shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 Don’t get me wrong I held off for years waiting for a crash. There were a few times it might of happened. Covid has been a massive black swan and it’s really highlighted how house prices are now not allowed to fall. the whole housing market is insane. but if you can’t beat them might as well join them. they are hell bent on inflation, one day they will stoke enough of it to wipe out debts and then start to return to some normality without the debt loads to create new lending and growth. they need to create an inflation storm, they need to rebuild better. What part of the country are you looking to buy in, and how has HPI panned out their? Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted December 28, 2020 Share Posted December 28, 2020 What part of the country are you looking to buy in, and how has HPI panned out their? I bought end of 2018. I won’t say where but prices locally are not Influenced by the south-east. My house is up about 10% since 2018 just due to inflation and HPI but I also installed central heating myself and a brand new bathroom myself, and done a LOT of DIY to the point it’s been a second job. so not sure what that would do to the value, probably a 1.5 return on what it cost to do the DIY to the value of the house but that’s with my free labour so I might as well worked a second job and paid someone else to do it instead. maybe it’s up about 15-20% since buying, so it real terms the value of the mortgage has been eroded away by Inflation by say 18% in two years, and my pay has also gone up maybe 10% in that time also. I also think inflation is policy now, and we could be in for a huge wave of inflation so just like the boomers we could all have the value of our debt eroded away very quickly, so far it is playing out that way. I would say London it’s probably not gone that way, as the exodus and the excess of flats could mean real term drops in value of the asset, and real negative equity for years. in that situation I would feel pretty sick as a dog if I bought in London. but also bear in mind those that control the central bank, and government policy also live in London. so I fully expect inflation to be high enough to even bail out those in London. Quote Link to comment Share on other sites More sharing options...
shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 I bought end of 2018. I won’t say where but prices locally are not Influenced by the south-east. My house is up about 10% since 2018 just due to inflation and HPI but I also installed central heating myself and a brand new bathroom myself, and done a LOT of DIY to the point it’s been a second job. so not sure what that would do to the value, probably a 1.5 return on what it cost to do the DIY to the value of the house but that’s with my free labour so I might as well worked a second job and paid someone else to do it instead. maybe it’s up about 15-20% since buying, so it real terms the value of the mortgage has been eroded away by Inflation by say 18% in two years, and my pay has also gone up maybe 10% in that time also. I also think inflation is policy now, and we could be in for a huge wave of inflation so just like the boomers we could all have the value of our debt eroded away very quickly, so far it is playing out that way. I would say London it’s probably not gone that way, as the exodus and the excess of flats could mean real term drops in value of the asset, and real negative equity for years. in that situation I would feel pretty sick as a dog if I bought in London. but also bear in mind those that control the central bank, and government policy also live in London. so I fully expect inflation to be high enough to even bail out those in London. Congratulations, just of interest why did you take so long to buy? Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted December 28, 2020 Share Posted December 28, 2020 Congratulations, just of interest why did you take so long to buy? wanted to save the 30% mortgage deposit, and it took a while on a house which could be a ‘forever house’, also took a little while to find a ‘keeper’ partner. I always wanted a home, but I didn’t want to be ripped off either by high interest rates due to a low LTV or by buying a virtually worthless new build. I was hoping to be able to accelerate the moment to reaching 30% deposit via a crash, but in the end it was like two steps forward one step back saving a deposit during HPI I had to go to extreme measures to be able to save seriously hard, hard enough to save far ahead of HPI the type of card I commuted in, moving to a part of the country I had no ties, restarting my life elsewhere, endless overtime weekends and evenings. if I was going to buy and take on a mortgage I sure as hell was not going to spend the rest of my life paying it off. sometimes you have to front load the pain with a big deposit, but realistically for a lot of the UK like the south-east it’s not a realistic option. Quote Link to comment Share on other sites More sharing options...
shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 wanted to save the 30% mortgage deposit, and it took a while on a house which could be a ‘forever house’, also took a little while to find a ‘keeper’ partner. I always wanted a home, but I didn’t want to be ripped off either by high interest rates due to a low LTV or by buying a virtually worthless new build. I was hoping to be able to accelerate the moment to reaching 30% deposit via a crash, but in the end it was like two steps forward one step back saving a deposit during HPI I had to go to extreme measures to be able to save seriously hard, hard enough to save far ahead of HPI the type of card I commuted in, moving to a part of the country I had no ties, restarting my life elsewhere, endless overtime weekends and evenings. if I was going to buy and take on a mortgage I sure as hell was not going to spend the rest of my life paying it off. sometimes you have to front load the pain with a big deposit, but realistically for a lot of the UK like the south-east it’s not a realistic option. Why do people your age look at the price, and not the repayment number. Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted December 28, 2020 Share Posted December 28, 2020 Why do people your age look at the price, and not the repayment number. because the numbers are nuts. it’s hard to comprehend the numbers. people just see a home. hardly anyone actually buys with a plan, it’s just a monthly repayment, for most it’s normal the idea of never paying it off, it’s not even on the radar. we are the first generation who couldn’t afford the basics in life, so most feel forced to buy things on finance, so life is just about monthly payments, and if your buying cars on finance why not get a BMW instead of a Vauxhall? im not usual on how much I pay per month, probably 5x more on the mortgage per month than what most my age pays, the mortgage company wouldn’t let me take a shorter mortgage than 15 years given what they thought I could afford, but I’m overpaying on top of my mortgage, that’s not typical. brainwashing I guess, lack of financial planning, having boomer parents who never needed to understand economics as they lived easy lives so never taught their children. Quote Link to comment Share on other sites More sharing options...
shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 because the numbers are nuts. it’s hard to comprehend the numbers. people just see a home. hardly anyone actually buys with a plan, it’s just a monthly repayment, for most it’s normal the idea of never paying it off, it’s not even on the radar. we are the first generation who couldn’t afford the basics in life, so most feel forced to buy things on finance, so life is just about monthly payments, and if your buying cars on finance why not get a BMW instead of a Vauxhall? im not usual on how much I pay per month, probably 5x more on the mortgage per month than what most my age pays, the mortgage company wouldn’t let me take a shorter mortgage than 15 years given what they thought I could afford, but I’m overpaying on top of my mortgage, that’s not typical. brainwashing I guess, lack of financial planning, having boomer parents who never needed to understand economics as they lived easy lives so never taught their children. I am generation jones, we had it tough as well, at one point we had 15% interest rates, how much do you pay per month? Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted December 28, 2020 Share Posted December 28, 2020 I am generation jones, we had it tough as well, at one point we had 15% interest rates, how much do you pay per month? I pay more than half my wage on the mortgage each month, it’s basically my partners full wage to pay it. Think yourself lucky! Better to be in generation Jones than a millennial, even worse for whatever the new generation is. Quote Link to comment Share on other sites More sharing options...
shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 I pay more than half my wage on the mortgage each month, it’s basically my partners full wage to pay it. Think yourself lucky! Better to be in generation Jones than a millennial, even worse for whatever the new generation is. I do not understand, are you saying you earn double your partner. Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted December 28, 2020 Share Posted December 28, 2020 I do not understand, are you saying you earn double your partner. Yes give or take. so our combined income 1/3 of it goes on the mortgage, rest on bills or DIY. once we have done with the DIY probably half our combined income straight on the mortgage. Want to be mortgage free by 40 and that’s without expecting any of my other investments to pay off. Quote Link to comment Share on other sites More sharing options...
shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 Yes give or take. so our combined income 1/3 of it goes on the mortgage, rest on bills or DIY. once we have done with the DIY probably half our combined income straight on the mortgage. Want to be mortgage free by 40 and that’s without expecting any of my other investments to pay off. How old are you now? Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted December 28, 2020 Share Posted December 28, 2020 How old are you now? somewhere between. Late 20’s early 30’s want my mother’s maiden name also? haha Quote Link to comment Share on other sites More sharing options...
shlomo Posted December 28, 2020 Author Share Posted December 28, 2020 somewhere between. Late 20’s early 30’s want my mother’s maiden name also? haha I have worked out you are the Alpha in the relationship Quote Link to comment Share on other sites More sharing options...
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