Soldato
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You think interest rates are going down?
House prices rose 7.3% this year, average now almost £250k
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You think interest rates are going down?
I actually exchanged contracts to sell it today.... moving to somewhere a bit bigger. Very fortunate and blessed to be in the position to do so.
@Psycho Sonny yup not always gain... new builds don’t seem to be the most reliable investments. Hopefully though it’s a nice home that he enjoys living in.
Caporegime
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I don't think they are going anywhere fast and you have no idea what his current LTV is.
In 2 years time he could be into a lower LTV band which means fixing for 10 years would be a dumb move.
Also unless you have a crystal ball there is no guarantee they will go up.
Put it this way when I bought my home everyone on here said fix for 5 years rates can only go up. They went down literally 2 weeks after I applied and stayed down ever since and in the past 5 years everyone on here has been saying fix for 5-10 years and yet rates haven't went up in the past 5 years.
So without full details of his current situation I don't know how to advise him but fixing for 10 years is the last thing I'd do.
What if he wants to move home in 3 years time? How will the fix work for him then?
Caporegime
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They aren't up here unless you got a good deal which is rare but I know one persoythat did but he was a cash buyer with no chain.
The Cala homes again in my area which sold for crazy money lost £150k and never recovered either.
The 2008 crash literally set fire to a lot of people's hard earned.
I know someone who bought one, had to sell it when he got into money troubles and is now literally homeless.
Talking a 3 storey detached home with 5/6 bedrooms and he also had a conservatory built.
I know the current owners too and they got it for a steal from the bank. £40k under market value.
For some reason first time owners of Cala homes up here never do well so overpriced. They are like apple of the housing market. But the 2008 crash added on top of the overpricing was enough to damage some people's finances forever.
Just for the heck of it... I moved to a discount rate tracker before I sold, meaning that I avoided any early repayment fees... woo!
My gut feelings in the current climate is that an interest hike is only something to be particularly wary of if the raise would make it difficult for you financially. With so many people at risk, it seems to me unlikely that there will be a dramatic increase in interest rates any time soon. Of course if your borrowings are high and you are quite stretched on money, even a nominal increase in the interest rates could have a dramatic impact on your finances. All a gamble but I have found perpetual 2 year fixes to have been the tried and tested ‘winning option’ over my short duration of home ownership.
My gut feelings in the current climate is that an interest hike is only something to be particularly wary of if the raise would make it difficult for you financially. With so many people at risk, it seems to me unlikely that there will be a dramatic increase in interest rates any time soon. Of course if your borrowings are high and you are quite stretched on money, even a nominal increase in the interest rates could have a dramatic impact on your finances. All a gamble but I have found perpetual 2 year fixes to have been the tried and tested ‘winning option’ over my short duration of home ownership.
Soldato
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He said it went up 40% and its been a few years, Nitefly is smart enough to figure out his own specifics, even with his geography degree he is now too ashamed to admit he has.
The rates cannot go down, we are basically at zero. Negative rates will not impact lending, 2% ish from 20%LTV to 65% LTV from a quick search
Whatever everyone says is irrelevant, no idea when you bought your home, also, what happens after is irrelevant to the decision, doesn't mean its a wrong decision if it goes the wrong way, or that interest rates have not gone up.
Certainly its not the worst advice, thats for sure.
I mean i could say invest in the stock market, thats sound advice, unless you put everything in one random company, then GG to you.
@platinum87 are you perhaps confusing me with, say, old forum member ‘Nix’? I really don’t have a geography degree 
Caporegime
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Well he sold his house so fixing for 10 years would have been a terrible move if say his deal was up not that long ago.
If you were making a loss and there was no hope of doing otherwise, you would sell.
Do tell me why BTL "investors" are holding on to their so-called loss-making properties, and many are in fact adding more properties.
They do this to lose more money, right?
Pull the other one.
Next you'll be telling us all that landlords are losing money because they're so desperate to "provide a service" to the general population, that they're happy to make a loss on each property they buy
Hah.I say again, if you were making a loss, and property prices were going down, you would sell up.
There is nothing else to say. Your position that BTL isn't profitable (and in fact is loss making) does not tally with the world we all see around us. Where BTL continues to be an attractive option for many. Even @Nitefly weighing up his options to enter the BTL game. I'm sure he's seen the losses he could make and is just itching to throw his money away...
Lol, your posts have been absolutely delightful to read. It is so entertaining.Won't somebody think of the poor landlords, it's so hard to make a profit.
Yet oddly for something that's not at all profitable, houses keep being bought up for their rental value.
And sites like RightMove et al continue to highlight the rental value of each property they list..
Which is really weird for something that's completely not profitable
but this has really cracked me up. I didn’t know Britain is a society of charities. Last time I checked even charities make a bucket of money to line up their CEO and Chairman with 6 figure salaries.
I certainly thought Britain was still a capitalist market. We just left EU market but I am pretty sure we are still a capitalist market rather than a philanthropic utopia society...maybe one day everyone can sit on their own bums and do nothing and someone else will fill our bellies and fluff us. Maybe we will have bots for that.
the difference is the space where making money becomes exploitation. Should casinos be able to offer payday loans in club? It’s a free market.
how about medical treatment US style?
Soldato
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@platinum87 are you perhaps confusing me with, say, old forum member ‘Nix’? I really don’t have a geography degree
Hmm, i think its because we both did math's, biology and geography a-levels, so you did a biology degree?
But this is very strange of a sensation for me.
Imagine i say, get a 10 year fix, and you, knowing you want to move in the next few months or a year, go and get it anyway.
@FoxEye I’m not weighing up my options to enter into BTL per se, as I find it personally a bit of a moral grey zone, but I can’t really hold others to ‘moral account’ for it because BTL is (in a raw emotionless sense) often a very shrewd investment... to the point where it’s almost silly to not invest in it, if you can! This is why I think the answer is for more regulation to curb gross over-hoarding rather than harshly judging those that opt to do it.
I also don’t mind people that add value to properties by doing them up, as oppose to those that just throw spare money at them and ‘hog’ them.
I also don’t mind people that add value to properties by doing them up, as oppose to those that just throw spare money at them and ‘hog’ them.
Soldato
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AFAIK they can offer such loans, but considering their customers would be degenerate gamblers, don't think its a great idea.
Blimey I have no idea where/when I posted my A-levels but yep you’re spot on with those and the biology degree
Britain is increasingly a society of haves and have nots.
I don't think it's all that smart to celebrate this. 1/3 of the children in this country are classed as being in child poverty. That's shameful.
If we let this sentiment that greed is good prevail in *all* aspects of life, this country is heading to some dark places.
Working poverty is at an all time high also. We have record employment and yet poverty is getting worse.
We're becoming more exploitational as a society. People in work are increasingly feeling hopeless about their futures. Housing is a big driver of this.
None of these are great things. I wouldn't celebrate what the UK is becoming.
No arguing against any of those arguments. Just the way fox eye puts it into “non-profit” realm. Lol no where in the world people do things for non-profit. From the dawn of time people do things for other people for a motive or a favour or an exchange of something. Non-profit is what Jesus did. No one else been before or after has ever done non-profit. So unless kingdom come, I don’t think we ever gonna get what fox eye wants. Lol. It is just funny that he wants to go to heaven that badly.
@FoxEye just go easy on the extremes. You got some points but your arguments are from a fair extreme perspective. Valid but extreme. When you use non-profit stuff etc. It devalues your argument.
landlords are not all bad. You can’t beat everyone with the same stick. Just like I can’t say everyone from Cornwall sell plastic floats and wet suits. Private rent market has a place in the society. If you ever had a joy renting from council or a housing association, you will know the pain and the fight you have in your hands when things go wrong. It is one law for average joe another for these professionals. They really know their stuff so they will operate on the boundaries and grey areas. Where renting from an individual is easier to deal with and the current regulations are that much harsher that it is a lot of incentive for private landlords to put things right as opposed to keep things in tatters
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they can’t.
Pubs serving drunk people?
Credit cards to people in perpetual debt?
abolish minimum wage?
it’s a free market.
What are housing associations, then?
I don't recall btw saying that no enterprise should be profit making. Please do feel free to quote the post where I say that.
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