Assume The Opposite Posted May 1, 2015 Share Posted May 1, 2015 I'm too young to remember but what would the average deposit of been before the 2000-2007 HPI tear? Or should I say a sensible fair value deposit? Ta Quote Link to comment Share on other sites More sharing options...
renting til I die Posted May 1, 2015 Share Posted May 1, 2015 This is why I asked on the 2008.2 thread what plans people had for buying after a crash. What level of falls is good enough to entice you to buy? Phrased in a better way, what would the price/mortgage payments on a place you're interested in have to be? Personal, I would like to see interest rates at more normal levels and mortgage lending back to 3 times income, max! I sometimes question how realistic my logic is though. Most people seem to think that MMR is bad whereas I advocate something worse! However this is the landscape that I will consider buying into (notice that the actual nominal price is fairly irrelevant), as I would consider those conditions important for sustainable prices going forward. Also most renters pay more to rent their home than the monthly mortgage payments would be. Again most people would use this as an argument that mortgages are good value and you are better off buying. However, I look at it from a different angle and think that this is a sign that mortgages are simply too cheap (or rents too high) and not sustainable over the longer term. Once average monthly mortgage payments increase above the average rent then I will view the long term situation more sustainable. It would be nice to see some home owners squirm over the increased monthly payments and start to openly admit that they made a mistake buying! Oh dear, I'm turning very narcissistic in my old age! Quote Link to comment Share on other sites More sharing options...
MarkWeston Posted May 1, 2015 Share Posted May 1, 2015 Personal, I would like to see interest rates at more normal levels and mortgage lending back to 3 times income, max! I sometimes question how realistic my logic is though. Most people seem to think that MMR is bad whereas I advocate something worse! However this is the landscape that I will consider buying into (notice that the actual nominal price is fairly irrelevant), as I would consider those conditions important for sustainable prices going forward. Also most renters pay more to rent their home than the monthly mortgage payments would be. Again most people would use this as an argument that mortgages are good value and you are better off buying. However, I look at it from a different angle and think that this is a sign that mortgages are simply too cheap (or rents too high) and not sustainable over the longer term. Once average monthly mortgage payments increase above the average rent then I will view the long term situation more sustainable. It would be nice to see some home owners squirm over the increased monthly payments and start to openly admit that they made a mistake buying! Oh dear, I'm turning very narcissistic in my old age! I agree with this, almost completely. Before 2007, I felt homes were over-valued just because I was comparing them to value other parts of the world and historical values in the UK. But with loose lending, my opinion didn't count and homes continued to rise. Then, at 2007/2008 I thought, great, here it comes and thought I'd wait for a substantial correction, but nothing came in the areas in London I was interested in. So I sat out some more. Then interest rates hit the floor and prices rocketed, and my view pretty much matched yours for the last few years. I just mortgages wanted rates to climb to over 5% to consider buying as a reasonably safe investment. But unfortunately now, I really wanted to own a place (for my own reasons) and time has forced my hand. I have bought into a market I completely don't trust. I am bitter to the successive governments who have made buying a house such a dangerous game, but in the end it was my choice and I'll live with the consequences. I find it a weird feeling to be hoping I don't lose all my equity but at the same time wanting the right thing to happen and make places more affordable to everyone once again. Quote Link to comment Share on other sites More sharing options...
Venger Posted May 1, 2015 Share Posted May 1, 2015 No; just want to have home, home-family life... hope for that 25 year Japanese breathing spell someone earlier suggested... stable prices (heck even prices continuing to fall, after I buy at price I think is far more affordable that today). Already downsized the type of home I want, considerably... although will revert to possibility of buying a larger home (nice Edwardian 3-bed semi for example) if that's where the HPC proves to be. And it's not like I wouldn't have some advantage over other 'property-investors' given I can get free legal advice/work from solicitors in my family, some of who do lot of landlord-tenancy work. Court fees on the rise too. I've no interest in people farming / property investment. I'm on side of younger productive generations; not those who choose to pay stupid high prices (none of this "There's advert on telly and media pressure nonsense.. LOW IQ nonsense for all buyers who are "victims".. not vs these asking prices), nor on landlords side. 6 March, 2015Possession claims – court fees rise againIt has been announced by HM Courts and Tribunals Service that many Court fees will be significantly increased from 9 March 2015.The fees for possession proceedings have been further increased by £75 with the fees for claims issued via the Court’s Possession Claims Online (PCOL) system now rising from £250 to £325 and the fee for paper based claims to rise from £280 to £355.Most will be aware that this will be a very unwelcome increase, particularly considering that the issue fees for possession claims were already increased by over 60% just last April. ~ The fee for claims from £10,000 – £199,999 will now be five per cent of the claimThe fee for claims from £10,000 – £199,999 will now be five per cent of the claim; and http://blog.painsmith.co.uk/2015/03/06/possession-claims-court-fees-rise-again/http://www.landlordlawblog.co.uk/2015/03/09/court-fees-rise-again-9-march-2015/http://www.property118.com/landlord-action-court-fee-rises/73156/ http://www.propertyinvestmentproject.co.uk/blog/become-landlord/ Quote Link to comment Share on other sites More sharing options...
Flopsy Posted May 1, 2015 Share Posted May 1, 2015 I'm not going to try and profit for anything. Would just like an affordable family home before I am too old to get a mortgage. It's too hard to determine when a bubble is going to occur and how long it takes. Plus I'd not want to profit from others misfortune and do the same to the next generation. Quote Link to comment Share on other sites More sharing options...
Assume The Opposite Posted May 5, 2015 Share Posted May 5, 2015 If/when a HPC happens, can banks raise their own interest rates if needed? Or are they still tied to the base rate? Quote Link to comment Share on other sites More sharing options...
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