The Collapse Of The Pound And The Effect On The El

[Sidney the robin]

Does paying mortgage interest ever make sense? Is it not dead money?Maybe 30 years ago. But why would you pay more for something that you can get for less if you wait a few years?

The last private rental I had the landlord paid about £170,000 for the flat, 10 years later that flat is now worth about £140,000. That's 30,000 loss plus his mortgage interest makes my rent payments look like peanuts. Plus I've not had to worry about boilers breaking, washing machines stopping working or roofs leaking. All issues I've had at some point in he last 20 years that the landlord had to pay to sort out.

ie) you always need somewhere to live so is it better to own it in the long run and say leave it to your loved ones.Most people i know have only gained by investing in property sometimes only modestly but you still make a bit.I am looking now to get my second property now is the right time been saving hard gain nothing sitting in savings account why not invest in property. Edited October 12, 2016 by Sidney the robin

[Dave Jones]

No.

Ive never said such thing.

 

Happy for either of you to prove me wrong. In fact I have £5000 here that says neither or you can find a post where I have said that.

 

I've said I won't buy a house while they're over valued and while renting makes more financial sense. I stand by that now. But at some point buying makes more sense than renting and Brexit may just be the thing that fixes the housing market. That and the fact BTLers are about to lose their tax breaks so they'll stop making a profit soon and will need to sell.

Wow !! 5k is that supposed to impress? If it was really important to me I might just find your posts re renting v buying .I recall you were your usual self ,decrying anyone who supported buying , and how you would always be a renter where you could get your new kitchen and bathroom every few years at the landlords expense and that you would be better off than a house buyer.

I would just add that like many others, I have bought and paid for my home, paid for my own kitchen & bathroom upgrades, and I still don't need your 5k.

[E I Addio]

What I did say is intill years after we leave will we will only then understand if was the right thing to do ..most decent people with half cell no matter what side you voted would think the same way ..as for irony I think your find Farage supporting Trump after telling Obama to keep his nose out will take some beating .

I make you basically right on that, but as you correctly said about Margaret Thatcher, whether people think she was good or bad depends on what side of the fence you were on . The same will probably apply to Brexit. Some will probably benefit , others won't.

 

The other thing is that there are all kinds of other world events that come into play that are not forseeable now, and that can have a massive bearing on things. Elections in America , Germany and France can be massive game changers, as can the economy. People can speculate on these things but none of them can foresee the future.

I believe at this time it is impossible to defend brexit.

Steve, you remind me of Mark Twains famous comment " I've had a lot of worries in my life, most of which never happened "

 

We aren't even out of Europe yet, no point in worrying. The vote has happened, nothing you can do about it, just roll with the punches, play all your hunches and just keep ploughing on. You might be surprised. It's only money anyway. As long as you've got your health you have the most important thing .

[Steve Shovlar]

And now theres no more marmite!

 

Tesco refuse to accept a 10% price increase from unilever, a Dutch company, who say the fall of the pound means their products need to go up in price by 10%.

[A ORLOV]

And now theres no more marmite!

 

Tesco refuse to accept a 10% price increase from unilever, a Dutch company, who say the fall of the pound means their products need to go up in price by 10%.

Good, bloody awful stuff. My sister used to eat fruit cake with marmite spread on it and the smell of it turned me off it. When we used to travel past the marmite factory near the oval in London there would be a fight to open or close the car window.

 

Now that all marmite is made in Burton on Trent why does the drop in the value of the £ cause a price increase?.

[Joe Beevers]

Sorry to burst your bubble but the UK was a basket case before they joined the EU.Pretty much begged to get in and were turned down by Charles de Gaulle on a couple of ocassions i think

Where on earth did you dig up this nonsensical quote? Absolute rubbish but obviously nothing personal.

 

Do I have to educate people now, why the E.U was REALLY formed.

And now theres no more marmite!

 

Well that is a huge blow towards my toast in the mornings.

I've said I won't buy a house while they're over valued and while renting makes more financial sense. I stand by that now. But at some point buying makes more sense than renting and Brexit may just be the thing that fixes the housing market. That and the fact BTLers are about to lose their tax breaks so they'll stop making a profit soon and will need to sell.

I personally think you should stick to speedway figures rather than financial ones.

 

I don't think I have ever met one person over the age of 21, who believes your financially better off to give someone money to live under their roof rather than pay towards your own place.

 

It's not just the house but it's the land that you actually own and that land is a huge asset that you can build your own allotments on, pass down to loved ones or generations or even just sell to some golf course developer.

 

Entirely your business and opinion but each to there own.

[The Voice Of Reason]

Still no 'takers' for my offer of proving how much the royals take in 'tourism revenue' v costs to the British tax payer.

 

Pleeeeeeeeeease hit me with your best shot.

 

I'm ready and waiting!!!!

[waiheke1]

 

I personally think you should stick to speedway figures rather than financial ones.

 

I don't think I have ever met one person over the age of 21, who believes your financially better off to give someone money to live under their roof rather than pay towards your own place.

 

It's not just the house but it's the land that you actually own and that land is a huge asset that you can build your own allotments on, pass down to loved ones or generations or even just sell to some golf course developer.

 

Entirely your business and opinion but each to there own.

 

Of course it sometimes makes more sense to rent that to buy.

Rent is "dead money" but only to the same extent that morgage interest is. Maintenance on your own propoerty is dead money.

Essentially the equation is:

Is capital gain less interest payments and maintenance give you a better outcome than rent paid?

And if interest rates move, or the market collapses, will you still be able to afford repayments.

there are many cases where the latter is going to be a better option.

 

and I say this as a 30 something on the property ladder, having seen the value of my property increase by over $500k (about 250k GBP) since I bought it. And actually, i'd be much better off if the market had stayed where is was 5 years ago, or modest increases, as I'd then much more easily be able to sell and upsize, or but a second home and use this one as a holiday home.

 

Personally, i think SCB would have been better off buying some time back, as i think it's far from certain that the property market is "overpriced" (people have been saying for years that Auckland property market is, but it has kept heading one way only). but I understand his reasons for not doing so.

Still no 'takers' for my offer of proving how much the royals take in 'tourism revenue' v costs to the British tax payer.

 

Pleeeeeeeeeease hit me with your best shot.

 

I'm ready and waiting!!!!

i thought you said you had the facts and figures?

[g13webb]

Back in the mid 70's when me and my good lady got married, we had no choice to rent. If we wanted somewhere to live we had to buy. Then it was a very volatile period when house prices were gazumping all the time. In 1974 to 76 the houses prices doubled, it was a case buying what you could afford or missing out. There were a lot of disappointed people at that time. The private section offered little compensate with very few rent properties, and the council house list was as long as it is now, buying was the only option. ​Like everybody else, we struggled to pay the high interest rates, and wondered whether we were doing the right thing (so little change from now) to be tied down for 25yrs seemed along time......

 

40yrs on we still live in the same house, it had a lot of changes mind. Looking back, it was the best thing we ever done, fair enough we paid through the nose with the high rates but nothing compared to the value our house is worth today. It is very rewarding to know we are safe and secure for our remaining years know we will always have somewhere to live, and have something valuable to leave to our family.

 

So when we talk about the differences between Buying or Renting, the options don't even come close. if you can afford to then its BUY everytime....

Edited October 13, 2016 by GRW123

[Sidney the robin]

Back in the mid 70's when me and my good lady got married, we had no choice to rent. If we wanted somewhere to live we had to buy. Then it was a very volatile period when house prices were gazumping all the time. In 1974 to 76 the houses prices doubled, it was a case buying what you could afford or missing out. There were a lot of disappointed people at that time. The private section offered little compensate with very few rent properties, and the council house list was as long as it is now, buying was the only option. ​Like everybody else, we struggled to pay the high interest rates, and wondered whether we were doing the right thing (so little change from now) to be tied down for 25yrs seemed along time......

 

40yrs on we still live in the same house, it had a lot of changes mind. Looking back, it was the best thing we ever done, fair enough we paid through the nose with the high rates but nothing compared to the value our house is worth today. It is very rewarding to know we are safe and secure for our remaining years know we will always have somewhere to live, and have something valuable to leave to our family.

 

So when we talk about the differences between Buying or Renting, the options don't even come close. if you can afford to then its BUY everytime....

This post says it all for me we have been in the same house since 1989 brought our kids up there it give us stability and we are content there.It was hard at times but i had alot of luck along the way overtime) and it did get easier over a period.I would idvise anyone to get on the ladder as soon as possible preferbly a 25 year plan.

[waiheke1]

Can't disagree with that. But it is harder than ever to get on the property ladder - not saying it was ever easy.

But scb is right in pointing out that it doesn't always make sense to get on the property ladder. Right now is probably a good time to hold off in the hope that Brexit brings down prices, forces mortgagee sales etc. and allows a first home buyer with cash good buying.

[g13webb]

Can't disagree with that. But it is harder than ever to get on the property ladder - not saying it was ever easy.

But scb is right in pointing out that it doesn't always make sense to get on the property ladder. Right now is probably a good time to hold off in the hope that Brexit brings down prices, forces mortgagee sales etc. and allows a first home buyer with cash good buying.

 

I have to disagree with you and say it is always benefit to get on the property ladder. Probably sight term renting might have a few advantages but in reality buying far outweighs everytime. Today, there are far more places to rent, and that is because the people buying those houses are making a mint out of the people who rent them. I appreciate the costs of buying property has increased to a level when first time buyers are finding it difficult , but as you say it has never been easy.

Back in '75 my mortgage was £50 per month, compared to the £15 per month my parents were paying for a 3 bedroomed council house. so you see it was hard but we managed. We used 5 wks wages to finance that bill alone, so in that respect little has changed.

 

Many times you question the sensibility of buying your own house, but in the end it all becomes clear and worth while..... My only regret is that I didn't buy more.....

[waiheke1]

Can I just check what u mean by 5 weeks wages to finance your monthly mortgage? So your weekly gross wage was 10 quid? And you and your partner spent 5 weeks gross wages to pay the mortgage. 10 quid seems awfully low as a weekly wage in the 70s?

[dj350z]

Can I just check what u mean by 5 weeks wages to finance your monthly mortgage? So your weekly gross wage was 10 quid? And you and your partner spent 5 weeks gross wages to pay the mortgage. 10 quid seems awfully low as a weekly wage in the 70s?

 

I was on £7 a week in the 70's as an apprentice so it does sound quite low!

[waiheke1]

From what I can see, average weekly wage in 1970 was about 30 quid. Average house price was 3 times that. Don't know about uk, but in Auckland average house boric is now over 12 times the average full time salary. Even with low interest rates, that's seriously less affordable@

[houdi]

I believe at this time it is impossible to defend brexit.

All this would be fine if you actually knew what you were on about. The thing is we have been down this road twice in the last 20 years and both times economic 'experts' like you have been proven totally wrong.

Back in the 1990's we were told by economic half wits like you that joining the ERM was vital to the UK economy, what actually happened interest rates soared to 15% as we shadowed the mark, house repossessions soared as people struggled to pay their mortgages. We then left the ERM interests fell to a more sustainable level, the pound devalued, and guess what ,the economy boomed and we went on one of the most sustained growth periods in the nations history.

10 years later the same so called experts , the CBI et al all told we needed to join the EURO, that if we didn't, jobs and investments would dry up, foreign investment would head to mainland europe, and yet again the exact opposite happened.The so called experts were again proven to be totally wrong.

So you will forgive us if a lot of people take no notice of your hubris,and bold claims.

As for food prices, really ???in an EU that has the Common Agricultural Policy that adds around 20% to food prices, and which even Euro fanatics admits needs reform,hey we have only been waiting about 20 years for that to happen. Once we leave the customs union we can source food from other countries without the trade tariffs that the EU currently imposes on them, which should lead to lower food prices.

Your side were wrong on the ERM, you were proven wrong on the Euro, and you will be proved wrong long term on Brexit, Maybe should worry more about the Italian banking crisis, the sovereign debt crisis sweeping Southern Europe, the ongoing migrant crisis now threatening to destroy your beloved EU.

[dj350z]

From BBC news website:

 

The former boss of Sainsbury's, Justin King, has given an indication of the problem, saying that shoppers should expect higher prices because supermarkets will not be able to absorb the extra cost of imported goods.

According to media reports of a conference speech by Mr King, he said: "Retailers' margins are already squeezed. So there is no room to absorb input price pressures and costs will need to be passed on.

"But no one wants to be the first to break cover. No business wants to be the first to blame Brexit for a rise in prices. But once someone does, there will be a flood of companies, because they will all be suffering."

Leading retail analyst Richard Hyman told the BBC: "This shines a light on something that is going to be happening all the time.

"The problem is that retailers can't just put up their prices and get away with it.

"Oversupply of retailers means that for the past 24 months there has been food price deflation. What makes them think they can just push prices higher?" he added.

[tellboy]

I'm glad i bought my house but each to their own.It is much tougher now to afford a mortgage especially for first timers.For instance i was earning £210 a week in 1994 and now £520 a week.In 1994 my house cost £35000 and now it is £140000.So my wages have gone up about 2.5 times but the house about 4 times.So for people now that means alot less money in their pockets.

[g13webb]

Can I just check what u mean by 5 weeks wages to finance your monthly mortgage? So your weekly gross wage was 10 quid? And you and your partner spent 5 weeks gross wages to pay the mortgage. 10 quid seems awfully low as a weekly wage in the 70s?

 

Sorry to mis-lead you, I unfortunately missed out the word 'wife'. Our mortgage was equal to 5wks of the wife's earnings.. We had to live on what remained from both our earnings... But as you can imagine it was real hard times.....

[The Voice Of Reason]

I too purchased my first house in 1985 aged 21. So what. Who cares!

 

However, unlike some, I can't just sit here; smug look on face; saying "well I'm alrite Jack so sod the rest of ya".

 

Indeed, that approach is far too prevalent within today's society. This blinkered view of "well I managed it, so why can't you". It's oh so painfully typical of this self-righteous, patronising outlook upon others.

 

The FACT IS there are now hundreds of thousands of people on ZERO HOUR CONTRACTS. Many of these are younger people within our society who haven't got a hope in hell of becoming first-time buyers; irrespective of their aspirations to better themselves.

 

Tell me of ANYONE that will provide a mortgage given these circumstances.

 

The banks - who we the tax-payers have bailed out? Not a chance in hell.

 

With the construction of council homes at an all-time low since records began, their only choice is the private rented sector. An unregulated conglomorate of sharks and con-merchants; HUNDREDS OF WHOM ARE MP'S! To this end do you honestly foresee regulatory standards; rent-capping, etc. EVER going through Parliament?

 

I'm truly astonished by many people today within the UK. This 'don't care about others' mentality. The 'I'm alright Jack/sod foreigners' hyperbole spouted daily (many of whom are simply trying to make a better life for themselves and their families.....as WE would all do if in a similar position). This 'sod fellow human-beings' approach; encouraged by tories and UKIP.

 

What ever happened to humanity?

 

I truly find it physically sickening.

Edited October 13, 2016 by The Voice Of Reason