Reply to: Grim news

[PAH]

Nothing is going to shift rates up in the USA or UK. In 10 years you could pay the mortgage off. No more rent ever!

So no rush to pile into bricks while prices are coming down, even if only slowly at the moment.

I can save money by renting a place cheaper than it costs to get an interest only mortgage on a similar property, then get a smaller mortgage having saved more once prices drop a few more 10s of grand.

Also, if the lawlessness spreads beyond the city walls I can easily do a runner abroad. No negative equity to worry about.

[DimPrawn]

It's crazy how given this whole debt crisis the Bank is getting debt more desirable.

I am going to US Embassy tomorrow to apply for a work permit there. At least the houses are cheap, massive in size and plenty of legal guns to spend your hard earned savings on.

Goodbye my children, see you on the other side.

Moving to America would be a wise choice. Cheap housing, cheap money, interest rates fixed at zero for two years, business friendly, gun friendly.

[AtW]

I've just taken on a big mortgage. Better than saving.

It's crazy how given this whole debt crisis the Bank is getting debt more desirable.

I am going to US Embassy tomorrow to apply for a work permit there. At least the houses are cheap, massive in size and plenty of legal guns to spend your hard earned savings on.

Goodbye my children, see you on the other side.

[Lockhouse]

I've just taken on a big mortgage. Better than saving.

[shaunbhoy]

I'll call my boat - "Done coding"

And paint it with Seaman Stains.

[AtW]

I'll get a boat after I'll get house and a car (or two). I'll call my boat - "Done coding"

[shaunbhoy]

They didn't have inflation at 5% pa (that's official).

Just wait till wages will be forced up to compensate for inflation here - maybe 2-3 more years but after that rates will have to go up one way or another.

[AtW]

Look at Japan. Base rates near zero for over a decade.

They didn't have inflation at 5% pa (that's official).

Just wait till wages will be forced up to compensate for inflation here - maybe 2-3 more years but after that rates will have to go up one way or another.

[DimPrawn]

What really cracks me up is that people who'd get into houses (thus propping up the bubble) using current very low rates will be totally shafted when rates will go up, maybe it will take 3-5 years but they will certainly not stay at 0.5% forever: ECB is already moving them up.

Look at Japan. Base rates near zero for over a decade.

Nothing is going to shift rates up in the USA or UK.

In 10 years you could pay the mortgage off. No more rent ever!

[AtW]

Express.co.uk - Home of the Daily and Sunday Express | UK News :: Mortgage joy as rate falls to a 23-year low

What really cracks me up is that people who'd get into houses (thus propping up the bubble) using current very low rates will be totally shafted when rates will go up, maybe it will take 3-5 years but they will certainly not stay at 0.5% forever: ECB is already moving them up.

[AtW]

Got to be honest I really don't understand this is all, my current situation is I stuck all my savings into an offset mortgage and have now completely offset it, considering the economy and future economy is the best thing then for my savings, I was thinking of pulling some out and buying some shares etc while prices are low ?

Don't take investment advice on public forums like this.

HTH

[DimPrawn]

What about inflation of basic essentials (food, fuel, etc) without wage inflation? Will that too not have a devastating affect on people's ability to continue servicing their already high levels of debt (mortgage and credit card), forcing bankruptcy or quick sales at lower prices?

The market can only sustain what people can afford. Can't see wage inflation happening whilst globalisation is doing the opposite.

Mortgage rates are getting cheaper and cheaper, so the cost of the debt is falling as the cost of living rises.

Express.co.uk - Home of the Daily and Sunday Express | UK News :: Mortgage joy as rate falls to a 23-year low

So, rents are rising and so are utility bills and food etc, but mortgage costs are falling.

Which camp would you rather be in?

[Bumfluff]

You ain't gonna change it AtW.

You've got a situation where your savings are going to be worth more today than in the future due to currency debasement and high inflation.

Normally you'd expect high interest rates to compensate for this, but it's absolutely clear we aren't going to see this for many many years.

Therefore, if you can borrow cheaply now (with a big deposit) at very low rates (example HSBC tracker is 2.6% APR) you'd be mad not to grab a physical asset like a house now, even if the purchase price seems steep, since the overall cost will be low compared to a cheap house when base rates are 15%.

I hope this makes sense to your communist mind.

Got to be honest I really don't understand this is all, my current situation is I stuck all my savings into an offset mortgage and have now completely offset it, considering the economy and future economy is the best thing then for my savings, I was thinking of pulling some out and buying some shares etc while prices are low ?

[PAH]

Can you see that only thing that will cause house prices to fall significantly is very high interest rates and that isn't going to happen for a very very long time?

What about inflation of basic essentials (food, fuel, etc) without wage inflation? Will that too not have a devastating affect on people's ability to continue servicing their already high levels of debt (mortgage and credit card), forcing bankruptcy or quick sales at lower prices?

The market can only sustain what people can afford. Can't see wage inflation happening whilst globalisation is doing the opposite.

[EternalOptimist]

Everyone on here has been advising, actually urging, you to get a mortgage for several years.

But you knew better.

I am with the commie on this one. Forget the mortgage. Just hoik a big wodge out of yer pocket and buy one cash

kerching. you know it makes sense