Jump to content
House Price Crash Forum

Recommended Posts

Just been lectured by a friend about buing a house. I try not to get into a discussion about house prices with friends as I don't want to get into an argument, but couldn't help myself. The usual 'renting is money down the drain', how much money have you paid over the years in rent etc. He was obviously trying to push us into buying. He even suggested we should lie about our income, do a self cert, IO mortage etc etc.or buy a cheap (cheap in Cornwall???) BTL hovel to rent out (I despair!!). Just to makes things worse he quips 'I'm going to take out a IO mortagate to the max, everone does it. When prices rise by so many 10's of thousands pounds I'll be so much better off etc etc ad nauseum.

What makes things worse is this friend used to be an EA years ago, during the early nineties recession and clearly can't remember how different it was then. His branch actually closed down during the last downturn, but he cannot believe house prices will not keep on rising forever! (or interest rates going up).

ARGHHHH... :angry: Sorry about the rant!

Share this post


Link to post
Share on other sites

Just been lectured by a friend about buing a house. I try not to get into a discussion about house prices with friends as I don't want to get into an argument, but couldn't help myself. The usual 'renting is money down the drain', how much money have you paid over the years in rent etc. He was obviously trying to push us into buying. He even suggested we should lie about our income, do a self cert, IO mortage etc etc.or buy a cheap (cheap in Cornwall???) BTL hovel to rent out (I despair!!). Just to makes things worse he quips 'I'm going to take out a IO mortagate to the max, everone does it. When prices rise by so many 10's of thousands pounds I'll be so much better off etc etc ad nauseum.

What makes things worse is this friend used to be an EA years ago, during the early nineties recession and clearly can't remember how different it was then. His branch actually closed down during the last downturn, but he cannot believe house prices will not keep on rising forever! (or interest rates going up).

ARGHHHH... :angry: Sorry about the rant!

Phew------he certainly knows his stuff!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!NOT

Share this post


Link to post
Share on other sites
Guest giove

<_<

well your friend might have a point there. I have been renting for the last 12 years and on an average of 80pounds a week I have spent nearly 40 to 60 K in renting.

I am not saying that is good to take a 100% mortage or overstretch your finance but my question is , " is it still possible to make a small investment and not having to waste all this money on rent"

I am trying to buy a studio flat and I would be happy with living there for 4/5 years and then selling it and get exactly the money I put in, not a penny more....wouldn't that be better then renting?

anti.

Share this post


Link to post
Share on other sites

Unfortunately sheeple think that property only goes up - Which it does in the long-term. The banks will be the ones that will stop all this bullishness - when he tries to get a MAXIMUM I/O mortgage. I always say to people that I will take my chances! Every month I save means I will be getting a smaller mortgage, therefore finishing my mortgage sooner.

If I was to save for another 5 years in my current circumstances (living with parents) then me and my partner could buy CASH and have no mortgage.

I'm 38 so I could wait and have a lovely 3 bed semi at 43 WITH NO MORTGAGE!!! All the people around me have a mortgage of 15 years or more!!

That normally shuts them up :)

TB

Share this post


Link to post
Share on other sites

What makes things worse is this friend used to be an EA years ago, during the early nineties recession and clearly can't remember how different it was then.

I have a relative who is a EA and in the last crash, their place was repo'd and when it was eventually sold (less 66% of the 1989 value) they spent years avoiding the debt collectors

Now they seem to have forgotten that and now believe 'property prices always go up'

My advice - stay away from HPC conversations with family and friends

Share this post


Link to post
Share on other sites

Wishful Thinking

Nil desperandum

I was in the EA's in SW Cornwall last week ( I go in occasionally just to see what's going on)

The scene was very different from that of 12 months ago where they were all SMUG and gloating that "Cornwall is different" and "prices will never go down"

I overheard a conversation where the EA was trying to persuade a vendor to accept an offer much lower than she wanted - he didn't manage it - the EA's then had an open conversation (with me and others in the office) stating she will have to accept 20k or 30k less if she is to have a chance of selling !!! very unprofessional tones and behaviour

They are getting desperate - a million miles from the smug behaviour of last year

The time is drawing nearer

CS

Share this post


Link to post
Share on other sites

<_<

well your friend might have a point there. I have been renting for the last 12 years and on an average of 80pounds a week I have spent nearly 40 to 60 K in renting.

I am not saying that is good to take a 100% mortage or overstretch your finance but my question is , " is it still possible to make a small investment and not having to waste all this money on rent"

I am trying to buy a studio flat and I would be happy with living there for 4/5 years and then selling it and get exactly the money I put in, not a penny more....wouldn't that be better then renting?

anti.

It depends on whether the buying/selling costs plus the interest you pay on the mortgage plus maintenance and insurance is less than the rent would have been . Plus the stress of selling which can be tremendous .

Share this post


Link to post
Share on other sites

It depends on whether the buying/selling costs plus the interest you pay on the mortgage plus maintenance and insurance is less than the rent would have been . Plus the stress of selling which can be tremendous .

I get fed up hearing the mantra rent is dead money, moronic people spout this without knowing peoples circumstances, are they of the opinion that money grows on trees, and banks just give it to you free gratis?. I rent at the moment, the interest I recieve on my money is somewhat greater than the rent I pay for a five bedroom house. However I'm not getting the benefit of rapidly rising house prices ;)

Edited by otters

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.