Ooh buyers are coming back

SquatNow

HammersFan wrote: »

Have your tablets run out?

No the £1trillion figure is 100% correct. Actually TBH that figure was from march 2006, so 2 years later... probably close to £1.1trillion.

The 50% working popuation figure is from the government statistics website.

The mortgage payment calculation is done using the link provided for the FSAs mortgage calculator.

Basically the calculation was done using government figures.

How do you plan to pay your £1400 this year?

PasturesNew

SquatNow wrote: »

How do you plan to pay your £1400 this year?

Somebody earning £12,800 per year pays £1399 in income tax per year.
So this is the difference between us paying tax once we earn £5250 per year or £12,800/year.

Imagine how great life would be if you didn't start paying tax until you had earnt just over £1000/month? It'd be great.

ruggedtoast

I think its revealing that the OP felt they had to make a thread here because they were so excited about having two viewings. Wow. Its boomtime.

SquatNow

PasturesNew wrote: »

Somebody earning £12,800 per year pays £1399 in income tax per year.
So this is the difference between us paying tax once we earn £5250 per year or £12,800/year.

Imagine how great life would be if you didn't start paying tax until you had earnt just over £1000/month? It'd be great.

You misundersand... that's an EXTRA £1400 a year, on top of what you pay now... and it's just to pay the pensions of the civil servants who provided services to your parents.

firsttimetom

I expected to see a slight increase in viewings after christmas. People splitting up, holidays and to boot there has been an interest rate cut and the LR has said that house prices have gone up (that data is months old though).

My prediction is that the real 'fun' will start once the LR releases its first set of negative figures, which I think will be february. After this there is no hope of resucitating the market, no matter how much the VI's try and hype it up.

Lastly, I think the next IR decision will be one of the most critical and will let us know where the Boe stands and if indeed it is truly independent. With energy bills set to rocket, a drop in interest rates will see inflation take off. If they drop, I will know for sure that the BoE is on Gordon and Alastairs puppet strings.

They simply cannot lower rates. Our debt ridden 'miracle economy' is dead and they have to accept that, and try and fix it - They cannot allow inflation to rocket and sterling to tank in order to maintain stupidly high house prices. As a saver this really worries me. My interest payments wont cover inflation and my money will slowly erode away, and why? Because I didn't become indebted to the hilt in order to grant Mr Brown title of 'Best Chancellor ever' (which will be changed in the future to 'Worst chancellor ever')

This Thursday I would expect a hold followed by a possible rise in february, but I expect it'll go the other way.

(That went incredibly off topic, but once my fingers started, it kept flowing).

Ember999

aardvaak wrote: »

One cut does not suggest a rush of them just an adjustment.

Surely you do not want more cuts - who is that going to help?

Daft question! It's going to help all people with mortgages who have suffered increases in payments since the BOE increased rates. This is a good thing, average £100,000 mortgage has gone up £80+ a month over the last few years since rates started rising, yet you say who is this going to help? Millions of people, that is who.

SquatNow

Any lowering of interest rats will be met with a matching rise in energy and food prices approximately 6 weeks later.

Dropping interest rates lowers the value of the pound, which pushes up the cost of imports. If you dropped interest rates back to 3.5% your entire wages would be taken up by your electricity and gas bills.

izzwizz_2

The pound has already dropped recently against the euro with investors factoring in the expected drops in interest rates. IMO, BoE does what is expected of them, so if the city is expecting IRs to fall, then they will.

Austin_Allegro

Ember999 wrote: »

Daft question! It's going to help all people with mortgages who have suffered increases in payments since the BOE increased rates. This is a good thing, average £100,000 mortgage has gone up £80+ a month over the last few years since rates started rising, yet you say who is this going to help? Millions of people, that is who.

You are assuming that the banks will pass on that rate cut to their customers, which will not necessarily be the case.

I also have little sympathy for someone with the ability to get a £100,000 mortgage who did not also have the ability to budget for the possibility of an increase in rates, which are at a historically low level. It was this reckless mortgaging to the hilt which has caused a lot of the problems we are starting to see now.

tomstickland

Most people tend to gravitate towards the largest property they can afford, not the smallest they are able/prepared to live in.

That's interesting. When I bought my place I bought the smallest/cheapest place that I was prepared to live to minimise my cost of living. It turned out really well because I love where I live and it was the cheapest place I found too.