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House Price Crash Forum

Cost Of Mortgages To Fall Below 1Pc


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HOLA441

As I pointed out the other week, this is what is driving house price rises. The average couple can now 'afford' to borrow much more than a few years ago, then add in that they now take out 30 year mortgages.

The good news is that mortgage rates or terms can't go much further. I can see us getting to the point of 0% interest for the first 2/3/5 years, then onto SVR a bit like credit cards.

Beware if 0% interest for the first x years does become a reality, then prices would increase by 50% to 100%.

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HOLA442
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HOLA443

There are dealers (primarily in London) who will sell bullion or coins OTC. You could get a cheap Easyjet flight to Switzerland and pick some up there - when I lived there, most largish bank branches would sell small bars and coins OTC subject to stock as well as some Bureaux De Change. Also, the likes of Sovereigns are pretty small and can be easily couriered to you in small amounts from postal dealers without attracting attention.

As for storing it - you get a lot of value in a small amount of gold (it's heavy though) so storing it shouldn't be a problem and more than storing a bunch of coins and small bits of base metal would be. It's also extremely inert so you don't need to worry about it turning into papier mache or moulding like cash, or rusting like many base metals if you put it in a non-climate controlled environment.

Spending it in a SHTF environment - I suspect that gold would rapidly gain 'hard currency' status on the black market and as long as you have it in small units (like mini bars or coins) then shouldn't be too much of a problem exchanging it for goods and services.

Regarding as strategy for getting some, just switch your future savings to gold rather than accumulating more bank credit. Sovs are ideal as they are relatively affordable as well as being small and easy to store and transport.

With physical cash obviously being targeted for abolition, negative interest rates looming and more money printing highly likely, you'd be nuts not to take out some sort of 'insurance policy' for when the whole mess comes crashing down under the weight of the Central Bankersters fraud.

Good post.

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HOLA444

No question rates will continue falling as we are in an era of deflation, as some of us have been shouting for ages. (and laughed at!)

Sub 1% fixes entirely reasonable to expect.

BUT why on earth are you concerned? IT SHOWS WE ARE IN DEFLATION. Probably #turningjapanese

What happened to house prices there, over 2 decades?

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HOLA4410
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HOLA4411

I know what you mean, I'm really struggling to justify to myself my current lifestyle of having a modest house, a 12 year old hatchback, savings in the bank and my idea of being extravagant is treating myself to a takeaway once a week.

Give me one good reason why I shouldn't spend all my savings on a much nicer houses, get a flash car on pcp, buy even day to day items on a credit card, generally live beyond my means and just rely on endless money printing, zirp and debt forgiveness to bail me out.

I really think it's time I joined the party rather than being the sad loser stood outside watching everyone have a great old time of it.

One of them types I know just got made redundant,

Maxed out on mortgage debt.

Should pick up a job no problem tho. ...paying half.

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HOLA4412

I know what you mean, I'm really struggling to justify to myself my current lifestyle of having a modest house, a 12 year old hatchback, savings in the bank and my idea of being extravagant is treating myself to a takeaway once a week.

Give me one good reason why I shouldn't spend all my savings on a much nicer houses, get a flash car on pcp, buy even day to day items on a credit card, generally live beyond my means and just rely on endless money printing, zirp and debt forgiveness to bail me out.

I really think it's time I joined the party rather than being the sad loser stood outside watching everyone have a great old time of it.

One of them types I know just got made redundant,

Maxed out on mortgage debt.

Should pick up a job no problem tho. ...paying half.

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HOLA4413

I know what you mean, I'm really struggling to justify to myself my current lifestyle of having a modest house, a 12 year old hatchback, savings in the bank and my idea of being extravagant is treating myself to a takeaway once a week.

Give me one good reason why I shouldn't spend all my savings on a much nicer houses, get a flash car on pcp, buy even day to day items on a credit card, generally live beyond my means and just rely on endless money printing, zirp and debt forgiveness to bail me out.

I really think it's time I joined the party rather than being the sad loser stood outside watching everyone have a great old time of it.

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HOLA4414

I have the same worry as others here. IR down == Massive HPI. Oh God (if there is any) when will this end????

OR

Is this a beginning of a new Norm???

Should I go and borrow maximum I can?

No because all the people buying all this tat will be selling on at a loss in a short time, for far less.

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HOLA4415

How long does it have to keep going till we conclude its not 'turning japanese' ... 8 years into the 'downturn' and house prices have done anything but crash / fall .. as another post mentioned .. UK hasnt yet seen the 0% initial IR on mortgages that will surely be thrown at the problem by the banks / powers that be .. you have to despair for the next generation. Have to urgently find a way to shift taxation from workers to rentiers (including pensioners) so that the burden on the working population is lessened

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HOLA4417

Until they don't.

Yeah but as already mentioned by someone earlier, if/when there is another economic crash just who will be the biggest losers?...

The mega wealthy?... No of course not, don't be silly.

The benefit claiming underclass?... Very unlikely, even under current austerity from a supposed 'right wing' Tory Government the benefit culture still appears to be flourishing.

The heavily indebted and over-leveraged?... I'm sure there will be more QE, ZIRP/NIRP and debt forgiveness to help them out of a pickle.

Or the sensible, cautious savers who live well within their means and hold cash savings, shares and company pensions... just ripe for a haircut.

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HOLA4419

How long does it have to keep going till we conclude its not 'turning japanese

So we haven't had zirp for 7 years. We don't have nil inflation. We aren't past cycle peak. Stock market isn't lower than 16 years ago etc etc?

Got it thanks.

Edited by Killer Bunny
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