Help me - I'm weakening! (cant face renting anymore)

Daz1

Any leftovers?

fc123

Daz1 wrote: »

Any leftovers?

Nope....but it was new potatoes tonight...can't roast them....so not enough fat to mop up the wine....

kunekune

Yes you can. I often roast new potatoes. They're just different.

clobber_2

Ruggedtoast, it's good to hear things have worked out for you. We are thinking about another flat in our building - bigger and better, but not much more expensive. The houses we really like are just far too overpriced at the moment.

If we wanted a flat though, we could pick one up for tuppence hapenny and only have to move next door...

AceCobra1

mr.broderick wrote: »

And there are tens of thousands like you and hence prices will rise steeply again in the not too distant future...

Hi mate, I am a newbie about all of these house buying and all that. But I do not understand how you derived to that conclusion. OK, everyone is speculating, you could be correct and the rest of the people saying a crash could be correct too... But I have been look at some figures and to me, it just looks bit odd that it can continue to rise. If you look at the following video at youtube, it just looks quite dodgy. I think the guy used the correct word, 'alarming' about the house price index. OK, there must be a reason for the house prices to keep going up but I can't seem to find any. Question... why should the price of the house go up? I mean for starters, rising 350% for not very much reason I thought is quite alarming. I mean what changes are there to the house? - it is essentially the same with no intrinsic difference. Not very much, it doesn't increase in size. It gets older, more maintaince work required. At the end of the day, as one of the guys in youtube would say, there is NO ADDED VALUE. If the house stayed the same price as it did 1995 - giving slight leeway to increasing in price due to inflation, then that is logical. Shooting up by 350% just doesn't make any sense. And I am basing on some fact from america as there I can't find much info about the UK market. American houses rose by about 250% - but why is that? Is it to support the increase in population size? - it doesn't seem like it - 7% population increase a 7 years so the demand shouldn't be as much as what is suggested surely.

Shares on the other hand on average gives a 7% return. Lets give an example of microsoft. Say @ 1990, they are worth 5billion & now 100billion. That is a 20x increase. But that is logical - there are more workers now, and they goto work everyday developing OS, Xbox and all that. To ADD VALUE. Of course the same can be said for McDs, Disney, Sony and all that kinda companies.

OK, next is what cause the prices in america to suddenly go so high? Well, apparently after the tech crash in 1990, the federal reserve lowered the interest from 5 - 7% to 1% - I think it to prevent recession right? Anyway, and that obviously sprung plenty of different mortgage products - Interst Only, NegAm and No money down... Of course these people got mislead and a few of them were just daft thinking they can just buy the house and 'oh its definately going to increase in price anyway' mentality and then try to flip in 3 years?? Of course a few of them bought it not because they think it was good value but because they think they can buy it and sell it at a higher price - the bigger fool theory.

Another thing is that normally, the down periods is 2x as long as the up periods. Now I know some people think that after the prices has gone down for 1 year, it will plateau off? Surely I would have thought if there was a 300% increase in 12 years, the down period surely cannot stop after 1 year as it just doesn't make any sense. It just seems a bit crazy to me. Another thing is properties takes longer to shift than stocks(not as liquid), therefore, the down period will be even longer. I think the average house in america is taking 9.2 months to get sold atm - assuming no more houses will be built (think it might be called housing inventory) - which of course is not happening! -So I would say maybe add a few more months to that?

As bj pointed out, the mortgage prices will most likely increase too due to inflation. That will prob. mean that the demand will fall. Obviously as a lot of people buy to speculate - as they say speculate to accumulate lol and when it all just stops making any sense, the prices will then fall - back to the bigger fool's theory. Then these people can't afford to pay the mortgage and default. This obviously will burn banks too. And because there is more and more people defaulting, the credit issuing will be tightened and hence less mortgage will be issued - back to saying even less demand. I think that in america, when the house goes back on sale after a default, it is apparently sold 20% less than its original price or something...

Well, I don't think I can think of much more to write but I'd appreciate some comments on this and see what you guys think and how the house prices could possible rise again in the 'near future':A

Snooze

AceCobra1 wrote: »

Hi mate, I am a newbie about all of these house buying and all that. But I do not understand how you derived to that conclusion. OK, everyone is speculating, you could be correct and the rest of the people saying a crash could be correct too... But I have been look at some figures and to me, it just looks bit odd that it can continue to rise. If you look at the following video at youtube, it just looks quite dodgy. I think the guy used the correct word, 'alarming' about the house price index. OK, there must be a reason for the house prices to keep going up but I can't seem to find any. Question... why should the price of the house go up? I mean for starters, rising 350% for not very much reason I thought is quite alarming. I mean what changes are there to the house? - it is essentially the same with no intrinsic difference. Not very much, it doesn't increase in size. It gets older, more maintaince work required. At the end of the day, as one of the guys in youtube would say, there is NO ADDED VALUE. If the house stayed the same price as it did 1995 - giving slight leeway to increasing in price due to inflation, then that is logical. Shooting up by 350% just doesn't make any sense. And I am basing on some fact from america as there I can't find much info about the UK market. American houses rose by about 250% - but why is that? Is it to support the increase in population size? - it doesn't seem like it - 7% population increase a 7 years so the demand shouldn't be as much as what is suggested surely.

Shares on the other hand on average gives a 7% return. Lets give an example of microsoft. Say @ 1990, they are worth 5billion & now 100billion. That is a 20x increase. But that is logical - there are more workers now, and they goto work everyday developing OS, Xbox and all that. To ADD VALUE. Of course the same can be said for McDs, Disney, Sony and all that kinda companies.

OK, next is what cause the prices in america to suddenly go so high? Well, apparently after the tech crash in 1990, the federal reserve lowered the interest from 5 - 7% to 1% - I think it to prevent recession right? Anyway, and that obviously sprung plenty of different mortgage products - Interst Only, NegAm and No money down... Of course these people got mislead and a few of them were just daft thinking they can just buy the house and 'oh its definately going to increase in price anyway' mentality and then try to flip in 3 years?? Of course a few of them bought it not because they think it was good value but because they think they can buy it and sell it at a higher price - the bigger fool theory.

Another thing is that normally, the down periods is 2x as long as the up periods. Now I know some people think that after the prices has gone down for 1 year, it will plateau off? Surely I would have thought if there was a 300% increase in 12 years, the down period surely cannot stop after 1 year as it just doesn't make any sense. It just seems a bit crazy to me. Another thing is properties takes longer to shift than stocks(not as liquid), therefore, the down period will be even longer. I think the average house in america is taking 9.2 months to get sold atm - assuming no more houses will be built (think it might be called housing inventory) - which of course is not happening! -So I would say maybe add a few more months to that?

As bj pointed out, the mortgage prices will most likely increase too due to inflation. That will prob. mean that the demand will fall. Obviously as a lot of people buy to speculate - as they say speculate to accumulate lol and when it all just stops making any sense, the prices will then fall - back to the bigger fool's theory. Then these people can't afford to pay the mortgage and default. This obviously will burn banks too. And because there is more and more people defaulting, the credit issuing will be tightened and hence less mortgage will be issued - back to saying even less demand. I think that in america, when the house goes back on sale after a default, it is apparently sold 20% less than its original price or something...

Well, I don't think I can think of much more to write but I'd appreciate some comments on this and see what you guys think and how the house prices could possible rise again in the 'near future':A

:rotfl:

AceCobra I feel sorry for you, I really do. I can't believe you've just wasted 30 mins of your time typing out an essay in reply to one of Mr. Broderick's posts!! :rotfl:

If you'd done a bit of research beforehand you'd have realised that he's just an internet troll, FOS and doesn't have a clue what he's talking about.

hence prices will rise steeply again in the not too distant future...

I mean, come on... :rotfl:

Rob

Davesnave

Snooze wrote: »

:rotfl:

AceCobra I feel sorry for you, I really do. I can't believe you've just wasted 30 mins of your time typing out an essay in reply to one of Mr. Broderick's posts!! :rotfl:

If you'd done a bit of research beforehand you'd have realised that he's just an internet troll, FOS and doesn't have a clue what he's talking about.



I mean, come on... :rotfl:

Rob

I know you're not neverdespairgirl, but at the very least you could have thanked him for trying! 100% for effort I say.

dopester

Snooze wrote: »

:rotfl:

AceCobra I feel sorry for you, I really do. I can't believe you've just wasted 30 mins of your time typing out an essay in reply to one of Mr. Broderick's posts!! :rotfl:

Hehe, I was really thinking the same.

Ace, whilst I agree with a lot of what you said, it's 1-0 to Brodders.

Lotus-eater

Ace is Ace! At least another newbie isn't taking what B says to heart.

That is a big rainbow trout :eek:

lexa34

MissMoneypenny wrote: »

Tell your LL that you won't allow him to have any viewings if he doesn't move his furniture, so he will have to sell in 6 months time instead, in a falling market. See if that makes him change his mind.

See what what happens to the market in the next few months. It could be the best move you have ever made.

Or get the agency to give the deposit back!