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The Next House Price Leg Up?

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

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

Geneva canton - 282 square kilometres, population 464,412.

Borough of Kensington and Chelsea - 12 square kilometres, population 158,919

Also, just under 50% of the properties in K&C are "worth" £1 million or more.

So Geneva is on a rather grander scale. The housing density looks a bit more bearable, too.

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Geneva canton - 282 square kilometres, population 464,412.

Borough of Kensington and Chelsea - 12 square kilometres, population 158,919

Also, just under 50% of the properties in K&C are "worth" £1 million or more.

So Geneva is on a rather grander scale. The housing density looks a bit more bearable, too.

The OP was referring to 4 bed houses in Geneva starting at £1m...

P.S. Totally unrelated. Someone I work with went to a party in Switzerland this summer. The police came round to break up the party .... at 9 pm.... saying it was breaking the local laws...

Edited by Neverland

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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.

In Japan at the peak they had 50 year mortgages.

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Just found this article dating from 2006 from Bloomberg regarding 50 year mortgages. Given what would unfold, the comments are really interesting/sad.

50 year mortgages

Here's one from John......

"John

December 24, 2006 11:29 AM

Take the equity you already HAVE in your house out using a 50 year loan. Since housing prices are going to be going down about 25 to 30% in the next couple of years, it makes since to me to take out as much equity from your home as possible. A 50 year loan can help you do just that! Say you have $200,000 in equity and take it out of your home with this new loan. That money could be put to work for you in a bank or mutual fund or wherever you choose instead of being tied up in your house and just depreciating over the next few years. Sure, your mortgage payment may be a bit higher but that would be clearly offset by the additional interest write off, plus the additional interest earning you could make on the $200,000 equity you're received on the new loan. Seems almost like a "no brainer" decision to me..."

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In Japan at the peak they had 50 year mortgages.

You would think the game would have been up two years ago but our glorious leaders in their wisdom decided the ponzi must be continued at all costs

I wouldn't mind betting on further currency debasement and financial contortions to keep house prices up

After all does George Osborne want another banking bailout on his watch? - err, no

I do chuckle when numerous posters on this site expect the tories to do anything different to labour in terms of keeping house prices up for the middle-aged floating voters at all costs

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They tried to introduce longer mortgages in 2006. Even a local EA told me that prices were going to surge because of 50 and 100 year generational mortgages like they had/have in Japan. It came to nothing ;).

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Isn't all this talk of 40 year, 50 year, 100 year or whatever year repayment mortgages irrelevant though?

Remember we have already had interest only mortgages. Compared to an interest only mortgage, which had become commonplace, a 40 year repayment mortgage is cause for a leg down, not a leg up!

The monthly payments on a 25 year IO mortgage are no different to the monthly payments on a 50 year IO, or a 500 year IO, or a 5000 year IO mortgage ...........

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40 year mortgages were what people were talking about to fix the issue of affordability ....... Just before prices crashed in 2007. Sounds like we are heading there again! I also recall lots of Daily Express ramping front page headlines on housing to rise.... Again just before the crash.....

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40 year mortgages were what people were talking about to fix the issue of affordability ....... Just before prices crashed in 2007. Sounds like we are heading there again! I also recall lots of Daily Express ramping front page headlines on housing to rise.... Again just before the crash.....

Exactly, that and more.

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The OP was referring to 4 bed houses in Geneva starting at £1m...

P.S. Totally unrelated. Someone I work with went to a party in Switzerland this summer. The police came round to break up the party .... at 9 pm.... saying it was breaking the local laws...

I meant Geneva canton not the city, to be clear.

I love the laws that prevent people being a f**king nuisance here, wish they existed in the UK. You can have a party, but if you feel obliged to share your music and drunks with everyone in the vicinity the cops will send everyone home. If you want a noisy party, you hire a venue(there are loads and they're not extortionate, and guess what, there's good public transport to take you home afterwards.

Noisy neighbours - what are they?

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In Japan at the peak they had 50 year mortgages.

A lifetime of debt, low mobility, maintenance and responsibility....you might as well rent.....born with nothing,die with nothing... live your life in freedom to the full......once free of debt however small give more choices...50 years of debt is too long, 50 years decrease choices, therefore if repayment can't be made within 50 years it is not in best interests to borrow to begin with......25 repayment...gives you at least 25 years freedom to consider your next move. ;)

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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.

A place near the lake £3-4 million?? are you sure? weren't we discussing on one of the threads a house near Wandsworth prison costing £4 million quid?

I'm moving to Geneva... :P

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In Japan at the peak they had 50 year mortgages.

surprised it took so long for someone to mention this... if i recall, they even mooted longer mortgages with your children (grandchildren?) paying them off

im still convinced that we are heading for a repeat of japan 1990s here, without the odd tsunami to open up new property developing possibilities

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This is all part what I have suggested as the future configuration of an economy that runs on permanent peak debt, which any economy that uses fiat money (which is a doomed attempt to simulate a scarce good using numbers in computers) must end up.

While the goldbugs are right about money dying, what they have failed to realise is that debt, under the right circumstances (e.g. being perpetually rolled over using an irredeemable currency), never dies. Assuming this configuration stabilises gold will also stabilise as an asset class, somewhere in the region of 300 loaves of bread. Sometime after that I imagine gold would then be only bought for jewellery and ultimately be discarded as an asset class altogether.

It is the final maximum entropy configuration of a human financial system as far as I can see, which hopefully means that asset price expansion will have come to an end and the only profitable use of capital will be in the real (not asset based) economy, making stuff and doing stuff and enjoying ourselves.

A 40 year mortgage is pretty damn close to renting - the above configuration kind of implies we are all semi-renting the asset base. Please note I am not advocating this outcome from a moral standpoint, I am predicting it from an analytical one. The only alternative is collapse and war. So perhaps I do have a moral standpoint - I prefer peak debt equilibrium to nuclear winter equilibrium.

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40 years doesn't give you that much more borrowing power than 25 though, which is why I think 25 has been the common length of a mortgauge for so long. at 5% interest rate, the extra 15 years (66% increase in loan term) only increases your borrowing power by 20%

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........

The only alternative is collapse and war. So perhaps I do have a moral standpoint - I prefer peak debt equilibrium to nuclear winter equilibrium.

In collapse or war, there is profit to be made.

Where in your preferred scenario, of peak debt equilibrium, do you foresee similar opportunities?

People being people and all that ;)

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40 years doesn't give you that much more borrowing power than 25 though, which is why I think 25 has been the common length of a mortgauge for so long. at 5% interest rate, the extra 15 years (66% increase in loan term) only increases your borrowing power by 20%

I think you ought to consider the notion of a 40 year mortgage at 1.5%.

[edit, or if you prefer, 10 rounds of 4 year teaser rates between .5% and 2%, switching mortgage provider each time round]

Edited by scepticus

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In collapse or war, there is profit to be made.

Not when nukes are involved. One certaoinly can't make a profit by going to war, as would have been the case in the past, so one wonders why we would bother.

Where in your preferred scenario, of peak debt equilibrium, do you foresee similar opportunities?

People being people and all that ;)

By providing goods and services people want, as always.

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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.

10204.jpg

Not a bad read (1989)

"Freedom of the individual means that you can raise a loan on your own body--but if you default the mortgagee can reclaim your body, terminate you and recover the cash in spare parts sales!

worst part was the organ theft ......On holiday have a drink at the bar ...leave your glass with your DNA on it , gets checked by a mercenary surgeon with a portable DNA sequencer which then medi googles for a DNA match ..follow you back to the hotel gas you while you sleep and harvest what they need ...you may survive , but sometimes only have hours to live if they take both kidneys ,for example .

There have already been cases where body parts from live donors have happened

http://www.independe...ns-2176110.html

Edited by Tankus

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I take issue with the title of this thread.

This is merely a desperate measure to keep prices at their current insane levels. It will not push them onwards and upwards.

Anyway, on a lighter note, if only someone had thought of these 40 year mortgages a bit sooner, these poor devils would not have accepted a 'loss' of £300k in the last 4 weeks!

Please rev up lending I fooking hate losing £10k a day!!!!

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If anybody is stupid enough to take on a 40 year mortgage, fine by me. For an extra 15 years they will be sending wages to the bank that would otherwise have been spent on real goods and services. That means more holidays/sirloin steaks/bicycles left on the shelf for me. What's not to like?

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