Reply to: Serious question

[TimberWolf]

Bullion (YouTube - contains sound)

[DimPrawn]

Mortgage on property we are currently renting would be close to £1700 pcm.

Our rent is £1300 pcm.

I don't think inflation is whittling away 100% of the saving each month so we'll stick where we are for the moment...

Depends on the mortgage deal surely?

Plenty of mortgages for those with a big deposit at 2.8% APR.

[Moscow Mule]

At the moment I would say rents are much higher than most people's mortgage payments.

Mortgage on property we are currently renting would be close to £1700 pcm.

Our rent is £1300 pcm.

I don't think inflation is whittling away 100% of the saving each month so we'll stick where we are for the moment...

[DimPrawn]

House prices will be fine as long as interest rates stay near 0% for the next 25 years and suicide loan multiples continue to exist. Or if we have massive inflation/debasement.

Trouble is, all of those are a distinct possibilty under Labour, and as Labour are going to win the election next year, I cannot fathom what the hell to do.

[TimberWolf]

House prices will be fine as long as interest rates stay near 0% for the next 25 years and suicide loan multiples continue to be offered. Or if we have massive inflation/debasement.

[SuperZ]

Traditionally house prices dive 18 or so months after a stock market crash. It could be argued that from now until at least March we are are in that window as the major damage was done to stocks between May and September 2008.
Of course past performance is not always repeated but I don`t think we`re gonna see a quick recovery in house prices, so holding off a house purchase until at least the middle of next year could be wise.

Because housing has had such a good run, it is very clear in peoples minds and I thihnk after the market dived to current levels people saw value, remembering the massive housing bull market of the last 10 or so years. So housing is not cheap but for some people it is compared to 2007 prices and especially given the £££ returns of the past decade. This could make a bounce in prices as people plan on buying now at 18% discount (or whatever it is) hoping for a quick 18% gain and this seems to of happened but it might end in tears.

I really have no idea where the market is going but my guess is it will be heading South again soon to at least the recent bottom and it isn`t going to make anyone the returns of the last decade for a long time.

First timers are still struggling to get onto the market.

Given that the poll indicates a crash is yet to happen, we might just be in another housing bull run bubble!

[DimPrawn]

Don't buy until the house rents get in line with mortage payments

At the moment I would say rents are much higher than most people's mortgage payments.

[Andy2]

Don't buy until the house rents get in line with mortage payments

[bobhope]

I thought that too until I realised I was just lucky last time.

I look on it as a combination of, on a micro/personal level doing the right thing at the time (i.e. my calculations of investment ROI, etc. were correct) coupled on a macro level with unbelievable luck that Gordon and the BOE were/are buffoons.

As what to do next: on a micro level, it doesn't make sense to buy now. The sums don't add up, etc.
However, you have to factor in the imbeciles running the gauntlet with hyperinflation.

To sum up:

Morally, house prices should go down.
In practice, anything could happen.

HTH.

[chef]

Why do people use the term printing money? No money is being printed.

How do you know what goes on in my place? what are you accusing me of? who told you? ok, gotta run....

[Bagpuss]

WHS.

Printing money changes everything, no one know where this will end. Not even Gordon.

Why do people use the term printing money? No money is being printed.

[Bagpuss]

I'm cheered by the fact that most here appear the think Gordon hasn't saved the World and that house prices are still due for a fall.

The same people who thought house prices could never fall due to supply and demand from himigration innit.

[DimPrawn]

I'm cheered by the fact that most here appear the think Gordon hasn't saved the World and that house prices are still due for a fall.

[DimPrawn]

I thought you were the boards resident property expert?

I thought that too until I realised I was just lucky last time.

[Lockhouse]

I reckon house prices will stay flat for a long time but in real terms they'll devalue as inflation rises.