t answer that with any credibility IMO)

1) Anyone looking to live in a place for 5+ years is unlikely to lose money when what they would have paid in rent is factored in. If you are looking to buy and sell and make a profit in couple of years thats just silly. 
2) I would suggest that people with mortgages are more likely to be financially secure than renters, since a large proportion of people aren't homeowners because they can't afford to be home owners. Present house price crash gurus excepted of course. 
3) Nebraska, New England, Northeast, Newcastle? Agreed easier to move from rental. But see response to point 1) over 5/10 years buying will have 'won' financially. 
4) Do you know what are interest rates going to do over the next 25 years?