Ponty
pfm Member
You don’t know what you don’t know.
Housing market
- Thread starter matt j
- Start date
You don’t know what you don’t know.
martin clark
pinko bodger
German: verbs that take the dative: 'Sie sitzt in meinem Porsche'
Home Ec: a version of Apple Crumble that was unrecognisable utter crap compared with Grandma Lucy's freehand delight. & Which I could already cook.
It ..stuck, in entirely the Rong kind of ways.
Brian
Eating fat, staying slim
Oh, I know the answer and I understand exactly what Bob is saying. You appear keen on point scoring. Either that or you don’t know that you don’t know.
Ponty
pfm Member
Nothing about point scoring, just right and wrong. It’s binary. I ran an EMEA leasing business so yes, I really do understand time value of money and IR calcs, but believe what you like, I’ve nothing further to say on the topic.
robs
should know how this works by no
I'm surprised anyone thinks buying a property now would be a good idea...top of the market, interest rates going up, recession imminent...surely it's only going one way? Unless inflation turns into hyperinflation and all those huge mortgages actually turn into 'real' peanuts in just a few years (could be a lot worse, or better depending upon your perspective, than the 70s?)...but that will be pretty tough times if you've still got to pay the mortgage payments throughout...
Brian
Eating fat, staying slim
Good for you. I too understand it, yet you implied I did not because I also happen to understand what Bob was saying. Answering the question shows what Bob is saying but you don't want to acknowledge that.
You very much are point scoring, trying to look smart etc. Sad really.
clivem2
pfm Member
It’s tricky. Will prices dip or will the market stagnate because people won’t live with price drops? The fundamental behind prices is a lack of housing, which keeps prices up. It could all go to hell in a handcart but this has been prophesied many times. When will it happen to a significant extent? That said, we are in a mess with inflation and energy costs.
mandryka
pfm Member
Buying property is still a good idea. You’ve got to live somewhere - you either pay rent or pay a mortgage. If interest rates go up, so will rents. A mortgage will reduce and eventually end. There’s a very good chance your asset value will rise considerably in the medium to long term. Property is a good place to put your capital. And of course, renting is insecure.
Your mistake is that you’re focussed on property as a short term investment.
Ponty
pfm Member
In the long run, chances are anyone buying now will be fine, as long as they don’t become a forced seller. At the end of the day, you’ve got to live somewhere so the sooner you start paying for it the sooner you’ll finish. When you see how the govt handed out cash during covid, I wouldn’t put anything past them when it comes to propping up the housing market.
https://www.bbc.co.uk/news/business-62338308
Ahh but then they'll have to pay to get to the office. Swings and roundabouts.
Mike Reed
pfm Member
Ye gods, Joe. I didn't have anything like as good an education. It WAS Eton you went to, wasn't it?
.Why all this controversy over calculating reg. savers? I'm no mathematician, but I've had so many of these things and have had to work out accrued interest on a 6 monthly audit basis, as all of them (really, many dozens over 25 to 30 years) are annual interest only, yet (supposedly) calculated daily. I simply calculated the accrued daily interest on the amount invested whenever a new payment goes in (which was never a regular interval). E'g. £500 @ x% for the number of days invested, £1000 @ x% for the number of days that sum is invested and so on. If you're clever/lucky when you take out the saver, you can get 13 months' interest, or near, depending on the maturity date.
If you simply choose the half-way mark at, say 3 grand at the prescribed rate, you won't be miles out, simply to get an idea.
Matt, I don't envy your conundrum, but f.w.i.w., (a) flats have underperformed houses these last few years and depending on w.f.h. continuing, probably won't be the first choice for most. (b) You're not keen on the place, so you may well wonder why you bought it; a home is not just an investment. (c) Unless it's an ex-council property, maintenance and ground rents may be a drain and capable of escalating. (d) if it's just a flat (no garden), it would have even less appeal, i.m.o. To add conveyancing/buying/selling costs to your purchase price on a short term gamble really doesn't seem a good idea.
An alternative would be to move to another temporary dwelling when you have to, albeit at a higher rent, save like buggery and look around for an ex-council house (or decent flat; leasehold costs are low) and in a less desirable but potentially upcoming area.
Unless you can achieve family help or whatever, you don't appear to me to be ready for the biggest investment in your life ref. the 1st rung on the ladder. Especially at this current peak when all hell is going to be let loose this coming winter.
Dead right. It's cheaper to heat a spare room than drive a car with fuel at nearly £2 a litre. That's before any repairs. Mine just handed in a bill for £500+, a brake caliper, discs and pads. It's an old car, nothing lasts for ever and 15,000 miles a year takes its toll.
Bob McC
Living the life of Riley
He’s arrogant isn’t he?
Bob McC
Living the life of Riley
Thank god!
Gingerbeard
Ayup Me Duck
Internet: Google
Joe Hutch
Mate of the bloke
Ye gods, Joe. I didn't have anything like as good an education. It WAS Eton you went to, wasn't it?
It was the Catholic equivalent of Dotheboys Hall.
I've always been hopeless at this sort of thing, however simple. It didn't matter for most of my working life, because I had no money left to invest after all the bills had been paid. Somehow I managed to avoid bankruptcy and penury. Now I get someone else to make my investment decisions for me.
darrenyeats
pfm Member
6k just happens to be the ending balance, but it's not the relevant number either in reality, or to calculate the interest ... or to calculate the yearly IR. The average account balance over the year is a more relevant number.
Edit: some of these accounts allow one withdrawal per year. Imagine the saver withdraws £5000 in month 11, leaving £1000 at the end of the year. Again, the end balance (£1000) wouldn't be the basis for calculating the yearly interest rate. The average over the year is more relevant.