what a crazy housing market

Newnoel

With record low mortgage rates and the central bank's all over the world printing money at a multiple of the rate they were in 2008, we are in for quite a few years upwards price pressure on house prices

arrows123

Most people who rent pay more than a mortgage payment. It’s the affordability and deposit that stops them getting on the housing ladder. If you can pass those surely you’re better off paying into a mortgage than spending money down the drain on rent. Yes interest rates could go up but so could rental prices. 

Thrugelmir

getmore4less said:

Thrugelmir said:

mubeye said:

Crashy_Time said:

Flugelhorn said:

just been to see a property - house over 500K, multiple people viewing -at least one offer already in, much work needed, lots of bad DIY and covering up of problems etc - very uninspiring

just wondering how long it will be before the madness stops  and people can take time to consider whether the property is really worth it ?

When mortgage rates rise people`s minds will become very focussed on the amount of debt load they are carrying.

Sure, but they might have paid off a big enough chunk of their mortgage by that point, to not care. 

Mortgage terms have become longer and longer over the past 40 years. Surprising how little capital you repay in the early years of the mortgage. 

Rates are lower so people pay off the debt faster in the early years.

there is a leveling effect.

Someone with a 25 year mortgage will have settled their debt 15 years earlier................

aoleks

buying a house in this country is a no brainer. cheaper than rent, you build equity, you get access to extremely cheap credit compared to the rest of the world and you get more stability. house prices won't crash. if they do, you better find another country to live, as the whole of UK is built on housing and implicitly the financial market/industry. that crashes, you become as rich as Albania...

svejed123

aoleks said:

buying a house in this country is a no brainer. cheaper than rent, you build equity, you get access to extremely cheap credit compared to the rest of the world and you get more stability. house prices won't crash. if they do, you better find another country to live, as the whole of UK is built on housing and implicitly the financial market/industry. that crashes, you become as rich as Albania...

This is so correct !

Would you also recommend a flat or just freehold houses?

Thrugelmir

aoleks said:

buying a house in this country is a no brainer. cheaper than rent, you build equity, you get access to extremely cheap credit compared to the rest of the world and you get more stability. house prices won't crash. if they do, you better find another country to live, as the whole of UK is built on housing and implicitly the financial market/industry. that crashes, you become as rich as Albania...

Albania has oil reserves. 

Crashy_Time

arrows123 said:

Most people who rent pay more than a mortgage payment. It’s the affordability and deposit that stops them getting on the housing ladder. If you can pass those surely you’re better off paying into a mortgage than spending money down the drain on rent. Yes interest rates could go up but so could rental prices. 

You can`t walk away from a mortgage debt though if rates rise, a renter could go for a cheaper rental or as more and more young people are doing live with parents?

Crashy_Time

SpiderLegs said:

Crashy_Time said:

Many have relied on it though, including people giving advice to "buy now"?

Crashy you have been advising people to not ‘buy now’ since you joined the forum. And everyone you have given that advice to would have been worse if if they had listened to you.

I am advising that houses are too expensive, and that the conditions that created this situation may not always continue, and that people should get the biggest price discount they can so they have as little mortgage debt as possible if mortgage rates do rise.

SpiderLegs

Crashy_Time said:

SpiderLegs said:

Crashy_Time said:

Many have relied on it though, including people giving advice to "buy now"?

Crashy you have been advising people to not ‘buy now’ since you joined the forum. And everyone you have given that advice to would have been worse if if they had listened to you.

I am advising that houses are too expensive, and that the conditions that created this situation may not always continue, and that people should get the biggest price discount they can so they have as little mortgage debt as possible if mortgage rates do rise.

Interesting, what do you advise those who are moving to do? Should they sell for as much as they can so that on their next purchase they can have as little mortgage debt as possible if mortgage rates do rise?

Crashy_Time

SpiderLegs said:

Crashy_Time said:

SpiderLegs said:

Crashy_Time said:

Many have relied on it though, including people giving advice to "buy now"?

Crashy you have been advising people to not ‘buy now’ since you joined the forum. And everyone you have given that advice to would have been worse if if they had listened to you.

I am advising that houses are too expensive, and that the conditions that created this situation may not always continue, and that people should get the biggest price discount they can so they have as little mortgage debt as possible if mortgage rates do rise.

Interesting, what do you advise those who are moving to do? Should they sell for as much as they can so that on their next purchase they can have as little mortgage debt as possible if mortgage rates do rise?

In most cases they will sell for near the amount their buyer is told the valuation of their house/flat is, they don`t have the same level of choice regarding pricing as a FTB.