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bishbash

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About bishbash

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  1. I've just bought my first place after 15 years renting. £117,500 with 15% deposit equates to give or take 100k mortgage, over 20 years. Identical flat downstairs went for 140k in 2007 - so I guess the price I paid is just about inline with an 18% drop over those 4 years. So I've got 17,500 equity, but by: end 2012 - 20,500 equity (+3k) 2013: 24K (+6.5k) 2014: 27.5k (+10k) 2015: 31k (+13.5k) 2016: 35k (+17.5k) So over the next 5 years, for me to lose out the place would have to fall in price by 17.5k in actual terms (approx. 15%). This is possible, but this would probably equate to a 50% drop in price over 9 years from peak in real terms. This could happen but I don't think it'll happen. I suspect HP's will stagnate with 5% inflation that means they're still getting cheaper for FTBs which is good without putting people into more negative equity - hopefully they're on a repayment mortgage and building up their equity. I've slightly made up these figures, but they shouldn't be too far off. This is 2 bed flat, cost me £630/month mortgage. I can rent room out for £350 pretty easily, certainly for £300. Before I was living in a bedsit renting and paying £500/month. Buying instead of renting is a no brainer as far as I'm concerned - with a lodger it's significantly cheaper too. I'm not a sheeple or slave to the bank/government propaganda machine, just makes economic sense to me - not saying it is without risk (is anything?), I could lose my job, HPs could crash by more than 50% from peak, we might have a world war, but I don't think it's fair for people to go saying you're just naive if you buy a house. I don't particularly want the flat to go up in price anyway, I'm happy to just keep paying off more and more of the capital each year whilst perhaps saving a few quid on the side.
  2. Whenever I read the actual facts - like how much Greece (or Ireland for that matter) owes compared to their GDP and how much they pay in interest and what not against a backdrop ofcuts and presumably not much, if any, growth, I just fail to see how any of them can survive. The UK figures don't make pretty reading, in summary the more I read about it all the less I understand. When I was younger I remember reading a bit about economics and saying to my old man "I don't understand this" - his reply:"No one Does". Perhaps I'll just leave it as that - you can read as much as you like about this but you'll still get two top notch pHd professor sorts that disagree. So much of what people say they think appears to be a function of what they want to think.
  3. signofthetimes: I don't know what i'm quoting - just the rates oft repeated in newspapers and that. Not that I understand why a ten year bond rate should be lower than a 1 year bond rate anyway.
  4. On this debt of countries stuff, Luxembourg has the highest debt in the world at about 4 million dollars a head. I read this a whilst ago and no one has ever given me a satisfactory explanation of why Luxembourg would be so heavily indebted - it is regularly mentioned as being one of the wealthiest countries in the world.
  5. Economics novice signing in here: What I don’t understand is this. Greek rates are about 23% but everyone’s saying they’re gonna default, almost certainly – so why aren’t their rates 100% or 1000%? Isn’t Portugal/Ireland about 12%, Italy 6.5% these rates don’t seem to reflect the likelihood of these countries defaulting if the news articles and various internet fora I’ve been viewing recently are to be believed. Personally I’d want more than 23% if I was lending money to the Greek government.
  6. Economics novice signing in here: What I don’t understand is this. Greek rates are about 23% but everyone’s saying they’re gonna default, almost certainly – so why aren’t their rates 100% or 1000%? Isn’t Portugal/Ireland about 12%, Italy 6.5% these rates don’t seem to reflect the likelihood of these countries defaulting if the news articles and various internet fora I’ve been viewing recently are to be believed. Personally I’d want more than 23% if I was lending money to the Greek government.
  7. Also just round the corner there is that big new building development - 2 bed flats on rightmove for 140k. for 70% share, fk me that's pricing them up at 200k. They'd be all high-spec and that, but probably no bigger than mine, and they may have extortionate maintenance charges too. Presumably no one will be paying that full whack - may be a stupid question, but you can still haggle with a big developer on an individual basis right?
  8. Just bought my first place after 15 years renting - 2 bed flat in Shoreham. nice and sizeable, ex council, small block, distant views of downs and the sea, quiet residential area, dated interior - 117.5k. Seemed a fair price to me. Place round the corner, v.similar kind of block, 2 bed was on for "offers in excess of 150k". Much nicer interiors etc, she'd obviously spent a fair bit making it look nice, but how much? less than 10k surely. Anyway it was on the market for "offers in excess of 140k" the other day. .
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