i suspect Tom has quite a nice house somewhere in Surrey though

 

So have I. Renting it for about half the amount it would cost to rent it from the bank via a mortgage, and it's losing value every month

 

So I take it that the amount the property is losing is greater than the amount you are paying on rent?

 

Overall yes. But you've also to take into account the interest you are paying just on the morgtgage alone.

Interest + mortgage payment + depreciation on my place over the last year would work out at the owner paying out around £84k to keep the place going. The loss in asset value is only paper, but still a loss if they come to sell and they are stuck paying the mortgage based on the value of the house when they buoght it. They're now in negative equity and paying out far moer per month on a deprecaiting asset that I do to rent the place.

I'm paying £1150 per month to rent and my LL has shelled out £5k on repairs and electrical item replacements so far.

All these forced landlords are making the rentals market so cheap as the market os flooded with good rentals a bargain prices.

 

I see your point, but I look at it another way. The sooner I start paying off that 25 year noose around my neck, the better. In 5 years, I know that I would have paid off a certain amount - done - finished. I also believe that a lot of people in your situation are basing far too much importance on making money out of 'a home'. That's what my place is, just that. If it is worth more in 22 years time than what I paid for it, great.

 

A home's a home for me. I just don't fancy buying now as I think this country is going to see major economic struggle that will see all the heat taken out of the market, making property drop to a sensible level again.

I'm happy paying a low rent, saving a good chunk and letting my LL take the massive hit for me. When buying comes nearer to parity with renting I will jump in with the massive deposit I will have and snap up a nice place.

This country has a pre-occupation with owning somewhere which has helped puch prices to the stupid levels we still see and saw even more in 07.

 

Yes, but depending on how much values fall you may not have paid any off in 3 years.

On the general topic, lots of sold boards around my way. It will be interesting to see what they actually sold for.

 

I am lucky enough to have cleared my mortgage many years ago, after sinking every penny into the debt.

Now, I pay nothing each month for my property - if I decided to rent all those years ago I would be paying £1750 a month to live where I do live.

Buying just has to be the way to do accomodation, renting buys someone else a house! Whilst leaving you with nowt ...... as a renter.

Plenty of SOLD signs round here - but, question is, is it just the normal spring sales pattern - or a real, solid, strengthening of house values?

 

Land Registry figures show an increase in House Prices in June ..... that's it then, hold on for the rapid rise!

Those who dawdled, me included, have been left behind ...........

 

I caught the end of this on the Radio earlier Pete but is this asking prices or selling prices?

 

It will be sold if it's Land registry.

 

Free UK Sold House Prices - Nethouseprices.com

 

Not really, I've only been paying about 2-2.5% per annum of the value of the houses I've rented since October 2006. In that time the sort of house I would have bought (similar to what I've rented) has gone down more even around here which is supposedly sheltered, and that is aside from any interest gained on savings in the meantime (which was impressive but much less so presently).

It really doesn't feel any different to me renting a house to owning a house outright, or renting it from the bank with a mortgage which is all you're really doing in the early stages unless you overpay.

If the present house we're renting was mine I would have rebuilt the garage roof, done all the windows, kitchen, bathroom and redecorated, but as it is I can forget about maintenance which on an old Victorian farmhouse is quite nice. If something breaks I call the landlady. She happily fixes it in exchange for predictable, reliable income from her property. She had owned the house for over 40 years and rented it out for 39 of those.

 

Good news for Mortgage holders .Interest Rates are likely to stay at these low levels for the next two years by all accounts .

Go on you know you want to .!!!!!!

 

I see things rather differently... low interest rates are only superficially good news for the indebted who will temporarily feel flush due to lower monthly payments. If rates are kept low for two years it would likely accompany debt deflation and a large nominal drop in house prices - ie we're not going to inflate our way out of it like in the early 90s when nominal drops were small. IMHO, one way or the other, people with mortgage debt will pay with a real terms drop in the value of their house relative to their debts.

 

The miniscule rise was skewed because a few areas in London showed slight rises in from the tiny amount of transactions.

0.1% is hardly major considering the time-scale covered is the main buying/selling time.

 

QUOTE=john banks;8849179]I see things rather differently... low interest rates are only superficially good news for the indebted who will temporarily feel flush due to lower monthly payments. If rates are kept low for two years it would likely accompany debt deflation and a large nominal drop in house prices - ie we're not going to inflate our way out of it like in the early 90s when nominal drops were small. IMHO, one way or the other, people with mortgage debt will pay with a real terms drop in the value of their house relative to their debts.[/QUOTE]

Agreed, but OECD reckons we are most likely to see inflation in 2010 than anywhere else in the G7. I can't see it though

 

Oh, and Mortgage Approvals are still on the rise !!!

 

Yep, Mortgage approvals to buy is at its highest level for 15 months.

This is it - shares are up, house prices stable, summer is around the corner ... looks like the steps Labour took, although unpopular at the time, may have turned the UK around.

 

If thats the case then roll on inflation and then interest rate rises and then unaffordable mortgages

 

Inflation is beaten.

Interest Rates will remain below 2% for decades.

Mortgages will get cheaper, everyone will be able to buy the home of their choice.

Labour will be re-elected by a landslide for saving the western world.

Or, maybe not .... but, wouldn't it be good? ....

 

Please God, let him die slowly

 

House prices up up up, 5 months in a row...

BBC NEWS | Business | Homes 'may rise in value in 2009'

Nationwide index August 2008 - July 2009

1.Aug 08 = £164,654
2.Sep 08 = £161,797 (Fall)
3.Oct 08 = £158,872 (Fall)
4.Nov 08 = £158,442 (Fall)
5.Dec 08 = £153,048 (Fall)
6.Jan 09 = £150,501 (Fall)
7.Feb 09 = £147,746 (Fall).....BUY BUY BUY
8.Mar 09 = £150,946 (Rise)
9.Apr 09 = £151,861 (Rise)
10.May 09 = £154,016 (Rise)
11.Jun 09 = £156,442 (Rise)
12.Jul 09 = £158,871 (Rise)

You can look at this in a few ways....

Bear side....

House prices have fallen by £5,783 in the last 12 months (-3.5%) Erm i think that's about it.

Bull side....

House prices are up £5,831 in 2009 (+3.7%)
House prices have risen by over £11k in the space of just 5 months. (+7.5%)
House prices have risen for the last 5 consecutive months.
House prices now are the same as they were 9mths ago back in Oct 2008.

I think that just about sums it all up, crash over

 

Gotta admire his tennacity

(even his posts are mostly sh1te )

 

Does this mean SSU will be keeping his cash in his pocket until the next crash in approx 2023 .!!!!!

I have a feeling he wears Sovereign rings on all his fingers so he cant get his hand in his pockets..!!!!!!!


I still think it will be a slowish recovery in the Housing Market ,but there are people out there now, who may well snap up in the next few months ,a bargain or two .Whilst they can .

 

I still think that we are in the long haul. They crashed so much so quickly that there had to be a bounce of some sort. May be a few more months of decent increases, then that will be it for some time.

 

Indeed, from now on it's looking rosy ..... nothing at all to the recession, was there?

 

Or you could say nothing moves in a straight line. During the last recession we had 4 straight months of rises and then falls again.

Btw, is the Nationwide index based on asking or selling prices?

 

Pete,

Are you serious?