Interest Rates rise again
#181
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Dream world is what your living in.
#183
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As you say 50% off prices is unlikely but a drop in prices is possible, - if you look at it the other way, someone with a 120% mortgage is gambling that it will go up by 20% before they want to sell - IMHO not going to happen as quickly as in the past.As long as people are in the position to ride it out then its fine and no one need worry. But if the reports are to be believed then there is a proportion of people who could not do this - thats where the trouble starts.
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Never said they did? whats this thread about really? the interest rates and property market like I thought it was or a slanging match for the mentally challenged who cant manage money?
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Tell the people who thought oil would be at $100 a barrel this time last year that it's currently on its way back down to $50 a barrel, see what they say about cast-iron investments.
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#187
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What a lot of people seem to forget is that you only need a 33% fall for for prices to revert back to where they were before a 50% rise. I think a lot of the mickey mouse "Im a property investor now" mortgaged-to-the-max landlords probably think a 20% fall would take prices back to where they were before rising 20%!
#189
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I am looking forward to New Labour getting the boot and New Conservatives getting back in power so we can return the days of interest rates between 10 and 17% - now that will sort out the men from the boys in the housing market.
I am sure we are still paying off the billions that Lamont wagered on our behalf betting against the whole of the European Markets![Smile](images/smilies/smile.gif)
I am sure we are still paying off the billions that Lamont wagered on our behalf betting against the whole of the European Markets
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The 2 major mistakes the Conservatives made were scrapping MIRAS which induced the housing boom/bust and Black Wednesday. How they could be so stupid on both counts is beyond me but when remembering black wednesday its only right to remember that historically labour are masters at leaving office with high inflation/high interest rates just as they did in the late 70's.
#190
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You can't deny that there are a lot of people acting 'rich' because their properties have increased a lot in value etc. lots of these people are not actually any better off in real terms if its their only property unless they want to downsize or leave the country, but consumer debt has gone crazy, and wage increases have fallen behind.
#191
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Roll on 10% Interest Rates ![Thumb](images/smilies/thumb.gif)
It will happen, it always goes full circle ...........
There will be a point at which the Housing Market cannot stand the rate and there is going to be one almighty correction. Not sure what rate it will take - I guess about 7.5%
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It will happen, it always goes full circle ...........
There will be a point at which the Housing Market cannot stand the rate and there is going to be one almighty correction. Not sure what rate it will take - I guess about 7.5%
#192
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What a lot of people seem to forget is that you only need a 33% fall for for prices to revert back to where they were before a 50% rise. I think a lot of the mickey mouse "Im a property investor now" mortgaged-to-the-max landlords probably think a 20% fall would take prices back to where they were before rising 20%!
Bit of a bu55er when you've mortgaged your life on that basis though ...
Dave
#193
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https://www.scoobynet.com/non-scooby...=housing+crash
LMAO I bet Basel lobe is feeling a bit sick isnt he
Point proven though, we have had this discussion for the last 3 years and in that time house prices have almost doubled (at least where I am anyway)
https://www.scoobynet.com/non-scooby...sh#post2694482
Roger Bootle was left looking like a pillock then wasnt he....
LMAO I bet Basel lobe is feeling a bit sick isnt he
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https://www.scoobynet.com/non-scooby...sh#post2694482
Roger Bootle was left looking like a pillock then wasnt he....
#195
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Anybody of a mathematical nature, would you mind taking a look at this plot and deducing what the sequence is, and therefore working out what will happen next?
![](http://www.housepricecrash.co.uk/images/graph-house-prices-1975-2006.gif)
House prices aren't going to crash you say?
![](http://www.housepricecrash.co.uk/images/graph-house-prices-1975-2006.gif)
House prices aren't going to crash you say?
#197
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I don't like the current government, but i'd like to think we know more now than we did in the 80's.
As said earlier on, it all depends on circumstances. We don't have any debt except the mortgage, and even if house prices went down by 40% we'd still be in equity on our house, and as we plan on staying here until at least 2015 any subsequent rise (after a crash) would see us alright. We may not have a house worth 500k at that point due to the crash, but we would still be in full equity and would realise maybe 300k. We plan on being mortgage free in 9 years so the house would be ours, regardless of any crash.
The only blight would be how much the rates went up by. Anything over 10% and we'd have to keep the mortgage longer than planned.
As said earlier on, it all depends on circumstances. We don't have any debt except the mortgage, and even if house prices went down by 40% we'd still be in equity on our house, and as we plan on staying here until at least 2015 any subsequent rise (after a crash) would see us alright. We may not have a house worth 500k at that point due to the crash, but we would still be in full equity and would realise maybe 300k. We plan on being mortgage free in 9 years so the house would be ours, regardless of any crash.
The only blight would be how much the rates went up by. Anything over 10% and we'd have to keep the mortgage longer than planned.
#199
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I don't like the current government, but i'd like to think we know more now than we did in the 80's.
As said earlier on, it all depends on circumstances. We don't have any debt except the mortgage, and even if house prices went down by 40% we'd still be in equity on our house, and as we plan on staying here until at least 2015 any subsequent rise (after a crash) would see us alright. We may not have a house worth 500k at that point due to the crash, but we would still be in full equity and would realise maybe 300k. We plan on being mortgage free in 9 years so the house would be ours, regardless of any crash.
The only blight would be how much the rates went up by. Anything over 10% and we'd have to keep the mortgage longer than planned.
As said earlier on, it all depends on circumstances. We don't have any debt except the mortgage, and even if house prices went down by 40% we'd still be in equity on our house, and as we plan on staying here until at least 2015 any subsequent rise (after a crash) would see us alright. We may not have a house worth 500k at that point due to the crash, but we would still be in full equity and would realise maybe 300k. We plan on being mortgage free in 9 years so the house would be ours, regardless of any crash.
The only blight would be how much the rates went up by. Anything over 10% and we'd have to keep the mortgage longer than planned.
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Lots of ifs and buts..
A couple who bought a house 3-4 years ago could have had 3 or 4 pay rises or changed jobs to cover the expected 6-7% rate you talk of.
Unfortunately you and I do not know the answer.
A couple who bought a house 3-4 years ago could have had 3 or 4 pay rises or changed jobs to cover the expected 6-7% rate you talk of.
Unfortunately you and I do not know the answer.
#203
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100% of not very much still = not very much though!!
edited to say: If you are not earning enough to buy a house now then 100% on top of it in 4 years isn't going to help if prices keep rising
edited to say: If you are not earning enough to buy a house now then 100% on top of it in 4 years isn't going to help if prices keep rising
Last edited by 106rallye; 12 January 2007 at 02:36 PM.
#204
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Unfortunately we bought a house in June 2006 for 122k, the mortgage is 146k to cover previous loans and finances, plus we have CC debts and bits on top of that! We're pretty much maxxed on our budget as well so it's not looking good.
Only plus point is we have a fixed rate for 5 years, so as long as it's cleared a bit by then we should be able to pull through it.
Only plus point is we have a fixed rate for 5 years, so as long as it's cleared a bit by then we should be able to pull through it.
#205
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Unfortunately we bought a house in June 2006 for 122k, the mortgage is 146k to cover previous loans and finances, plus we have CC debts and bits on top of that! We're pretty much maxxed on our budget as well so it's not looking good.
Only plus point is we have a fixed rate for 5 years, so as long as it's cleared a bit by then we should be able to pull through it.
Only plus point is we have a fixed rate for 5 years, so as long as it's cleared a bit by then we should be able to pull through it.
Negative Equity you hear them all shouting etc... Who cares if you plan on living there for a long time...
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#208
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I've been offered jobs at 35% higher pay (but worse job, shift etc.) so I can get more money if needed, plus I'm pretty much promised a promotion this year so I think in 4 and a half years time I should be alright regardless of the interest, and as mentioned I do intend to live here for some time - no kids planned or anything.
So I'm still on course to pay off my negative equity and buy a Scooby some time next year!
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#210
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If you read my post you would have noticed I said between 6 and 6.5%. You conveniently took the highest figure for your own ends.
It doesn't matter diddly squat if I 'know what I'm talking about' or not. Inflation is rising and showing little signs of slowing (record xmas sales etc.) and thus interest rates will continue to rise.
Even if rates end up at 6.5% I still happily say I don't know what I'm talking about and you do. However I'd be right and you'd be wrong.....Let's have a little challenge to review in 12 months time. Who's closer to the rate. I say now, 6% as the non-expert. You as the expert say X% and surely you'll end up right, we shall see.
Let's face it, experts do NOT know. they suspect, they predict, they anticipate, they hope but they do NOT know as has been proven in the past. What were your last years predicitions for year end?
It doesn't matter diddly squat if I 'know what I'm talking about' or not. Inflation is rising and showing little signs of slowing (record xmas sales etc.) and thus interest rates will continue to rise.
Even if rates end up at 6.5% I still happily say I don't know what I'm talking about and you do. However I'd be right and you'd be wrong.....Let's have a little challenge to review in 12 months time. Who's closer to the rate. I say now, 6% as the non-expert. You as the expert say X% and surely you'll end up right, we shall see.
Let's face it, experts do NOT know. they suspect, they predict, they anticipate, they hope but they do NOT know as has been proven in the past. What were your last years predicitions for year end?
Can I have my prize please?