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Something fishy

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Comments

  • Ozzuk
    Ozzuk Posts: 1,884 Forumite
    First Anniversary First Post
    Crashy_Time wrote: »
    If you still have a number of years to go on the mortgage, or if you planned to sell to fund your retirement, it is going to be a bumpy ride, buckle up :D The funniest thing is that the MSM now spouts on a daily basis the sort of stuff only found on a certain website you guys love to hate only a few years ago :)

    I probably have less years to go on my mortgage than you have renting in front of you :)
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Crashy_Time wrote: »
    If you still have a number of years to go on the mortgage, or if you planned to sell to fund your retirement, it is going to be a bumpy ride, buckle up :D The funniest thing is that the MSM now spouts on a daily basis the sort of stuff only found on a certain website you guys love to hate only a few years ago :)

    I think very few people look to their house to fund their mortgage. I think they look to their house to live in. Why would paying a mortgage be a bumpy ride if house prices fall? Makes no odds. It would be no different to paying rent. Through my mortgages, house prices rose and fell. I continued to pay the mortgage as usual.

    So, like many, I'm now mortgage free in my own house and will continue to be so throughout my retirement. Even if my house halved in value overnight, I'd still be living rent free.
    Had you continued as you were 20 years ago, so would you be. As it is you are stuck with paying someone else's mortgage for the rest of your life, literally.

    That was a decision you took, very poor in retrospect especially since you had several opportunities to correct it. 1995, 2010 you could have bought as the market bottomed out after crashes. But you didn't.

    Why are you so keen everyone else should make the same mistake as you? So you dont look as inept as you have turned out to be?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Crashy_Time wrote: »
    Fantasy. You assume a world where people just buy a home and stay put for the rest of their lives, or "just rent it out" if they need to move for work etc.

    I dont assume that at all. I think you are forced to assume that strawman so it fits your picture of why you haven't screwed up so catastrophically.

    You can always find a buyer. I've bought at peak and sold at bottom. House prices fall, the one you buy to replace it also costs less , its all relative
    Like most, I moved jobs, i sold houses, bought houses.
    We ended up owning them and not having to pay rent throughout retirement.
    The house next to me, FWIW is rented out at about 3x the most i ever paid on a mortgage. Even considering inflation, how is paying that throughout retirement a good plan?
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    AnotherJoe wrote: »
    I dont assume that at all. I think you are forced to assume that strawman so it fits your picture of why you haven't screwed up so catastrophically.

    You can always find a buyer. I've bought at peak and sold at bottom. House prices fall, the one you buy to replace it also costs less , its all relative
    Like most, I moved jobs, i sold houses, bought houses.
    We ended up owning them and not having to pay rent throughout retirement.
    The house next to me, FWIW is rented out at about 3x the most i ever paid on a mortgage. Even considering inflation, how is paying that throughout retirement a good plan?


    Really? Many would disagree I suspect, especially now. The house next to you isn`t the whole rental market, and you paid less on a mortgage because you paid less, much less, for the house than people are being asked to pay nowadays. The reality is that when global credit conditions change (they already have) the beliefs people have about property and property prices will change.


    https://www.bloomberg.com/news/articles/2018-03-09/why-it-matters-that-the-libor-ois-spread-is-widening-quicktake
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    AnotherJoe wrote: »
    I think very few people look to their house to fund their mortgage. I think they look to their house to live in. Why would paying a mortgage be a bumpy ride if house prices fall? Makes no odds. It would be no different to paying rent. Through my mortgages, house prices rose and fell. I continued to pay the mortgage as usual.

    So, like many, I'm now mortgage free in my own house and will continue to be so throughout my retirement. Even if my house halved in value overnight, I'd still be living rent free.
    Had you continued as you were 20 years ago, so would you be. As it is you are stuck with paying someone else's mortgage for the rest of your life, literally.

    That was a decision you took, very poor in retrospect especially since you had several opportunities to correct it. 1995, 2010 you could have bought as the market bottomed out after crashes. But you didn't.

    Why are you so keen everyone else should make the same mistake as you? So you dont look as inept as you have turned out to be?


    Most people with a mortgage (especially at recent prices) WILL have a bumpy ride as rates rise because they are already stretched to the limit, many people WILL be concerned that their house price is falling because they banked (literally) on it rising, and many many people don`t want to sit in the same house for half a century like you seem happy to do :) You are posting from the perspective of buying years ago, and from a decade of emergency interest rates, and also from not caring if you ever sell or if the house plummets in value! That is VERY unrepresentative of the average person with mortgage debt IMO. The only commonality the majority have with you is that they didn`t think interest rates would ever rise again :rotfl:
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    Crashy_Time wrote: »
    Most people with a mortgage (especially at recent prices) WILL have a bumpy ride as rates rise because they are already stretched to the limit
    Might we be forgetting about the more more rigorous affordability tests since the crash?
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    AdrianC wrote: »
    Might we be forgetting about the more more rigorous affordability tests since the crash?


    No, they are the reason sales volumes are collapsing.
  • kates08
    kates08 Posts: 94 Forumite
    First Post First Anniversary Combo Breaker
    I am usually a 'live and let live', everyone is entitled to their opinion kind of person, but Crashy you seem to delight in the thought of there being a housing market crash and people not being able to afford their homes.

    What sort of person to you have to be to wish that amount of misery and stress on millions of homeowners purely so that you can say 'I told you so'?
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    kates08 wrote: »
    I am usually a 'live and let live', everyone is entitled to their opinion kind of person, but Crashy you seem to delight in the thought of there being a housing market crash and people not being able to afford their homes.

    What sort of person to you have to be to wish that amount of misery and stress on millions of homeowners purely so that you can say 'I told you so'?


    Only three kinds of people want housing to be priced at decades worth of debt for the average person, bankers (based on greed), those who bought a long time ago (greed and fear of "loss") and people who can`t think very deeply (just not very bright) The rest of us will be cheering wildly when the inevitable and much needed crash finally comes :T
  • Gwendo40
    Gwendo40 Posts: 349 Forumite
    kates08 wrote: »
    I am usually a 'live and let live', everyone is entitled to their opinion kind of person, but Crashy you seem to delight in the thought of there being a housing market crash and people not being able to afford their homes.

    What sort of person to you have to be to wish that amount of misery and stress on millions of homeowners purely so that you can say 'I told you so'?

    Not much difference with those who delight in rampant, policy driven, house price inflation despite it bringing misery and stress to millions of non-homeowners.
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