Why are some people on here being so nasty?

borntobefree

clobber wrote: »

I'm not convinced by your reasoning there, BTBF. Interest rates aren't fixed for the term of the mortgage, so two properties bought five years apart are going to be at similar interest rates for 20 years*. It's only the interest difference for the first five years that matters.

The point is a good one though, as Alfie says "Seems like if they ain't got you one way, they got you another".

*Assuming both bought on a 25 year term.

The point I'm trying to make is that being out of the market for 4 years waiting for values to fall may have been pointless if when you enter the market interest rates are high. Indeed, this maybe especially true when you take into account the higher fees being charged for mortgages now and the rent paid in that time which could have paid down some of the capital value. It is not inconceivable that you could be worse off.

I'm not saying that people who waited for house prices to fall won't be better off - just that it's a punt. It's not a certainty. Even if someone can forcast house price falls they can't guess interest rate movements - so for most of us it's better to buy a house and just get on with it...

mircea

lizzymouse wrote: »

It seems to be that there are alot of people on this forum who are incredibly smug and who have nothing but cruel words to say to people who are currently suffereing as a result of the house price situation

If people have nothing constuctive or sympathetic to offer those people who are currently loosing sleep, worrying, feeling depressed and upset because they are facing real financial trouble at the moment then they would be better posting no reply at all.

There is alot of bad feeling towards buy to let investors, but please remember that there are alot of people out there who struggled to buy their only home in the last year or so, work hard, saved hard, did nothing wrong, and are now up the creek without a paddle.

They need sympathy and support, not cruel wisecracks and smugness from those of you who are fortunate enought not to be in this unhappy situation.

There a few people like that on this board - this is a public forum yet, they claim that it is theirs and that they don't do hugs and that they sussed everyone out and they are happy with the situation as it is. Take no notice of them. I remember at school there was a group of bullies just like this one and just like this group on here were attacking people verbally like a pack. As far as I remember I was the only one who stood up to them and asked them to leave the poor chap alone. Like then, I still stand up for other people when I see bullies attack them - at work or anywhere else. I can't really see these moppets being rude or aggressive to me in a face to face meeting but they feel safe behind the anonymity of the internet, like the true cowards they are. Don't worry too much about them, talk to the decent people who are on here and offer sensible advice and support in an atmosphere of reciprocal respect and good manners in the spirit of the Money saving expert.

dopester

magicdogsbrain wrote: »

Anyway – I finally admitted I was wrong and bought at the end of 2000 for 115K. So my caution cost me 55K!

I think it will cost you £55K but not in the way you think, as we go right back to 1997-98 levels.

If that makes me a nasty or a bully then so be it. It's just a prediction.

House price crashes in the past have nearly always wiped out the inflationary gain of the last boom.

dopester

magicdogsbrain wrote: »

When I rented in 1999 my house was worth about 60K and the rent was £750. Now it’s worth 200K and rents are about £850. 1999 it was £12.50 pm per 1K, now its £4.25 pm per 1K!

I would guesstimate that this will at the very least meet somewhere in the middle. Say house prices come down 30%, ratio of 8.38 ppm/Kvalue – my 3 bed semi will be worth £140K with a rent of £1173. Therefore rents could increase by 38% in the next couple of years.

Try charging that rent miladdo and you'll have no tenants. It's a dream market for tenants at the moment.

magicdogsbrain

This is an old but interesting graph.

dopester

Don't rely on that trend line to save you.

It means very little.

magicdogsbrain

dopester wrote: »

Try charging that rent miladdo and you'll have no tenants. It's a dream market for tenants at the moment.

What would they do?

They wont buy because credit is expensive and house prices are falling.

Looks like the bus shelters will be full.

dopester

magicdogsbrain wrote: »

What would they do?

They wont buy because credit is expensive and house prices are falling.

Looks like the bus shelters will be full.

Gave you a thumbs up because I presume you are describing the over-leveraged landlords who, in many cases, are currently subsidising the mortgages as the rent doesn't cover it. The bus shelters will be cold when they run out of money.

If they try and raise it, tenant moves to many a landlord who has a vacant property desperate for a tenant.

magicdogsbrain

Found a better graph at

http://www.housepricecrash.co.uk/graphs-average-house-price.php

This would suggest a reduction back to trend of 30% - but of course it will overshoot. Looks like we wont get back up to these levels for the next 10 years or so.

The 80/90s was actually 35% above trend - so we had more than 10 years below trend.

UK007BullDog

If it was not for the collapse of the US housing market, over here the house prices would still be rising. But because of the US things excellerated to max speed. I could see from 2004 here in London specially that peoples incomes would not be able to keep up with house prices and that eventually a natural correction would take place. But then I did not recon with the banks greed to offer 125% plus mortgages and 100% buy to let mortgages. It was crazy, and a lot of people were using their houses as cash machines.

I always advised people against using their house as a cash machine but lost a lot of business and had very irate bosses who did not like my "advice" to customers. Most understood, but were too greedy and did it anyway going to another bank or broker.

I always said see your house as a home, not as a cash machine, not equity, not profit, not as your future pension as no one knows what the future will hold.

Dont worry about the crash and the credit crunch if you have no intention of selling your house. Renting is very expensive now due to the big mortgages on the properties which have to be paid. Keep paying your mortgage off as you have to live somewhere. We here in the UK are so obsessed with property its like a cancer eating away at people.

So what if the rates go up or down. Fix it then forget it. You have to live somewhere, so why not in your own place. Here in London the rents are going up and people will soon feel the pinch there too. People on 6 months leases could soon find themselves outpriced too when the landlord increases the rents.