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About geoffps

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    HPC Poster
  1. When my daughter was 19 she got a credit card and went on a spree. She bought stuff that she didn't really need and couldn't afford. She was distraught when she started getting threatening letters from collection agencies and I hated to see her worried so I gave her a lecture and bailed her out. About 4 months later she was back in the same position, I gave her a bigger lecture and bailed her out again. To cut the story short - I bailed her out 3 times but on the 4th time I said no! She was very unhappy with me, I was in a position to help her but I wouldn't. Please Dad, I wont do it again.
  2. You say that your friend pays about 1,000 dollars each month. Is his salary paid in dollars? If so his exposure is to the USD/SWF exchange rate and his mortgage has nothing to do with the Zloty. But if I am confusing this and he does have exposure to movement in the Zloty/SWF rate then the cost of his mortgage will obviously vary according to the way the exchange rate moves. If, for example, the Zloty/Euro exchange rate is 0.33 on the date in 2012 when Poland adopts the euro then Poles will all get 1 euro for every 3 Zloties and on that day his mortgage will not be any cheaper or more expen
  3. Does anyone know what the new rules are for banks' capital adequacy with respect to mortgages? I sat with my mouth open in astonishment as I read this Link article from the FT in 2003 .
  4. Sybil You have asked this question a few times, I'm going to try to answer it for you - When someone buys a house they effectively debit their mortgage account and savings account and pay the money to the seller who pays the money into his/her account (maybe at the same bank, maybe at a different one). The point is that the money stays within the banking system. Even if the seller uses the equity to buy a car or a packet of sweets the money gets back into the banking system. Every day banks process thousands of debits and credits and at the end of each day they tally up and are left with a
  5. Ho Hum! Many people on here including me bemoan the fact that sellers are not dropping prices. I have given an example of why that happens. If you are able to twist that to suggest that it means I am hoping for another boom - then your name sums you up perfectly. By the way, I know a couple who are in a position similar to my example. They bought their house 15 years ago but have mew'd their way into this situation. Stupid? Yes of course but they did it and so did others - lots of them.
  6. Imagine this scenario - A couple with one child bought a house. It was valued at £200,000 at the peak, they had a mortgage of £180,000 but they have paid off £5,000 in the last 18 months so it's £175,000 now. Although their mortgage was 90% of the peak value they didn't feel that they'd been reckless compared to their friends who had borrowed 100% or more. They are expecting a baby and would like to move to a house with three bedrooms. The EA values their house at £190,000 but the best offer they receive is £170,000. The house they would like to buy is valued now at £235,000 but they
  7. My wife has just watched a programme on Russian T.V. and saw the same story on Euronews. Said that Latvians are unable to sell their houses (read - unwilling to sell for very low prices) and can't find people to rent them either so they are offering them rent free for tenants who will pay the costs of utilities and rates. The houses were apparently very nice. A few years ago Latvian houses were very cheap by western standards, prices went up dramatically after peristoika and particularly after they joined the E.U. Ordinary Latvians went quickly from not having much of a pot to p1ss in to unt
  8. Link 2/3 sold yesterday at auction for 580,000 so 90,000 below advertised asking price (but 30,000 above auction guide) and 95,000 below the asking price of the still advertised similar house - link 1.
  9. A bond is a loan at interest which has been packaged up as a negotiable instrument so that it can easily be bought and sold. If you buy a 3 year bond today in the sum of £1,000 with a fixed 5% yield you have to pay the issuer £1,000 today, they will pay you 5% p.a. for 3 years at which time the bond will mature and you'll get your £1,000 back. But... imagine something very unusual happens such that interest rates go up to 10% the day after you bought your bond. People with £1,000 to invest wont want to buy your bond which only yields 5%, they can get 10% elsewhere so you'll have to heavily di
  10. How will you deploy the capital if you leave it in USD? I changed my sterling into euros in 2007 when I sold my house. I'm going to change back to sterling now. Maybe sterling will depreciate further but I've done pretty well and it's best not to be too greedy in my opinion. I plan to make a cash offer much lower than the asking price when I see a house I like, probably get rejected but perhaps I'll strike lucky eventually. Maybe you could do the same.
  11. Can't you convert your USD into sterling to remove the currency worry and then wait for house prices to go down?
  12. The point is that links 2 and 3 are exactly the same house advertised on RM for sale at £670 and for auction with a £550 guide price.
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