Tradefair & Financials
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Do not buy a house.
Do not buy a house.
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Replies: 68
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Is Autralia not an Island also by definition?
Crediter I think I knoe what you are saying, but it has little to do with being an island and more to do with habitable space for the population to live. Melv I can assure you that teh japanese are NOT the population that we should be striving to copy. They have had tough times in Japan for decades, and things are still not improving despite Interest rates being 0%, and massive government investment. Thei rdebt is as bad , if not worse than ours. The Japanese stay at home and hoard their cash. That is why Deflation is a problem in Japan.. Be careful what you wish for. Affordable debt is necessary, for us all to live a GOOD life. Sure , a mortgage takes a while to pay back , but you have a property that you own at the end of it. # If we bought a house and NEVER moved. There would be no problem. |
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Chisel, would you not agree that house prices in the uk need to fall back to a more directly related multiple of average wages?
Once that has happened it would seem to be in the general interest of most people. I want to buy a house but even ignoring all the economics i just see houses are very over valued assets when compared to wages. At the moment there seems to be a general notional value of houses based on boom and bust economics and we need to get to a time when house prices are based on wages as a guide to setting value. |
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if you cant work it out ;i aint explaining it.
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Tell me if I'm lucky, or, should I buy?
I am in Adelaide, Australia, & I am renting in government housing; I am on a disability pension & pay a reduced rent of $73 a week. 2 bedroom house with large block 2 mins from the beach. I'd probably have to pay about $210-230K if I bought the house, if the Gov. let me buy it. Is the world gunna go crazy, or stay sane enough that I'd be safe to buy?  |
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there you have our country folks.[smiley:crazy].klaatu is on welfare- disabilty pension.This can range from having a sore back to being in a wheel chair.BUT he wants to, without working, buy a house using his welfare payment.Only in Australia.
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Tell me if I'm lucky, or, should I buy?
Your paying $73 a week for a roof over your head and your wondering wether you should pay about $320 a week for the same roof? mmmm... thats a tough one |
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Agreed!!
Mr B , you say only in Australia, but this is what started to happen in the Us and UK and is called sub prime!! I will give you a funny example of the UK welfare system. A client of mine is not working and has an Interest Only mortgage with Mortgage Express(which I did not arrange). The interest rate is 2.25%.. The governemnt can not base its payment on what teh customer pays, but pays a Fixed 6% . The result is that the customers mortgage is being repaid by the government! |
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fkk me chisel, thats even worse than aust.mind you those days may be numbered as austerity packages replace stimulus.Austerity packages up the proverbial for all.The sooner the better for mine to get rid of these ludicrious levels of welfare that those with jobs are forced to support.
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David Blanchflower is now 100% certain there will be a double dip recession.
He is the only member of the bank of Englands policy commitee to call the crisis correctly. |
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Melv
Double Dip recession is simply not going to be allowed to happen! We will see economy grow in the year ahead, but onlyat modest rate. Blanchflower called for low interest rates in face if risning inflation and was proved right. But , he also estimated that there would be 3millioon unemployed by end of 2009!! |
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Yep ... who Are these Nobodies !!
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are they not your fellow inmates moonwhinger?
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Mrben
I would stoop to your levels & insult you But you seem to be doing a spectacular job of that all by yourself |
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chisel Joined: 19 Sep 08
Replies: 1438 10 Jun 10 13:08 How do you work that out Moonshine? The points I made are totally different. What I am asking is where could YOU go and live that is so much better than the UK? I left UK in 1984. I've lived and worked in countries on 3 continents since then and could nominate several that are better than UK, including Sweden where I currently reside. The average Swede has a much better standard of living than his / her counterpart in UK, believe me. |
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my daughter just gone switzerland for her company...is it similiar to sweden.
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Mc Moonbeam Joined: 22 Sep 05
Replies: 2353 18 Jun 10 12:57 Mrben I would stoop to your levels & insult you But you seem to be doing a spectacular job of that all by yourself its difficult to sttop moonwhinger when, by tour own admission, you are living at the bottom of the pile[;)] I see plenty of sunshine from where I am, you just see the walls of your "prison".Try to improve yourself mcmoon and you life might get better- suggest getting off the net for a start, your not making much of a contribution anyway.  |
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Are Sweden at the World Cup?
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Did England get to the Ice Hockey World Championship this year ?
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Ice hockey is a sh i t game!!!
So is football if we lose tomorrow.!!! Come on England! |
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Lori Joined: 20 Apr 04
Replies: 19888 07 Jun 10 08:59 Not many people can afford to buy a house anyway thanks to the previous government, so the advice is a bit redundant. ============================================= Lori Joined: 20 Apr 04Replies: 19888 08 Jun 10 15:38 House prices will totally collapse. I'm praying you're right. I've saved money for years to buy a house with and have never been able to. Of course having interest cut to zero in the last few years has made it harder to save, but with a bit of luck I'll be able to afford somewhere to live yet ===================================================== Lori - 1. You blame the government for keeping interest rates LOW last few years? 2. You blame the government for PROPERTY VALUES COLLAPSING......which makes it easier to buy them? I get the impression you live in LONDON........and blaming the government for your choice to live in a place where you "can't afford to buy house" .....very rational! Why can't you just stop BLAMING "the government" for your position...........basically you are where you are down to your own decisions in life, and with LOW INTEREST RATES and LOW PROPERTY values this is "good" for people.....how is it "bad"? |
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Or "bad" for those that want to make CAPITAL GAINS off increase in value of property.................and what good are they to society?
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yes ..dont buy a house....and live later with no motgage or rent to pay and retire early....that would be silly ...like me.
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Crediter
Are you saying you never bought a home ? Are you also saying that people should buy a home when they can affird to and pay it off as soon as possible, so that you can live a comfortable retirement with no rent or mortgage to pay?? Are you saying that beinga slave to debt for most of your life may actually be a good idea?? I never knew anyone on this forum actually thought owing a home was a good idea! I thought that the consensus was that you had to save the whole amount of money needed to buy a home outright was the only way forward, and in teh mean time pay rent to a landlord.. Being asked to move home every couple of years!! |
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heres a question.If the cost of capital is 7.25% mortgage rates in aust.And the return on capital is 3.5%- net rent returns in aust on average.And average capital gains is 7% but capital gains tax is 24% and the cost of buying and selling is 3%{one off cost}.
Is an investment property a good idea? |
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yeah lots of aussies here ..lol.
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maybE id even Rent it frm you.
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try earls court.
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mmmmmm I was hoping someone could crunch the numbers and make some kind of conclusion.
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of course its not a good idea in Aust Mrben because the 7% capital gain figure is an estimate. Its an estimate based on the past when the level of debt incurred by property buyers was modest and more importantly based on the return that the property was yielding when it was purchased.
So, to get 7% capital gain on a property that is yielding 3.5% is ridiculous. A property yielding such a useless return should have negative capital gain until it starts to yield at least 6+% and then it would make sense to 'invest' in it. Not buy it, hoping that there is a fool out there that is happy to get a yield of less than 3.5%. So no, its quite a technically and fundamentally poor idea to buy an investment property in australia. i dont need therefor to to the rest of the number crunching |