I Have Completed On House Today !

[Greg Bowman]

why would you want a larger LTV?

Actually you might want a larger LTV - if you can do something useful with the cash rather than have it sitting in a non earning asset. Especially if you can lock in a good low long term rate.

Exactly the same as borrowing 'in the old days' at 0% on acredit card and investing it elsewhere.

[impatient_mug]

Why is everyone analyzing the potential 'investment' gain/loss from this transaction? He bought a house for a price he was willing and able to pay and intends to live in it. I don't see why this particular purchase should be compared against putting the money somewhere else?

How do you know what monetary value he puts on stability and living in a home he likes? To the poster who stated he may not be able to get his wealth back out - so what so long as he can afford to buy it? I'll never get any of the 'wealth' out of any of the cars I've owned back. I'll never get the 'wealth' in any of my holidays back. I'll never get any of the 'wealth' back from the lunch I ate earlier unless someone is really, really desperate for Bio Fuel!

From what I've read the fact that people have been treating property as an investment opportunity rather than a place to live is a big issue to many posters here, yet when someone actually treats a house as a home - a consumable - rather than as a vehicle with potential for vast profits everyone jumps down his throat?

Please point out what I'm missing.

Edited May 22, 2009 by impatient_mug

[Mal Volio]

Please point out what I'm missing.

Just that there's a reasonable possibility that if he'd waited 6-9 months he could have had the same house with less debt, a bigger house with the same debt, or the same house, the same debt and a wheelbarrow of cash to spend on whatever he wanted.

[tomwatkins]

average prices will trundle down to 3 times salary....thats about 90K with the dpeosits.

and dont forget to ADD interest to the loan as well as consider the rent.

Bring back MIRAS! Oh happy days. Anybody on here old enough to remember the really good old days?

[Mal Volio]

Bring back MIRAS! Oh happy days. Anybody on here old enough to remember the really good old days?

Double MIRAS. The Govt paying you not to get married

Fine Conservative values.

[Als]

I've been watching and waiting for HPC regulars to jump ship as a bellwether for the next wave down.

The question is: Once cash rich people have parted with their money, who is left to buy houses at today's prices?

(FTB's needing 20% deposits? BTL?)

Nobody.

I think you're right. I was a potential FTB once but my job is way too insecure now. Even the word FTB sounds like something from the distant past. From what I can tell business people in the real world are forecasting a deflationary recession.

[wealthy]

sorry, i was refering to the income ratio and the likelyhood of a real price fall.

if inflation takes off, your interest rates will climb too, although, of course, not sufficient to beat inflation. however, loans too will become more expensive forcing homes to be even lower in real terms.

I agree with that

Plus those of us with cash can move pretty quickly in that event

[Crashman Begins]

Best of luck, but I still think your at minimum a year and a half to early.

Only time will tell

[othello]

Ummm it doesn't really matter what the real value does if the nominal value increases you still have to pay more for it so if a house rises less than inflation you are not losing out especially with a 10 year fix

Obviously never owned a property. A mortgage with overpayment facility gives you a limitless ISA allowance so if you are a higher rate tax payer and your rate is 5% you are basically saving the equivalent on an overpayment as if you were to get 9% on your savings. Property is illiquid but not immobile... most mortgages are portable. With a 60% deposit he will not fall into negative equity and thus can move whenever he likes.

wow. Give the man a PhD in vagueness.

With respect I don't think you understand the dfference between 'real' and 'nominal' prices. Although nominal values may rise, that is against a devaluing of currency so if nominal values do not keep pace with inflation they are in effect falling. Do not kid youself that property is in some way protection against inflation. It's not. On the contrary the worst time to sell (and the best time to buy) property may well be after such a period of high general inflation.

[Victor_Broom]

I'm pretty sure sigs are inserted on the fly as the web page is generated. In other words, your latest sig is shown below all your posts, even from 5 years ago.

I am pretty sure you are correct.

[Firefly]

In a year's time, you will realise that you shot your bolt far too early.

Or laughing his ar$e off because he picked the bottom. Either way he had the guts to make a decision and put his money where his mouth is, for that I admire him.

[Guest Daddy Bear]

Or laughing his ar$e off because he picked the bottom. Either way he had the guts to make a decision and put his money where his mouth is, for that I admire him.

http://www.telegraph.co.uk/finance/finance...resistance.html

Tipping point fast approaching - all you cash rich STR's have bigger balls then me.

I wish you good luck.

[Mal Volio]

http://www.telegraph.co.uk/finance/finance...resistance.html

Tipping point fast approaching - all you cash rich STR's have bigger balls then me.

I wish you good luck.

Ok, OK, enough, already.

Edited May 25, 2009 by Mal Volio

[Mr Nice]

Why is everyone analyzing the potential 'investment' gain/loss from this transaction? He bought a house for a price he was willing and able to pay and intends to live in it. I don't see why this particular purchase should be compared against putting the money somewhere else?

How do you know what monetary value he puts on stability and living in a home he likes? To the poster who stated he may not be able to get his wealth back out - so what so long as he can afford to buy it? I'll never get any of the 'wealth' out of any of the cars I've owned back. I'll never get the 'wealth' in any of my holidays back. I'll never get any of the 'wealth' back from the lunch I ate earlier unless someone is really, really desperate for Bio Fuel!

From what I've read the fact that people have been treating property as an investment opportunity rather than a place to live is a big issue to many posters here, yet when someone actually treats a house as a home - a consumable - rather than as a vehicle with potential for vast profits everyone jumps down his throat?

Please point out what I'm missing.

while we may not know his exact finances, many people are putting the vast majority of their life savings into their housing.

that in and of itself makes the house an investment.

you say that he shouldn't care as long as he enjoys it, but that is pretty bad advice unless he is in a position where if he lost all of the money he put into the house, he wouldn't mind.

some of the hardest hit aren't necessarily the ones who just took out a bunch of debt, they started with nothing and will end with nothing.

but the ones who are about to lose their savings are actually losing years worth of work, that they may never be able to get back.

[agmoldham]

Why is everyone analyzing the potential 'investment' gain/loss from this transaction? He bought a house for a price he was willing and able to pay and intends to live in it. I don't see why this particular purchase should be compared against putting the money somewhere else?

How do you know what monetary value he puts on stability and living in a home he likes? To the poster who stated he may not be able to get his wealth back out - so what so long as he can afford to buy it? I'll never get any of the 'wealth' out of any of the cars I've owned back. I'll never get the 'wealth' in any of my holidays back. I'll never get any of the 'wealth' back from the lunch I ate earlier unless someone is really, really desperate for Bio Fuel!

From what I've read the fact that people have been treating property as an investment opportunity rather than a place to live is a big issue to many posters here, yet when someone actually treats a house as a home - a consumable - rather than as a vehicle with potential for vast profits everyone jumps down his throat?

Please point out what I'm missing.

I agree totally with your point. I get the feeling that some people on here are treating homes as investments and want to buy a property (or properties) at the bottom of the market and then make money out of them. That's the very attitude that created the bubble in the first place. If we could treat homes in the same way we consider other purchases we would be a long way towards ending the violent shift in hpi.

[huntergatherer]

I've been watching and waiting for HPC regulars to jump ship as a bellwether for the next wave down.

The question is: Once cash rich people have parted with their money, who is left to buy houses at today's prices?

(FTB's needing 20% deposits? BTL?)

Nobody.

I agree with this. ('Until the last bear turns bull' etc.)

There is far too much 'smug' money still sloshing around or rather liquidity from 'easy money' made in the housing boom that will take time to be consumed.

Problem is much was made 'easy come' but much will be lost 'easy go' particularly with low interest rates around.

The belief in the property market as a winner is still firmly in grained in peoples minds and there are many still to be shaken out.

Of course no one really knows how far prices are going to fall but it will be a long way.

[Lanky Bear]

I have just completed on a house today.

Good luck & congrats DB! Have always enjoyed your hysterical posting style and your track record speaks for itself. You have the cojones to get in there now and I hope it works out for you.

Still holding back myself. When your sig comes to pass I may well be stuffed, but I'm not so sure on the timescales...

BTW I'm guessing with this house purchase et al you'll soon be twice the daddy you were!

LB

[threetimesdead]

32% down - you booked in with a precision to a percentage point the end of securitasations - so that is the average

you have missed completely on any falls coming from recession - that wouyhld be another 25-30%

You chose mortgage instead of owning outright

"FSA predicts 50% peak to through" falls - http://www.rte.ie/business/2009/0528/britain.html

We all know if FSA says 50% - that is the best case scenario - good luck

Edited May 28, 2009 by threetimesdead

[Si1]

- Secured with a >60% Deposit

For me all the signs are their for a massive INFLATION in the near future.

these are inconsistent - if expecting massive inflation, borrow as much as poss on low fix rate and put cash in asian stocks, don't own a house for cash, for goodness sake! let debt inflate away - leverage this baby!

[threetimesdead]

I've been watching and waiting for HPC regulars to jump ship as a bellwether for the next wave down.

The question is: Once cash rich people have parted with their money, who is left to buy houses at today's prices?

(FTB's needing 20% deposits? BTL?)

Nobody.

This is absolutely the point!

What the OP does not tell you - how much profit he made when he STRed in 2007 - if that profit is wiped out by further 30% fall in prices he is still even

This is the mentality of many STRs who came back into the market recently and explains this temporary "stabilisation" of falls - THE CHAINS ARE NOT MOVING - and UK market is a chain market

Once this STR funds are sucked back into the bricks and mortar, whilst the unemployment hits 3.2mln., NOTHING WILL BE LEFT TO SUPPORT the house prices - free fall

Edited May 28, 2009 by threetimesdead

[Guest Daddy Bear]

Good luck & congrats DB! Have always enjoyed your hysterical posting style and your track record speaks for itself. You have the cojones to get in there now and I hope it works out for you.

Still holding back myself. When your sig comes to pass I may well be stuffed, but I'm not so sure on the timescales...

BTW I'm guessing with this house purchase et al you'll soon be twice the daddy you were!

LB

et al sp?