Join for free
Reply
Page 3 of 5 < 1 2 3 4 5 >
spitfire
Chatterbox
spitfire is offline
Warwickshire
Joined: Jul 2012
Posts: 22,875
spitfire is male  spitfire has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 01:21 PM
21

Re: Interest rates to rise..

O.K, a scenario. Your house is paid for, base rates rise a couple of %, house values are suppressed by 10%, so a house previously valued at say 300k, is now worth 270k a potential 30k paper loss, but you decided to sell up a month or two ago to go and live with your kids say, that paper loss is now an actual loss.

It seems to me that the average Joe in the street, treats investment rates as a moral issue, not a financial one, being wealthy on paper, nowadays is more important than your bank balance, a 5% return on a grand in the bank can be earned in a couple of hours, so forget a grand or two in the bank, just charge for cutting the neighbours lawn for them once a year or something similar, and put the cash in the shoebox under the bed.
Reply With Quote
Grumblewagon's Avatar
Grumblewagon
Senior Member
Grumblewagon is offline
Aberdeenshire
Joined: Aug 2012
Posts: 2,625
Grumblewagon is male  Grumblewagon has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 05:53 PM
22

Re: Interest rates to rise..

I'm so sorry Spitfire, that my acute short-sightedness in wanting a few extra pounds from my savings will precipitate a worldwide financial crisis! What do you want - a permanent 0% interest rate?

It seeems increasingly obvious that we will have to do more to look after ourselves in retirement. You might be happy to cut your neighbour's lawn, but I'd like a resaonable return on my savings - so there.
Reply With Quote
Julie1962
Chatterbox
Julie1962 is offline
Surrey
Joined: Feb 2013
Posts: 43,055
Julie1962 is female  Julie1962 has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 05:58 PM
23

Re: Interest rates to rise..

There needs to be some equality and fairness to it but taking from people who may lose their home to pay to a saver is unfair on various levels. We need a big change in this country a real shake up to level things a bit but not sure where or who will be able to do it.
Reply With Quote
Losos's Avatar
Losos
Senior Member
Losos is offline
West Suffolk
Joined: Aug 2009
Posts: 2,537
Losos is male  Losos has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:13 PM
24

Re: Interest rates to rise..

Originally Posted by Grumblewagon ->
It seeems increasingly obvious that we will have to do more to look after ourselves in retirement.
You are absolutely right on this, plus (as Bruce pointed out) interest rates are only important relative to inflation, of course you and I want a decent rate on our savings because inflation has been above the interest rate for a long time now.

Even before the 2008 financial crash it wasn't easy to get above inflation savings rates.

Personally, I think the UK inflation rate will always be high, it has been historically and will be in the future. But even when the BoE ups it's base rate it's looking like it will not go above 2 to 3% for another 15 or 20 years.

So, cash is the worst asset class to be in now, and for the foreseeable future, and tens of millions of people who have tried to save are just being laughed at by all the people who are prepared to borrow more than they can repay.

It's not right, but does anyone give a dam Not that I can see
Reply With Quote
Julie1962
Chatterbox
Julie1962 is offline
Surrey
Joined: Feb 2013
Posts: 43,055
Julie1962 is female  Julie1962 has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:19 PM
25

Re: Interest rates to rise..

I haven't seen too much laughing, just relief when people can afford to buy a home. As I said there has to be some equality but looking at house prices when many here brought their homes and what they are now perhaps this is the price that has to be paid.
Reply With Quote
Losos's Avatar
Losos
Senior Member
Losos is offline
West Suffolk
Joined: Aug 2009
Posts: 2,537
Losos is male  Losos has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:21 PM
26

Re: Interest rates to rise..

Originally Posted by Julie1962 ->
but taking from people who may lose their home to pay to a saver is unfair on various levels.
Why may they loose their homes

Because they become 'over extended' to use the polite term

Reality is they were offered a mortgage larger than their resources could support (That was wrong) and they accepted such mortgage (That was wrong as well)

Two wrongs don't make a right (As my old Dad used to say)
Reply With Quote
Julie1962
Chatterbox
Julie1962 is offline
Surrey
Joined: Feb 2013
Posts: 43,055
Julie1962 is female  Julie1962 has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:25 PM
27

Re: Interest rates to rise..

Absolutely but have you seen housing prices who can afford a home more than 10 times the average wage ? Of course people will over extend they have to if they want a home.
Reply With Quote
Losos's Avatar
Losos
Senior Member
Losos is offline
West Suffolk
Joined: Aug 2009
Posts: 2,537
Losos is male  Losos has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:28 PM
28

Re: Interest rates to rise..

Originally Posted by Julie1962 ->
but looking at house prices when many here brought their homes and what they are now perhaps this is the price that has to be paid.
Could always cash in and move a bit further away from London, we live in a world where rich foreigners can buy property in London at astronomic prices, this is forcing all property in and around London to rise, very hard for people to get on the housing ladder in London. Would be easier if there were not so many people trying, as I think I may have said before, it's not that there are too few houses, it's that there are too many people Supply and demand etc.
Reply With Quote
Julie1962
Chatterbox
Julie1962 is offline
Surrey
Joined: Feb 2013
Posts: 43,055
Julie1962 is female  Julie1962 has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:32 PM
29

Re: Interest rates to rise..

Only if they can find work we are looking at the moment houses we can afford we would never find a job so have to move when my husband gives up as too disabled to work and claim benefit. Also if all who cannot afford to buy in these expensive areas moved who would do the cleaning and serve in the shops etc ? You need us down here to be able to enjoy your lives unless you are willing to do the menial jobs for each other.
Reply With Quote
Losos's Avatar
Losos
Senior Member
Losos is offline
West Suffolk
Joined: Aug 2009
Posts: 2,537
Losos is male  Losos has posted at least 25 times and has been a member for 3 months or more 
 
15-03-2014, 06:38 PM
30

Re: Interest rates to rise..

Originally Posted by Julie1962 ->
Of course people will over extend they have to if they want a home.
But do they have to want a home in London Wouldn't it be better to look where prices are more realistic

Let's face it, there is only so much land, you can't magic a few more thousand acres in London, it's all been built on, it already has all the houses that can be built there. If the number of people who want a home is rising yet the land to build on stays the same (as it has been since the land rose out of the sea all those millions of years ago) then as I said before it's supply and demand. Supply stays the same yet demand increases dramatically.

Problem is people look at the simple answer, some how create more homes, not the really difficult answer which is reduce the population. I don't care what colour, religion, sex they are, there are just too many
Reply With Quote
Reply
Page 3 of 5 < 1 2 3 4 5 >

Thread Tools


© Copyright 2009, Over50sForum   Contact Us | Over 50s Forum! | Archive | Privacy Statement | Terms of Use | Top

Powered by vBulletin Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.