ExeC Report post Posted March 23, 2006 Well, I've followed what a few other bears have done on this forum. After waiting and waiting, ive finally decided to make an offer which was accepted. As a first time buyer i was getting more and more fustrated with the high house prices, but over time I came to realise that there are other factors at work at the moment. The stupidly low interest rates are still making the higher house prices easier to swallow. Yes ive seen post after post after post for over a year now arguing the same point, i agree theyre overpriced. Ive been renting for 4 years, ive been paying the same amount each month in rent which I will now be paying to a full repayment mortgage. Ive gone for a 10 year fixed rate as i completely agree interest rates will be going up over the next few years. I just thought id post something different to the usual "Cut N Paste' Jobs about economists this or economists that, or spin this or spin that. I also think there is a lot of spin inside this forum, there are other factors which are holding prices up at the moment, which i agree leads to a lot of fustrations. After initially thinking there would be a 40% drop over the next few years, i honestly dont see prices dropping more than 10%, IF they even do that. I also suspect the trigger for this will happen once Interest rates start hitting 5.5 > 6%. And to be honest i really dont want to wait around for a couple more years renting to see what happens. I want to live and I want to have a place I can call my own and do what I want in. Im now moving from my third flimsey plasterboard new build house to a solid house, which has a warm feeling when you walk inside, the same feeling i had as a child when i lived with my parents in a home i called my own. Im not a bull, but I dont think im a bear now either. Quote Share this post Link to post Share on other sites
Raven Report post Posted March 23, 2006 Well done, for your sake I hope we here are wrong, but I don't think we are. Good idea, at least with a fixed rate you'll be able to whether the coming storm, assuming you stay in employment. Patients isn;t for everyone, hell I'm not a patient guy but I am forced to be because the only thing that would make me sadder than renting is spending all my money for the next 20 years on a place I don;t truly love in an area I hate (what I can afford now). I for one wish you luck, though I don;t agree. I also think there is a lot of spin inside this forum, there are other factors which are holding prices up at the moment, which i agree leads to a lot of fustrations. Can you expand on this please? Quote Share this post Link to post Share on other sites
munimula Report post Posted March 23, 2006 Well, I've followed what a few other bears have done on this forum. After waiting and waiting, ive finally decided to make an offer which was accepted. Congratulations, sounds like the right move for you. Can I ask whereabout you have bought and what you have bought? Quote Share this post Link to post Share on other sites
sign_of_the_times Report post Posted March 23, 2006 (edited) from Bear to Bull at the stroke of a Pen Im now moving from my third flimsey plasterboard new build house to a solid house, which has a warm feeling when you walk inside, the same feeling i had as a child when i lived with my parents in a home i called my own. stop, your chokin' me up.... in a home i called my own. it wasn't yours, it was theirs........or maybe the BANKS! Edited March 23, 2006 by sign_of_the_times Quote Share this post Link to post Share on other sites
ExeC Report post Posted March 23, 2006 Well i hope this threed doesnt turn into a bitchy argument, so far its nice to have the comments you guys have left so far. I just thought id post something different, We are just normal people, I have hawkish thoughts on the economy, but we only live for so long. Oppertunitys will arise in the future for me again, cycles come and go. I may be back in 4 years time telling you guys how right you were Quote Share this post Link to post Share on other sites
Time to raise the rents. Report post Posted March 23, 2006 Well, I've followed what a few other bears have done on this forum. After waiting and waiting, ive finally decided to make an offer which was accepted. As a first time buyer i was getting more and more fustrated with the high house prices, but over time I came to realise that there are other factors at work at the moment. The stupidly low interest rates are still making the higher house prices easier to swallow. Yes ive seen post after post after post for over a year now arguing the same point, i agree theyre overpriced. Ive been renting for 4 years, ive been paying the same amount each month in rent which I will now be paying to a full repayment mortgage. Ive gone for a 10 year fixed rate as i completely agree interest rates will be going up over the next few years. I just thought id post something different to the usual "Cut N Paste' Jobs about economists this or economists that, or spin this or spin that. I also think there is a lot of spin inside this forum, there are other factors which are holding prices up at the moment, which i agree leads to a lot of fustrations. After initially thinking there would be a 40% drop over the next few years, i honestly dont see prices dropping more than 10%, IF they even do that. I also suspect the trigger for this will happen once Interest rates start hitting 5.5 > 6%. And to be honest i really dont want to wait around for a couple more years renting to see what happens. I want to live and I want to have a place I can call my own and do what I want in. Im now moving from my third flimsey plasterboard new build house to a solid house, which has a warm feeling when you walk inside, the same feeling i had as a child when i lived with my parents in a home i called my own. Im not a bull, but I dont think im a bear now either. Go for it you big bear turned bull you! Please, none of the I'm really a bear BS. You have decided there is no notable downside risk to you if you buy, that means you only acknowledge there was a downside risk if you stayed a tenant. Welcome to the other side of the argument. Quote Share this post Link to post Share on other sites
OzzMosiz Report post Posted March 23, 2006 ExeC - remember to keep saving if possible too. Then you have something to fall back on. Quote Share this post Link to post Share on other sites
ExeC Report post Posted March 23, 2006 Go for it you big bear turned bull you! Please, none of the I'm really a bear BS. You have decided there is no notable downside risk to you if you buy, that means you only acknowledge there was a downside risk if you stayed a tenant. Welcome to the other side of the argument. I honestly believe im making this move with the expectation of making a loss over the next couple of years. I just feel i was making more of a loss renting. The one idea which ive had though is with this 10 year fixed, i know in 10 years time the monthy payment im making for my mortgage will seem like peanuts(?) Or am i wrong in this thinking ? Quote Share this post Link to post Share on other sites
Guest Fiddlesticks Report post Posted March 23, 2006 Congratulations ExeC, and thanks for posting it here. It sounds like a well-thought-through decision. For all the bluster and declarations of certainty none of us really know what is going to happen and the best any of us can do is to take a view as to the likely course of events, anticipate the possible downsides, make our plans accordingly and keep our fingers crossed. Quote Share this post Link to post Share on other sites
OzzMosiz Report post Posted March 23, 2006 I honestly believe im making this move with the expectation of making a loss over the next couple of years. I just feel i was making more of a loss renting. The one idea which ive had though is with this 10 year fixed, i know in 10 years time the monthy payment im making for my mortgage will seem like peanuts(?) Or am i wrong in this thinking ? You *Might* be wrong in assuming this. Just depends on wage inflation doesn't it! Quote Share this post Link to post Share on other sites
Given Up Report post Posted March 23, 2006 Sometimes, you just have to get on with life. We are moving, maybe not the best time but only time will tell. Quote Share this post Link to post Share on other sites
munimula Report post Posted March 23, 2006 I honestly believe im making this move with the expectation of making a loss over the next couple of years. I just feel i was making more of a loss renting. The one idea which ive had though is with this 10 year fixed, i know in 10 years time the monthy payment im making for my mortgage will seem like peanuts(?) Or am i wrong in this thinking ? Why do you think that? The mortgage payments will be the same as today won't they? And with low inflation environment they will probably feel the same unless you are expecting large increase in wages above inflation? Quote Share this post Link to post Share on other sites
ExeC Report post Posted March 23, 2006 Thats just the thing, Everythings speculation... The bears are fighting a war against the bulls in what might happen. And living your life (over years and years) basing something on a speculative outcome is really really stressfull. I think its time to do something which makes me happy. Whats the worst that could happen, bankrupcy ? I dont see why anyone should be worried about that under gordon brown. Quote Share this post Link to post Share on other sites
Time to raise the rents. Report post Posted March 23, 2006 I honestly believe im making this move with the expectation of making a loss over the next couple of years. I just feel i was making more of a loss renting. The one idea which ive had though is with this 10 year fixed, i know in 10 years time the monthy payment im making for my mortgage will seem like peanuts(?) Or am i wrong in this thinking ? I can't say I agree with the 10 year fix (at what rate I don't know either), but if that's what you needed, fair enough. But are there penalties for exiting the loan within the 10 years, or penalties that trail off after just a few years? Quote Share this post Link to post Share on other sites
Crashbunny Report post Posted March 23, 2006 I've done the same and am in the middle of the purchase with a 10-year fix. The market can stay irrational longer than I can stand renting and being messed around by landlords and agencies. There does come a point where you think God I'm spending my life waiting I need to focus on achieving other things than a house bargain. Sure it could all end horrendously and I don't regret that I STR in 2003 but sod it, I need a home. Quote Share this post Link to post Share on other sites
ExeC Report post Posted March 23, 2006 Why do you think that? The mortgage payments will be the same as today won't they? And with low inflation environment they will probably feel the same unless you are expecting large increase in wages above inflation? But the payments will be the same in year 1 as in year 8, im certainly expecting my wages to be higher in 8 years. Quote Share this post Link to post Share on other sites
aussieboy Report post Posted March 23, 2006 Well, I've followed what a few other bears have done on this forum. After waiting and waiting, ive finally decided to make an offer which was accepted. As a first time buyer i was getting more and more fustrated with the high house prices, but over time I came to realise that there are other factors at work at the moment. The stupidly low interest rates are still making the higher house prices easier to swallow. Yes ive seen post after post after post for over a year now arguing the same point, i agree theyre overpriced. Ive been renting for 4 years, ive been paying the same amount each month in rent which I will now be paying to a full repayment mortgage. Ive gone for a 10 year fixed rate as i completely agree interest rates will be going up over the next few years. I just thought id post something different to the usual "Cut N Paste' Jobs about economists this or economists that, or spin this or spin that. I also think there is a lot of spin inside this forum, there are other factors which are holding prices up at the moment, which i agree leads to a lot of fustrations. After initially thinking there would be a 40% drop over the next few years, i honestly dont see prices dropping more than 10%, IF they even do that. I also suspect the trigger for this will happen once Interest rates start hitting 5.5 > 6%. And to be honest i really dont want to wait around for a couple more years renting to see what happens. I want to live and I want to have a place I can call my own and do what I want in. Im now moving from my third flimsey plasterboard new build house to a solid house, which has a warm feeling when you walk inside, the same feeling i had as a child when i lived with my parents in a home i called my own. Im not a bull, but I dont think im a bear now either. Similar position myself. There's only so often that you can put in a derisory offer before all the of the estate agents in the area you're looking at stop taking you seriously. Eventually, the price is the price and when houses you like continually sell over the course of 18 months you have to take a view. I still think that certain parts of the UK are ripe for a big fall. Newcastle springs to mind. Quote Share this post Link to post Share on other sites
ExeC Report post Posted March 23, 2006 I can't say I agree with the 10 year fix (at what rate I don't know either), but if that's what you needed, fair enough. But are there penalties for exiting the loan within the 10 years, or penalties that trail off after just a few years? Yea, im visiting the broker tonight ive got 2 options ive been looking at. 4.99% Fixed for 10 years, and your tied in for 10 years. 3% penalty. or theres an alliance and leicester 5 year fixed @ 4.84% same penalty i think. im still stuck on the decision, being honest the extra % doesnt bother me too much, its more about security at this early stage. Quote Share this post Link to post Share on other sites
munimula Report post Posted March 23, 2006 But the payments will be the same in year 1 as in year 8, im certainly expecting my wages to be higher in 8 years. If your wages go up then of course it would feel cheaper. Unless of course at that point you have other costs, children etc - then it might not. Just remember that UK average wages went down last year for the 1st time, it isn't necessary for companies to give above inflation wage increases and with inflation at only 2% your wages might not feel much bigger in 10 years time unless you expect above inflation increases Quote Share this post Link to post Share on other sites
ryanjw Report post Posted March 23, 2006 (edited) I dont understand the way the early redemption penaltys work. Yorkshire building society says the following on their site 5% before 31/05/07, then 4% before 31/05/10, then 3% before 31/05/13, then 2% before 31/05/16 If the product is repaid in full or in part, or transferred (in full or in part), an early repayment charge is payable as described above. However, overpayments (monthly or lump sum) up to a total of 10% of the outstanding loan per year are allowed without charge. Any amount repaid over the 10% limit will incur a charge of the percentage specified on the excess amount I dont get it. Can someone explain to me how much you are allowed to pay yearly without charge Edited March 23, 2006 by ryanjw Quote Share this post Link to post Share on other sites
E Powell Report post Posted March 23, 2006 ExeC As you are aware I run several baliff companies. I hope I dont have to throw you out of your house. All the best with your decision. Quote Share this post Link to post Share on other sites
ExeC Report post Posted March 23, 2006 ExeC As you are aware I run several baliff companies. I hope I dont have to throw you out of your house. All the best with your decision. What happens if your late with your payments ? do you evict yourself ? Quote Share this post Link to post Share on other sites
OzzMosiz Report post Posted March 23, 2006 I dont understand the way the early redemption penaltys work. Yorkshire building society says the following on their site 5% before 31/05/07, then 4% before 31/05/10, then 3% before 31/05/13, then 2% before 31/05/16 If the product is repaid in full or in part, or transferred (in full or in part), an early repayment charge is payable as described above. However, overpayments (monthly or lump sum) up to a total of 10% of the outstanding loan per year are allowed without charge. Any amount repaid over the 10% limit will incur a charge of the percentage specified on the excess amount I dont get it. Can someone explain to me how much you are allowed to pay yearly without charge err mortgage payment for the year + 10% of total outstanding loan!!! Quote Share this post Link to post Share on other sites
Guest DisposableHeroes Report post Posted March 23, 2006 10 year fixed low IR, if you’re not over stretching yourself. Congratulations :-) People having variable interest only mortgage I would obviously say our mad, with historicall low interest rate. Quote Share this post Link to post Share on other sites
Oxford Howler Report post Posted March 23, 2006 ExeC - did you offer the asking price? Quote Share this post Link to post Share on other sites
