Purple said:Next they will take the value of one of your kidneys and one of your lungs into account...
whizzbang said:what makes a speculator? someone who buys because they think prices are going to continue to rise? Where does that leave Ireland? 90% Speculators?
we all know 86.5% of statistics are made up on the spotEurofan said:Ah now that's probably a tad conservative!
funky girl said:Whats wrong with saving and renting first??
funky girl said:Whats wrong with saving and renting first??
Sunnyboy said:For at least the past 10 years house prices have been rising faster than a normal person could save.
As for designer labels, hols and nights out totally agree with you there.
Persius said:Do the american banks really think that the interest rates aren't going to get significantly higher over the next 30 years?
Persius said:From the Forbes article
"The speculative housing craze is crashing from its own excesses, not Federal Reserve action. Mortgage payments still are low, and lenders remain accommodative. Since the Fed started to tighten in June 2004, 30-year fixed mortgage rates first dipped from 6.3% to 5.6% in June 2005 and now sit at 6.5%."
How can the american banks offer 30 yr fixed morgages at essentially 1.25% higher than the Fed rate? Whereas here your standard tracker rate is ECB + 1.25%. Do the american banks really think that the interest rates aren't going to get significantly higher over the next 30 years?
yeah the mortgage lenders can lend at fixed rates for length of mortgage and protect themselves from federal reserve rate rises by buying interest rate derivatives and by securitising the debt and selling it on the markets. as someone posted elsewhere you can get a 20 year fixed in belgium, im suprised theres no long term fixed rate in the market here ,but they would be more expensive but you'd have more certainty and know you'll never pay more than the rate at the start of your mortgage.gearoidmm said:Long term interest rates in the US are based on the price of bonds which are very low at the moment, largely because of large scale buying of US demoninated treasuries by the Japanese and Chinese governments thus financing the enormous US current account deficit and propping up the dollar.
One of the biggest threats to the world economy at the moment is this huge deficit (currently 6.9% of GNP) which, if foreigners were behaving rationally, should be causing a precipitous decline in the dollar
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