Reply to: Nationwide: House prices up 3.9% in a year

[sasguru]

.... he spends his time alone at home until it's time to pickup his kiddy winky from pre-school and put his wife's dinner on.

HTH BIDI

Sounds idyllic. If only.

[twocontract]

Back to the stage of the economic cycle where you make more money from sitting at home than you do contracting.

[bobspud]

4% is not a bad rate.

Have you forgotten already that only recently mortgage rates were 5-7%?

Never paid that much even at the top of the rates. In the good old days lenders would fall over themselves to give cheap mortgages.

I missed a fantastic life time tracker rate from Barclays on my second renewal. Ended up on 5% fixed which ended and took me down to 4% till I got off my arse and took a lower rate.

Why would you want to convert your house into a barn?

So I could keep more sheeeps! Baaaaah!

[Paddy]

Well I can confirm life is back to normal... A few weeks ago I decided that I needed to remortgage for two reasons

1) I had done all the barn conversion work up till this point out of my own pockets so I have not been building a war chest.
2) I was on a crap deal 4% so taking 1.89% and a few more grand worked out cheaper than my current mortgage.

So my plan was get the mortgage changed and and stick a war chest on top so that I have some liquidity built into my life in case my current gig ends in october. This has the added effect that I can reduce the amount of money I take on a monthly basis and build an even bigger war chest...

As of the surveyor turning up this morning I am sitting on a house that has doubled its value in 10 years including the down turn.
I am guessing that I have probably spent 50K on the renovation work so far and still made over 200k to with 20k left to finish the job for Christmas. I think that concludes a seriously stressful building project...

Out of interest, has anyone managed that sort of return on the stock markets?

Why would you want to convert your house into a barn?

[AtW]

Not really it was an abject laziness on my part. I knew it was a bad rate but lending was crap at the time so it was easier to wait it out and bide my time

4% is not a bad rate.

Have you forgotten already that only recently mortgage rates were 5-7%?

[bobspud]

Hmmm, 4% deal probably sounded very sweet when you had it, but now you probably felt like a mug who should have paid only 2%.

Crazy days - they won't be able to increase BoE rates for a long time, it's Japan all over minus earthquakes (fracking can change that).

Not really it was an abject laziness on my part. I knew it was a bad rate but lending was crap at the time so it was easier to wait it out and bide my time

[AtW]

2) I was on a crap deal 4% so taking 1.89% and a few more grand worked out cheaper than my current mortgage.

Hmmm, 4% deal probably sounded very sweet when you had it, but now you probably felt like a mug who should have paid only 2%.

Crazy days - they won't be able to increase BoE rates for a long time, it's Japan all over minus earthquakes (fracking can change that).

[bobspud]

Well I can confirm life is back to normal... A few weeks ago I decided that I needed to remortgage for two reasons

1) I had done all the barn conversion work up till this point out of my own pockets so I have not been building a war chest.
2) I was on a crap deal 4% so taking 1.89% and a few more grand worked out cheaper than my current mortgage.

So my plan was get the mortgage changed and and stick a war chest on top so that I have some liquidity built into my life in case my current gig ends in october. This has the added effect that I can reduce the amount of money I take on a monthly basis and build an even bigger war chest...

As of the surveyor turning up this morning I am sitting on a house that has doubled its value in 10 years including the down turn.
I am guessing that I have probably spent 50K on the renovation work so far and still made over 200k to with 20k left to finish the job for Christmas. I think that concludes a seriously stressful building project...

Out of interest, has anyone managed that sort of return on the stock markets?

[BrilloPad]

House prices are up more than 4% in our area over last year - SE London - finally overspill from central London coming our way.

[DimPrawn]

The difference being that most posters here live in the real world and not an imaginery one.

You have to remember, not only does sasguru have his mortgage free mansion in Surrey, but his portfolio of prime central London BTL's and his villa in Portugal.

Despite all this massive wealth, he spends his time alone at home until it's time to pickup his kiddy winky from pre-school and put his wife's dinner on.

HTH BIDI

[BrilloPad]

I love it when you poor, immature cretins pontificate about the economy and wish for a "perfect" one rather than making the existing one work for you. Typical IT geeks.

The difference being that most posters here live in the real world and not an imaginery one.

[Ketchup]

It's perfectly normal for house prices to drift up with inflation so any rises 3-5%/yr are of zero consequence it just feels nice as this is a leveraged buy.
IF you can afford, it a decent house in decent area is still a no brainer if you plan to stay at least 5-10 years.
When it gets to 10%/year rises, we are back in the bubble, not there yet AND I don't see any chance of a crash from here, the correction has happened, such as it was.
I wouldn't touch BTL, heard too many horror stories, illiquid assets, maintenance, nobbers trashing the gaff, calls at all times or expensive management costs.
No chance - Firstly - your own home is likely to be MORE than enough exposure in this area but if you insist on more - there are numerous Residential or Commercial funds, IT's, REIT's or ETF's which give plenty of exposure to this area which is controllable AND liquid.

But putting $50k in a fund with 5% average rise in house prices would not see the same return as using the £50k as a deposit on a £200k property.

[lukemg]

It's perfectly normal for house prices to drift up with inflation so any rises 3-5%/yr are of zero consequence it just feels nice as this is a leveraged buy.
IF you can afford, it a decent house in decent area is still a no brainer if you plan to stay at least 5-10 years.
When it gets to 10%/year rises, we are back in the bubble, not there yet AND I don't see any chance of a crash from here, the correction has happened, such as it was.
I wouldn't touch BTL, heard too many horror stories, illiquid assets, maintenance, nobbers trashing the gaff, calls at all times or expensive management costs.
No chance - Firstly - your own home is likely to be MORE than enough exposure in this area but if you insist on more - there are numerous Residential or Commercial funds, IT's, REIT's or ETF's which give plenty of exposure to this area which is controllable AND liquid.

[TheFaQQer]

You know things are in a tulipe state when home building has become THE economy.

It's not home building that's the economy, it's house prices. There is a big difference between the two.

[DimPrawn]

You know things are in a tulipe state when home building has become THE economy.

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