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equitystasher

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Everything posted by equitystasher

  1. I agree. Its is very frusrating that they are tip toeing around while all the indicators are flashing red but I think the longer they leave it the higher and longer the rates will have to go. If they carry on like this we might even see some .5 hikes in the not to distant future which will be very nice.
  2. Noticed the other threads now .5........far to radical .25 tomorrow another .25 in a couple of months
  3. Looking at all the bad news coming out the last couple of days I think I am changing my mind about a hold and and going for a surprise .25 hike. Anyone else thinking along the same lines?
  4. I have not seen one post about someone STR to make a killing. Most people on here have weighed up their options and factored in higher interest rates amd costs and have made the sensible decision that buying property in the current climate is not sustainable. It is frustrating that many FTB sheeple cannot see that the market has been driven high by greedy speculators pricing everyone out of a basic need. I have str'd but only gained so far as I was looking to move and prices have not moved up. I am only looking to be able to afford a 3 bed semi in a reasonable area and be able to earn enough after the mortgage to have some sort of life. Nothing sinister in that.
  5. Because the owner as MEW'd to death and cannot face the reality that they have to take a loss and the Market has changed. Because they have had a offer accepted on another house and they cannot afford to accept less and cannot accept the market has changed. Because they are BTL and cannot accept that they might take a loss and the market has changed.
  6. I think this one of the contributing factors in what the MPC are doing. Becuase other Central Banks have been taking the softly softly approach our own muppets are inclined to do the same keeping the Status Quo. In their minds I am sure they are probably hoping that the housing market sinks soon so they can stop hiking every other month for a while which will take some of the spotlight off them.
  7. I know of two other people in a similiar situations. Both have met someone. Got engaged and moved in with their partner to rent out the remaining property. How many people did this even 5 years ago? Again this is greed and something I hope the tax man gets a hold of. I think alot of people have done this as they see that if the rent covers the mortgage of property 2 then they have nothing to lose and everything to gain. I hope they get their fingers burn't
  8. I think if the members of the MPC had the Interests of the country and were following ther remit then we would of seen two sharp shocks of 0.5% hikes at the beginning of the year.This would of sent a clear message and would of been of more benefit. I even believe that a 0.5% this month would be the best medicine in the long run. Because no one on the MPC has the balls to take the necessary and less painful long term action we are watching the MPC chase inflation up with small 0.25 increments placating the VIs and media until it is obvious that more is needed ie what is happening now.The money markets are dictating and the MPC are following. End result is higher rates for longer and more defaults and a longer recession. All the members of the MPC know we have no where to run and no one wants to be the scape goat for the mess. It will be a hold this month...hike next month hold then hike and so it follows until the housing market slides then it will be a sit a wait for a while then perhaps one or two hikes as inflation keeps rising. I reckon 7% this time next year
  9. I Would say that prices have stagnated with a few "new prices" being advertised but there are not enough houses being sold at reduced prices to say house prices are falling............yet I think we are in a period of stagnation here. I hope that we will see another Interest hike in the August which will give vendors another slap in the face to realise that a new game is starting. Speaking to a well know Brighton and Hove player yesterday in a pub it is clear that the message has still not got through. I must admit that said player is not savvy but he is probably as savvy as the common man and he is still looking to invest a large sum of money in bricks and mortar in the current enviroment.
  10. Hang in there and stick to your convictions. I have had the same from two of my sibilings who have good degrees in business and economics. I STRd my flat with the view to move up to a house at the end of May and told my sister that I was holding off. She told me I was furking mental..house only go up...your gonna miss out....etc etc. My Brother who works in a government dept crunching economic numbers said on me telling him my thoughts on interest rates rising and house prices crashing said the same thing and said did I realise I was going against what all the economists are saying. I am a A Firefighter. Educated to A level standard, but I feel with the knowledge I have gained that I am certainly not going to lose out.Its hard though when you get your Mother asking "have you have found a house yet" every few days. All I will say is that I also found it hard at times but stick to your convictions. We are in for a very interesting time in the next three months. Be strong and I am sure you will be rewarded. People read the headlines but do not look into what makes the headlines. Remember it is YOU who has to work to pay the mortgage for the next 25 years.
  11. Thanks HonestEA Out of interest do you find that the slowdown in sales has been gradual or has there been a event such as the last hike in interest rates with all the media attention and speculation which has cause a sudden change in sales volume?
  12. Thanks for the post. Very Interesting. I have noticed looking in the local property paper that "New Price" banners are now appearing. They started with one agent and now others seem to be adopting this. Also I have notice alot use "new" which never used before. I am sure that there are many more agents now then there were 10 years ago so as the volumes of sales drop I am sure it will be in EA's interest to successfully talk down the price of a vendor to keep his own personal volumes up.
  13. My thoughts exactly and is one of the reasons why I am holding off buying. People seem to forget that most of the payment in the first few years of a mortgage is Interest with very small capital reduction taking place. Doing your sums and saving could potentially reduce any future mortgage so I see it as you are paying off a potentially future mortgage quicker.
  14. Just something to cheer us up. Check out the number of properties sold in April this year compared with April last year. http://www.home.co.uk/guides/house_prices_...&lastyear=1
  15. Board has turned to sold already. I have also noticed that other for sale signs have turned sold so the animal seems to be still alive around here
  16. Its worth considering when selling in the present market that it takes normally 3 months to complete which if you sell tomorrow could put your buyers into a position to guzunder in October. Prices could be falling and sentiment and confidence could of evaporated by then. Take your father in laws advice and get out now. I would go with the quote and see if you get any bites. You may have to be prepared to drop further then you expect.
  17. House next door to My girlfriends parents has just gone on the market. Its is a 2 Bedroom converted to 3 Bedroom terraced house in the Bear road area (hmmmmm ) It has been occupied by students ever since my girlfriends parents have moved in which was in 2000 so the landlord must be taking some good profits. Houses along the road have been making £240,000-£250,000 Will keep you posted on what happens
  18. If both start from the same financial postion as far as size of deposit. Couple 2 would have more than the initial £32000 as they have waited to buy and earn't interest and have been saving while couple 1 have put the £32000 into the house and been paying their mortgage on something going down in value. Not many people would fix their mortgage for 25 years as it is just to inflexible and you suffer heavy redemption charges if you back out early maybe divorce or other unforseen circumstances. But if you took one out and houses prices fell 20% it would be a considerable amount of time before they could pay the 20% decrease in value off their mortgage. They would be in negative equity for a considerable amount of time and could not move even if they had to. In the initial years of a mortgage you pay very small capital amount off and a big wack of interest . Another reason why couple 2 are effectively reducing their future mortgage quicker than 1 even thought they do not have one yet. They are being paid by a bank 8% less tax on their deposit and savings so when they do buy they would be more than £100 better off a month. Rates also cycle so if rates drop from a peak couple 2 win again.
  19. I don't agree Buying on the low and selling on the high...renting and then getting back in on the next low would make a big difference to a persons life. The Mortgage is normally the biggest single outgoing which your tied to whic is normally 25 years and during that time you pay the bank huge amounts interest. Getting your timing correctly can make a big difference to your lifestyle and how much you can save for retirement. Which one of these do you think will have a better standard of living over the next 25 years and have the ability to provide for their retirement even if their houses are sold for the same money at the end? 2 young Couples earning average salaries in secure jobs. Couple 1 has just sold a flat with some equity and bought a 3 bedroom house and has a mortgage comparable to todays house prices for 25 years. Couple 2 has sold,banked the equity on which they are earning interest. They can save a little toward their house while renting.They will buy in 2-5 years when price are lower and their deposit is bigger. Couple 1 will have a large mortgage and are slaves to the bank.They are tied to the mortgage company as they are in negative equity so cannot shop around for a better rate. The rungs of the ladder might of got closer together but they still have a large mortgage and they will get less than they paid for their house so the next house requires them to still borrow more money and the lender have tightened up their lending criteria so will not lend them more money on a asset that is worth less than the gross amount lent.The decide to stay and just keep theier heads down and pay the mortgage. Couple 2 Have bought their house at a lower price with a bigger deposit making a much smaller mortgage. They have more disposable income.They can afford to treat themselves and save and plan for their retirement. I think I know which one i would rather be?
  20. Probably a BTL putting their long term investment on the market
  21. I agree that these small 0.25% increases just stoke inflation. You can see that they are trying to treat the patient with as little nasty medicine as possible but in the long run are going to make the patient feel sicker. Also not delivering a killer rise or couple of rises then letting it settle is doing more harm and leaving the media and money markets wide open to speculation of 1,2 maybe more rises which will make people feel more uncertain about taking out more debt then if they just got it over with. Its is curious how only now the media attention has switched to these rises.Before this month it was sideline news. Any rise in the future will attract massive media attention from here on in. Game Over
  22. Brighton is the No1 BTL hotspot outside London. I think that the silly prices are caused by the investor rather than people from London. Investors have been buying more and more over the last couple of years. Have you noticed how many TO LET signs are aound!
  23. Hey maffo maybe you should of asked how many "new prices" she had
  24. Or the bottom of the market is starting to crash and will pull the upper parts of the pyramid down with it. Flats have been rising faster then houses until recently. Maybe the tide is turning and it only a matter of time before this is passed on up the chain. This article will make some nice reading for the BTL brigade.
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