Jump to content
House Price Crash Forum


  • Posts

  • Joined

  • Last visited

About boony

  • Rank

Contact Methods

  • Website URL
  • ICQ
  1. This is around the corner from us and is identical to the one we're currently renting. It's up for £295,000. Crazy price for the area IMO (Guisborough, Cleveland) but it is quite a nice part of the area. I've been hoping to pick one of these up for about £200k, but after almost 2 years renting, prices have hardly moved. Hope this is the turning point...
  2. TOW, would you mind sharing how you did this in the end? I'm pondering exactly the same thing now and it sounds like you had exactly the same thoughts going through your mind back in September. I'm not thinking of Euro though, it's looking a bit dodgy to me. I am thinking of CAD and NOK for starters, but like you want to spread my savings over 5 or 6 currencies ultimately. I'd be interested to hear what you did and how it's panned out?
  3. I'm renting in Guisborough currently, and hope to buy here sometime in the future when the prices are more reasonable - not sure the prices are actually that depressed around here - the house I'm renting would go up for £280-£300k, which is quite frankly, ridiculous. I hope the prices drop substantially from here, but I really didn't want to get an affordable house on the back of this kind of misery though. A girl in the office found out from a co-worker about the closure announcement, she rang her husband who works there - he had no idea - was actually getting ready to start at 1pm totally unaware of what had been announced. The way they've treated the workers is shocking!
  4. This is an eye-opener for me! Just to be clear, recession is defined/identified by a sustained fall in GDP - correct?. Yet the GDP calculation doesn't take into account debt levels but does include government spending? Finally I see the (misguided) logic in "Spending our way out of recession". Why on Earth is this flawed method of GDP/Recession used?
  5. When I finally decide to buy a house again I'll definately need a mortgage to do so. I'm not sure if that puts me in a minority on here or not, but I just want to run something past you to get your input. I've been doing some calculations to look at the effect of rising interest rates on a theoretical house purchase assuming a mortgage is required to buy it. Imagine a house was at peak priced at £250,000 and has seen a 20% drop, down to £200,000. If I have £50,000 to put down that leaves me with a mortgage requirement of £150,000. If we assume I could fix it for 25 years at 5% (I know I can't, but please bear with me), I worked out that would be £876 per month, total repayment being £262,800. Now lets look what happens if we assume I could wait another year or 2 and see another 20% drop but interest rates rise and I have to take 8%. Price drops to £160,000 so I only need £110,000 mortgage. If we assume I could fix it for 25 years at 8%, I worked out that would be £886 per month, total repayment being £265,800. So, even though the price has dropped significantly, the higher interest rates mean I end up paying more. I know these numbers are flawed, but the point I'm trying to make is that people who are going to rely on a mortgage to buy their home, not only need to worry about calling the bottom of the house market, but also getting in before interest rates sky rocket. Thoughts?
  6. Just wondered what is generally accepted a safe amount of debt to take on as a % of GDP. It's widely accepted that people taking on a mortgage at 7x salary was insane but would have been acceptable at 3.5x. Using that logic, does it not follow then that a country should be ok at 3.5x GDP debt? If not, why not? I'm not sure what % we're running at now - but it's nowhere near 350%. I know this is probably a silly question, but i genuinely want to know the answer. Do we need to consider personal debt as well as government debt? Obviously taking on a lot of debt means we have a lot more interest to pay back, but is the current level really as dangerous as some make out?
  7. Don't know about that, but relatively speaking, they are great value for money right now. I bought mine a couple of years ago - I thought they wouldn't drop much more but am currently about £20k down I reckon Fantastic car though which helps me justify the extravagance. You're friend would be getting hardly any interest on the money in the bank, so he might as well enjoy it eh?
  8. On the face of it the affordability measures do seem a fairer way to assess mortgage applications as in theory it should take into account all the other debt the applicants have taken on. The 3.5x can be unfair if two similar applications are received when one applicant has no other debt and the other is already up to the eyeballs in it. Having said that, the cynical side of me can't help but think the affordability measures were introduced primarily to sustain the bubble. The banks have been bitten, but, rightly or wrongly were bailed out. I doubt very much they'll make the same mistakes again... until the next time of course
  9. That's assuming a 3.5 times multiplier for a joint mortgage application. When I got a mortgage, it was 3.5 times largest salary, or 2.5 times joint. Using this figure, it pulls the £130k down to around £89k.
  10. I think they might struggle. My father-in-law works in the middle east but still classed as a British Citizen recently had to fund his own heart surgery because the NHS wouldn't pay for it.
  11. Does anyone think a return to 1997 house prices realistic? Houses like the one I'm currently renting are still up for sale at £300-£330k - which is, frankly, silly money up here! These were selling for £150-180k back in 2000 - so god knows what they'd have been in 1997. I'd pretty much convinced myself we'd never be able to own a house like the one we're renting, but if they do drop back to those sort of prices I'd snap one up for sure! No rush to buy - unless my savings start to get erroded away with inflation.
  12. It's simply a matter of not having all my eggs in one basket - it seems sensible to me to spread my savings around a bit rather than keeping it 100% in sterling.
  13. Sorry for asking this dumb question, but what's the easiest way to convert my savings in sterling to euros and dollars? Do I just open a european bank account and a US bank account?
  14. Sorry if this is a stupid question, but why is the £ doing so badly against the $? I thought the US were in as much (if not more) crap as we are? Why then should the $ hammer the £?
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.