Interest Rate Cuts:

[karhu]

From the BBC website:

http://news.bbc.co.uk/1/hi/talking_point/4745615.stm

Quite a lot of anger on there, and particularly from pensioners.

A couple of choice comments:

Our house went on the market two days ago and we agreed with the agent a selling price. However, he pointed out that if the MPC reduce the interest rate today then we should put the house on for an extra 10% from £500,000 to £550,000!

-----

As an estate agent I am delighted to learn the news of today's interest rate cut. Recent months have seen a dreadful slowdown in the demand for property, much to do with a lack of confidence. This rate cut will hopefully bring any 'wavier's' (many first time buyers) into the market place. Coupled with a change with the lower rate of stamp duty, first time buyers should recognise a great opportunity!

[Panda]

Too right, just lost a good few quid on my monthly savings interest payment.

Never mind, could lose alot more on the devalue-ation of my property portfolio in the coming downtown.

Whats a few quid a month, when it could be a few thousand a year

[Guest Time 2 raise Interest Rates]

Too right, just lost a good few quid on my monthly savings interest payment.

Never mind, could lose alot more on the devalue-ation of my property portfolio in the coming downtown.

Whats a few quid a month, when it could be a few thousand a year

<{POST_SNAPBACK}>

Then put your savings in Chelsea building society, the Triple Guarantee account.

It's guaranteed to be at least 0.50% above the Bank of England base rate untill 10th January 2006, currently paying 5.40%.

[nodumsunreader]

Then put your savings in Chelsea building society, the Triple Guarantee account.

It's guaranteed to be at least 0.50% above the Bank of England base rate untill 10th January 2006, currently paying 5.40%.

<{POST_SNAPBACK}>

Looks like BTL is set to boom as rates keep falling and house prices rise again. Recently a landlord would have needed £650 monthly rental income to give him a decent return on a £150k property. With rates now heading back below 4% that £650 rent will service a £175k outlay.

[Guest Time 2 raise Interest Rates]

Looks like BTL is set to boom as rates keep falling and house prices rise again. Recently a landlord would have needed £650 monthly rental income to give him a decent return on a £150k property. With rates now heading back below 4% that £650 rent will service a £175k outlay.

<{POST_SNAPBACK}>

With rates now heading back below 4%, you're definitely suffering from mad cows disease. I think I'd rather listen to the likes of Nick Verdi at Barclays Capital, who in today's Standard said, "Today's cut will prove to be a one off, with rates starting to rise again next May."

[nodumsunreader]

With rates now heading back below 4%, you're definitely suffering from mad cows disease.  I think I'd rather listen to the likes of Nick Verdi at Barclays Capital, who in today's Standard said, "Today's cut will prove to be a one off, with rates starting to rise again next May."   

<{POST_SNAPBACK}>

The reason rates will go much lower is because taxes will be going up maintaining deflationary pressure on the economy. I suspect that we will soon see 3.5% or lower by next May. The pound is still much overvalued against the dollar and the euro and with their rates at around 2% there is much further to fall. The hike to 4.75% was the blip as was the temporary stagnation in the housing market. Landlords will take on more debt as there is an excess of potential renters out there willing to service it. Perversly, the very fact that FTB's cannot or do not buy is the reason why prices will continue to rise. Less FTB's = more people seeking to rent = more BTL = higher prices.

[plumber999]

With rates now heading back below 4%, you're definitely suffering from mad cows disease.  I think I'd rather listen to the likes of Nick Verdi at Barclays Capital, who in today's Standard said, "Today's cut will prove to be a one off, with rates starting to rise again next May."   

<{POST_SNAPBACK}>

You know what, after 7/july, I don t give a flying f@@k anymore, whats the point inliving. Everyone is after the working class man, government, estate agents, solicitors, and now islamic terrorists.

WE SHOULD ALL GO ON NATIONAL STRIKE, EVERY SINGLE LAST ONE OF US. IF WE WERE TO DO THIS THE ECONOMY WOULD COLLAPSE, ALONG WITH HOUSE PRICES. WE ARE ALL FOOLS ALLOWING THE RICH TO GET RICHER WHILST WE GET F''KING POORER!

[Guest Time 2 raise Interest Rates]

The reason rates will go much lower is because taxes will be going up maintaining deflationary pressure on the economy. I suspect that we will soon see 3.5% or lower by next May. The pound is still much overvalued against the dollar and the euro and with their rates at around 2% there is much further to fall. The hike to 4.75% was the blip as was the temporary stagnation in the housing market. Landlords will take on more debt as there is an excess of potential renters out there willing to service it. Perversly, the very fact that FTB's cannot or do not buy is the reason why prices will continue to rise. Less FTB's = more people seeking to rent = more BTL = higher prices.

<{POST_SNAPBACK}>

So what exactly are your credentials? No offence here but you sound like a typical Sun reader. If you think interest rates are going down to 3.5% and property prices will continue to rise then you truly are in denial.

[Portent]

The reduction in IR's affects me through my savings account. So I am now taking the following action:

1) I am moving my money to ICIC. I had previously decided not to do so because I felt that we were losing jobs to India so why should I give them money too? Well clearly this government has absolutely no loyalty to to UK savers and therefore I will now show no loyalty to them. My money is going where it will gain more interest.

2) I have decided to just stop buying anything non essential. I'm going to go all-out to save every penny. So the reduction in rates has resulted in the withdrawal of as much money as I can from the UK economy. This is not a necessity due to the cut, but simply a choice in reaction to it.

[VacantPossession]

The reason rates will go much lower is because taxes will be going up maintaining deflationary pressure on the economy. I suspect that we will soon see 3.5% or lower by next May. The pound is still much overvalued against the dollar and the euro and with their rates at around 2% there is much further to fall. The hike to 4.75% was the blip as was the temporary stagnation in the housing market. Landlords will take on more debt as there is an excess of potential renters out there willing to service it. Perversly, the very fact that FTB's cannot or do not buy is the reason why prices will continue to rise. Less FTB's = more people seeking to rent = more BTL = higher prices.

<{POST_SNAPBACK}>

Hang on a mo....let's read that again:

"Perversly, the very fact that FTB's cannot or do not buy is the reason why prices will continue to rise."

I'm not letting you get away with that utter tripe. Prices rise when there is excessive demand and little supply. Er...I don't know if you have noticed. There is currently plentiful supply (in fact the largest number of houses for sale for decades) and hardly any of them are selling. So you were saying...?

If you really want to "parachute" into this forum and make any kind of impression the least you could do is to get your fundamental arguments into some order. I don't mind particularly that in other threads you have revealed yourself as a complete prat, but if ANY of your position is to be taken seriously please do not insult the intelligence of those here. They may be opposite to your philosophy but they ain't stupid.

VP

Edited August 4, 2005 by VacantPossession

[nodumsunreader]

So what exactly are your credentials?  No offence here but you sound like a typical Sun reader.  If you think interest rates are going down to 3.5% and property prices will continue to rise then you truly are in denial.

<{POST_SNAPBACK}>

Lets put it this way, I've given my reasons (higher taxes, pound too high, BTL more attractive than keeping the money in the bank) not denial just an argument based upon the facts - perhaps you could tell me yours for believing the opposite (apart from believing everything you read in the evening standard)

[nodumsunreader]

Hang on a mo....let's read that again:

"Perversly, the very fact that FTB's cannot or do not buy is the reason why prices will continue to rise."

I'm not letting you get away with that utter tripe. Prices rise when there is excessive demand and little supply. Er...I don't know if you have noticed. There is currently plentiful supply (in fact the largest number of houses for sale for decades) and hardly any of them are selling. So you were saying...?

VP

<{POST_SNAPBACK}>

BTL is in the process of replacing FTB's as the generator of the housing market. Those who can buy (landlords) will, and those who can't (FTB's) won't. Former FTB's will pay rent instead of mortgages but the number of houses needed will still be the same. The market has been stagnant due to the lack of movement at the bottom. As interest rates rose, BTL became less attractive - as rates fall, the reverse will happen enabling movement at the bottom. This will allow sellers further up the chain to move, removing the over supply of properties on the market and enabling prices to increase as demand once again outstrips supply.

[Culpability Brown]

BTL is in the process of replacing FTB's as the generator of the housing market. Those who can buy (landlords) will, and those who can't (FTB's) won't. Former FTB's will pay rent instead of mortgages but the number of houses needed will still be the same. The market has been stagnant due to the lack of movement at the bottom. As interest rates rose, BTL became less attractive - as rates fall, the reverse will happen enabling movement at the bottom. This will allow sellers further up the chain to move, removing the over supply of properties on the market and enabling prices to increase as demand once again outstrips supply.

<{POST_SNAPBACK}>

Dream on mate!

You're a proper space cadet you aren't you.

Where the fu** did you beam down from?

[the end is a bit nigher]

Lets put it this way, I've given my reasons (higher taxes, pound too high, BTL more attractive than keeping the money in the bank) not denial just an argument based upon the facts - perhaps you could tell me yours for believing the opposite (apart from believing everything you read in the evening standard)

<{POST_SNAPBACK}>

lol - we dont get the evening standard in the north

on what basis do you think the pound is overvalued? against the american trade deficit or the euro that everyone wants out of? maybe the yen? - i could possibly be convinced of that

BTL more attractive than money in bank - if you buy now u will get less return than a bank, even after today - if you bought 3 years ago you might break even - all those new landlords competing for the same tenants

higher taxes - almost certainly and almost certainly inflationary - you pay more tax but your expenses keep rising - u want higher wages and if you don't get them you bloody well strike until you do - are you old enough to remember the last labour government? well this one has economically cost us about 20 years

[nodumsunreader]

 

Dream on mate!

You're a proper space cadet you aren't you.

Where the fu** did you beam down from?

<{POST_SNAPBACK}>

Do you have anything useful to say (like constructive counter argument) other than confirm the reasons why you will probably pay rent for the rest of your life.

[Portent]

I have two BTLers in the family (both bought in Summer 2004). One can't get a tenant. Both want to sell. Neither have had any interest. So not all landlords are having a rosey time.

I agree that long term it is good to be into BTL. I agree that a lot of landlords will continue to make money in this market. However there are a some amateur BTLers who are struggling. So with excess supply even in the letting market, and some BTLers trying to exit then are they still continuing to replace the FTB?

[Ace]

We know Culpability Brown and know his views, tell us a little about yourself, situation etc nodumsunreader

Edited August 4, 2005 by Ace

[Culpability Brown]

Do you have anything useful to say (like constructive counter argument) other than confirm the reasons why you will probably pay rent for the rest of your life.

<{POST_SNAPBACK}>

I genuinely feel sorry for you.

You clearly have no idea of what's going on.

I find your commentary amusing and have no intention of debating with you.

Good luck - You need it.

[Guest Time 2 raise Interest Rates]

Not only are Barclays Capital forcasting interest rates to rise in the new year,

they're also predicting HOUSE PRICES TO FALL BY 20% over the next 2-3 years.

Happy days.

[nodumsunreader]

I have two BTLers in the family (both bought in Summer 2004). One can't get a tenant. Both want to sell. Neither have had any interest. So not all landlords are having a rosey time.

I agree that long term it is good to be into BTL. I agree that a lot of landlords will continue to make money in this market. However there are a some amateur BTLers who are struggling.  So with excess supply even in the letting market, and some BTLers trying to exit then are they still continuing to replace the FTB?

<{POST_SNAPBACK}>

The simple facts are that there are not enough houses in the UK for the population to live in. If people can't or won't buy at the bottom end then they will have to rent. As tax breaks for 2nd homes come in next year and investment returns from banks come down more and more people with spare cash or equity to raise money on will see the property market as a means to provide an income in retirement. So yes, BTL will continue to replace FTB's.

[Portent]

The simple facts are that there are not enough houses in the UK for the population to live in. If people can't or won't buy at the bottom end then they will have to rent. As tax breaks for 2nd homes come in next year and investment returns from banks come down more and more people with spare cash or equity to raise money on will see the property market as a means to provide an income in retirement. So yes, BTL will continue to replace FTB's.

<{POST_SNAPBACK}>

OK if you say so

[nodumsunreader]

Not only are Barclays Capital forcasting interest rates to rise in the new year,

they're also predicting HOUSE PRICES TO FALL BY 20% over the next 2-3 years.

Happy days. 

<{POST_SNAPBACK}>

Sounds like many of the postings on this MB 12 months ago. Must be v.annoying to continue to be proved wrong.

[Ace]

The simple facts are that there are not enough houses in the UK for the population to live in. If people can't or won't buy at the bottom end then they will have to rent. As tax breaks for 2nd homes come in next year and investment returns from banks come down more and more people with spare cash or equity to raise money on will see the property market as a means to provide an income in retirement. So yes, BTL will continue to replace FTB's.

<{POST_SNAPBACK}>

Its clear you do not know poo from putty.