Re: back 2 weeks already
 

There is an ad on TV at the moment with 2 hedgehogs in. They claim to make buying your house easier with lending you 5x your income... they don't tell you that it makes it impossible to pay the monthly payments:eek:

ohh I think that we will soon see a few repo's

Re: back 2 weeks already
 

I know Sydney repos have topped the 5,000 mark in last year. Highest on record. Can't imagine it's much different anywhere else. Hang tight and cash in, there's another rise for the UK coming in about 8 weeks according to the UK finance news.

Re: back 2 weeks already
 

I so much hope so :( it just cant go on like this..

Re: back 2 weeks already
 

problem seems to be that because there is such little on the market at the moment the prices are being pushed higher. Are we not better buying asap and getting a decent fixed term. The rate is still fairly low when you look at what it was in the 80's

Re: back 2 weeks already
 

I dont think so...thats exactly why house prices still going up, because everybody is rushing on the sinking ship..soon we will be seeing lots of property coming on to the market...all the BTLs bought to late ;)
I give it 1 or 2 more rate rises..

Re: back 2 weeks already
 

That would depend on how much deposit you have and how much you can earn from it to offset waiting. You'd need to factor in how much you want to borrow against how much appreciation would be in the house over the period you wait for. It'd be different in every case, as you also need to commit any extra disposable income. And how much you expect another increase to affect the affordability (ie repo rate) of the area in which you live, and how much you'd expect it to drop by. I'd suggest you haven't been in the UK long enough to accurately asses that yet.

I've been running this model in Sydney as my wife and I met in the middle of the boom, and we refused to be sheeplike and just jump on the 'sign me up' bandwagon. For what we could afford, where we wanted to buy (which is where we rent now) in every single financial model I run, we have made more by waiting. This factors in all expenses associated with a house offset against entry and exit fees and appreciation.

In my casual observation in 18yrs here I'd say the UK house market follows trends in the Oz market approx 2.5years later, and that also goes for domestic spending trends.

However the equation gets fuzzy if you throw in emotional stuff like settling a family and just 'wanting' a place of your own.

Asa rule of thumb, I'd say if you had a less than 40% deposit on principal I'd probably go for a fixed rate.

Caveat: this is my opinion, not professional financial advice. (geez you'd think I live in the US eh? :lol: )

Re: back 2 weeks already
 

I don't think you will see a crash, some people may lose their houses due to interest rates going up and they have no extra money. But with people coming in from other European countries with money, they will keep the prices up. There apparently are about 250,000 rich Russians now in London.

Re: back 2 weeks already
 

Bloody Hell that gives you something to think about:p
We are buying a place with FIL so I guess that if the market drops we loose on his too. Having a chat with him tomorrow as he wants us to buy a place with the view of him selling next year and moving in then. I am worried that the market may crash in that time leaving us with a whopping mortgage.

Re: back 2 weeks already
 

Well depends on how you view the crash? a crash is only a crash if you can't afford the mortgage, or if you want to sell. If you can't afford the payments that it doesn't matter if there's a crash or not as you'll (anybody) will lose the house. And a real crash only hurts if you sell. If you intend to live there for a long time it really matters little how much it goes up or down in the short to medium term as you won't be realising the net gain or loss anyway, unless you want to release some equity against a redraw for rennovations or something.

If you're going to be in there years and years then I'd suggest this long enough to see out any fluctuations (which in general tend to have a life span of 7-8yrs).

At this point I'd be more worried about the effect of interest rate rises as they operate independantly (kind of) of how much a house is deemed to be worth. Interest rates rise when people spend too much either domestically (credit cards, store cards, car loans) or in equity (houses and shares).

People spending too much on c/cards will actually work in your favour as these are the people, in general that will lose their homes first. However that will ultimately increase interest rates as the BoE will have to 'cool' the economy (ie, give the public a bitch slap for being placcy happy). Your ability to weather the next 7 years or so (as the UK seems to be on the cusp of a change) will be more important than your house value, IF you intend to stay there a while.

Why not rent until your Dad has sold his place and borrow less?

Re: back 2 weeks already
 

This has been my prefered route but my mum who owns an estate agent thinks that prices are going to keep holding there own and rising. Her view is why pay somebody elses mortgage when we could be paying our own.
We all know not to trust an estate agent though:rofl:

Re: back 2 weeks already
 

I still cant see why a few rich people in London should stop the crash..

Re: back 2 weeks already
 

True enough, but that gets back to my first model. Work out what you want to buy, how much you realistically expect the price to rise between now and when your Dad sells, then off set that against the interest you'd save by borrowing less. And there's your answer. Saying that renting is paying off someone else's mortgage is way too simplistic. We as a couple have been paying someone's mortgage for 5yrs and we're still better off. But it does depend on many factors.

Re: back 2 weeks already
 

Tracey...In 50 years I've not been involved in a single incident and thats London and The Suburbs split equally.....If you avoid the Main Cities and live in The Suburbs or The Country you will have no probs!....Recently in very "English" East Grinstead,West Sussex I saw a 5-year-old Blonde Girl cycling on a 2 mile Path on her own!!..No Probs!......U R returning to (probably) the most creative and (Certainly!) the most individualistic Country on Gods Earth:thumbup:

Re: back 2 weeks already
 

What you guys think about this then?

http://uk.news.yahoo.com/14022007/14...d-welfare.html

and this makes me sooo made

http://uk.news.yahoo.com/13022007/39...s-death-0.html

look at this little angel face..how could you ever...

Re: back 2 weeks already
 

[QUOTE=eurotramp;4403299]What you guys think about this then?

If you live away from The Inner Cities you will be fine honestly....The major Cities ARE a different proposition though.

What a terrible story though Thankfully very rare.....When theres 60 Million People theres always going to be some rotten apples.