Beginning of the end

[AtW]

Completely agree. Right property at the right price is what I said.

Indeed. So, do you agree that right now the price for property (in general) is NOT right, or in other words it is heavily overpriced?

[sasguru]

Indeed. So, do you agree that right now the price for property (in general) is NOT right, or in other words it is heavily overpriced?

By waht criteria do you judge over-pricing?

[DaveB]

If you own property already it's not over priced. If you don't own property already it is.

[wonderwaif]

Indeed. So, do you agree that right now the price for property (in general) is NOT right, or in other words it is heavily overpriced?

no I don't. The right property at the right price can still be found. Just depends what your expectations are.
I don't know what the housing market will do, neither do you.
What I do know is that if the worst came to the worst i would struggle to pay my rent just as i struggle to pay my mortgage.
I also know that at a fixed point in the future I get £600.00 a month to play with and a house my children won't have to pay rent for, while you will be paying rent until you die.
I know if your house is re-possessed you could end up with a big debt, but as with any investment you can minimise risk. How many people have lost their shirt on the stock market?

[tim123]

But what about the time after the 10-15 years. Rent free, saleable asset. (And rent free for your kids - add that saving in rent to your equation, even after taking off inheritance tax it's a huge saving for them.).

(As has already been explained) You don't have a rent free salable asset just because you've paid 15 years of mortgage interest. You have it because you've also paid 200K of principal. If you have the capacity to save 200K in 15 years (and I suspect than most FTBs do not) then you'll have 200K at the end, whether you started with a house or not.

The media is highlighting how existing and future mass immigration is creating grave housing shortgages. Even if you can't sell the house you are protected against your rent going through the roof as there are'nt enough houses to meet demand.
That should be 97 now.

Yes, I'm well aware of the 'increase in population keeping house prices high forever' theory.

IMHO it is bunkum, just like the 'new business paradigm' theory keeping Dot Con shares prices high was bunkum (and I did say so at the time).

The basic economic valuation of house prices says that they are too high. Sooner or later the ever increasing stampeed of people chasing nothing other than theoretical increase in price, will run out of steam.

tim

[wonderwaif]

(As has already been explained) You don't have a rent free salable asset just because you've paid 15 years of mortgage interest. You have it because you've also paid 200K of principal. If you have the capacity to save 200K in 15 years (and I suspect than most FTBs do not) then you'll have 200K at the end, whether you started with a house or not.



Yes, I'm well aware of the 'increase in population keeping house prices high forever' theory.

IMHO it is bunkum, just like the 'new business paradigm' theory keeping Dot Con shares prices high was bunkum (and I did say so at the time).

The basic economic valuation of house prices says that they are too high. Sooner or later the ever increasing stampeed of people chasing nothing other than theoretical increase in price, will run out of steam.

tim

As I said, do it your way. I think it's working fine for me, I really don't give a rats ass whether other people rent or buy. I like where I live and work all over the country, so I don't need to sell.

Edit : I haven't paid £200,000.00 in principle, my £108,000.00 is my total purchase price of the house. We bought cheap and added value. The £200,000.00 is a very conservative estimate of how much it would be worth now in the condition we bought it in, it's actually worth considerably more going on recent sale prices in our area. If we needed to sell and couldn't get back what it cost us I assure you that the entire country would be so deep in the sh1te it wouldn't make any difference.

anyway, I've made "Should try harder" now, so thanks guys.

[lws]

How do you know we are at the peak of the current boom. I suggest there's another 5 years to go.

I don't know for sure, all I can do is look at the facts and figures and come to my own conclusion. Interest rates are set to rise, each 0.25% on a £200,000 mortgage works out to roughly £60 - £80 a month. Repossesions are at an all time high and are still rising. It ain't gonna last forever.

Look up the newspaper articles just before the last crash, they were spouting exactly the same tulip as they are now.

[AtW]

By waht criteria do you judge over-pricing?

I can't afford the house I fancy?

chav.