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roblpm

Increased Growth Vs Increased Interest Rates

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So growth is up, interest rates too by the looks of things!

Does this mean:

Everyone is proportionally better off thus propping up house prices?

Or

Interest rate rise causes house price falls?

Or

Do they balance each other out??

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So growth is up, interest rates too by the looks of things!

Does this mean:

Everyone is proportionally better off thus propping up house prices?

Or

Interest rate rise causes house price falls?

Or

Do they balance each other out??

The clue is in 'What happened last time when IRs went up'

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0.25 % - is not likely to make much of a difference – 1% upwards HPC but the bank will not do it – in my opinion if they do go up 0.25% that will be all and it will just stagnate the market / no crash

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0.25 % - is not likely to make much of a difference – 1% upwards HPC but the bank will not do it – in my opinion if they do go up 0.25% that will be all and it will just stagnate the market / no crash

Remember we are talking about a speculative market. There's too much speculation going on in the property market world over and not only here in the UK. In speculative markets sentiments make a hell lot of difference. It's not IR but the sentiments which will make the market crash this time.

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in a word no

BTLers can't put up rents but their mortgage repayments increase

Contrary to popular belief even a .25% rise will shatter confidence as most homeowners still think rates are going down.

Don't forget what happened when rates were 4.75%

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Remember we are talking about a speculative market. There's too much speculation going on in the property market world over and not only here in the UK. In speculative markets sentiments make a hell lot of difference. It's not IR but the sentiments which will make the market crash this time.

Sentiments would have made the market crash last year when there were price drops – we are seeing a recovery and while prices are staying the same or going up there will be no HPC – only when people lose money will the panic start then HPC. At the moment landlords are making money not losing money – these are the people who are speculative investors and they are the most likely to panic

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Sentiments would have made the market crash last year when there were price drops – we are seeing a recovery and while prices are staying the same or going up there will be no HPC – only when people lose money will the panic start then HPC. At the moment landlords are making money not losing money – these are the people who are speculative investors and they are the most likely to panic

Part agree part disagree! BTL Investors who bought prior to 2003 are still OK. Those that have bought since are not. I own two BTL'S bought nerly 10 years ago (cash) and (obviously) yield over 10% net.

Last year I STR'd and now rent a flat purchsed (newbuild) in mid 2004.The landlord gets a yield of 3% net and the flats are reselling less than the original purchase prices, so any decline in the market and they'll have serious problems!

What I do believe might start a "crash" is the what's going to happen in Ireland. The bubbles much bigger than it is here. IR's are going up and very shortly the Homeowners with large mortgages will be well and truly stuffed - bad news travels fast! Watch UK prices drop dramaticaly next year! :rolleyes:

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  • 343 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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