Wednesday, May 26, 2010
So they want them to rise?? i say put them up to 10%
Yahoo: Nationwide profits tumble, warns of threat from low interest rates
Nationwide Building Society reported a 46pc fall in annual profits and warned that historic low interest rates would hit profits over the year ahead
Posted by mark @ 12:12 PM (1958 views) Add Comment
37 Comments
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1. Exiges said...
They're not the only ones who have been hit by low rates.. what about the millions of savers
2. 51ck-6-51x said...
The content of this article just go to show how it's in their interests to maintain expectations of rising house prices.
3. Cool_hand said...
But in some welcome cheer for the housing market, Nationwide said it expects property prices to remain stable over the next year, with any "major dip" unlikely.
The so called experts always get it wrong, "major dip" on it's way.
4. Anon said...
Wow im guessing the guy who posted this doesnt have a house and is desperate for prices to crash. Wake up smell the roses, even if they do crash they will decrease by a maximum of 20% which if you are so far off affording a house will make no difference. There will be no return to house prices at £30k-£40k. Mind you its no suprise the poster doesnt have a house with buisness acumin like this, if they raised interest rates people would default, house prices would crash, there lenders would get into negative equity and they would loose shed loads of money... Its just not in the banks interest to see house prices crash. To be fair its in nobodys best interest apart from FTB. And before you have a go at me, im not a buy to let landlord, I am 27, have one 3 bed modest house with no morgage that I have worked my ass off to pay for, I dont care if house prices go up or down, I dont care if interest rates go up or down as im not looking to move any time soon so would say im pretty impartial, if my house is only worth £10 I dont care cause im living in it and dont want to sell.
5. mrflibble said...
Right now I'd rather earn next to nothing holding Dollars and pay to hold Gold than give a penny to these cockroaches.
Until Sterling pays a rate of return that is over and above inflation and the rate it is depreciating at then I'm staying away.
6. p. doff said...
They've missed off my place - must have been an oversight.
7. p. doff said...
oops, wrong article.
8. techieman said...
Mr Fibble i thought you were looking for 1.55?
Anon impressive in so many ways.
9. wiltshire said...
Anon@4
I don't agree. Firstly "they will decrease by a maximum of 20%". In your opinion but people in Spain, the USA and Ireland said similar things (after their predictions of "prices won't go down" and "prices will level out" and "prices will only decrease by a maximum of 5%/10%/15%/20%" etc etc were proved wrong").
"in nobodys best interest apart from FTB" - what about people who were FTBs maybe 5 or so years ago and are now starting families, or those whose families have increased in the past few years. Do you not think they would like to move into something a little more family friendly rather than living in 'town houses' etc.
"no return to house prices at £30k-£40k" - I'm not happy with the way Labour have handled the economy the past 10 years or so and I'm STR but even I can see that if we reach the point where average UK houses prices are at £30-£40k we'll be back in the stone age economically. Infact I'd love to know when anyone on this site last suggested prices were likely to get that low.
"Its just not in the banks interest to see house prices crash" - tell that to Spain, USA, Ireland, Japan (90s) etc.
10. 51ck-6-51x said...
Anon,
It is flawed to suggest that it is only in potential FTBs interest for house prices to be lower than now - unforced trading is a productive activity, both for buyer and seller - think, for example, of those who cannot currently sell at a price which means they can afford to buy the house they need near their new job - they are stuck with, say, four hours a day of commuting OR worse yet claiming benefits; if prices fell volumes would increase and they'd not only find a buyer, but a house near their new employer.
11. jack c said...
Anon Wednesday, May 26, 2010 01:26PM said...There will be no return to house prices at £30k-£40k - get yourself up to the east end of Newcastle upon Tyne - plenty of repo's going at this very price range right now.
12. techieman said...
Anon "I am 27, have one 3 bed modest house with no morgage that I have worked my ass off to pay for, " - live the dream eh?
"with buisness acumin like this" -quite!
recaptcha "the bookworm " - 1st attempt. I have crossed swords with Mark but not over what he's posted. Will await his response with interest :-).
13. hpwatcher said...
Wow im guessing the guy who posted this doesnt have a house and is desperate for prices to crash. Wake up smell the roses, even if they do crash they will decrease by a maximum of 20% which if you are so far off affording a house will make no difference. There will be no return to house prices at £30k-£40k. Mind you its no suprise the poster doesnt have a house with buisness acumin like this, if they raised interest rates people would default, house prices would crash, there lenders would get into negative equity and they would loose shed loads of money... Its just not in the banks interest to see house prices crash. .....
You are on the wrong website you idiot.
14. 51ck-6-51x said...
hpwatcher, that's a bit harsh mate, I welcome different opinions, and will happily argue my own.
15. mrflibble said...
@8. techieman said...
Mr Flibble i thought you were looking for 1.55?
I was but I bottled it at 1.47 on the way down from 1.50. Wish I'd set a more reasonable target of 1.50 instead. My bottom of 1.45 was a little optimistic too since we seem to be pinned under it now. I certainly called the new government change of trend wrong. Makes me wonder what Sterling would have done if El Brown had still be festering in No.10, hard to imaging it would be much lower really.
16. techieman said...
6six6 - i agree not on the wrong site at all, and maybe will be proved right (i would like to understand the reasoning a bit better though). Except of course personally i dont agree with Anon's sentiments. Although to be fair i suppose i was a little less than charitable with my "quite" comment. We are all entitled to our opinions.
HPW and you call me very very rude?!?! Kettles and pots spring to mind!
Fair points Mr Fibble. I think 1.55 looks optomistic right now, but it may be right on the bounce thats now getting a bit overdue IMO. Take care mate and boone chance!
17. mark said...
Anon
I had enough acumin to sell up before the market hit rocky roads, made good money sitting on sides until it looks right to buy in again.
What business do you own or run? or are you stacking shelves in tescos or a drug dealer? if it is the latter maybe you should take what you sell!
Where do you make the assumption of 30-40k houseprices? what data have you based this on? Why do you think I stated or implied this?
Interest rates going up are good for the economy and pound, the only people to default would be the suckers who bought hoping to rake it in at the end of the boom with little or no deposit.
the sooner houseprices crash and rates go up the sooner the economy recovers and people start to save money, buy at sensible prices which they can afford, thus the economy starts over again and we are all happy.
anon is your old name smugdog or fiona?
18. ontheotherhand said...
Why would someone who own their own house and doesn't care which way prices go search for a website about house prices?
19. hpwatcher said...
search for a website about house prices?
Not just any website, but one specifically about a crash in house prices.
20. mystie010 said...
I agree with hpwatcher @ 13. If you don't like the argument about house prices falling don't frequent a website that calls itself house price crash. Instead go visit a site that calls itself: over inflated house prices for smug gits who want to buy to let and leech off other people.com Sounds good that, I might even set it up myself :-)
21. p. doff said...
18. ontheotherhand said...''Why would someone who own their own house and doesn't care which way prices go search for a website about house prices?''
Actually, there are quite a few of us around!!!
22. techieman said...
Mark is acumin a derivative of hot peppers? So a business acumin is a business one full of spice? [yes i would ask the originator but i doubt he will respond].
I think if you are going to try to have a real go at someone at least do it "en anglaisy". Credibility disparu other wise?!?
23. 51ck-6-51x said...
Well, at least Anon got some debate going ;p
24. jack c said...
techieman - you'll be getting the title of Mr very, very ,very rude at this rate !
25. Skeptical First Time Buyer said...
@ 23 agreed.
Nice to see a bit of banter again.
Earlier this year all we had was Crunchy posting about the NWO and end of FIAT currency, and some other chap making resonace predictions based on past unrelated events.
At least people are actually talking about houses again. Debates on infation vs interest rates fair enough, but NWO, bit much.
26. iguana said...
Tech
No, a capucin is a derivative of hot peppers, acumin is a verb.. "Anon is...."
'pentium ment'
27. Anon said...
Its so easy for FTB's to play the hard done by card, What about the families that have bought that would end in negative equity and couldnt afford to pay the mortgage and end up homeless? Im not a drug deal nor am I stacking shelves at tesco, although Ironically that was my job to pay for myself to go to uni, ive worked hard, I dont waste money as I see so many doing.
Maybe ill be proved wrong about house prices, the simple matter is though the population in the UK is growing way faster than houses are being built, its simple business rational of supply and demand, where supply does not keep up with demand prices are inflated. How many on here have been predicting crashes, personally I think its a very difficult market to predict as the sales volumes are at such low levels. So I wouldnt bet on prices going up or down. I do however think if they went down by 15%+ then FTB's who have been desperate to get onto the market would then join so they dont miss the boat so to speak meaning house prices would level off.
Why am I interested in house prices well I am looking at the buy to let, not to speculate but I want to provide decent accomodation at a reasonable price, im not interested in making mega bucks in the speculation, im more interested in the long run, so actually it would be more in my interest to want a crash so I could buy low. House prices are exagerated but there are only two sustainable ways to increase the affordability, control population which is never going to happen or build houses to match the demand.
28. magnaman said...
Anon
27 huh?....says it all really. Whilst you are entitled to your opnion, stick to Facebook or MySpace....this site is for grown-ups! No offence
29. jack c said...
Could Smuggy be back under a different tag? the baiting seems similar
30. bluebeach said...
I conclude that the majority here are very nasty self centred creatures.
A curse on all of you.
What shall go around will come around when your life hits a sour note very soon.
31. Paul Fay said...
5. mrflibble said...Until Sterling pays a rate of return that is over and above inflation and the rate it is depreciating at then I'm staying away.
A recent poster pointed out that NSI are currently paying RPI + 1% for either 3 or 5 year bonds. £15k limit per issue.
32. techieman said...
iguana @25 - i thought cumin was the verb... but i stand corrected!
Care to expand Blue Beach?
33. bluebeach said...
Yeah, the lad can't spell or chooses not to check.
You and your inner circle adopt an oh so superior attitude.
You call him a shelf [or is that shelve] stacker and shockingly a drug dealer.
When you discuss logically, you are extremely interesting
But this, just read this blog to yourselves. Shame on you.
34. rumble said...
A drug dealer! Heavens! Did you read what they called that young man? Lol! Voodoo hoodoo.
35. techieman said...
oh dear BB. The point is if you are going to have a go at someone's acumen then really you have to speel [sic] that right.
Personally i welcome eloquently argued bullish points of view. And yes ANON is entitled to his opinion, he would do well to just express it a bit better. I hope he has another try.
However, this was just someone [Anon] having a go at Mark for saying things he actually hadn't said. I agree (and said) that some posters IMO went OTT. As for an "inner circle" as i said i have cross swords with Mark before and HPW and myself see eye to eye on virtually nothing. And there are many posters i often disagree with and who i am sure disagree with myself and others. And really who cares? That is called debate.
On the other hand there are posters who i think almost always make sense, but that sense is from my perspective, so they (and i) might be completely wrong . No-one has the monopoly on wisdom, and we can all learn something.
No i asked you to expand the point "What shall go around will come around when your life hits a sour note very soon". I would like to genuinely understand what you meant by that and the associated "curse". Very sinister. I am glad you don't have a voodoo doll of me that you are sticking pins in or do you?? ouch that hurt!
36. the number cruncher said...
hear hear bluebeach, well said
Some manners please...
37. mark said...
speelling was not what i woz looking at i waz copying anon , maybe he takes too much acumin..lol
suppose i had better correct it acumen before people think I am a new anon or smug