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  • FIRST POST
    • sv722
    • By sv722 24th Mar 18, 8:20 PM
    • 13Posts
    • 8Thanks
    sv722
    Is buying a house a good idea?
    • #1
    • 24th Mar 18, 8:20 PM
    Is buying a house a good idea? 24th Mar 18 at 8:20 PM
    I've got about 4.5k saved up in my help to buy ISA and was considering a transfer into the Lifetime ISA to get the 1k annual bonus but i'm having doubts. This is because i won't be able to use that money to travel or get myself nice things. I get envious seeing my friends travelling the world.

    I'm 27 and looking to get my own place by age 35 at the absolute latest. So is house ownership a goal to aspire to or am i better off closing my ISA withdrawing the money and using it for something else?

    Thanks
Page 15
    • dunroving
    • By dunroving 14th May 18, 4:20 PM
    • 1,377 Posts
    • 971 Thanks
    dunroving
    Im sorry but why do you come on here? All you seem to do is derail all threads to say house prices are crashing, trying to spout the same rubbish as the HPC loons do. Or you comment that someones house is too expensive even though you have not really read the thread and have no knowledge of the area. Or you post some obscure link totally unrelated to the OP question.

    You made a huge financial gamble that turned out to be a huge mistake and now you think everyone should take that same gamble.

    So the BoE dont up rates like you had creamed your pants about weeks ago and now apparently that does not matter its all about global credit markets... Residential mortgages and BTL mortgages are predominantly based on BoE rates not global credit rates...

    It really is sad that you have spent so much time and energy on here trying to spout the same HPC rubbish. if you spent half the amount of time working you would not be in a rented bedsit..
    Originally posted by buggy_boy
    I hope you don't expect to get a logical response. Remember the definition of insanity ...
    (Nearly) dunroving
    • 51mm5
    • By 51mm5 14th May 18, 7:03 PM
    • 49 Posts
    • 34 Thanks
    51mm5
    Funny thing is, if you posted anything on HPC that deviated from the HPC mantra, you be called a troll with minutes and subsequently banned. On here Crashy constantly trolls threads and the someone that is not aware of his history may take his bad advice.

    The other funny thing (or not funny) is that there are probably many people over the years who have gone to HPC and taken their advice and have lost tens of thousands or six figure sums. I!!!8217;d hate to work out how much Crashy has lost as you could see it!!!8217;s driven him insane.
    Last edited by 51mm5; 14-05-2018 at 7:06 PM.
    • Crashy Time
    • By Crashy Time 15th May 18, 7:43 PM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    Im sorry but why do you come on here? All you seem to do is derail all threads to say house prices are crashing, trying to spout the same rubbish as the HPC loons do. Or you comment that someones house is too expensive even though you have not really read the thread and have no knowledge of the area. Or you post some obscure link totally unrelated to the OP question.

    You made a huge financial gamble that turned out to be a huge mistake and now you think everyone should take that same gamble.

    So the BoE dont up rates like you had creamed your pants about weeks ago and now apparently that does not matter its all about global credit markets... Residential mortgages and BTL mortgages are predominantly based on BoE rates not global credit rates...

    It really is sad that you have spent so much time and energy on here trying to spout the same HPC rubbish. if you spent half the amount of time working you would not be in a rented bedsit..
    Originally posted by buggy_boy

    Why do you come on here?
    • Crashy Time
    • By Crashy Time 15th May 18, 7:45 PM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    I hope you don't expect to get a logical response. Remember the definition of insanity ...
    Originally posted by dunroving

    Trying to sell a house for a silly price then coming on the internet to ask why no one is viewing?
    • dunroving
    • By dunroving 15th May 18, 7:53 PM
    • 1,377 Posts
    • 971 Thanks
    dunroving
    Clueless as ever and still obsessed with winding up anyone who owns a house.
    Last edited by dunroving; 15-05-2018 at 7:58 PM.
    (Nearly) dunroving
    • buggy_boy
    • By buggy_boy 15th May 18, 10:57 PM
    • 546 Posts
    • 405 Thanks
    buggy_boy
    Why do you come on here?
    Originally posted by Crashy Time
    Because I have a lot of experience in the housing sector, buying and renting and can help others with problems.... You know what a forum is meant to be about..
    • westernpromise
    • By westernpromise 16th May 18, 10:43 AM
    • 4,263 Posts
    • 5,548 Thanks
    westernpromise
    I'd hate to work out how much Crashy has lost as you could see it's driven him insane.
    Originally posted by 51mm5
    We can roughly work it out.

    He's been renting in Edinburgh for 22 years at - he says - about 450 a month. 22 years ago that would have rented you a 100k property and would have paid the mortgage interest on it for the first eleven years.

    Interest rates fell to 0.5% in the second eleven years, so if the monthly rent Crashy paid stayed the same, he would be paying more than the interest, i.e. he'd have been giving his landlord enough for the latter to pay down the principal.

    Eleven years of that would pay the outstanding balance down to about 60k. Meanwhile a 100k flat in Edinburgh 22 years ago would be worth about 250k today. So Crashy's landlord now has 190k equity in a 250k property, funded entirely by Crashy.

    In fact Crashy reckons to have moved 2 or 3 times, so there isn't one individual landlord who has had his mortgage on one individual flat paid off for him by Crashy. There are several landlords and several flats who've all profited by several Crashies. But indicatively, if Crashy had bought the 100k flat in 1996 on a 22-year tracker mortgage he would pretty much own it by now, and it would be worth 250k. Instead, his landlord owns it and it's their 250k.

    The effect of being afraid to buy yourself a property is that you buy one for somebody else.
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • Crashy Time
    • By Crashy Time 16th May 18, 9:15 PM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    We can roughly work it out.

    He's been renting in Edinburgh for 22 years at - he says - about 450 a month. 22 years ago that would have rented you a 100k property and would have paid the mortgage interest on it for the first eleven years.

    Interest rates fell to 0.5% in the second eleven years, so if the monthly rent Crashy paid stayed the same, he would be paying more than the interest, i.e. he'd have been giving his landlord enough for the latter to pay down the principal.

    Eleven years of that would pay the outstanding balance down to about 60k. Meanwhile a 100k flat in Edinburgh 22 years ago would be worth about 250k today. So Crashy's landlord now has 190k equity in a 250k property, funded entirely by Crashy.

    In fact Crashy reckons to have moved 2 or 3 times, so there isn't one individual landlord who has had his mortgage on one individual flat paid off for him by Crashy. There are several landlords and several flats who've all profited by several Crashies. But indicatively, if Crashy had bought the 100k flat in 1996 on a 22-year tracker mortgage he would pretty much own it by now, and it would be worth 250k. Instead, his landlord owns it and it's their 250k.

    The effect of being afraid to buy yourself a property is that you buy one for somebody else.
    Originally posted by westernpromise

    Where did I say I lived in Edinburgh 22 years ago?
    • Crashy Time
    • By Crashy Time 16th May 18, 9:16 PM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    Because I have a lot of experience in the housing sector, buying and renting and can help others with problems.... You know what a forum is meant to be about..
    Originally posted by buggy_boy

    Can you break down this article for us then?


    http://www.dailymail.co.uk/money/mortgageshome/article-5733321/Beware-red-danger-signs-house-prices-Young-buyers-borrow-record-sums.html#comments
    • MobileSaver
    • By MobileSaver 16th May 18, 9:48 PM
    • 1,446 Posts
    • 2,033 Thanks
    MobileSaver
    LOL! Did you actually read the article?

    Prices are still 2.2 per cent higher than they were a year ago.

    House prices have jumped by 32 per cent in the past five years
    Whoops! Anyone who chose to rent instead of buy five years ago must be kicking themselves that they made the worst financial decision of their lives...

    the proportion of buyers taking a loan at more than four times their income now stands at almost 12 per cent
    So the vast majority (over 88%) take out a perfectly normal income-multiple loan...

    tough new rules introduced by the City watchdog in 2014 mean that firms must now analyse borrowers' income in precise detail, to see if a loan is affordable ... under rules laid down by the City watchdog.
    Ah, so even the small number taking out high multiple-income mortgages have been rigorously vetted for affordability - nothing to see here then...

    But he adds: 'I don't think the right conditions are in place for a major correction.'

    I don't think house prices will fall unless the economy takes a major downturn. I suspect it's more likely that prices will tread water for a while.
    Oh dear, so even your favourite crash-friendly scaremongering click-bait rag is reporting that there won't be a crash... you couldn't make it up Crashy!
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • Crashy Time
    • By Crashy Time 18th May 18, 11:12 AM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    LOL! Did you actually read the article?

    Whoops! Anyone who chose to rent instead of buy five years ago must be kicking themselves that they made the worst financial decision of their lives...

    So the vast majority (over 88%) take out a perfectly normal income-multiple loan...

    Ah, so even the small number taking out high multiple-income mortgages have been rigorously vetted for affordability - nothing to see here then...

    Oh dear, so even your favourite crash-friendly scaremongering click-bait rag is reporting that there won't be a crash... you couldn't make it up Crashy!
    Originally posted by MobileSaver

    Property market healthy then, nothing to see here, move along, get that fix while you can, don`t worry about the price just the monthly payment Judging by the views on this thread quite a few people may think buying a house now isn`t the greatest idea ever......
    • caronoel
    • By caronoel 18th May 18, 11:28 AM
    • 882 Posts
    • 1,132 Thanks
    caronoel
    Property market healthy then, nothing to see here, move along, get that fix while you can, don`t worry about the price just the monthly payment Judging by the views on this thread quite a few people may think buying a house now isn`t the greatest idea ever......
    Originally posted by Crashy Time
    Much like your own thought process when you sold up to rent in the late 90s eh?

    How did that work out for you, now that you are in your 50s and living in a rented bedsit?

    • MobileSaver
    • By MobileSaver 18th May 18, 2:10 PM
    • 1,446 Posts
    • 2,033 Thanks
    MobileSaver
    Judging by the views on this thread quite a few people may think buying a house now isn`t the greatest idea ever......
    Originally posted by Crashy Time
    That would presumably depend on whether they need somewhere to live and whether they would rather pay off their own mortgage or a landlord's mortgage year after year after year...

    What would you do in their shoes?
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • eidand
    • By eidand 18th May 18, 2:11 PM
    • 43 Posts
    • 46 Thanks
    eidand
    I would definitely encourage you to do whatever you can to get on the property ladder. If that means saving for several years then so be it. There one simple truth, rent is paying someone else's mortgage.

    Just be careful, do your numbers, don't borrow more than you can afford, buying a house is a really long term project. What I did was to get a house which wasn't very expensive and the mortage is itself was more than affordable. Took it over 30 years, with 2 years fixed interest. The idea was that after those 2 years, if I can afford that, I will be paying more into my mortgage and if sometimes I can't then I don't have to worry about it.

    The idea is to do whatever you can to pay it off as quickly as you can, so definitely pay more into, I pay more than double. You can also remortgage over a shorter period of time with better rates, if you can and when you can. The longer the term, the more money you pay in interest so you definitely want to shorten that as you get older and earn more and more. There are advantages as a first time buyer as well.

    One last thing I would say is do your research and buy a house you like in an area you like. Try and get a decent size garden, if you can, so you could actually extend the property later, if you need to. Extending can work out much cheaper then buying a bigger property. The important part is to choose wisely and to like your property and area as you will be living for a while. Jobs come and go, where you work changes so I wouldn't rely on that too much.

    Once you own a property, you start building equity, you have access to other cheaper financial instruments and your credit score improves.

    At the end of the day, we all have to make a decision, if to do it and when to do it. Looks like your time is now, if you decide you want to buy then start saving. The bigger deposit you have, the better rates you'll get.

    Good luck.
    • Crashy Time
    • By Crashy Time 19th May 18, 2:46 PM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    LOL! Did you actually read the article?

    Whoops! Anyone who chose to rent instead of buy five years ago must be kicking themselves that they made the worst financial decision of their lives...

    So the vast majority (over 88%) take out a perfectly normal income-multiple loan...

    Ah, so even the small number taking out high multiple-income mortgages have been rigorously vetted for affordability - nothing to see here then...

    Oh dear, so even your favourite crash-friendly scaremongering click-bait rag is reporting that there won't be a crash... you couldn't make it up Crashy!
    Originally posted by MobileSaver

    Comments are interesting in this one. High headline prices mean nothing if transactions are falling, and trying to advocate online and elsewhere that high house prices are good will be seen in the future as very stupid and short-sighted IMO, more and more people now realise that the housing bubble was stacked towards the benefit of bankers and allowed politicians to avoid addressing low or no wage growth.


    https://www.telegraph.co.uk/property/house-prices/uk-house-prices-drop-sluggish-market-continues/?li_source=LI&li_medium=li-recommendation-widget
    • jimbog
    • By jimbog 19th May 18, 2:53 PM
    • 756 Posts
    • 1,313 Thanks
    jimbog
    Thanks. From your link:

    the market has seen some modest growth over the longer term with prices in the last three months to April 2.2pc higher than in the same three months a year earlier
    The problem with quotations on the internet is that you can never verify their authenticity - Abraham Lincoln
    • MobileSaver
    • By MobileSaver 19th May 18, 3:07 PM
    • 1,446 Posts
    • 2,033 Thanks
    MobileSaver
    the market has seen some modest growth over the longer term with prices in the last three months to April 2.2pc higher than in the same three months a year earlier
    Originally posted by jimbog
    Ha ha, I can't quite work out if Crashy has just lost the plot or if he has finally seen the light... all he seems to do these days is highlight articles that confirm what most of us here have been telling him for years; that there's not going to be a crash!

    "UK's property market ... simply idling along"
    "Halifax said it expected annual price growth to remain in its forecast range of 0pc-3pc this year."
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • Crashy Time
    • By Crashy Time 19th May 18, 3:13 PM
    • 6,842 Posts
    • 2,517 Thanks
    Crashy Time
    "The number of completed homes sales between February and March - the most recent data available - fell by 7.2pc to 92,270, the lowest level since May 2016"
    • MobileSaver
    • By MobileSaver 19th May 18, 3:44 PM
    • 1,446 Posts
    • 2,033 Thanks
    MobileSaver
    "The number of completed homes sales between February and March - the most recent data available - fell by 7.2pc to 92,270, the lowest level since May 2016"
    Originally posted by Crashy Time
    Crashy, so does this mean it is definitely "crashy time?"

    If so, roughly when do you think prices will crash by the 50% you and your HPC friends have been predicting for the last 15 years? By this Christmas perhaps? A year from now? Or when?
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • buggy_boy
    • By buggy_boy 20th May 18, 11:13 AM
    • 546 Posts
    • 405 Thanks
    buggy_boy
    "The number of completed homes sales between February and March - the most recent data available - fell by 7.2pc to 92,270, the lowest level since May 2016"
    Originally posted by Crashy Time

    Sales volumes mean nothing if there are not an increase of properties for sale... Just like with renting people are staying put for longer, probably because of the high cost of moving, also more people are extending rather than moving...

    Sales volumes are an indication of the number of property sales that have happened rather than any sort of indication of price, there can be lots of reasons for low sales volumes but the only time it will have a knock on effect ...

    http://www.rightmove.co.uk/news/wp-content/uploads/2018/04/Rightmove-House-Price-Index-16th-April-2018-Final.pdf

    The number of properties per agent is exactly the same month on month as last year.... The average time to sell is pretty much exactly the same as last year. You are so blinkered with the headline of sales volumes falling as you are so desperate for a crash you ignore all other information which would give you the full picture..
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