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[BBC News] Island housing market heating up


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Too true albert the american economy was riding high on loans and re mortgages in the 80's and 90's but now they are really feeling it i have been watching it for a while.

 

Bit like the UK economy at the minute, proped up on banks money and negative equity, a few experts are saying the same thing is coming our way.

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  • 3 weeks later...

I always think the headline is very misleading as it is the the Average Sale Price during the period which to my mind is not the same thing. If you are in an area where they are selling predominently detached modern houses the prices are always going to be on average higher than if the predominent housing type is a two up two down terraced house.

 

When they talk about the cost of an average home it gives the impression that they are comparing the price of a standard 3/4 bed detached house in each area which is not what they are doing. I would find that statistic more useful as why I appreciate that the cost of housing in the IoM is not cheap I find it hard to believe that only in Greater London is it higer and that the prices in the IoM are higher than in the South East. I have to say that is not my experience

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I always think the headline is very misleading as it is the the Average Sale Price during the period which to my mind is not the same thing. If you are in an area where they are selling predominently detached modern houses the prices are always going to be on average higher than if the predominent housing type is a two up two down terraced house.

 

When they talk about the cost of an average home it gives the impression that they are comparing the price of a standard 3/4 bed detached house in each area which is not what they are doing. I would find that statistic more useful as why I appreciate that the cost of housing in the IoM is not cheap I find it hard to believe that only in Greater London is it higer and that the prices in the IoM are higher than in the South East. I have to say that is not my experience

 

The lenders are very clever also. By pushing their 'buy to let' mortgages for second homes which can be secured on the first home it results in fewer houses on the supply chain keeping the house prices healthy even when interest rates start creeping up.

 

In my opinion investing in bricks and morter, is still a fairly low risk investment and the way to go (just wish i has spare cash to do it)

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I appreciate that the cost of housing in the IoM is not cheap I find it hard to believe that only in Greater London is it higer and that the prices in the IoM are higher than in the South East. I have to say that is not my experience

 

Even just a look at the BBC's own website on house prices shows that you're right to be skeptical. Regions with house prices around or above that of the IOM include:

 

Bath's average house prices are £253,364

Brighton and Hove: £248,062

Buckinghamshire: £342,715

Dorset £250,093

West Berkshire £276,198

 

The BBC website is basically where poor stats and press releases go to die.

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In isolation a .25% rate hike isn't much no, but over the few years it's been a rise of 2% which equates to a £120 quid a month rise on your mortgage, so the hikes are definately adding up for most of us.

 

I'm getting annoyed with these hikes being linked with an inflationary figure that appears to be caused by daft city bonuses and the cost of dvds on oxford street. Doesn't seem to relate to the rest of the country at all, yet we're all suffering the rate rise.

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The maths seems out here as 0.25% of 100,000 was £250 last time I checked and 2% was £2,000. The increases would therefore be £20.83 and £166.66 per month repectively. That is without our compounding etc which probably roughly offsets if you were on a repayment morage say over 20 or 25 years.

 

I am fortunate not to be to affected as I have a decent fixed rate deal and presently it makes more sense to save than try and pay some off of the mortgage as the interst on the mortgage is lower than on my savings. It is going to be a bit upsetting when the fixed rate runs out!

 

In isolation a .25% rate hike isn't much no, but over the few years it's been a rise of 2% which equates to a £120 quid a month rise on your mortgage, so the hikes are definately adding up for most of us.

 

I'm getting annoyed with these hikes being linked with an inflationary figure that appears to be caused by daft city bonuses and the cost of dvds on oxford street. Doesn't seem to relate to the rest of the country at all, yet we're all suffering the rate rise.

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presently it makes more sense to save than try and pay some off of the mortgage as the interst on the mortgage is lower than on my savings

That's a very good plan and good advice to anyone who can afford to do it. We're looking into restructuring our mortgage when the fixed rate runs out and are planning to pay a chunk off from our savings. If we can reduce the term it would be great, but in the event of rates increasing having less capital outstanding can only ge a good thing.

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The maths seems out here as 0.25% of 100,000 was £250 last time I checked and 2% was £2,000. The increases would therefore be £20.83 and £166.66 per month repectively. That is without our compounding etc which probably roughly offsets if you were on a repayment morage say over 20 or 25 years.

 

I am fortunate not to be to affected as I have a decent fixed rate deal and presently it makes more sense to save than try and pay some off of the mortgage as the interst on the mortgage is lower than on my savings. It is going to be a bit upsetting when the fixed rate runs out!

 

Tax relief?

 

Also, you must have an incredible fixed rate deal if you are better off with savings, especially after you pay tax on the savings interest and get tax relief on the mortgage interest. Just make sure you use the saving wisely as good fixed rate mortgages are becoming a thing of the past.

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