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Turnbull2000

Indy Wealth Check - 'my Home Is Eating Up My Cash'

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I was going to feel sorry, but then read things like:

"I am careful with my money, although I am concerned about my small savings for a rainy day,"

...he hasn't paid off his student loans yet, and he's 29, bit silly...

He is a keen sailor, and also pays £150 a month towards the upkeep of a family racing yacht. "One day I hope to be able to afford a boat of my own, though this is some way off. It is a long-term goal."

wtf

remember, it's people like this that priced the rest of us out

***fool***

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Deary, deary me. Even Oxford grads couldn't see the bubble :blink:

What a complete and utter MORON tbis guy is. The bubble is irrelevant. The trick is, and always has been, in calling the rates. Stupidly high rates can and will more than eat up any saving you may or may not make in calling nominal prices, in any of the decent performing areas.

What kind of idiot would lock into a 6.5% interest fixed rate? He's with C&G, and when he comes off the fix and onto the SVR, he'll drop from 6.5%, to (in 2009, most likely) a zero% base, plus a 2% capped SVR. Cutting his payment by more than 60%!!!!!!!!!!!

6.5% fixed!!!!!!

Remember, it's idiots like this that let the banks think they can get away with offering userous rates to rip off the rest of us.

***Fool***

Edited by HAMISH_MCTAVISH

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What a complete and utter MORON tbis guy is. The bubble is irrelevant. The trick is, and always has been, in calling the rates. Stupidly high rates can and will more than eat up any saving you may or may not make in calling nominal prices, in any of the decent performing areas.

What kind of idiot would lock into a 6.5% interest fixed rate? He's with C&G, and when he comes off the fix and onto the SVR, he'll drop from 6.5%, to (in 2009, most likely) a zero% base, plus a 2% capped SVR. Cutting his payment by more than 60%!!!!!!!!!!!

6.5% fixed!!!!!!

Remember, it's idiots like this that let the banks think they can get away with offering userous rates to rip off the rest of us.

***Fool***

6.5% fixed might look rather good in a couple of years, IMO. Its well below the long-term average.

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6.5% fixed might look rather good in a couple of years, IMO. Its well below the long-term average.

The long term BOE average is 4.9%. But this includes the stupidly high period from 1970 to 2000, when rates hit 17%, due to the ERM.

When this is excluded, long term average is less than 4%. Typical long term premium is 1% to 1.5%. But discount rates have been far lower for a decade.

But seriously, what kind of idiot would lock into 6.5% in the last few years?????? Regardless, he'll save a fortune when his SVR kicks in.

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when rates hit 17%, due to the ERM

17%? Really?

paying £1,150 a month – or more than half his disposable income – for a £160,000, 25-year repayment mortgage.... his one-bed leasehold flat on Brighton's Marina, bought for £180,000

OK, so Brighton bubbled pretty strongly but £180,000 for a 1-bed flat looks pretty stupid today.

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This time last year everyone was predicting rates were going up, not down.

so that part aint so stupid given the circumstances

However

180k for a 1 bed flat is just lol and rofl and shit like that

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Having read the comments and then the article, he's no more a fool than about 95% of the UK who bought into the media led property only goes up mantra.

He doesn't seem a bad sort. Must have fell in love with the flat by the marina, and is now worried due to neg equity that he'll soon find himself in. At least he's pretty sensible with money (except for the student loan that should have been a priority for him to pay off).

If I were him, I'd either: a. do private tuition for 2 weekends per month (cash in hand), or/and b. rent out the flat and move to a cheaper part of Brighton (renting) - use the arbitrage between rent rec'd and rent paid, to put against the mortgage until it resets lower. Then move back in to his 1 bed.

I'd keep paying the £150/month for the yacht, so that he has an outlet that he enjoys - he can then do that on the weekends that he's not teaching (that way he'll keep his sanity).

I wish him good luck and to stay the course. ;)

But £180k for a 1 bed!! Silly boy!

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Having read the comments and then the article, he's no more a fool than about 95% of the UK who bought into the media led property only goes up mantra.

He doesn't seem a bad sort. Must have fell in love with the flat by the marina, and is now worried due to neg equity that he'll soon find himself in. At least he's pretty sensible with money (except for the student loan that should have been a priority for him to pay off).

If I were him, I'd either: a. do private tuition for 2 weekends per month (cash in hand), or/and b. rent out the flat and move to a cheaper part of Brighton (renting) - use the arbitrage between rent rec'd and rent paid, to put against the mortgage until it resets lower. Then move back in to his 1 bed.

I'd keep paying the £150/month for the yacht, so that he has an outlet that he enjoys - he can then do that on the weekends that he's not teaching (that way he'll keep his sanity).

I wish him good luck and to stay the course. ;)

But £180k for a 1 bed!! Silly boy!

Whos that bird in your picture?

Get her on the muslim thread in 'off topic' mate

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Guest sillybear2

Brighton Marina is man made, from down there you get to look up at the cliffs of the 'real' coast line, I wonder what sea levels will be like in 25 years time? :ph34r:

Edited by sillybear2

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The long term BOE average is 4.9%. But this includes the stupidly high period from 1970 to 2000, when rates hit 17%, due to the ERM.

When this is excluded, long term average is less than 4%. Typical long term premium is 1% to 1.5%. But discount rates have been far lower for a decade.

But seriously, what kind of idiot would lock into 6.5% in the last few years?????? Regardless, he'll save a fortune when his SVR kicks in.

Since the 50s, I recall the long term average is around 7.5%. Which time period are you getting 4.9% from?

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Since the 50s, I recall the long term average is around 7.5%. Which time period are you getting 4.9% from?

I have tried to explain this to Hamish but to no avail. The 'stupidly high' interest rate period from 1970 onwards links perfectly with the realisation of a truly fiat world monetary system.

The money supply has been growing very quickly during this period and the real value of currencies has been falling very fast.

Money in a fiat system, IMO, is far to easy to 'create' and will ultimately find it's way through to the man on the street. Hence higher inflation and higher interest rates.

There has only been one period of really low interest rates combined with a truly fiat monetary system. That was from 2001 to 2008. That led to a complete financial systematic collapse.

I think this is all linked. I may be wrong but the evidence is pretty damning.

PS - I don't hold Gold, I am not a bug.

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Most people were thinkig a £180K 1 bed flat would be worth £270K in 2 years, or £360 in 5 years.

Simple extrapolation from past trends into the future.

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I was going to feel sorry, but then read things like:

"I am careful with my money, although I am concerned about my small savings for a rainy day,"

...he hasn't paid off his student loans yet, and he's 29, bit silly...

although i agree with some points made here, that's a bit harsh as you clearly have no idea how a student loan works (assuming it's an official student loan, not just a loan he took out while a student). You pay less interest on it than you can make in savings on it, it gets paid automatically from your wage each month so you don't choose when/how to pay it off, and then you just keep earning until one moth it's gone. simple. you'd actually be a little stupid to pay it off early providing you know how to save money. If you ever need a deposit for a house, you'd be better placed to use this money due to the low rate and NO impact on credit score.

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17%? Really?

Ah, the good old days :P

I had my first mortgage then and life wasn't too bad for me. Would have been even better were I a saver :lol:

OK, so Brighton bubbled pretty strongly but £180,000 for a 1-bed flat looks pretty stupid today.

Brighton marina. Not a bad price for a new build imo even in todays climate.

We have some stuff going up round here that is apparently slow to move. True, there are "special offers" available on some of them but with crossrail coming in the next few years I see no reason why they won't sell at that price ..... eventually.

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At least he's pretty sensible with money (except for the student loan that should have been a priority for him to pay off).
I thought that student loans have the advantage of very low interest rates, and no debt collectors chasing you. In which case the best thing would be to just let the government collect it for themselves, as they do when your earnings are over a certain amount.

It is what I would call a 'soft loan', low priority.

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Guest sillybear2
I thought that student loans have the advantage of very low interest rates, and no debt collectors chasing you. In which case the best thing would be to just let the government collect it for themselves, as they do when your earnings are over a certain amount.

It is what I would call a 'soft loan', low priority.

I believe they're at market rates now, set by the RPI.

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although i agree with some points made here, that's a bit harsh as you clearly have no idea how a student loan works (assuming it's an official student loan, not just a loan he took out while a student). You pay less interest on it than you can make in savings on it, it gets paid automatically from your wage each month so you don't choose when/how to pay it off, and then you just keep earning until one moth it's gone. simple. you'd actually be a little stupid to pay it off early providing you know how to save money. If you ever need a deposit for a house, you'd be better placed to use this money due to the low rate and NO impact on credit score.

Actually the best way to pay off your student loan is to do the following:

(1) Get on TV game show.

(2) Get chucked around by wrestlers.

(3) Piss in front of 200 people.

(4) Get your nipple pierced.

(5) Win car

(6) Car gets smashed up.

(7) Fix car

(8) Sell car

(9) Pay off student Loan.

Well that is how I did it anyway. Paid off my loan with 2 hours work. We are talking Kaka wages. :P

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he is an example of something I thought would happen and have seen happen to friends - he is 'lifeless' - people I know put buying the biggest property they could at the top of their priorities - they can make the repayments ok but they have nothing else in life because they can't afford it -its all very well starting out and saying "yes, i can afford £1,200 month", but when you have been paying it for a few years with nothing left for anything else, I think people become frustrated and then angry - the debt becomes an albatross

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Ah, the good old days :P

I had my first mortgage then and life wasn't too bad for me. Would have been even better were I a saver :lol:

Brighton marina. Not a bad price for a new build imo even in todays climate.

We have some stuff going up round here that is apparently slow to move. True, there are "special offers" available on some of them but with crossrail coming in the next few years I see no reason why they won't sell at that price ..... eventually.

I am genuinely staggered at the prices of those boxes in Maidenhead. Absolutely amazed. I am sure they will end up as social housing in the not too distant.

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Having read the comments and then the article, he's no more a fool than about 95% of the UK who bought into the media led property only goes up mantra.

He doesn't seem a bad sort. Must have fell in love with the flat by the marina, and is now worried due to neg equity that he'll soon find himself in. At least he's pretty sensible with money (except for the student loan that should have been a priority for him to pay off).

If I were him, I'd either: a. do private tuition for 2 weekends per month (cash in hand), or/and b. rent out the flat and move to a cheaper part of Brighton (renting) - use the arbitrage between rent rec'd and rent paid, to put against the mortgage until it resets lower. Then move back in to his 1 bed.

I'd keep paying the £150/month for the yacht, so that he has an outlet that he enjoys - he can then do that on the weekends that he's not teaching (that way he'll keep his sanity).

I wish him good luck and to stay the course. ;)

But £180k for a 1 bed!! Silly boy!

I don't think this would be possible given how low rents are at the moment. I have a friend in Brighton and he managed to negotiate quite a lot off hi current rented 1 bed just up the road from the marina.

.

ST

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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