Current public sentiment towards the housing market?

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Finally - the fact that couples are having fewer children will mean that the supply of future potential house purchasers will fall. This will have an impact on the longer term view.[/quote]

A fair point in the longer term, but regardless of how they came about the very existence of these long term mortgages increases everyone's buying power
 
Andy Doof said:
Maternity Leave...job-sharing...childcare? Don't know
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Do you know how hard it is - in the private sector to get jobsharing? Do you understand that if you are job sharing you are not earning the full salary for that job which you are sharing, that jobsharing is also salary sharing? Do you know how a) expensive and b) hard to find child care is in many parts of this country?

Given that you're depending on this "don't know" to support your idea that there will be some kind of a mythical softlanding, I have to say your faith is almost inspiring.
 
Andy Doof said:
A fair point in the longer term, but regardless of how they came about the very existence of these long term mortgages increases everyone's buying power
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Rising interest rates, such as we are enjoying right now, is decreasing everyone's buying power.
 
Andy Doof said:
the very existence of these long term mortgages increases everyone's buying power
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Which fuels ever-increasing house prices, which drives even longer terms, which fuels ever-increasing house prices.... do you notice a pattern emerging? Where does it end? Inter-generation mortgages? That'll be difficult since people aren't having kids anymore...
 

The "don't know" was actually a reference to any OTHER way people can manage to have children.
I've given you reasons for my beliefs...they're just not good enough for you!
we won't fall out over it
 
BigM said:
9-14 is a 56% increase
2-4 is a 100% increase.

I sincerely hope you were joking.....
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It depends on a lot of other factors... if you borrowed at say 7 and were stress tested to 9 then the jump to 14 is tough
but werent we all told to stress a couple of percentage points increase so a 2 to 4 jump should be no worries...

I'm bearish and i think there were 2 really significant pieces of news today that means the slowdown is now public and will get worse.
But the smug certainty of the bears is annoying, not just this poster, the whole "everthing is sh__" mentality... the responses are so dogmatic its almost a religion to you guys...

still reckon the smart bulls will do much better whether prices go down or up, a positive outlook is always better than whinging
 
Andy Doof said:
Finally - the fact that couples are having fewer children will mean that the supply of future potential house purchasers will fall. This will have an impact on the longer term view.
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A fair point in the longer term, but regardless of how they came about the very existence of these long term mortgages increases everyone's buying power[/quote]

Congrats Andy. You have managed to clock up over 100 posts in just over a week. You are certainly persistent. Even if you're arguments are as flimsy as a lot of the apts that have been built over the last few years.
 
Andy Doof said:
A fair point in the longer term, but regardless of how they came about the very existence of these long term mortgages increases everyone's buying power
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And reduces their future buying power if they take the longer term!
 
BigM said:
9-14 is a 56% increase
2-4 is a 100% increase.

I sincerely hope you were joking.....
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I wasn't joking! Your example just illustrates perspective.
I imagined what would be a large mortgage for me...then calculated the impact those increases would have.
 
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My congrats too - Andy you're a class act - most of the gang here haven't had this much fun in ages!
 
MadPad said:
But the smug certainty of the bears is annoying, not just this poster, the whole "everthing is sh__" mentality... the responses are so dogmatic its almost a religion to you guys...
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He's a property investor who doesn't realise the difference between a 50% and a 100% increase in costs - I'm sorry if pointing it out seems smug to you.
 
My congrats too - Andy you're a class act - most of the gang here haven't had this much fun in ages!
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Edo, Please stay on topic and address the post not the poster.

This thread is supposed to be a Great Financial Debate contrarian posters (like andy) should be welcomed.
 
BigM said:
He's a property investor who doesn't realise the difference between a 50% and a 100% increase in costs - I'm sorry if pointing it out seems smug to you.
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no, maybe you should read the responses again...

It's not all about percentages boys, its about where you start from.

If you are an idiot and started at 2% being maxed out, youre screwed. Yeah its 100%... But to take your example when Japans rates were at 0%

Which would have been better
a jump from 2 to 4%
or a jump from 0% to .25%

oh the second one is an infinite increase.... BS!
 
Andy Doof said:
I wasn't joking! Your example just illustrates perspective.
I imagined what would be a large mortgage for me...then calculated the impact those increases would have.
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But from an investment pov that makes no sense. From a buy-to-live pov you'd rather the smaller cash increase. So I suppose since you're both an investor and an owner, you can have it both ways!
 
I took the question to mean would I prefer:
a) Interest rates to go from 9% to 14%
b) Interest rates to go from 2% to 4%

I think I would prefer shelling out an extra 2% of my mortgage per year than an extra 5%.
The question is ridiculous...well ridiculous is a bit strong. Vague is more like it
 
Andy Doof said:
I took the question to mean would I prefer:
a) Interest rates to go from 9% to 14%
b) Interest rates to go from 2% to 4%

I think I would prefer shelling out an extra 2% of my mortgage per year than an extra 5%.
The question is ridiculous
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+1
 
BigM said:
9-14 is a 56% increase
2-4 is a 100% increase.

I sincerely hope you were joking.....
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But the absolute increase is smaller.

100k @ 9% interest (charged annually) = 9k
100k @ 14% = 14k (5k per year increase in interest payments)

100k @ 2% = 2k
100k @ 4% = 4k (2k per year increase in interest payments)

The more you borrow the more pronounced that absolute differential will be (and the better off you are at lower absolute interest rates!).
 
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