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Debate House Prices
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0.25% cut in BoE base rate
Comments
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I'm in my current location for a finite amount of time.
If I'd have purchased this flat instead of renting it, I'd have lost at LEAST 20k in capital depreciation, and about 250 a month in interest payments (over the rental cost)
what a waste of time renting always is.It's a health benefit ...0 -
So whats the alternative then, wish your life away frantically scouring news reports looking for signs of a crash and hanging around on forums plucking up the courage to buy when everybody else tells you the markets bottomed, lifes to short.
Nope - get on with your life cheerfully and happily without buying....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
whats wrong with buying now ? if you can afford the mortgage and you dont plan on moving soon everything will be hunky dory.
At this moment in time there is more belief in the fact house prices may fall, not neccessarily crash, than there has been for a long time. It is all over the media, the mindset around house prices is slowly changing. Even if there is a slight chance of things going really bad, it is worth holding on a little bit longer to see what happens. There is the best chance in a long time of house prices dropping and if there is the potential to save a significant amount of money on the most financially difficult purchase in most peoples lives, then people should take advantage of that.
I am in a position where I could afford a decent house right now but I am in no rush and would label myself as a complete idiot if I dived right in now given the current climate.So whats the alternative then, wish your life away frantically scouring news reports looking for signs of a crash and hanging around on forums plucking up the courage to buy when everybody else tells you the markets bottomed, lifes to short.
It almost sounds as if you are suggesting that if you don't own a house that you can't enjoy yourself. I think you will find that for the vast majority waiting for a more opportune time to buy a house is mutually exclusive with enjoying life.0 -
whats wrong with buying now ? if you can afford the mortgage and you dont plan on moving soon everything will be hunky dory.
Hey, if you've got the cash in the bank to buy a house and don't mind seeing it lose tens of thousands of pounds of value then go for it. Of course, you'll be kicking yourself when you see what your money could buy you two years from now or how much you could have saved.
On the other hand, if you have to borrow money to buy an asset that's set to depreciate sharply over the coming years then stay clear of this cretinous 'advice' at all costs.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
I very much doubt you worry too much about these people, as you are so desprate for a crash so you can afford a house yourself.
The "higher house prices are great" crowd really like posting personal sleights don't they? I suppose when the facts and figures aren't on your side, slagging other people off is all you can do to make yourself feel better about the huge financial mistake you made :rotfl:--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
For ali007 (and anyone else that is interested)
Total mortgage debt in the UK = £1,129,000,000,000 (link)
Value of house stock in the UK = £3,540,000,000,000 (link)
Total unsecured lending (incl credit cards) = £224,000,000,000 (link)
Total UK liquid savings = £1,100,000,000,000 (link)
Total UK savings* = £4,500,000,000,000 (link)
Total UK Government debt = £618,800,000,000 (link) (as of Dec 2007)
Total UK Government unfunded liabilities** = £2,000,000,000,000 (approx)
The thing that worries me most on that list is the last figure. There is no way that the UK government can meet its unfunded liabilities as to do so it'll have to raise taxes to levels that will destroy the economy and thus be unable to meet its liabilities!
*Includes illiquid things like pension policies, equity ISAs, endowment policies etc.
**Includes cost of PPI, state pension and public sector pension, all of which are promises of payment that the Government has made with no provision for payment being made. If a company did that, the directors could be imprisoned.0 -
It almost sounds as if you are suggesting that if you don't own a house that you can't enjoy yourself. I think you will find that for the vast majority waiting for a more opportune time to buy a house is mutually exclusive with enjoying life.
By now I think it's becoming clear that most of the "High prices are great" herd are people who borrowed lots of money to get a house and thus invest a lot of their self-worth in owning their own shoebox. Lower prices don't just threaten their financial health, they also chip away at their self esteem. Hence the distinct lack of logic/rationality and emphasis on personal insults of many of their 'arguments'.
Right now I'm enjoying paying less than half what I'd be paying on a typical mortgage for my place, having lots of cash in bank giving me a safety in the teeth of a recession and a decent income from interest .. and having absolutely no problem paying the bills whilst saving close to a grand a month. It's great knowing that the only way I'm ever likely to be in debt is when I buy a house and that debt is at the very least going to be considerably lower when I buy in a couple of year's time. Maybe I'll even be able to get a place mortgage-free though I'd be willing to take on a small mortgage to get a really good quality place that I would anticipate staying in for at least a decade.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
It almost sounds as if you are suggesting that if you don't own a house that you can't enjoy yourself. I think you will find that for the vast majority waiting for a more opportune time to buy a house is mutually exclusive with enjoying life.
Maybe for some, for others being proved right about a house price crash is bordering on obsession and thats not healthy.0 -
By now I think it's becoming clear that most of the "High prices are great" herd are people who borrowed lots of money to get a house and thus invest a lot of their self-worth in owning their own shoebox. Lower prices don't just threaten their financial health, they also chip away at their self esteem. Hence the distinct lack of logic/rationality and emphasis on personal insults of many of their 'arguments'.
Right now I'm enjoying paying less than half what I'd be paying on a typical mortgage for my place, having lots of cash in bank giving me a safety in the teeth of a recession and a decent income from interest .. and having absolutely no problem paying the bills whilst saving close to a grand a month. It's great knowing that the only way I'm ever likely to be in debt is when I buy a house and that debt is at the very least going to be considerably lower when I buy in a couple of year's time. Maybe I'll even be able to get a place mortgage-free though I'd be willing to take on a small mortgage to get a really good quality place that I would anticipate staying in for at least a decade.
the longer you rent the happier your Landlord will be ;-)0
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