Guest Daddy Bear Posted May 21, 2009 Posted May 21, 2009 Dear All I have just completed on a house today. I managed to tick all my boxes: - 32% off peak price in Aug 2007 - Secured with a >60% Deposit - Mortgage <2.5 x Joint gross income - 10 Year Fixed Repayment mortgage at 4.99% which allows overpayments - House is a large family home which is ideal for us (close to schools, double garage, SW garden, ideal location etc etc) - No intention of moving for many many years. As many of you know we STR'd in Aug 2007 and have been renting ever since. For me all the signs are their for a massive INFLATION in the near future. Cash in Northern Rock deposit felt secure but was earning paltry interest after the end of fixed bond - and was no longer covering rent by a long way. I sincerely believe that an event is coming that will debase global currencies. Tipping point fast approaching. I believe I have hedged my position and history will show my decision to be correct. It's been a fascinating process the last 5 years - however I'm getting off. A pleasure to have learnt so much from some of you. Good Luck to all and whatever decisions you make. DB Quote
interestrateripoff Posted May 21, 2009 Posted May 21, 2009 Only time will tell. Dangerous times ahead and no one has hindsight vision. Quote
pete.hpc Posted May 21, 2009 Posted May 21, 2009 Great stuff, well done! I hope to see more of these HPC success stories over the next year or so Quote
Harry Sacks Posted May 21, 2009 Posted May 21, 2009 Dear AllI have just completed on a house today. I managed to tick all my boxes: - 32% off peak price in Aug 2007 - Secured with a >60% Deposit - Mortgage <2.5 x Joint gross income - 10 Year Fixed Repayment mortgage at 4.99% which allows overpayments - House is a large family home which is ideal for us (close to schools, double garage, SW garden, ideal location etc etc) - No intention of moving for many many years. As many of you know we STR'd in Aug 2007 and have been renting ever since. For me all the signs are their for a massive INFLATION in the near future. Cash in Northern Rock deposit felt secure but was earning paltry interest after the end of fixed bond - and was no longer covering rent by a long way. I sincerely believe that an event is coming that will debase global currencies. Tipping point fast approaching. I believe I have hedged my position and history will show my decision to be correct. It's been a fascinating process the last 5 years - however I'm getting off. A pleasure to have learnt so much from some of you. Good Luck to all and whatever decisions you make. DB I like your style and share your outlook - good luck! Quote
othello Posted May 21, 2009 Posted May 21, 2009 I wish you well. Unfortunately inflation may work against you, continuing to drive down the value of your house in real terms. In years to come we may find property back not to 2004 prices but back to 1995 prices in real terms. In this kind of market, it pays to be patient. I guess you waited 5 years and that was enough. Anyway, all the best. Quote
Harry Monk Posted May 21, 2009 Posted May 21, 2009 In a year's time, you will realise that you shot your bolt far too early. Quote
wealthy Posted May 21, 2009 Posted May 21, 2009 I sincerely believe that an event is coming that will debase global currencies. I have just made a bet with the wife that all schools in UK will be closed within 1 month or sooner due to pandemic Quote
Bloo Loo Posted May 21, 2009 Posted May 21, 2009 Dear AllI have just completed on a house today. I managed to tick all my boxes: - 32% off peak price in Aug 2007 - Secured with a >60% Deposit - Mortgage <2.5 x Joint gross income - 10 Year Fixed Repayment mortgage at 4.99% which allows overpayments - House is a large family home which is ideal for us (close to schools, double garage, SW garden, ideal location etc etc) - No intention of moving for many many years. As many of you know we STR'd in Aug 2007 and have been renting ever since. For me all the signs are their for a massive INFLATION in the near future. Cash in Northern Rock deposit felt secure but was earning paltry interest after the end of fixed bond - and was no longer covering rent by a long way. I sincerely believe that an event is coming that will debase global currencies. Tipping point fast approaching. I believe I have hedged my position and history will show my decision to be correct. It's been a fascinating process the last 5 years - however I'm getting off. A pleasure to have learnt so much from some of you. Good Luck to all and whatever decisions you make. DB tipping point fast approaching, yet a lender gave you a 10 year fix. theres fear in the banks. Quote
grizzly bear Posted May 21, 2009 Posted May 21, 2009 Dear AllI have just completed on a house today. I managed to tick all my boxes: - 32% off peak price in Aug 2007 - Secured with a >60% Deposit - Mortgage <2.5 x Joint gross income - 10 Year Fixed Repayment mortgage at 4.99% which allows overpayments - House is a large family home which is ideal for us (close to schools, double garage, SW garden, ideal location etc etc) - No intention of moving for many many years. As many of you know we STR'd in Aug 2007 and have been renting ever since. For me all the signs are their for a massive INFLATION in the near future. Cash in Northern Rock deposit felt secure but was earning paltry interest after the end of fixed bond - and was no longer covering rent by a long way. I sincerely believe that an event is coming that will debase global currencies. Tipping point fast approaching. I believe I have hedged my position and history will show my decision to be correct. It's been a fascinating process the last 5 years - however I'm getting off. A pleasure to have learnt so much from some of you. Good Luck to all and whatever decisions you make. DB Well done, especially as you timed your STR so perfectly. I would jump in too if I could find the right thing for 32% off peak price. Hope you enjoy your house! Quote
STRLondon Posted May 21, 2009 Posted May 21, 2009 Good luck to you, I think youve done well whatever happens next. Just one word of advice, never come back to this forum, you need to beak free! Quote
pie-eater Posted May 21, 2009 Posted May 21, 2009 Good luck. If you're buying to live there for many years, your payments are easily affordable and ultimately are HAPPY, then you've won. Better than buying at the peak and gulping as your virtual money is spunked up the wall. Quote
Guest Daddy Bear Posted May 21, 2009 Posted May 21, 2009 never come back to this forum That's one of the main reasons why I bought a house. Bored of this HPC stuff now... Quote
loginandtonic Posted May 21, 2009 Posted May 21, 2009 dash for assets ... me, not tempted, maybe i is the fool but not tempted to buy, not one bit Good luck to you, I think youve done well whatever happens next.Just one word of advice, never come back to this forum, you need to beak free! ah that must be his swan song Quote
Mina Posted May 21, 2009 Posted May 21, 2009 That's one of the main reasons why I bought a house. Bored of this HPC stuff now... I'm bored waiting for number 9 on your sig to turn red. Quote
200p Posted May 21, 2009 Posted May 21, 2009 (edited) For those not in position to buy but are concerned by inflation. It maybe wise to put some funds [10-25%] into hard assets close to their production costs, which did not take part in the credit bubble. That would be a low risk play, and provide a inflation hedge without committing the majority of ones capital to an illiquid asset, which is still, to many, unaffordable. Good luck to the OP - a home should be just that. Edited May 21, 2009 by Lord Sandwich Quote
lotus eater Posted May 21, 2009 Posted May 21, 2009 I like your style and share your outlook - good luck! Same here. Hope to exchange soon on a house and get STR savings out of our low interest savings accounts. Quote
Guest Daddy Bear Posted May 21, 2009 Posted May 21, 2009 < 2.5x gross joint income ? Should be easily paid off in 10 years... Mortgage free at < 45 years old... Quote
Giordano Bruno Posted May 21, 2009 Posted May 21, 2009 Interesting. I didn't know that one could get a fix for 10 years. Your decision seems to be based on the expectation that the following inequality holds. (Cash + interest accrued on cash - rent) in real terms < (House market value - interest on mortgage) in real terms or equivalently, in the future, Cash + interest accrued on cash + interest on mortgage < House market value + rent At the present rate of fall in house prices, which will probably continue for a few more years, albiet at a slower rate, I don't really believe this inequality will hold. High inflation is usually offset by high interest rates, I believe, so if inflation takes off, it would be covered by interest accrued in an account. But the 10 year fix would, of course, be an advantage if inflation and interest rates rose considerably. Well, that's my analysis done after a day's work. Feel free to correct any fault in the argument. In any case, congratulations on making a decision with which, I believe, you are happy and good luck. Quote
InternationalRockSuperstar Posted May 21, 2009 Posted May 21, 2009 I believe I have hedged my position and history will show my decision to be correct. so you've blown your savings on an illiquid, immobile asset which is rapidly falling in value and easily taxable. genius! Quote
Guest Daddy Bear Posted May 21, 2009 Posted May 21, 2009 so you've blown your savings on an illiquid, immobile asset which is rapidly falling in value and easily taxable.genius! and what would you do with it? .......put it in a big hole in the ground and jizz off to it every night? Quote
loginandtonic Posted May 21, 2009 Posted May 21, 2009 ?Should be easily paid off in 10 years... Mortgage free at < 45 years old... r u just 34 then? no offence but my eiderdown is older than u, i can remember being 34 - tend to think brain a bit fuller at that age than it could be, anyways good luck son Quote
Guest Daddy Bear Posted May 21, 2009 Posted May 21, 2009 r u just 34 then? no offence but my eiderdown is older than u, i can remember being 34 - tend to think brain a bit fuller at that age than it could be, anyways good luck son no offence but my eiderdown is older than u no offence taken. Quote
Mina Posted May 21, 2009 Posted May 21, 2009 ?Should be easily paid off in 10 years... Mortgage free at < 45 years old... Assuming your income is safe for 10 years. Mina (mortgage free at 37, 5 years ago) - and would never borrow as much as you have. Quote
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