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House Price Crash Forum


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About Polar

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    HPC Poster
  1. If you are not interested in maths, just use this simple Compound Interest calculator. http://www.1728.com/compint.htm
  2. I dont know why, but I have seen many properties listed at auction with a guide price which turns out to be below the reserve price, which is silly. I suspect the guide price is designed to pull as many punters into the auction as possible, rather than an expected sale price.
  3. We disagree again. One works and one does not. Discreet means circumspect in word or deed, tactful, wise, cautious or judicious and is used to describe personal traits. It is not really applicable to schooling. Discrete means separate, distinct, and discontinuous. Which surely was the point you were trying to make. The wit lies in the contrasting discrete with continuous, and the direct parallel with two views of calculating compound interest, and to subtly imply that you were better educated. It would have been excellent. But if you didn’t know why it would have been good it somehow l
  4. SAM My apologies! You were correct. I was not aware until today of the concept of continuous compounding and assumed you were using effective annualized rates. P.S. Your remark about schooling would have been even wittier, if you had spelled it differently. Perhaps both our educations need to continue.
  5. You obviously went to a different school from me! The formula for compound interest is; Total=Principal x (1 + Interest Rate)^N If you have compound growth of 6% for 10 years on a principal of 100,000 you get a total of 179,084.77. not 205,443. If you have compound growth of 6% for 12 years (the figure you put in the calculation) on a principal of 100,000 you get a total of 201,219.65 not 205,443. If you have compound growth of 24% for three years on a principal of 100,000 you get 190,662.40 not 205,443.
  6. I stole this from TMT for you. APR - Annual Percentage Rate BOE - Bank of England BTF - Beat The Footsie BTL - Buy to Let CBWB - Can't Buy Won't Buy CAGR - Compound Annual Growth Rate CGT - Capital Gains Tax 1 CH – first charge holder 2 CH – second charge holder CCJ – County Court Judgement CO – Charging Order DYOR - Do Your Own Research FTB - First Time Buyer GSD - Gradual Slow Down (in HPI) Gross yield = Annual Rent / Property value HPC – House Price Crash (also refers to website/discussion forum) HPI = house price inflation (or sometimes house price index) IRR -
  7. It's worse than you think! UK National Debt at the end of 2003 was apparently £437.4 billion. Add on £35 billion, the deficit for 2004 and it is now somewhere around £472 Billion. The fiscal deficit for 2005 is estimated to be about £35 Billion so National Debt is increasing at about 7.3% p.a. http://www.statistics.gov.uk/cci/nugget.asp?id=277 Add on the multitude of PFI and PPP initiatives equivalent to something in excess of £100 billion of off balance sheet debt, committed for 25 to 30 years into the future. Household debt at the end of November 2004 was £1,053 billion, and increa
  8. Have Tony and Cherie made a £3.6m property blunder? http://www.telegraph.co.uk/news/main.jhtml...8/ixportal.html
  9. From the article by David Smith “Even if the prospect is of a long period of stagnation for house prices rather than a crash (my view), something fundamental will have changed.†This is ambiguous but I assume his view is there will be stagnation in prices till wages catch up. And “…the ratio of house prices to average earnings — the normal valuation measure — is now 5.7, compared with a long-run average of just under 4.†If we assume inflation of post tax income of 3% p.a. compounded, which I think might be optimistic in coming years then it will take 13 years of stagnation to
  10. If it's not realistically priced, ....it's not potential commission!!
  11. It is no wonder EAs are getting worried. This is the latest Hometrack graph of current demand.
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