Is buying a house a good idea?

Crashy_Time · 8 April 2018 at 10:19PM

buggy_boy wrote: »

As interest rates rise so will inflation, the advantage is in 20yrs time a lot of the mortgage can be inflation-ed away where as rents will generally increase...

My experience is that on basic flats with private landlords they won`t, not much anyway, they are governed mainly by wages, and wages have not increased much in many years, hence the reason that politicians loved it when ordinary punters believed in the property bubble and thought they were worth a lot by borrowing a lot (seems mental now with rates set to rise doesn`t it?) If you think you can predict wages and inflation then you are ahead of most people, the Fed are trumpeting rate rises, and it seems obvious that credit markets are becoming more volatile and less "controlled" by central banks, that is the only reason that I keep talking about rates going up on mortgages.

buggy_boy · 8 April 2018 at 11:18PM

Crashy_Time wrote: »

My experience is that on basic flats with private landlords they won`t, not much anyway, they are governed mainly by wages, and wages have not increased much in many years, hence the reason that politicians loved it when ordinary punters believed in the property bubble and thought they were worth a lot by borrowing a lot (seems mental now with rates set to rise doesn`t it?) If you think you can predict wages and inflation then you are ahead of most people, the Fed are trumpeting rate rises, and it seems obvious that credit markets are becoming more volatile and less "controlled" by central banks, that is the only reason that I keep talking about rates going up on mortgages.

Rents have risen fact, you can try to say on a certain type of property it has not but look at the stats, rents have risen... Im sure certain rents in certain areas have not but that does not mean rents have not risen, its where your logic is flawed, on average rents have risen, you argue this by saying certain rents haven't... Rents are not only based on wages, just look at some areas where lots of flats have been built, rents have not risen much, on the flip side areas that have a shortage of houses to rent have seen rises, it depends what the market can bare.

Really your the one that is making very tenuous financial predictions. No you and your friends at HPC have been talking about it for years and its yet to happen, when rates rise it will be a slow gradual rise unless something catastrophic happens and as we have seen will only rise as the economy rises, this will mean wage rises.

johnsonisabella · 9 April 2018 at 6:16AM

Buying a house is good idea only when if you have sufficient money to invest or paying down or you want to live long time in that particular city but if you anticipate a job change or career then renting a room or home might suits you better as buying a home can hamper your flexibility to move and pick.

Crashy_Time · 9 April 2018 at 12:06PM

buggy_boy wrote: »

Rents have risen fact, you can try to say on a certain type of property it has not but look at the stats, rents have risen... Im sure certain rents in certain areas have not but that does not mean rents have not risen, its where your logic is flawed, on average rents have risen, you argue this by saying certain rents haven't... Rents are not only based on wages, just look at some areas where lots of flats have been built, rents have not risen much, on the flip side areas that have a shortage of houses to rent have seen rises, it depends what the market can bare.

Really your the one that is making very tenuous financial predictions. No you and your friends at HPC have been talking about it for years and its yet to happen, when rates rise it will be a slow gradual rise unless something catastrophic happens and as we have seen will only rise as the economy rises, this will mean wage rises.

No. If the US start raising BOE will quickly be in a tight spot if they don`t follow IMO. The economy is based on debt, not wages, you need to understand this to understand the risk you take with large mortgage debt at this point.

tom9980 · 9 April 2018 at 12:09PM

Crashy_Time wrote: »

My experience is that on basic flats with private landlords they won`t, not much anyway, they are governed mainly by wages, and wages have not increased much in many years, hence the reason that politicians loved it when ordinary punters believed in the property bubble and thought they were worth a lot by borrowing a lot (seems mental now with rates set to rise doesn`t it?) If you think you can predict wages and inflation then you are ahead of most people, the Fed are trumpeting rate rises, and it seems obvious that credit markets are becoming more volatile and less "controlled" by central banks, that is the only reason that I keep talking about rates going up on mortgages.

So you admit you live in a "Basic" flat then, bet that has been fun for the past 20+ years.

Crashy_Time · 9 April 2018 at 12:14PM

tom9980 wrote: »

So you admit you live in a "Basic" flat then, bet that has been fun for the past 20+ years.

Who mentioned living in the same place for 20 years? That is what happens when you can`t sell your house :rotfl:

51mm5 · 9 April 2018 at 3:50PM

This is dedicated to Crashy:

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/March-2018-House-Price-Index.pdf

!!!8226; Prices in the last three months to March were 2.7% higher than in the same three months a year earlier, edging up from the 1.8% annual growth recorded in February
!!!8226; The average price in March was £227,871, the highest recorded price
!!!8226; House prices in the latest quarter (January-March) were -0.1% lower than in the preceding
three months (October-December), the second consecutive decline on this measure
!!!8226; On a monthly basis, prices grew by 1.5% in March, this follows a 0.5% rise in February;
monthly changes can be volatile
!!!8226; Mortgages in the UK are at their most affordable level in a decade

Crashy_Time · 9 April 2018 at 4:39PM

51mm5 wrote: »

This is dedicated to Crashy:

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/March-2018-House-Price-Index.pdf

!!!8226; Prices in the last three months to March were 2.7% higher than in the same three months a year earlier, edging up from the 1.8% annual growth recorded in February
!!!8226; The average price in March was £227,871, the highest recorded price
!!!8226; House prices in the latest quarter (January-March) were -0.1% lower than in the preceding
three months (October-December), the second consecutive decline on this measure
!!!8226; On a monthly basis, prices grew by 1.5% in March, this follows a 0.5% rise in February;
monthly changes can be volatile
!!!8226; Mortgages in the UK are at their most affordable level in a decade

Fill yer boots! :rotfl:

This is what EA`s think....

"That "surprise" 1.5% jump in March for house prices reported by the Halifax, is not such good news, reckons north London estate agent Jeremy Leaf. He said:

On the face of it, the Halifax figures look quite encouraging but when you examine them in more detail one appreciates that the increase in property prices is more to do with a shortage of stock, low mortgage approvals, and subdued activity rather than any great change in the market. "

Looks like you can`t have your cake (high prices) and eat it (healthy transactions)

Only on here would a report from VI`s who need mortgage lending to survive about a broken housing market throwing up volatile stats as it heads for the cliff be welcomed with such enthusiasm :T

lookstraightahead · 9 April 2018 at 4:50PM

I bought a flat at 22 and had to rent it out as I moved jobs. This was a bit of a nightmare to manage and I remember wishing I hadn!!!8217;t got that ball and chain. Then things were ok for a while and I bought s nice cottage with my first husband. Then I got divorced which meant I had to buy him out. Then tge house depreciated in value oh and then, because it was an old house, not only could I not afford the mortgage, I could not afford the repairs. So I sold, in loads of debt, have been renting and hopefully will be buying again soon, this time I hope my life will be straightforward.

I think buying on balance is a good idea but you have to be aware of things going wrong in life too. Property can be a great investment, a secure home, or can swallow up everything.

buggy_boy · 9 April 2018 at 5:56PM

Crashy_Time wrote: »

Fill yer boots! :rotfl:

This is what EA`s think....

"That "surprise" 1.5% jump in March for house prices reported by the Halifax, is not such good news, reckons north London estate agent Jeremy Leaf. He said:
On the face of it, the Halifax figures look quite encouraging but when you examine them in more detail one appreciates that the increase in property prices is more to do with a shortage of stock, low mortgage approvals, and subdued activity rather than any great change in the market. "

Looks like you can`t have your cake (high prices) and eat it (healthy transactions)

Only on here would a report from VI`s who need mortgage lending to survive about a broken housing market throwing up volatile stats as it heads for the cliff be welcomed with such enthusiasm :T

Really from the bloke that does not believe in supply and demand... You have been bleating on about the low sales volumes and I have been trying to tell you unless you see more unsold stock it makes little difference which you argue.... Now you think the only reason for the house price increase is a lack of stock...

Make up your mind or is it a case of whatever suits your argument at the time?

Typical HPC'r stats say house prices are rising then they are not to be trusted... stats say house prices are falling then they are the only stats to believe.

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Is buying a house a good idea?

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