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What Are You Strs Doing Now?

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Come on, what are you HPC STRs doing now? House prices still high but inflation looming…

Buy property now even though you believe it to be overpriced by at least 10%?

See your stash eaten up by inflation / falling pound while you wait for house prices to fall when interest rates go up?

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I am sat in a rented studio flatlet, with no job. Inflation won't affect the STR fund - as that money is to buy a house then it's worth can only be measured against the cost of a house. If there is no house price inflation then any other inflation is irrelevant if I am not touching the STR pot. I will be paying cash for a small place, so interest rates going up will make the pot larger, no mortgage will be needed when I do buy.

Edited by ScaredEitherWay

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Renting, saving and living the vida!

As has already been said couldn't care less about inflation because STR fund is for a house which is deflationary.

Will you be a cash buyer or will you require a mortgage?

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I am sat in a rented studio flatlet, with no job. Inflation won't affect the STR fund - as that money is to buy a house then it's worth can only be measured against the cost of a house. If there is no house price inflation then any other inflation is irrelevant if I am not touching the STR pot. I will be paying cash for a small place, so interest rates going up will make the pot larger, no mortgage will be needed when I do buy.

Do you still get JSA with so much money sitting in the bank? :huh:

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Come on, what are you HPC STRs doing now? House prices still high but inflation looming…

Buy property now even though you believe it to be overpriced by at least 10%?

See your stash eaten up by inflation / falling pound while you wait for house prices to fall when interest rates go up?

quite a bit of my stash is in non-uk currencies...

Better than sticking everything in one basket I would say.

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Come on, what are you HPC STRs doing now?

Last night locked up my STR pot for two years at a tad under 4%. Forget about it now, nice and safe in a very safe institution. The interest covers the rent, work only to play, not to pay the landlord. House price deflation makes my pot bigger by the month, wage deflation adds to that aswell, while houses are dropping and wages well stagnent and looking to remain so while unemployment keeps going up and up for at least the next two years. Will buy in five years. Just love to read all the b0ll0cks on here, but i know i am right because i am a happy bunny with my decision!

Panda! :P

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Come on, what are you HPC STRs doing now? House prices still high but inflation looming…

Buy property now even though you believe it to be overpriced by at least 10%?

See your stash eaten up by inflation / falling pound while you wait for house prices to fall when interest rates go up?

I am mostly:

Renting a house for about £800-1000 pcm less than mortgage on same place would be.

Saving £1000pcm

Calling my landlord if/when things go wrong, so he can fix them.

Not being convinced by inflation arguments (esp in relation to an inflationary shock's effect on house prices/STR fund ;] )

Raising children

Playing guitar

It's all rather nice :]

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Last night locked up my STR pot for two years at a tad under 4%. Forget about it now, nice and safe in a very safe institution. The interest covers the rent, work only to play, not to pay the landlord. House price deflation makes my pot bigger by the month, wage deflation adds to that aswell, while houses are dropping and wages well stagnent and looking to remain so while unemployment keeps going up and up for at least the next two years. Will buy in five years. Just love to read all the b0ll0cks on here, but i know i am right because i am a happy bunny with my decision!

Panda! :P

there aren't any imo.

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Last night locked up my STR pot for two years at a tad under 4%. Forget about it now, nice and safe in a very safe institution. The interest covers the rent, work only to play, not to pay the landlord. House price deflation makes my pot bigger by the month, wage deflation adds to that aswell, while houses are dropping and wages well stagnent and looking to remain so while unemployment keeps going up and up for at least the next two years. Will buy in five years. Just love to read all the b0ll0cks on here, but i know i am right because i am a happy bunny with my decision!

Panda! :P

Are you crazy? You can get over 3% on an instant access account at the moment (e.g. A&L). Why on earth would you lock up at 4% when anything could happen over the next 2 years? If inflation takes off, you're buggered!

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I am mostly:

Renting a house for about £800-1000 pcm less than mortgage on same place would be.

Saving £1000pcm

Calling my landlord if/when things go wrong, so he can fix them.

Not being convinced by inflation arguments (esp in relation to an inflationary shock's effect on house prices/STR fund ;] )

Raising children

Playing guitar

It's all rather nice :]

+1

Except the rent is £2000 less than equivalent mortgage, and I can't play the guitar. ;)

The kids love the space - our biggest problem is that we'll have to buy something worse when we dive back in. But living for the day, and feeling like we're on a two year holiday - even got used to the peach bathroom suite....

No chance of buying back where house prices are right now, no matter what the outlook for inflation or the economy. Six times salary mortgage to buy somewhere to live just isn't worth it - if it all goes t!ts up I'll go and work at my HQ in California.

B

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Are you crazy? You can get over 3% on an instant access account at the moment (e.g. A&L). Why on earth would you lock up at 4% when anything could happen over the next 2 years? If inflation takes off, you're buggered!

OR, if houses fall further, he's gaining even more.

Its a gamble.

Me, im unchanged except live in a very large house with large garden. not bothered about things much as death in 30 years is a strong possibility. cant take it with me.

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OR, if houses fall further, he's gaining even more.

Its a gamble.

Me, im unchanged except live in a very large house with large garden. not bothered about things much as death in 30 years is a strong possibility. cant take it with me.

It's a hell of a gamble. He's losing as soon as instant access savings rates rise above 4%, which is highly likely if inflation takes hold. I'm hoping house prices will fall further too, but there's no way I'm putting my pot somewhere where I can't get my hands on it within a few days. It's not a risk I'd take!

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when

The economy for now and for the next year cannot absorb a base rate of more than 1%, so how the f00k are we going to see rampant wage inflation, with unemployment rising, wage settlement are going nowhere quick, most i know will either be lucky to be in work this time next year, or are taking wage cuts. With the cuts in public spending a must and a given, this will also add to unemployment problems. Inflation, yeh myabe cost of essentials, just means you get poorer, like most, but house price and wages, nope my old boy, down down for at least the next few years. They are not planning to inflate out of this, its smoke and mirrors to get the old todgers to get out and by an assett or a plasma widescreen. Inflation figures are made up to suit policy. ;)

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Last night locked up my STR pot for two years at a tad under 4%. Forget about it now, nice and safe in a very safe institution. The interest covers the rent, work only to play, not to pay the landlord. House price deflation makes my pot bigger by the month, wage deflation adds to that aswell, while houses are dropping and wages well stagnent and looking to remain so while unemployment keeps going up and up for at least the next two years. Will buy in five years. Just love to read all the b0ll0cks on here, but i know i am right because i am a happy bunny with my decision!

Panda! :P

Liar! highlighted above is the STR nightmare scenario...so what do they do? pretend they are not giving their hard earned to the Landlord. Lord of the land where you live lol you are still payng his mortgage for him....im sure he appreciates.

nice try batman!!

Edited by Jister1

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blessing in disguise for me, forced to rent + in so doing discovered the area i would otherwise have purchased in is just no good for me at all, not only are the locals Uberchavs but the neighbour is one of life's take take take takers taking favour after favour and never giving anything in return not so much as a bar of kitkat or a beer, living with that lot permanently would be enough to make me top myself defo

now i have a time limit here + will be on my bike at the earliest, middle finger raised to the neighbour as i do so, never seen such a bunch of mega using elderly chavs in my life

Edited by loginandtonic

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I wouldn't want to be in a STR situation at the moment... my primary motivation in saying that is that I feel more comfortable owning a property and even if I had paid the sell up-- rent-- buy back game I'd now be extremely worried as prices are now getting towards their peak again, theres very little choice, and the recent rise in a best case scenario has put the trough further back in time (perhaps by a year or more) , equally it now seems increasingly unlikely that we will have an overcorrection against trend with the more likely situation being a long and very gradual reduction perhaps taking five or more years to fall another 10-15%... personally I wouldn't be happy renting for that long and wouldn't fee confident waiting for the right property to come up at the right time.

Even if property prices start to slide agressively again I am very happy not to be in an STR situation currently.

By the by should inflation come back I really can't see how those in an STR situation won't lose out.... but there will be degrees of it... if inflation is 2-5% then its propably going to feel like little or no effect (even if you could argue a greater effect technically) if however its 10% or more then it might very well be very painful for those in an STR situation.

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As has been mentioned above, inflation may well be a factor but houses won't be affected, they will see a sustained period of deflation (unless we're headed Zimbabwe way).

Sold to rent in 2007 and have managed to increase my STR pot by 50% since then.

I'll keep on saving until I see a house I want at a price I want, nothings changed.

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Are you crazy? You can get over 3% on an instant access account at the moment (e.g. A&L). Why on earth would you lock up at 4% when anything could happen over the next 2 years? If inflation takes off, you're buggered!

http://www.moneyfacts.co.uk/money/savings/...s-accounts.aspx

I would not touch any of them with yours, none, like i said i like my own decisions, i am happy, nothing else matters! ;)

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Are you crazy? You can get over 3% on an instant access account at the moment (e.g. A&L). Why on earth would you lock up at 4% when anything could happen over the next 2 years? If inflation takes off, you're buggered!

3.3% with citibank

im not a str but i have the cash to buy outright

renting and enjoying myself. regardless of inflation (inflation problem would still = high interest rates) house prices arent going up, infact im expecting a leg down thru winter starting shortly.

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