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House Price Crash Forum


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Everything posted by bomberbrown

  1. Their 'Security of Deposits' claim worries me, what with it being the FSA default:
  2. Finally, I've just seen this advert for the first time on E4 and from what I can see, this IS shot in the USA. Now the question is, why shoot an advert like this in the USA rather than make it in the British vein......??? Answer is bloody simple - its a bloody American HSBC advert!! Obviously they have pioneered this type of mortgage in the USA, probably in an attempt to plug whats happening over there with their housing market. I said it before in this theread, this type of mortgage is merely a last ditch attempt to keep HPI afloat. Fools!
  3. Fair enough, I think thats a sensible move. I forgot to add that I neither agree or disagree with holding property as an investment for pensionable purposes, whilst it might not seem 'ethical' for some peoples ideals, I live in the real world. What other reliable pension options are there available........particularly with Gordon Brown's plundering?
  4. Not that I agree with Mags' ideal, what are your views on BTL investors profit-prophet? To me, I believe if you advocate buying property as an investment for pensionable purposes, this is no different from being a BTL'er. (unless you rent the property out in a charitible way - Housing Assoc's etc).
  5. I remember when 'affordable housing' used to be called 'council housing' and there was no stigma attached to it and there wasn't a 10 year waiting list for it either. I used to live in the Hillfields area in Coventry (flat Selina Dix) in the 70's as a kid and I can remember a community atmosphere between families even in 8 storey high rises. They've now pulled all those flats down after it became a crack haven that even the police dared to enter. I'm only 38 btw.
  6. This can only be beneficial for the buyer/renter providing the agreement suits the following two conditions: 1. You are not locked into a long rental agreement period (i.e. More than 6 months) and... 2. The rental price cannot exceed the current market rates or an agreed annual % If the housing market nosedives in the next 2 or 3 years, I don't know how this company will survive.
  7. When these developments are built in these affluent areas, where the average price of a 1 bed flat is in the region of £400k, do people really think that they are going to be able to sell them to the proles or 'key workers' on a combined income of less than £50k? And would the rich really want to fork out huge sums of money to live next door to a mere key worker? (probably their perception - not mine) These politicians and social engineers need to get a grip!!! Shared ownership is a scam in itself. More often than not, the amount of rent you pay on the % you don't own, would easily cover the % of the mortgage you'd need to own it outright. And lets not forget, these shared ownership places are NOT subsidised, they sell for OPEN MARKET values.
  8. By your own logic then, 81% are saying things will worsen or stay the same (which is good - for the Bears), no?
  9. Is that a reference to this report? http://news.bbc.co.uk/1/hi/business/6041458.stm
  10. Well, if you're like me, I don't want to invest in property to make money and if I did I certainly wouldn't choose a time when I considered prices were at a peak. I want a house/flat to live in and yes I see the logic of the debt being inflated away (especially with 25 year fixed rate mortgages), but surely anyone in their right mind would prefer a debt of say £120k rather than £200k inflating away over 25 years? OK, I'm an economics novice so I might be missing something here. How can an increase in wages assist in a HPC? Surely if people have got more money every month, they are more likely to be suckered into and afford paying over-inflated house prices, surely?
  11. I presume that comment was meant 'tongue in cheek', you must have missed the smilie off. I've just had a serious thought on this actually, the banks might really have a win/win method in these group mortgages. Firstly, whilst the group can afford the mortgage, that bank continues to make their money. Now, if there's a crash and/or interest rates wobble upwards, the banks will have 4 times more chance of getting paid still as the extra cost is spread amongst 4 working adults rather than if 1 working adult (plus wife/mother and 3 kids) was living there.
  12. .........and what happens when 4 batchelors become 4 husbands with wives and children? Does the house become some sort of a commune?
  13. Are you talking about investing real cash money in property or are you talking about taking out a 25 year loan in order to buy and invest in a property?
  14. Forgive me if I'm being naive. So what you're saying is they (mortgage/rent costs) are ommited only to make the figures (inflation) look better than they really are?
  15. I've often wondered that. Why are housing costs (mortgages/rents), what is undoubtedly the largest monthly outgoing for the majority of working adults, excluded from inflation statistics?
  16. By his own account, it wasn't even going to be an option he was prepared to consider. Case closed. 'Another one bites the dust'
  17. I agree with the sentiment, but thats only true in the private renting sector.
  18. And therein is the crux of the debate. One day. Personally, I believe now is NOT that day. Buying at a time with high house prices and low interest rates are not a happy mixture if they begin to go in opposite directions. Back in 1997/1998 I remember that getting a repayment mortgage was cheaper than renting because house prices were relatively cheap. That was a good time to buy. (I didn't as I was just finishing Uni) Oh, I see, I just get a bit riled when people dismiss social housing on the grounds of 'stigma'. I'm lucky enough to live in social housing in a OK'ish area in SE London and I have the security of an assured tenancy, very low rent that affords me to make a significant saving every month. When the time is right and the house price playing field has corrected itself again, that will be the time when I'll become a FTB. I'll even have a decent deposit by then hopefully too. I'm in Lambeth. Granted there are grotty parts but there are very decent parts too. Much the same as any London borough I guess.
  19. I'm not sure what that's supposed to mean, do you know me or something? I'm more than happy with 'my lot' thank you very much.
  20. Well, I'm sorry if this sounds blunt, but you sound like you've got your priorities all to ****, and a bit snobbish with it too! With all due respect, if you are prepared to spunk your hard earned wages on an overpriced shoe box, and further fuel the property dash, you appear to me as someone who is more concerned at being a property owner than having an affordable and secure roof/home over your heads. I know which one is more important to me. Do not underestimate an Assured Tenancy Agreement.
  21. Easily done. Even I had to look twice at the fine print to find the catch. Now, personally, I think this kind of mortgage is gonna be one of the factors for the next HPC. Now I'm no expert on economics, and I don't claim to be and if you can find holes in my 'thinkings' then please point them out for debate and discussion, after all, that's what this site's for isn't it? I'm going to be drawing some correlations between this fixed rate mortgage and the gas price rates fixing of 2004/2005. A GUARANTEED fixed rate of interest for 25 years with the option top pay the loan back (presumably with a remortgage?) at 2 year intervals! One of the downsides of buying a home at the peak of house prices is the potential that interest rates might increase, with this mortgage you're laughing...... .....as much as those people that fixed their gas rates for 3 years in 2004 and 5 years in 2005. Who could have expected a wobble in wholesale gas prices that shifted prices up, and those with fixed rates were OK, they didn't need to worry, they were locked into relatively low rates....at the expense of the rest of us whose energy bills have doubled in two years! Now, if enough people get their mortgages fixed for 25 years at this relatively low interest rate and there is a wobble upwards in the base IR...... who do you think is going to be subsidising the shortfall for the mortgage lenders, yes, those on variable interest rates. Final thought - is a 25 year fixed rate mortgage a new concept? When did they start doing them?
  22. Actually, you're wrong there. There's various years when you can repay off your mortgage. From the same link: "Annual windows in years 6, 8, 10, 12, 14, 16, 18, and 20 when loan can be repaid, without an early repayment charge. "
  23. Oooohh. If were discussing good deals, how about a fixed rate mortgage for 25 years!? '5.97% Fixed to 31.05.2031 with £595 Arrangement Fee'. Incidentally, that rate has gone up from 4.99% earlier on this year. http://www.thecheshire.co.uk/online-mortga...ortgage-FCJ.asp
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