What's the housing market like at the moment?

[Phylis 10]

Not really unusual, its the tax law that drives it. Declare losses and claim back tax already paid - makes sense. Haven't all the building companies had large write downs related to value of their land banks? Declare the value to have dropped by £50 Million and claim back the tax you paid last year on the profit you made. You still own the land, and you get millions back in tax. Build on it next year and pay some tax next year on the profit you make then.

 

Thats exactly how they are working it, and how any business with half a brain will run for the next few years. Make the most of the tax grab whilst you can.

[Sheffy2008 10]

Thats exactly how they are working it, and how any business with half a brain will run for the next few years. Make the most of the tax grab whilst you can.

 

All is well, that's why many in the building trade have colleagues now on the dole.

[Phylis 10]

All is not well on the front but dig a little deeper and you never know what you will find.

[blanco 10]

On a 150k mortgage over 25 years at 6.5%, the mortgage payments are £1100.

 

But, £870 of that is interest.

 

So if you can rent a house worth £150,000 for less than £870, it is cheaper to rent than buy.

 

Even if you have a good deposit, you have to remember the interest foregone on that money if it is tied up in a house rather than a high interest savings account.

 

If house prices rise, it doesn't matter (ie. the last 10 years) but if they stagnate or fall, renting is definitely better from a purely financial point of view.

 

Having sold up 18 months ago, we are renting rather than buying at todays inflated prices. The rent we pay is less than half what the interest on the mortgage would be if we were to buy it.

 

Also, by paying a bit more in rent, you can get a much better house, ie. £500 per month rent gets you a 150k house, whereas £750 can get you a £300k house.

 

 

Ker Ching! Thank you. This is the longest running argument I have with my parents.

"you dont want to rent, it's throwing your money away", eerrrrrr my cash is in a high interest account growing by 6%, yours is in a house, growing by -12(?)%.

[Dimitri 11 10]

They seem to be a prime candidate Dimitri. On their arse, little cash, a poor ratio, but a strong portfolio that still has value to the market even if at a reduced rate.

 

What would happen? That depends on how it comes about but right now I expect that bank and BS boardrooms all over the world are full of people working out deals to plot a secure way forward. If somebody tries to buy B&B then an offer will be made by the purchaser for whatever shares they want, which might include yours or not. The board will make a recommendation. It is entirely possible that you might end up with extra shares in another bank if that kind of deal is suggested. In short... who knows until it happens, but you shouldn't be out of pocket.. at least not to a great degree. Once a deal is done, then you either get your cash, new shares, or existing shares become more secure. We also have a few shares in B&B too but not enough to worry about one way or the other.

 

I'm also a member of Derbyshire BS, so it's a bit disappointing not to be doing a bit of carpetbagging (on a purely selfish level ) but merging with Nationwide looks to be a very bright plan so I'm not unhappy.

 

Hopefully they will pull through one way or the other. Im not selling my shares at the rate there at now so will risk them going bust.

 

They are paying the October dividend as shares so I will be even closer to the 600 mark!

[Tony 10]

Ker Ching! Thank you. This is the longest running argument I have with my parents.

"you dont want to rent, it's throwing your money away", eerrrrrr my cash is in a high interest account growing by 6%, yours is in a house, growing by -12(?)%.

 

So where do you live for the next fifty years while you count your interest?

[Sheffy2008 10]

So where do you live for the next fifty years while you count your interest?

 

Wherever he wishes as renters are the only ones that can move.

 

 

Houses -25% and growing

Savings rates - growing very soon

Interest rates on servicing debts - growing very soon

 

Don't be so smug, alot can happen in 6 months particularly for those who have huge debts.

 

He hasn't.

[Phylis 10]

Wherever he wishes as renters are the only ones that can move.

 

 

Houses -25% and growing

Savings rates - growing very soon

Interest rates on servicing debts - growing very soon

 

Don't be so smug, alot can happen in 6 months particularly for those who have huge debts.

 

He hasn't.

 

How do you know that. Renting doesnt make you immune from debt.

[Sheffy2008 10]

How do you know that. Renting doesnt make you immune from debt.

 

 

Logic Phyllis

 

Only a financial fool would save 10k in a 6% savings account and service debts of 10K in a 15% debt account.

 

He sounds clued up to me and can think for himself. The sheeple who have bought over the last few years are not his ilk.

 

Maybe he'll buy a very cheap property at auction when those presently living in house heaven get reposessed. I know a few such people.

 

Do you?

[Phylis 10]

Logic Phyllis

 

Only a financial fool would save 10k in a 6% savings account and service debts of 10K in a 15% debt account.

 

He sounds clued up to me and can think for himself. The sheeple who have bought over the last few years are not his ilk.

 

Maybe he'll buy a very cheap property at auction when those presently living in house heaven get reposessed. I know a few such people.

 

Do you?

 

No. At this moment in time i know no one who is even close to repossession. Most people i know are sensible with their money.

 

Damn im at it now

[Cyclone 10]

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/09/bcnrics.xml

 

The average estate agent in the capital sold just 9.4 homes in the three months to the end of August, although prices there fell less sharply than anywhere else....

Estate agents in the Yorkshire and Humberside region, where houses prices have dropped more dramatically than almost everywhere else in the country, have been far busier however.

 

The region has seen average sales per surveyor at 17.6 over this period.

 

Ken Bird of West Yorkshire estate agent Renton & Parr said: "As more vendors reduce asking prices we have seen a slight upturn in activity, although offers are coming in 10% to 15% under asking prices."

[Sheffy2008 10]

No. At this moment in time i know no one who is even close to repossession. Most people i know are sensible with their money.

 

Damn im at it now

 

 

 

And the ones that aren't sensible with their money, and haven't got 105% mortgages?

 

 

 

 

.........