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Would You Buy A House?

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Would ten percent be acceptable to you, ie £20k on the average house for ten years?

No capital gains tax if it is your PPR.

Or would you do better elsewhere?

Tell us your thoughts :D

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Would ten percent be acceptable to you, ie £20k on the average house for ten years?

No capital gains tax if it is your PPR.

Or would you do better elsewhere?

Tell us your thoughts :D

Bought my house in December 2005, quite happy for 0% HPI to be honest. Bought it as a home, not an investment.

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About to buy. Stagflation good by me - if prices crash by 20% in the next two years I'm going to be pretty annoyed (although happy for new FTBs) but we want to move sooner rather than later. It's a gamble we're prepared to take and a loss we're possibly going to have to stomach.

Edited by vicster

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Bought my house in December 2005, quite happy for 0% HPI to be honest. Bought it as a home, not an investment.

Interesting, and there are many like you, which makes a crash far less likely.

1% HPI per year is less than wage inflation, which means your house would become more affordable while still netting you 20k.

Gearing eh?

When will we get stock market "mortgages"?

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Interesting, and there are many like you, which makes a crash far less likely.

1% HPI per year is less than wage inflation, which means your house would become more affordable while still netting you 20k.

Gearing eh?

When will we get stock market "mortgages"?

The poll answer of choice is a forgone conclusion in my opinion, because it has given knowns as "Rummy" would say. Which are houseprices wont fall [ excluding inflation] with a 20K bonus at the end of it. Come on not many would take the renting option all things considered.

By the same token you could ask if the market was going to correct in the follwing 12 months at a rate of 20% would you still be prepared to buy now. Again the 20% correction is not up for dispute, it's a given.

Edit: of course many FTB'ers can not afford to buy Full Stop. Also if getting on "The Ladder" means bringing kids up in Chavs Ville would it be worth it?

Edited by Catch22

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Would ten percent be acceptable to you, ie £20k on the average house for ten years?

No capital gains tax if it is your PPR.

Or would you do better elsewhere?

Tell us your thoughts :D

Well it depends on what happen after those 10 years.

Let's assume a increase that follows inflation, then yes I buy, but in 10 years

TWT

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The poll answer of choice is a forgone conclusion in my opinion, because it has given knowns as "Rummy" would say. Which are houseprices wont fall [ excluding inflation] with a 20K bonus at the end of it. Come on not many would take the renting option all things considered.

By the same token you could ask if the market was going to correct in the follwing 12 months at a rate of 20% would you still be prepared to buy now. Again the 20% correction is not up for dispute, it's a given.

Edit: of course many FTB'ers can not afford to buy Full Stop. Also if getting on "The Ladder" means bringing kids up in Chavs Ville would it be worth it?

However 1% HPI per year is not a lot.

Renting is still cheaper than buying. Some of your 20k will be used up this way.

I was wondering at what point people thought buying a house was a good idea, compared to saving or investing the difference between rent and mortgage repayments.

So I dont agree that the result was a foregone conclusion and am surprised by the voting so far.

If you were to put your deposit of 20k into shares you would need to see growth of 100% over 10 years and then would be CGtaxed on the 20k you made, maybe that is what people are thinking.

Weve had all the "how much do you think prices will drop" polls before, I was wondering what people thought about stagflation.

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When will we get stock market "mortgages"?

you've been able to get them for ages, its called spreadbetting. No tax, you can place a stop loss, lower transaction costs and one hell of a lot more liquid to exit compared to property.

Still a geared £.25m 'bet' on the markets is a lot less acceptable in sheeple circles than 'investing' in btl bricks and mortar.

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Stagflation is the combination of high inflation and an economic slump and had never occurred till the 1973 oil crisis.(when the term was coined)...The effect of the higher irs would stall the housing market completely as it did in 73,,,,,,,but once the higher irs had subsided *(eg 1976) HPs would rise because of the newly-inflated incomes......

in other words the boom/bust cycle would be a lot shorter....

We are currently experiencing the opposite....

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This question offers the "well Ive got my house now - ****** everyone else attitude!!!" I know this is partly human nature but to be honest I want my house to DROP in value! I will be getting a 60% LTV mortgage I think, and I should be able to factor the drop.

If they dropeed then at least my future siblings should have a chance of getting a house. They cannot carry on going UP UP and away!!!

Shame on you all if you want HPI to continue!! You have gone against a lot of the principles of this site.

TB

(O) ok shoot me down now! But you know Im Right!

Edited by teddyboy

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This question offers the "well Ive got my house now - ****** everyone else attitude!!!" I know this is partly human nature but to be honest I want my house to DROP in value! I will be getting a 60% LTV mortgage I think, and I should be able to factor the drop.

If they dropeed then at least my future siblings should have a chance of getting a house. They cannot carry on going UP UP and away!!!

Shame on you all if you want HPI to continue!! You have gone against a lot of the principles of this site.

TB

(O) ok shoot me down now! But you know Im Right!

One Question TB, are you married? because I suspect not, and there in lies your answer. You would be a good man to stall the wife for 10 years if prices were not dropping in pound notes....forget all the other stuff .....men are from Mars etc . :ph34r:

bloody hell way past my bed time nite.

Edited by Catch22

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i wouldnt buy unless theres a correction.

i would rather enjoy 10 years of debt free living.

plus this a pointless discussion because IRs, inflation and the economy wont stay still for 10 years and i cant live on a theory. i live with real debt. real money or big mistakes.

possibly a 30-40% crash over next 2 years, THEN 10 years stagnation. thats more likely.

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I do hope you're right, Fred.......but i'm less confident of a crash than at any time in the last 4 years...

At my most bearish i was predicting 20% drops AND 20% wage inflation over say 5 years.....but now i'm predicting stagnation until incomes have risen 50%.........

Sounds pretty similar I know but ''money illusion'' is important in the psychology of sellers...

They wouldn't dream of selling for a 20% discount now but would quite happily sell for today's price in 5 years' time and this is why almost all booms end with price stagnation and a very slow market...In my area prices were level from 1988 -99 against a backdrop of 64% wage inflation

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you've been able to get them for ages, its called spreadbetting. No tax, you can place a stop loss, lower transaction costs and one hell of a lot more liquid to exit compared to property.

Still a geared £.25m 'bet' on the markets is a lot less acceptable in sheeple circles than 'investing' in btl bricks and mortar.

Another geared stockmarket investment is a margin loan, which has been around for even longer than spreadbetting.

http://en.wikipedia.org/wiki/Margin_%28finance%29

frugalista

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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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