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The Next House Price Leg Up?

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Discuss.

Seems to be a gathering trend with acquaintances in the 25-30 age groups, and imho the only logical way of maintaining the current high prices.

The mind boggles.

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Discuss.

Seems to be a gathering trend with acquaintances in the 25-30 age groups, and imho the only logical way of maintaining the current high prices.

The mind boggles.

Being 30 myself this is nuts. Will to gather some opinions next weekend from friends but suspect none would touch 40 years with a barge pole.

40 year mortgage = end of housing ladder (unless there is a massive increase in house prices so they can build lots of equity in their first home very quickly, which is v. unlikely).

End of Ladder = removal of key mechanism to keep prices high. It might work for the banks int he short term but willbe self-defeating in the medium and long terms

The total interest paid over time will make it harder to repay the capital.

Edited by koala_bear

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Being 30 myself this is nuts. Will to gather

40 year mortgage = end of housing ladder (unless there is a massive increase in house prices so they can build lots of equity in their first home very quickly.

End of Ladder = removal of key mechanism to keep prices high.

The total interest paid over time will make it harder to repay the capital.

Banks need to get innovative. They can lend more if they backload the repayments for after you retire. Then let SMI take the strain.

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Discuss.

Seems to be a gathering trend with acquaintances in the 25-30 age groups, and imho the only logical way of maintaining the current high prices.

The mind boggles.

Can't wait for the 1,000 years mortgage. Serfdom is vastly underrated; people only look at the debt but not at the asset side of the equation. When 1,000 years mortgages become the norm the longer debt will have pushed prices so high my family and I will be rich serfs. Not like those disgusting feral rat serfs who will have to rent.

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Being 30 myself this is nuts. Will to gather some opinions next weekend from friends but suspect none would touch 40 years with a barge pole.

They won't have a choice. Houses will become so expensive due to these mortgages no one will be able to buy afford a house without taking on one of these mortgages.

This is the dictatorship of the feckless.

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Lets have a brainstorming session, let your mind be a parachute, it works better when it is open.

- Multigeneration mortgages

- 1% shared ownership / fractional ownership

- Make freehold illegal, max is 25 year leasehold (i.e. virtual freehold)

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How about a mortgage shared by 3 generations? Your mum and dad pay the deposit and then your kids finish off paying it after you die.

Still lots of innovation left if the banks start thinking outside the box.

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It could well go inter-generational.

Mate of mine signed up for a 35 year mortgage a couple of years ago. He has a girlfriend and kid and so he was sort of stuck as rents in the area cost more than the mortgage (right now). Still.... 35 years........!!!!! I'd want to pay off a mortgage in 15 years TOPS.

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Lets have a brainstorming session, let your mind be a parachute, it works better when it is open.

- Multigeneration mortgages

- 1% shared ownership / fractional ownership

- Make freehold illegal, max is 25 year leasehold (i.e. virtual freehold)

Banks retain the right to erect solar panels all over your house and wind turbines and get all the feed in tariffs.

Also to dump toxic waste in your back garden. That's got to be worth a few quid.

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Sounds good, FTB age say 35, no company or personal pension so will need to work until 75 (new state pension age) therefore a 40 year mortgage is fine and generates lots of money for the banks. Main problem will be trying to have kids or raise a family in the one bed flat with the kitchen in the lounge, but what can you expect for just £250,000.

Bring on the slaves...

Add £50k of student debt to this deal and it's a winner.

Winner, winner, chicken dinner!

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How about the Organ Secured Mortgage?

You sign over various body parts to the bank to be sold off in the event of your death. Should you fall behind on payments they can take them anyway.

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Being 30 myself this is nuts. Will to gather some opinions next weekend from friends but suspect none would touch 40 years with a barge pole.

40 year mortgage = end of housing ladder (unless there is a massive increase in house prices so they can build lots of equity in their first home very quickly, which is v. unlikely).

End of Ladder = removal of key mechanism to keep prices high. It might work for the banks int he short term but willbe self-defeating in the medium and long terms

The total interest paid over time will make it harder to repay the capital.

30 here too, likewise. Wouldn't pay it off till i'm retired, and at current interest rates would probably end up paying back twice what i borrowed. F*ck that, i'll carrry on renting.

Might work on numpties that only look at the monthly payment rather than how compound interest works..

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Lets have a brainstorming session, let your mind be a parachute, it works better when it is open.

- Multigeneration mortgages

- 1% shared ownership / fractional ownership

- Make freehold illegal, max is 25 year leasehold (i.e. virtual freehold)

Basically anything is game and open to suggestion apart from just letting the fooking prices drop.

They will do anything and everything to maintain these prices. :angry:

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How about the Organ Secured Mortgage?

You sign over various body parts to the bank to be sold off in the event of your death. Should you fall behind on payments they can take them anyway.

kidney futures?

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These 40 year mortgages appeared in Ireland about '05. it's a mechanism to open the ponzi scheme to people who couldn't afford it up to now.

It's as clear an indication as you will get, that the house of cards is about to topple. Only the desperate and the mathematically illiterate would sign up for these things.

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Being 30 myself this is nuts. Will to gather some opinions next weekend from friends but suspect none would touch 40 years with a barge pole.

OK People: ALL IT WILL DO IS PROP UP EXTREMELY HIGH HOUSE PRICES.

See this -- http://www.guardian.co.uk/money/blog/2009/mar/18/house-prices-turner-limit-mortgages

See also here - - http://www.guardian.co.uk/money/series/patrick-collinson-house-prices

& here --- http://www.housepricecrash.co.uk/forum/index.php?showtopic=152508

WHATEVER YOU DO --- DO NOT ALLOW YOURSELF TO FALL FOR THIS CON-TRICK.

IT IS A MASSIVE CON.

Jeeessus -- how people can be so DUMB not to see this.... :rolleyes::rolleyes::rolleyes:

See all below.....

Edited by eric pebble

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Discuss.

Seems to be a gathering trend with acquaintances in the 25-30 age groups, and imho the only logical way of maintaining the current high prices.

The mind boggles.

House prices are not a function of demand, but are simply a function of how much money the lenders are willing to advance. Almost everything else is immaterial.

And - just add that LIAR LOANS have been the poison in the mud - providing false rocket-fuel to the "market" - and - well - that's the whole HPI Phenomenon summarised in one paragraph.

Read all here - & the comments after the article are very good too.

http://www.guardian.co.uk/money/2010/aug/10/falling-house-prices-blame-media

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These 40 year mortgages appeared in Ireland about '05. it's a mechanism to open the ponzi scheme to people who couldn't afford it up to now.

It's as clear an indication as you will get, that the house of cards is about to topple. Only the desperate and the mathematically illiterate would sign up for these things.

The straw that broke the camels back? I keep thinking this but each and every time a newer more desperate scheme is launched :blink:

When this does blows there's going to be a lot of cannon fodder left holding the bag...

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Only the desperate and the mathematically illiterate would sign up for these things.

what do you mean 'only' - that group is the majority

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I thought some time ago their was a mortgage you could pass on to your kids in places like Switzerland.

A bit like the national debt.

Yep it is for tax purposes, nearly all property in Switz is on interest only mortgages because Switzerland has a massive LVT (can be excess of 50% of imputed rent) but mortgage interest is tax deductible which reduces the LVT so alot who own keep a mortgage in Switzerland despite alot having actual money to pay it off. The large LVT is why most rent as there is minimal imputed rent benefit to owning, its a nice swiz to the banks although most of it eventually comes back to the state and that tax intake is what helps keep other taxes such as Income, VAT and Corporate relatively low.

It has a strange effect when looking at personal debt levels across countries because it makes Switzerlands very high like the UK, but alot of it is owed by the same people as have the savings which is somewhat different to the UK

Edited by Tamara De Lempicka

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Yep it is for tax purposes, nearly all property in Switz is on interest only mortgages because Switzerland has a massive LVT (can be excess of 50% of imputed rent) but mortgage interest is tax deductible which reduces the LVT so everyone who owns keeps a mortgage in Switzerland despite most having the actual money to pay it off. The massive LVT is why most rent as there is minimal imputed rent benefit to owning, its a nice swiz to the banks although most of it eventually comes back to the state and that tax intake is what helps keep other taxes such as Income, VAT and Corporate relatively low.

It has a strange effect when looking at personal debt levels across countries because it makes Switzerlands very high like the UK, but alot of it is owed to the same people as have the savings

Thankyou, you saved me explaining it.

However you neglected to mention that an average 4-bed house in Geneva canton starts, repeat, starts i.e. in the worst areas, at about 1million pounds. Good areas about 2 million quid, top areas by the lake about 3-4 million quid.

This is partly a consequence of these bank-favouring policies.

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Thankyou, you saved me explaining it.

However you neglected to mention that an average 4-bed house in Geneva canton starts, repeat, starts i.e. in the worst areas, at about 1million pounds. Good areas about 2 million quid, top areas by the lake about 3-4 million quid.

This is partly a consequence of these bank-favouring policies.

That would be about the same as kensington & chelsea then...

....doesn't seem so surprising to me

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Per £100k you borrow at say 6% over 25 years costs £93k in interest

Over 40 years the interest becomes £164k

If loonies go for 40 year mortgages and it pushed prices up over time by 20% so instead of borrowing £100k people borrow £120k, over 40 years the interest is £196k.

An extra £103k interest from the 25 year mortgage.

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  • 336 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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