Inflation

[BlueLoo]

I can remember them higher than that.

https://www.moneyguideireland.com/history-of-mortgage-rates-in-ireland.html

They were >16% in Ireland in the 90's.

5-6% was the norm when i bought my house

I was told a story by an old friend of mine that he was so crushed paying for his mortgage in the 90's that he and his family couldn't afford to eat or heat the house properly.

A IR rate of 5% will increase my mortgage repayments by 25%.

That will be a serious hit to my income.

 

[Deleted member 292770]

And still none of the loons have an answer.

Your’e talking about it you clown. negligible interest rate increases for the likes of you with supposed 6 figure sums in the bank and huge inflation increases to cover the cost of the spamdemic you fuelled.
the £300 in Jewsons that you could turn in to £3000. Has shifted to £750 to £2750.
If you weren’t in a hole digging all day maybe you’d understand
You really are inrcredi......ah forget it.

 

[noseall]

so you still paid thousands and thousands in interest glad we cleared that up

Payback time!

 

[noseall]

Nosey your house's value hasn't increased by 350%. It's the same house (Unless you have added something valuable to it). It's the money that has lost its value.

If your house's value had increased by 350% you would be able to sell it and buy 350% more of the same type of houses with the proceeds. That's three and a half houses. Could you sell your house Nosey and buy three and a half of the same type of house with the proceeds?

Positive equity is still positive equity no matter which way you dress it up. Better than being the other way. Anyone remember those days in the eighties when people were buying houses for thousands only to be sat on duff investment having lost £10k in a week. Negative equity nightmare.

 

[Mottie]

You mean the good old days when you could borrow £125k on a £100k house?

 

[BlueLoo]

The real rate of inflation is 6%

If you have significant sums of cash in the bank, you are an idiot.

Most investors rush for assets in a high, real interest rate environment to protect themselves from cash erosion.

This is why house prices are so high and also why it is an absolute disgrace we continue to have Zirp at the benefit of industry but to the detriment of the common man.

CB's must start raising IR's heavily or else chaos will quickly ensue.

Once IRs get back to a historical norm, then cash will have value once again.

How quickly that happens will be interesting

 

[noseall]

You mean the good old days when you could borrow £125k on a £100k house?

Toxic mortgages - ouch! Sent the financial world into a tailspin. Bankruptcies everywhere. Builders working for £50 per day.

 

[Deleted member 292770]

You mean the good old days when you could borrow £125k on a £100k house?

Northern Rock were one . said you were getting a 125% mortgage .
In reality it was a 95% mortgage and a 30% loan all on the same rate.

 

[Deleted member 18243]

Anyone remember those days in the eighties when people were buying houses for thousands only to be sat on duff investment having lost £10k in a week. Negative equity nightmare.

Those days are still with us; if you live in an "enriched, vibrant, multicultural" area your house will be worth far less than it was if you bought it pre-enrichment.

 

[BlueLoo]

it seems not.

Quick to cast aspersions about those in debt. Unable to answer the simplest of retorts from those from the opposite end.

Disgusting troll.

If i were to be a forum admin, i would either ban the use of the word "Troll" or, have it auto cirrected to something like "person whom i disagree strongly with".

I absolutely hate it's usage. It is nothing more than a low resolution, crass attempt at ignoring the argument and discrediting the recipient.

In footballing parlance, it is playing the man, not the ball.

This forum is infested with it's usage.

 

[Deleted member 18243]

devaluation is met with an increase in the value of assets.

The price increases, not the value. The asset, whatever it is, hasn't suddenly increased in size or quantity. It's an illusion, only the paper numbers change.

If devaluation and money printing worked as you say it does there'd be no shortage of food or anything else, because you could create whatever you needed just by altering numbers on paper.

 

[BlueLoo]

The price increases, not the value. The asset, whatever it is, hasn't suddenly increased in size or quantity. It's an illusion, only the paper numbers change.

If devaluation and money printing worked as you say it does there'd be no shortage of food or anything else, because you could create whatever you needed just by altering numbers on paper.

Correct.

Money is just a token.

 

[SUNRAY]

think off it as 10 people in a pub they put 10 each in the kitty
along comes there mate he has printed a 10 pound note that is equally as valid but adds nothing to the kitty but now the kitty has to cover 11 people diluting the value to everybody

HUH?
Sounds to me like you are confused.
If 11 people put in 11 'equally as valid' £10 notes... I make that £110.

 

[Deleted member 292770]

If i were to be a forum admin, i would either ban the use of the word "Troll" or, have it auto cirrected to something like "person whom i disagree strongly with".

I absolutely hate it's usage. It is nothing more than a low resolution, crass attempt at ignoring the argument and discrediting the recipient.

In footballing parlance, it is playing the man, not the ball.

This forum is infested with it's usage.

Used here frequently as a means of escape when backed into a corner . Normally by those who place themselves on a pedestal and protray themselves as of a higher intelligence than the rest.

 

[Deleted member 292770]

Correct.

Money is just a token.

Not to Nosey .Hes over the moon with his equity and 6 figure bank account.