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House Price Crash Forum

Prof

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Everything posted by Prof

  1. I`m currently getting 3.1% tax free, last year i got 6.5%, is my answer to the question. While it is true that you can sometimes get better rates of return on some "normal" savings accounts than on some Cash ISAs, a little bit of research before investing in or switching a Cash ISA will usually result in the ISA being the best choice. I`ll add that I`m not a higher rate tax payer, but I still reckon ISAs are a financial benefit to myself (as opposed to normal savings accounts)
  2. The presenter kept laughing after some of Schiff`s comments. Was it a nervous or a mocking laugh, I wonder ?
  3. I`d go with a similar plan. If you don`t need to spend the money now, stick the £3.6K into a cash ISA now and another £5k in April. That leaves about £16K. Mmmmm, £6K into the stock market ? - maybe drip feed £100-200 per month into a fund using your stocks & shares ISA allowance. The other 10K, find a competitive rate instant access account and keep it in there. Hopefully savings rates will improve in the next year ot two, so I wouldn`t tie it up at the moment. I quite like regular savings accounts, you can get better rates by saving monthly (a couple of % more than normal savings accounts at the moment). You can usually save upto £250 per month (sometimes upto £500 per month), and you get your money + interest after 12 months. It isn`t much better than keeping your money in a decent savings account, but it is better. Yes, you could buy gold, silver, wine, art etc, but this is a cautious approach.
  4. The VI`s at hpc.co.uk don`t want to publicise the good news.
  5. No need to use "shortage" as the argument. We now have economic growth (+ 0.1%) to support 10%+ annual HPI.
  6. Naaaah. you`d be "doing the right thing", just like Gordon does for hard working families.
  7. Not me, mate. I can see beyond my personal "wealth". It`s my £s in the bank that I`m concerned about. I too, pity this country. Recent reports of the wealth gap widening coupled with this report from Nationwide makes me wonder where this will end. "The whole economy is close to meltdown and house prices are apparently rising - you couldn't make this stuff up." No need to make it up, it`s being done for us.
  8. I was going to mention that, but I think I`d made my point by then ! Oh, and how appropriate that those apartments are in my kneck of the woods. Anyway, although buyers may complain about having to pay so much more today, for what they would have got for a lot less yesterday, just think how much their house will be work tomorrow ! Property - a one way ticket to a fortune, but beware, the journey may kill you (well, it may be slightly uncomfortable along the way).
  9. Central Heating £6K ? More mains sockets/lights £4K ? Better fitted kitchen £4K ? Erm, Double Glazing £4k ? OK, i`ll be generous and add another £10K for other stuff I might have missed. That gives us a grand total of £28K extra for the mod cons. So, a house would now be about £72K. Hang on, new homes generally have smaller gardens than they would have in the 60`s. And aren`t new homes, on average, smaller than they would have been 50 years ago ? Am I allowed to take these things into account ?
  10. From my experience with most of my customers, most people haven`t much of a clue as to what "HD-ready" means. About 5-6 years ago, when a typical 32"LCD TV would cost around £1000, the HD Ready logo did a great job for the manufaturers and retailers. People would say to me "yes, it was expensive, but it`s HD Ready !". Only yesterday, I was having to explain about the fact that the built in Freeview decoder in most, if not all TVs will not be capable of providing Freeview HD channels. An external decoder will be required. I`m sure that once Freeview HD becomes established, built in HD decoders will become widely available, and cheaper. I don`t think this is a "con", it`s that same with most consumer technology, buy a product today, there a cheaper/better(?) product available 12 months later.
  11. No chance. If Haliwide say prices have fallen 2%, they`ve probably fallen 5%. If Haliwide say prices rose 1.5%, they fell 2%.
  12. If puttling sensible limits on lending multiples and introducing deposit requirements is restricting a free market (which some would say is a bad thing to do), then - Is introducing and allowing self-cert/100%+/high salary multiple mortgages encouraging a "free market" ? Is this a good thing to do ? There is no reason, IMO, that firm rules can`t be introduced to "control" the mortgage market to some degree. Look at what happened in the U.S for an example of a "free market" without sensible rules. Gas/Electricity company raise prices by 7%, uproar. Mortgage lenders introduce 100%+ mortgages, hardly a whimper. Yes, quite different examples, but I think you might see where I`m coming from.
  13. Some say that when he feels tired, he simply plugs himself in. And that he`ll answer your question before you`ve even asked it. All I know is, he`s talking sense.
  14. This is the point that many people just don`t "get". Paying more for a property, because of HPI, will cost you more. Smaller mortgage = more money to spend on what you want. Of course, those that want HPI are usually those that have already signed on the dotted line, and simply think they can take advantage of someone else having to pay a larger mortgage (ultimately, that is what it boils down to). Of course, this can only go on for so long until we have a crash, then lives can be ruined. I suppose it`s human nature to try and get the better of our fellow humans, but surely we can make the playing field a little more level when it comes to obtaining shelter. "It`s a free market", I hear cried from those that want to maintain the status quo. The UK property market doesn`t look very "free" at the moment, in more ways than one.
  15. Yup, sounds sensible. Therefore it`ll never happen.
  16. My definition (although not as "technical" as some more well-informed forum members would put forward) of real money is money that has been gained through work, not through the promise to work coupled with the collateral of the shelter in which one resides.
  17. Mmmmm, sounds like a decent idea. When you think about it and consider the UK property market, there are loads of ideas such as this that would "ease" upward pressure on prices without destroying the market or causing too much financial fallout. I suppose it`s politics that prevents such ideas being implemented, or even suggested by those in government or opposition.
  18. OK, no. 3 was a bit of a "light hearted" suggestion, but I`m a bit suprised that you are implying that you don`t know what property ramping is. See Daily Mail/BBC News/Daytime TV for examples.
  19. I equate the UK property market to a deck of cards, it`s stability being derived from government support. Without a hand from the government, it would be a hand.
  20. The only vested interest I have is in having a stable economy, in which my fellow countrymen have the same opportunity to buy a modest home at a reasonable price like I did. If house prices halved, I`d maybe move, but I wouldn`t "nick in and get them cheap". No, I tell a lie. If house prices were cheaper, I`d have more customers, with more disposable income to employ my services. I`d also be less concerned about a future financial crisis. It`s not just about "baggin` a bargain" you know.
  21. Thanks for the nomination. I can`t make it, however, as I`m snowed in and feel like I`m coming down with a cold. The MPC have given us Quantitative Easing, I don`t think they`d appreciate my Quantitative Sneezing (or my suggestions on how they should be doing their jobs).
  22. OK, a simple plan, from a fairly simple fellow. We know that the media are spinning faster than a very fast spinning thing to keep the property bubble inflated. We are also witnessing the government doing everything they can to keep property prices from falling. I think that for a fairly large majority of the property buying/owning UK population, a further 20-30% fall in property prices would have more a psychological effect, rather than a huge financial effect. However, I do understand that for some homebuyers, wiping a third of the value of their home could cause financial problems, especially when remortgaging. I also realise that the banks won`t like it. Well that`s tough, they`ve had their "fun", now it`s payback time. Here`s the plan. 1. Put interst rates up to where they should be (I can`t suggest what they should be, but I know they are being held down to the cost of our currency/savers). 2. Introduce strict rules/laws on lending multiples. 3. Ban property ramping. 4. Wait. 5. When people start moving into the "dreaded" negative equity, put pressure on the banks to allow these people to remortgage when they need to (without harsh penalties for being in negative equity). 6. Wait. 7. We should now have more reasonably priced houses, people with more REAL money in their pockets to spend, and an economy that can thrive without the aid of never ending HPI. A simple plan. I commend it to the forum.
  23. In the short term, yes. I like the fact that you stated that cheaper property is a benefit.
  24. I`ll have a go. I`d say that unemployment would be higher. Property would be cheaper. More businesses would have gone to the wall. However, we would now know where we stand, and we`d be able to start to rebuild the economy on firmer foundations. I think that one needs to think about why QE was needed in the first place. The country got drunk on debt and fell over. Rather than sobering up and cutting down on the booze, it`s having a "hair of the dog".
  25. May I just point out that assuming the mortgage is not interest only, over the 9 years, some of the capital would have been repaid, therefore increasing the equity in the flat, with or without HPI. OK, here`s my theory - No HPI 2001 Flat 100K House 150K 2010 Flat 100k House 150K Approx. £25K paid off mortgage (guesstimate), which "creates" £25K of equity, enough for the deposit on the house. OK, the borrower still has a fairly high LTV, but does now have a decent track record of paying a mortgage. Also, without HPI, the banks may not have to "punish" borrowers so much for taking out higher LTVs.
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