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beenhearingthisforyears

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Today, 5:40 PM

maxp

Joined on 30 Apr 2005

North West

Posts 82

.. should I really be bothered where house prices go ..

From Singing pig: start quote

"This may seem like a silly question, but forgive me as I am a relative novice when it come to owning my home (bought it about 10 months ago), I am not wealthy enough to have a BTL, so I just have my own home and that’s the only asset other than my cash savings and oh I guess my car! I’ve got a repayment mortgage, which is bringing the balance down every month. So why should I actually be bothered if prices go UP or down? I am not planning to move soon, and if I move I assume whichever way house prices go they will go the same way where I live (I’m not likely to want to move out of my area) so as long as I repay the mortgage and therefore avoid landing in neg equity in the unlikely event that prices fall here, what’s wrong with a bigger place that I might want to move to, dropping in price too? If prices rise then they all rise together, so what would be the advantage?

Should I become a bear instead and start hoping for gentle falls so I can afford that bigger house sooner rather than later?" end quote

****please note: not my post , but interesting to see a different take on the subject.

Edited by beenhearingthisforyears

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I'm not sure this is a new take to be honest.

But it is good to see that some FTB's are weighing up the options carefuly (at least I hope that this person did so before buying, and not because they are now worried).

If they have bought a place that they can live in, raise a family in (assuming they want to) and not move until the mortgage is paid off - then it might work out (I remember a thread on here where somebody actually did the calculations).

... So why should I actually be bothered if prices go UP or down? ...

... If prices rise then they all rise together, so what would be the advantage? ...

That's what existing owners need to realise.

so as long as I repay the mortgage and therefore avoid landing in neg equity

How can he guarantee that his repayments will be enough to avoid that?

There is no such thing as a 'property ladder' - so this approach only makes sense if they stay in the property until the mortgage is paid off (or if they are bullish, which they imply).

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Guest muttley

He's basically saying he can afford his mortgage and so long as nothing changes he'll be alright.Which is true,I suppose.

He seems to think that as long as he pays his mortgage then he can't go into negative equity!!

HPC fodder,IMHO.

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Today, 5:40 PM

maxp

Joined on 30 Apr 2005

North West

Posts 82

.. should I really be bothered where house prices go ..

From Singing pig: start quote

"This may seem like a silly question, but forgive me as I am a relative novice when it come to owning my home (bought it about 10 months ago), I am not wealthy enough to have a BTL, so I just have my own home and that’s the only asset other than my cash savings and oh I guess my car! I’ve got a repayment mortgage, which is bringing the balance down every month. So why should I actually be bothered if prices go UP or down? I am not planning to move soon, and if I move I assume whichever way house prices go they will go the same way where I live (I’m not likely to want to move out of my area) so as long as I repay the mortgage and therefore avoid landing in neg equity in the unlikely event that prices fall here, what’s wrong with a bigger place that I might want to move to, dropping in price too? If prices rise then they all rise together, so what would be the advantage?

Should I become a bear instead and start hoping for gentle falls so I can afford that bigger house sooner rather than later?" end quote

****please note: not my post , but interesting to see a different take on the subject.

You've been taken for a fool Beenhearingthisforyears. The guy is a liar. He's bought and sold property before and has a ton of savings from STRing his previous home. It seems that some bulls have now turned to outright lies in order to argue against a housepricecrash.

I have told him as much in my reply.

:angry:

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  • 301 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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