Rachman Posted May 9, 2006 Share Posted May 9, 2006 Sorry, I think you are missing the point. There are many frugal people on this board who don't like the thought of throwing money away when it can be avoided in a few years time. £40 isn't a paltry amount, neither did anyone say it was the difference between affording a house or not, £40 saved a week or into a pension can only be a good thing. No, I do get that, but the way people present it, they seem to be thinking that if there's a HPC, they will be rolling in it. £40 is a lot money, as you say, it's a fat lump into your pension (or an Ipod every month..... ) - I just don't see that a HPC will save people the kind of money they seem to think they will. Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted May 9, 2006 Share Posted May 9, 2006 No, I do get that, but the way people present it, they seem to be thinking that if there's a HPC, they will be rolling in it. £40 is a lot money, as you say, it's a fat lump into your pension (or an Ipod every month..... ) - I just don't see that a HPC will save people the kind of money they seem to think they will. Some of it is about risk. If interest rates are high, and house prices have crashed then there is more change of interest rates falling and house prices rising over the medium term. At the moment people are buying on the assumption that current trends are going to continue forever. 6x income might be fine at the moment, but what happens in 5 years time when your fixed rate has come to an end, interest rates are at 8% and your job is being done by someone in Bangalore? Quote Link to comment Share on other sites More sharing options...
Rachman Posted May 9, 2006 Share Posted May 9, 2006 Some of it is about risk. If interest rates are high, and house prices have crashed then there is more change of interest rates falling and house prices rising over the medium term. At the moment people are buying on the assumption that current trends are going to continue forever. 6x income might be fine at the moment, but what happens in 5 years time when your fixed rate has come to an end, interest rates are at 8% and your job is being done by someone in Bangalore? I agree with that sentiment, being on the ladder, I am paying my debt down for that very reason, though if peope in Bangalore can do my job, I really am screwed... - I have to say if I were not on the ladder, I would be sat banging out low offers at sellers speculatively to see who cracks. Quote Link to comment Share on other sites More sharing options...
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