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Flat Bear

Why It Is Better To Buy Now Than Rent

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A bullish argument written by a bear, for the sake of balance.

There has been too many very poor recent Bullish arguments, so I have put together a few Bullish points.

Affordability

There is a large proportion of the UK population deciding to “wait it out”, although able to afford to buy property easily, just take the earnings of most posters on this forum, very few are actually “priced out”. Earnings over £35k is not seen as high, as remarked by a number of bearish posters.

Security of tenure and tenancy inconvenience

Because of the introduction of the Assured shorthold tenancy agreement (almost 100% of current letting agreements) tenant’s security of tenure and condition of tenure, have been greatly compromised. Property can be repossessed within 2 months irrespective of anything.

No changes can be made to property and imposing regular inspections can be expected.

Deposits at termination are often delayed, and deductions or retention of deposit can be expected for the most insignificant thing. The onus of proof, involving dilapidations/inventory items, being with the tenant.

Tenants are at the whim of their landlord and the importance of a stable home/address for many can not be over emphasised.

Living conditions

With many BTLers seeing themselves as “investors” and not as running a business no thought is put into the tenants comfort or wellbeing as they are seen as a commodity ripe for exploitation. As BTL costs rise they will be even more reluctant to replace/repair that fridge/washing machine etc etc. Again you are at the mercy of your Landlord.

Supply/Demand and Immigration

The UK government have undertaken a massive immigration commitment, with London alone set to grow by the size of Leeds within the next decade. This will create an acute supply of especially lower rental accommodation, which in turn will support rises in the higher rental sectors.

BTL will try and make up this shortfall, but there still will simply not be enough new homes available so prices will rise.

This demand will effect land prices as more developments are earmarked and more land is required for other infrastructural uses, which in turn will push up general inflation sharply.

Inflation

The world is coming out of a long deflationary period with Japan leading the way. As interest rates rise very slowly and the world economies rebalance inflation will once again be a major factor making todays property prices and mortgages seem tiny in comparison with future figures.

Government Intervention

As the UK benefit system grows more government money will be diverted to propping up the property market.

Housing benefit will become a larger proportion of government expense, with higher proportion of revenues passing on to subsidize housing associations and other government “initiatives” .

Hum I wonder? :unsure:

Sensible counter arguments welcome

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A bullish argument written by a bear, for the sake of balance.

There has been too many very poor recent Bullish arguments, so I have put together a few Bullish points.

Affordability

There is a large proportion of the UK population deciding to “wait it out”, although able to afford to buy property easily, just take the earnings of most posters on this forum, very few are actually “priced out”. Earnings over £35k is not seen as high, as remarked by a number of bearish posters.

Larger or smaller than the proportion of the population who will see prices going down and will become scared to buy property? And, when will these people come back into the market. When it only just starts falling, or will they be holding on until they're fairly sure that it has bottomed out?

What proportion of the population earns over £35K?

Security of tenure and tenancy inconvenience

Because of the introduction of the Assured shorthold tenancy agreement (almost 100% of current letting agreements) tenant’s security of tenure and condition of tenure, have been greatly compromised. Property can be repossessed within 2 months irrespective of anything.

No changes can be made to property and imposing regular inspections can be expected.

Deposits at termination are often delayed, and deductions or retention of deposit can be expected for the most insignificant thing. The onus of proof, involving dilapidations/inventory items, being with the tenant.

Tenants are at the whim of their landlord and the importance of a stable home/address for many can not be over emphasised.

People who stretch themselves too far will be at the mercy of interest rates, their employers, and so on. Would you say that in the current climate it's easier, on average, for people to find new good paying jobs, or rental accomodation?

Living conditions

With many BTLers seeing themselves as “investors” and not as running a business no thought is put into the tenants comfort or wellbeing as they are seen as a commodity ripe for exploitation. As BTL costs rise they will be even more reluctant to replace/repair that fridge/washing machine etc etc. Again you are at the mercy of your Landlord.

Unless of course there is a buyer's market in the rental sector. Look at all the property porn programs going on about making sure you have the "right" kitchen to attract the kind of tenants you want.

Supply/Demand and Immigration

The UK government have undertaken a massive immigration commitment, with London alone set to grow by the size of Leeds within the next decade. This will create an acute supply of especially lower rental accommodation, which in turn will support rises in the higher rental sectors.

BTL will try and make up this shortfall, but there still will simply not be enough new homes available so prices will rise.

This demand will effect land prices as more developments are earmarked and more land is required for other infrastructural uses, which in turn will push up general inflation sharply.

Are there more or fewer houses per head of population than there were a few years ago before the boom?

Inflation

The world is coming out of a long deflationary period with Japan leading the way. As interest rates rise very slowly and the world economies rebalance inflation will once again be a major factor making todays property prices and mortgages seem tiny in comparison with future figures.

Which will really, really, help those people who stretched themselves to the limit to buy and then lost their house when interest rates went up.

Government Intervention

As the UK benefit system grows more government money will be diverted to propping up the property market.

Housing benefit will become a larger proportion of government expense, with higher proportion of revenues passing on to subsidize housing associations and other government “initiatives” .

Hum I wonder? :unsure:

Sensible counter arguments welcome

I've joked about 10p on the pound so that the government can prop up the housing market. But, will this really happen? Can the government afford to do enough to really make a difference. The key worker shared ownership scheme was meant to be the government propping up the housing market, and look what happened there.

Billy Shears

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A good post and one that deserves more attention.

Your arguments are precisely those put forward by many house owners and on face value stand up to much scrutiny.

However most of your arguments are based on London centric factors and I've long thought that the house price crash would not be based on London. It's is precisely your reasons above why London prices stagnated rather than fell 2002 / 2003 onwards (depending on location). I sold in London in 2002 and have realised that I was wrong to think prices would fall just because they seemed "too expensive".

I also think that certain types of property nationwide are always in demand and as such are relatively "crash proof".

Where there will be serious house price falls will be where the rising prices have been caused simply bubble mania. I always use Stoke as my example. Falling employment, poor housing stock, grotty area. Why did prices rise so fast and what's to stop them falling back? Nothing.

So anyone can be bullish about sectors of the current property market and extremely bearish about others.

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A good post and one that deserves more attention.

Your arguments are precisely those put forward by many house owners and on face value stand up to much scrutiny.

However most of your arguments are based on London centric factors and I've long thought that the house price crash would not be based on London. It's is precisely your reasons above why London prices stagnated rather than fell 2002 / 2003 onwards (depending on location). I sold in London in 2002 and have realised that I was wrong to think prices would fall just because they seemed "too expensive".

I also think that certain types of property nationwide are always in demand and as such are relatively "crash proof".

Where there will be serious house price falls will be where the rising prices have been caused simply bubble mania. I always use Stoke as my example. Falling employment, poor housing stock, grotty area. Why did prices rise so fast and what's to stop them falling back? Nothing.

So anyone can be bullish about sectors of the current property market and extremely bearish about others.

:o:o:o:o:o

A reasonably sensible post from Ignorant Steve?? :o:o:o

Edit: in comparison to his other posts that is! ;)

Edited by OzzMosiz

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My rent PCM £725 My Landlords mortgage pcm £750 + Service charges of £1,000

Now run that past me just one more time........ :rolleyes:

Why did your Landlord tell you how much his mortgage was? and do you believe him?

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so renting is bad, got that, but apart from saying we all earn alot why is buying a house good? Any economic arguments?

One possible scenario is:

Earlier this year you could get a 10yr fixed at 4.7%. (dunno if you still can now though)

eg Buy house at £160k pay £907pm. Because the loan is repayment the debt shrinks.

After 10yrs the debt shrinks to £117k (still a lot of money...)

or, rent the house next door for 5 years at £700pm and save up maybe £12k (allowing for rent increases wih inflation and the fact you have to move maybe twice during this time as a tenant)

Interest rates reach 6% and there is credit tightening. The mortgage rate is 7%.

House prices have fallen 15% So the house is £136k. Take off your £12k deposit and you get a mortgage of £124k.

With 7% Mortgage rate your monthly repayment will be £875pm for a 25 yr loan. Not much better than today's buyer.

In a further 5 years you end up owing £113k. this is at the same point today's buyer owes £117k.

So it's a dead heat.

ASSUMING PRICES FALL NOMINALLY 15% IN 5 YEARS.

A 15% nominal fall over 5 years will be quite large if you factor in 5 years of wage inflation.

Don't forget, (in this example) today's buyer has been in the house 5 years longer and his mortgage will finish 5 years sooner.

The awful truth is that there is unlikely to be an easy option in the future (in terms of monthly payments) to buy that first property.

Buy or wait? It's your choice.

Edited by Without_a_Paddle

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:o:o:o:o:o

A reasonably sensible post from Ignorant Steve?? :o:o:o

Edit: in comparison to his other posts that is! ;)

Deep down I'm really a sensible boring hardworking prudent caring sort of a guy.

The public personna has to crack occasionally. [swearing removed by moderator].

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Yep. Renting sucks.

But if it is far cheaper than buying then there is an incentive to rent.

If you could guarantee that wage inflation was going to follow the real inflationary effects in the economy (as opposed to just the CPI inflation) then maybe I would expect little in terms of an HPC.

In reality wages are not going to keep up with the increases in the cost of essential goods(food, fuel, clothing etc). This will reduce the availble money to spend on housing, not increase it via wage inflation.

If I had bought in 2003 on an IO mortgage in the expectation that once I was 3 years down the line (2006 - now ish) I would be able to afford to move to a repayment mortgage I would probably be wrong.

Any extra cash I might have gained in the last 3 years in wage inflation (other than if I got promoted/moved job) would likely be swalloed by:

  • Rising Gas bills
  • Rising Electricity Bills
  • Rising Council Tax
  • Increase in cost of Petrol/Diesel
  • Increase in costs of food
  • Other above CPI items....

I don't think it makes sense to buy a house unless wage inflation takes off. In that scenario I think it could be possible to see very little fall in actual house prices, but a gradual catch up in wages that has been mentionned by VIs.

Although this is IMHO very unlikely as I cannot see the economy supporting wages increasing at 10% pa (about the rate of money creation inflation - M4) when we are already uncompetitive with emerging economies such as China and India.

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One possible scenario is:

Earlier this year you could get a 10yr fixed at 4.7%. (dunno if you still can now though)

eg Buy house at £160k pay £907pm. Because the loan is repayment the debt shrinks.

After 10yrs the debt shrinks to £117k (still a lot of money...)

or, rent the house next door for 5 years at £700pm and save up maybe £12k (allowing for rent increases wih inflation and the fact you have to move maybe twice during this time as a tenant)

Interest rates reach 6% and there is credit tightening. The mortgage rate is 7%.

House prices have fallen 15% So the house is £136k. Take off your £12k deposit and you get a mortgage of £124k.

With 7% Mortgage rate your monthly repayment will be £875pm for a 25 yr loan. Not much better than today's buyer.

In a further 5 years you end up owing £113k. this is at the same point today's buyer owes £117k.

So it's a dead heat.

ASSUMING PRICES FALL NOMINALLY 15% IN 5 YEARS.

A 15% nominal fall over 5 years will be quite large if you factor in 5 years of wage inflation.

Don't forget, (in this example) today's buyer has been in the house 5 years longer and his mortgage will finish 5 years sooner.

The awful truth is that there is unlikely to be an easy option in the future (in terms of monthly payments) to buy that first property.

Buy or wait? It's your choice.

a) You can't get 10yr fixed at 4.7 for love nor money.

B) You're not factoring in costs of buying and investing that money elsewhere instead

c) If interest rates go to 6% prices will fall more than 15%

d) You're assuming no exogenous factors, eg recession to push prices lower

e) Why would you have to move twice as a tenant? I've rented for 7 years and have never been forced out - I've always wanted to move

f) What happens at the end of the 10 years?

g) What about costs involved in owning a house? White foods repairs etc. all covered by landlord.

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Yep. Renting sucks.

But if it is far cheaper than buying then there is an incentive to rent.

If you could guarantee that wage inflation was going to follow the real inflationary effects in the economy (as opposed to just the CPI inflation) then maybe I would expect little in terms of an HPC.

In reality wages are not going to keep up with the increases in the cost of essential goods(food, fuel, clothing etc). This will reduce the availble money to spend on housing, not increase it via wage inflation.

If I had bought in 2003 on an IO mortgage in the expectation that once I was 3 years down the line (2006 - now ish) I would be able to afford to move to a repayment mortgage I would probably be wrong.

Any extra cash I might have gained in the last 3 years in wage inflation (other than if I got promoted/moved job) would likely be swalloed by:

  • Rising Gas bills

  • Rising Electricity Bills

  • Rising Council Tax

  • Increase in cost of Petrol/Diesel

  • Increase in costs of food

  • Other above CPI items....

I don't think it makes sense to buy a house unless wage inflation takes off. In that scenario I think it could be possible to see very little fall in actual house prices, but a gradual catch up in wages that has been mentionned by VIs.

Although this is IMHO very unlikely as I cannot see the economy supporting wages increasing at 10% pa (about the rate of money creation inflation - M4) when we are already uncompetitive with emerging economies such as China and India.

Yep

That makes sense

Good points

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Id never rent again tbh, my landlord turned up one day and said 'right, I want you out'. How can you ever put down routes and feel secure? Fine if ya care free young single but something you cant allow to happen if you have a family. I guess there are options in negotiating your notice period but signing up to a longterm deal isnt really practical either. In this instance we were assured we could stay as long as we wanted as it was bought as a long term investment, didnt count on him giving the place to his son though...

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Sensible counter arguments welcome

I am sure all these arguments are very sensible but they do not change the fact that alot of people (myself included) can afford nothing but a crappy one bedroom flat in some of the worst bits of the country without mortgaging themselves to the hilt - when a one bedroom flat in an ok area is costing £100,000 what are people supposed to do?

I recently spoke with a potential FTB friend who was turned down for a mortgage for a one bedroom flat despite the fact her credit history was fine and she earns about £30,000!

WTF is going on in this country? - if you have a house you can remortgage and then can buy as many houses as you want on the basis you can get someone else to pay for it - if you have nothing - even a good salary and you cannot even buy one..... :angry:

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Id never rent again tbh, my landlord turned up one day and said 'right, I want you out'. How can you ever put down routes and feel secure? Fine if ya care free young single but something you cant allow to happen if you have a family. I guess there are options in negotiating your notice period but signing up to a longterm deal isnt really practical either. In this instance we were assured we could stay as long as we wanted as it was bought as a long term investment, didnt count on him giving the place to his son though...

Yes

I think many people forget this. In certain circumstances is there really any option?

Although prices can still go down even if more people are OOs

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I am sure all these arguments are very sensible but they do not change the fact that alot of people (myself included) can afford nothing but a crappy one bedroom flat in some of the worst bits of the country without mortgaging themselves to the hilt - when a one bedroom flat in an ok area is costing £100,000 what are people supposed to do?

I recently spoke with a potential FTB friend who was turned down for a mortgage for a one bedroom flat despite the fact her credit history was fine and she earns about £30,000!

WTF is going on in this country? - if you have a house you can remortgage and then can buy as many houses as you want on the basis you can get someone else to pay for it - if you have nothing - even a good salary and you cannot even buy one..... :angry:

The average age of the FTB is 34 isn't it? If it were so easy and sensible to buy a property, then people would - public sentiment is behind buying properties. But they can't. So it's a no-brainer - property is overpriced, because people can't afford it.

The only young people who can afford it that I know are either: borrowing money from their property owning parents (a recursive ponzi scheme), or taking out IO mortgages. And I know some pretty high-earning people.

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The average age of the FTB is 34 isn't it?

In 1974 the average age was 29 years

http://www.findaproperty.com/story.aspx?storyid=2942

Not much change there then.

It's also surely a regional thing. That 34 has got to be London and SE. Oop North its no way near that age, no way, average age on our estate is 25 with the obligatory mini & subaru imprezza (and 40 year mortgage)

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a) You can't get 10yr fixed at 4.7 for love nor money.

B) You're not factoring in costs of buying and investing that money elsewhere instead

c) If interest rates go to 6% prices will fall more than 15%

d) You're assuming no exogenous factors, eg recession to push prices lower

e) Why would you have to move twice as a tenant? I've rented for 7 years and have never been forced out - I've always wanted to move

f) What happens at the end of the 10 years?

g) What about costs involved in owning a house? White foods repairs etc. all covered by landlord.

a) out of interest, what are the most competitive fixed rate mortgages around right now?

c) this is a difficult one to predict. if i had an accurate measure of HP sensitivity to IR, it would make my buy/rent choice much easier.

e) i've had to move twice in 5 years (although I actually moved 5 times). twice to relocate to a better location, once to move in with my gf, once due to landlord selling the house, once due to landlord doing renovations lasting 2 months (easier to relocate than find a temporary home for 2 months).

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Why did your Landlord tell you how much his mortgage was? and do you believe him?

I opened their mail by accident :rolleyes: - The properties rented through an EA so there's another 10% their down. BTL Muppets - don't you just luv 'em :lol:

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One possible scenario is:

Earlier this year you could get a 10yr fixed at 4.7%. (dunno if you still can now though)

eg Buy house at £160k pay £907pm. Because the loan is repayment the debt shrinks.

After 10yrs the debt shrinks to £117k (still a lot of money...)

or, rent the house next door for 5 years at £700pm and save up maybe £12k (allowing for rent increases wih inflation and the fact you have to move maybe twice during this time as a tenant)

Interest rates reach 6% and there is credit tightening. The mortgage rate is 7%.

House prices have fallen 15% So the house is £136k. Take off your £12k deposit and you get a mortgage of £124k.

With 7% Mortgage rate your monthly repayment will be £875pm for a 25 yr loan. Not much better than today's buyer.

In a further 5 years you end up owing £113k. this is at the same point today's buyer owes £117k.

So it's a dead heat.

ASSUMING PRICES FALL NOMINALLY 15% IN 5 YEARS.

A 15% nominal fall over 5 years will be quite large if you factor in 5 years of wage inflation.

Don't forget, (in this example) today's buyer has been in the house 5 years longer and his mortgage will finish 5 years sooner.

The awful truth is that there is unlikely to be an easy option in the future (in terms of monthly payments) to buy that first property.

Buy or wait? It's your choice.

I put together a mortgage v rent calc so you can play around with this to find when its best to rent or buy, there are hidden columns in which you can change things such as inflation or interest every year.

mortgage.zip

mortgage.zip

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I opened their mail by accident :rolleyes: - The properties rented through an EA so there's another 10% their down. BTL Muppets - don't you just luv 'em :lol:

So, BTLers are losing money

Good point

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So, BTLers are losing money

Good point

Ah yes but the "amateur BTL" mindset is as follows:

1) I can put £100 a month in the stock market and get OK returns after 25 years or

2) I subsidise my mortgage and property costs with rent thereby effectively paying out £100 a month and get a house worth xxx after 25 years.

So the question is: will the property market be a safer bet than stock market? (thinking simplistically).

Many people are afraid of the stock market after recent years (and days) so will still plump for property.

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Ah yes but the "amateur BTL" mindset is as follows:

1) I can put £100 a month in the stock market and get OK returns after 25 years or

2) I subsidise my mortgage and property costs with rent thereby effectively paying out £100 a month and get a house worth xxx after 25 years.

So the question is: will the property market be a safer bet than stock market? (thinking simplistically).

Many people are afraid of the stock market after recent years (and days) so will still plump for property.

Maybe they think even more simplistically IO BTLer

Up until recently

"I make rental profit on my investment and its appreciating rapidly"

"Stock market is dicey with modest gains, and anyway I cant borrow large amounts to invest in this"

Both these points will be reinforced by VI spin

"Its a no brainer"

Very, very soon

"I am making a rental loss on my investment and its depreciating rapidly"

"Stock market goes up and down and is a method of financing larger corporations who sometimes pay dividends as I am a part owner"

Being geared compounds losses

"Its a no brainer"

Or leave it a bit longer

"I am making a massive rental loss and cant afford my IO mortgage and cant afford to sell as im in negative equity"

"Stock market went up a bit today and ive just got a dividend"

"This isnt a no brainer"

Hope they're not on suicide watch by the river again tonight

Edited by Flat Bear

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One possible scenario is:

Earlier this year you could get a 10yr fixed at 4.7%. (dunno if you still can now though)

eg Buy house at £160k pay £907pm. Because the loan is repayment the debt shrinks.

After 10yrs the debt shrinks to £117k (still a lot of money...)

or, rent the house next door for 5 years at £700pm and save up maybe £12k (allowing for rent increases wih inflation and the fact you have to move maybe twice during this time as a tenant)

Interest rates reach 6% and there is credit tightening. The mortgage rate is 7%.

House prices have fallen 15% So the house is £136k. Take off your £12k deposit and you get a mortgage of £124k.

With 7% Mortgage rate your monthly repayment will be £875pm for a 25 yr loan. Not much better than today's buyer.

In a further 5 years you end up owing £113k. this is at the same point today's buyer owes £117k.

So it's a dead heat.

ASSUMING PRICES FALL NOMINALLY 15% IN 5 YEARS.

A 15% nominal fall over 5 years will be quite large if you factor in 5 years of wage inflation.

Some issues with your analysis / assumptions. The offer you quoted is 4.7%, which is 0.2% above the current base rate. However, if the base rises to 6%, you assume the mortgage offer will be 7%, which is 1% above the base rate. That's like assuming the best deal you can get today is 5.5%.

The idea that house prices are only affected by interest rates oversimplifies the true picture.

If there is a house price correction and/or recession, the government / BoE reaction may well be to cut rates (at least once they are confident inflation is no longer a threat). For example, between 1992 and 1994 rates were slashed (didn't help house prices at the time of course).

Don't forget, (in this example) today's buyer has been in the house 5 years longer and his mortgage will finish 5 years sooner.

The fact that today's buyer's mortgage will finish 5 years earlier is completely irrelevant if they owe the same money at the same point in time. You can always remortgage on to a loan with a shorter term if you like.

frugalista

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a) You can't get 10yr fixed at 4.7 for love nor money.

B) You're not factoring in costs of buying and investing that money elsewhere instead

c) If interest rates go to 6% prices will fall more than 15%

d) You're assuming no exogenous factors, eg recession to push prices lower

e) Why would you have to move twice as a tenant? I've rented for 7 years and have never been forced out - I've always wanted to move

f) What happens at the end of the 10 years?

g) What about costs involved in owning a house? White foods repairs etc. all covered by landlord.

a)"You can't get 10yr fixed at 4.7 for love nor money."

This week sees the Woolwich launching a flexible 10 year mortgage at 4.67%, fixed until May 31 2016. It is available to new and existing borrowers and comes with an arrangement fee of £495. Borrowers can make overpayments of up to 5% a year without penalty.

Andy Gray, head of mortgages for Woolwich, claims: "This is the best 10 year fixed rate available, and as we are not predicting interest rates to go any lower than they currently are over the longer term, this really is a great rate at rock-bottom price, and beats even the short-term rates. This provides consumers with an excellent opportunity to take advantage of the certainty that a fixed rate provides over the longer term, and at the same time the flexibility to overpay."

Woolwich is not alone in promoting longer-term fixed rates. Norwich & Peterborough Building Society and Yorkshire Building Society are offering deals at 4.68% and 4.69% respectively

B) But the renter also has to buy in the future (with inflation factored in) so admin costs cancels out.

c) if it takes several years to get to 6% then I would argue you are wrong (for nominal prices)

d) There was a huge recession during the last crash and prices only fell 18% nominally UK average.

It took 5 years for them to fall. despite a hike in rates from 8% to 15% and unemployment rising from 6% to over 8%. Today unemployment is at 5%. Also, look at previous recessions and prices didn't fall at all nominally (because of high inflation)

e) It is common to have to move at least once every few years as a tenant. Also, the new tenancy laws mean it is easier/faster for landlords to ask tenants to leave.

f) at the end of 10 years the buyer owes £117k and will have had the benefit of 10 years wage inflation to cope with higher rates. what's the problem?

g) Maintenance will be a factor but a lot of this can be done by the homeowner to minimise costs. That's what I've always done.

Some issues with your analysis / assumptions. The offer you quoted is 4.7%, which is 0.2% above the current base rate. However, if the base rises to 6%, you assume the mortgage offer will be 7%, which is 1% above the base rate. That's like assuming the best deal you can get today is 5.5%.

The idea that house prices are only affected by interest rates oversimplifies the true picture.

If there is a house price correction and/or recession, the government / BoE reaction may well be to cut rates (at least once they are confident inflation is no longer a threat). For example, between 1992 and 1994 rates were slashed (didn't help house prices at the time of course).

The fact that today's buyer's mortgage will finish 5 years earlier is completely irrelevant if they owe the same money at the same point in time. You can always remortgage on to a loan with a shorter term if you like.

frugalista

Check out the base rate vs mortgage rate during the last recession. The gap was quite wide. I think it was around a 2% difference at times.

For example, between 1992 and 1994 rates were slashed

See above. It's a long time ago but I remember that the mortgage rate didn't fall as quickly during those years. Can anyone verify this?

The fact that today's buyer's mortgage will finish 5 years earlier is completely irrelevant if they owe the same money at the same point in time. You can always remortgage on to a loan with a shorter term if you like.

Very true. But if I'd made the renter buy with a 20 year mortgage (to match the end date of today's buyer) then the monthly repayments would have gone up and I would have got told off. (You can't please everybody...)

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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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