PDA

View Full Version : British people!


Oerdin
08-04-2008, 23:09:42
Welcome to my world. :gasmaske:

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=A1YourView&xml=/money/2008/04/08/bcnhouse308.xml

Kitsuki
08-04-2008, 23:11:11
I delayed buying my first house because the prices were slipping - starting to look like I made the right call.

devilmunchkin
09-04-2008, 05:12:52
i love british people.

Greg W
09-04-2008, 05:26:47
You need help then. :p

Now, the Irish, they're cool. :love:

MDA
09-04-2008, 10:35:20
took me a minute to figure out that "pc" was percent

all I could think of was pence

Provost Harrison
09-04-2008, 10:37:07
Good, good, what I like to see. Now I can finally get into a realistic position where I may be able to afford to buy a house!

Funko
09-04-2008, 10:44:30
Prices haven't dropped here yet, they've just stopped rising and in London they are still increasing. The economy's still good, interest rates are still low, there's still high demand for housing especially in London/South East which is the market I care about.

I dunno how bad it'll really get, problem will come if buy to let owners are unable to renew fixed mortgages at rates that are advantageous to them and flood the market, but on the other hand there are plenty of people waiting to become first time buyers who might snap them all up if prices come down even a small way.

For us, we've got a fixed deal for another year or so, so any drop in value will affect the deal we can get when we renew. Worst case scenario we go onto the variable rate which would cost us ~ 150 a month until prices recover. It's not great but totally doable.

Funko
09-04-2008, 10:47:25
Originally posted by Provost Harrison
Good, good, what I like to see. Now I can finally get into a realistic position where I may be able to afford to buy a house!

Don't think/hope it'll be anywhere near that bad...

It's not like the 80s with the high unemployment, massive interest rates etc.

MDA
09-04-2008, 12:24:07
ouch! :lol:

Beta1
09-04-2008, 19:55:01
and here me with two mortgages, and living in the west midlands (5% drop).

On the up side the london one makes a profit on the rent even once the discount mortgage rate ends and we can afford the mortgage on the other one even at a higher rate.

I don't think we are heading into a 80s style crash. Interest rates were up in double figures back then and rising. Now we are around 5% and falling. some people may get repossessed if they took out unafforable loans but there are worse things than ending up on the banks variable rate when it is falling.

The way I see it is that the banks are cutting back on offering risky loans but will still lend to safe customers and are unlikely to repossess anyone who is paying their loan even if they end up in a slight negative equity situation.

We have basically shifted our position from intending to sell our rental flat (that was our plan from 2-3 years back) to holding on to it for another few untill things get back on track. Advice from our agents is that rents are up around 5-10% in our area from this time last year and that there is no real shortage of people looking to rent. If my mortgage costs go up 150 but the rental income goes up by about 75 we are still well in profit - although I hope the interest rates will have come down by about 0.5% by then.

Vincent
09-04-2008, 20:14:12
post an excel sheet

Kitsuki
09-04-2008, 22:50:09
Originally posted by Greg W
You need help then. :p

Now, the Irish, they're cool. :love:

Pay no attention to the convict colonist Devilmunchkin! :D

Kitsuki
09-04-2008, 22:53:09
Originally posted by Funko
Prices haven't dropped here yet, they've just stopped rising and in London they are still increasing. The economy's still good, interest rates are still low, there's still high demand for housing especially in London/South East which is the market I care about.

I dunno how bad it'll really get, problem will come if buy to let owners are unable to renew fixed mortgages at rates that are advantageous to them and flood the market, but on the other hand there are plenty of people waiting to become first time buyers who might snap them all up if prices come down even a small way.

For us, we've got a fixed deal for another year or so, so any drop in value will affect the deal we can get when we renew. Worst case scenario we go onto the variable rate which would cost us ~ 150 a month until prices recover. It's not great but totally doable.

Possibly. I don't think that there will be a dramatic crash but there is a real prospect that over the next 2 years or so there will be a steady decline in house prices.

House buying is very closely associated with how people feel about the economic climate. At the moment the economic mood rating is hitting high negatives - the lowest is has been since the winter of discontent.

Will just have to see really. As they say, economists were put on this planet to make astrologers look good.

Shining1
10-04-2008, 01:15:50
Certain English females have the sexiest accent in the entire fucking world. If I actually knew anything about England I could tell you what it is called. But I don't.

The Irish are Meh by comparison. Which is to say, only incredibly sexy.

The poor Austrailians still haven't forgiven the Brits for kicking them out - even if they got kicked to a better place.

Greg W
10-04-2008, 01:31:24
Shh, Ned, it's all a ruse to stop more of the bastards coming out here. There's enough of them on Bondi beach as it is. :D

Immortal Wombat
10-04-2008, 02:00:23
Originally posted by Shining1
Certain English females have the sexiest accent in the entire fucking world. If I actually knew anything about England I could tell you what it is called. But I don't.
I am intrigued, and would like to know more (http://www.bbc.co.uk/voices/recordings/index.shtml).

Funko
10-04-2008, 08:28:21
My bet, Scouse or Brummie.

Funko
10-04-2008, 08:31:52
Originally posted by Kitsuki
Possibly. I don't think that there will be a dramatic crash but there is a real prospect that over the next 2 years or so there will be a steady decline in house prices.


Yeah. Very hard to tell. It's already a great time to buy, you can get away with stupid offers 'cause people who need to are desperate to sell.

Shining1
10-04-2008, 08:39:41
A facinating tool. I'll be back with an answer if I can find one.

Lazarus and the Gimp
10-04-2008, 18:28:53
If we get a recession (which looks likely) my money is on average house prices dropping 30% over the next 4 years.

I bought my place in 1995- right at the end of the last crash. It's the best financial move I ever made- I bought a brand new 3-bed semi with detached garage for 69,000.

Beta1
10-04-2008, 19:02:32
Although to put that in context that would only wipe about 2-3 year's increase in price off some areas.

I think it will fall a bit but not that much - not unless they really fuck up and double the interest rates.

I guess the question is would they rather see inflation and a housing slow down or up rates to slow inflation and get a housing crash....

Vincent
10-04-2008, 20:14:08
Hm, did I tell you about the birthday party I went to some years ago?

Lazarus and the Gimp
10-04-2008, 20:49:11
The one where you pissed in the punchbowl?

Kitsuki
11-04-2008, 07:54:18
Originally posted by Beta1
Although to put that in context that would only wipe about 2-3 year's increase in price off some areas.

I think it will fall a bit but not that much - not unless they really fuck up and double the interest rates.

I guess the question is would they rather see inflation and a housing slow down or up rates to slow inflation and get a housing crash....

Well, the MPC's *only* target is to control inflation - they are supposed to make their decisions without reference to any other issues or problems... The system hasn't really been tested through a problematic patch, but I have always had my reservations that they don't take things like the housing market into consideration.

JM^3
11-04-2008, 08:28:27
Originally posted by Lazarus and the Gimp
If we get a recession (which looks likely) my money is on average house prices dropping 30% over the next 4 years.

I bought my place in 1995- right at the end of the last crash. It's the best financial move I ever made- I bought a brand new 3-bed semi with detached garage for 69,000.

Have you payed it off?

JM

Lazarus and the Gimp
11-04-2008, 08:38:43
Nope. However I do have about 150,000 equity at current prices.

Funko
11-04-2008, 08:48:26
30% drop would be v. not good for us.

Beta1
11-04-2008, 18:32:25
Originally posted by Kitsuki
Well, the MPC's *only* target is to control inflation - they are supposed to make their decisions without reference to any other issues or problems... The system hasn't really been tested through a problematic patch, but I have always had my reservations that they don't take things like the housing market into consideration.

Don't they also have to consider growth rates? Either way if things start getting worse I'm sure a certain scotsman might be on the phone applying some pressure...

Kitsuki
11-04-2008, 18:35:48
Not really, their sole target is the control of inflation. It was criticised heavily at the time but the person who was responsible for setting up the Monetary Policy Committee decided that that should be their only target (one G Brown.)

Beta1
11-04-2008, 20:20:00
LOL, he really is a prat.

Don't fancy the current chancellors job much - if/when things really goes tits up he's got noone to blmae but his boss....

Provost Harrison
12-04-2008, 14:46:31
Ouch, that is a harsh situation :D