Demand for moorings plummeting?

[steveej]

Re: Nope !

Well I understand what Bedouin was trying to show.
Case 1 could borrow 3 x gross salary . With interest rate at 15% the annual interest payable would be 15/100 times 3 x Gross salary, equals 45/100 x gross salary.

Case 2 could borrow 5 x gross salary. With interest at only 2.5% the annual interest payable would be 2.5/100 times 5 x Gross salary, equals 12.5/100 x gross salary.

So no question but case 2 is spending much less of his/her gross salary on interest.

But one should remember that the 15 or 16% rate was a peak rate, not a long term average rate. Boy, did it hurt at the time, but I think if you want a ten year average rate you would be looking at nearer 8 to 10% pa. Someone else can go and check the statistics.

PS Our first flat cost £10,000 in 1972 and we needed to combine both my salary and that of my wife, including all benefits and luncheon vouchers, to persuade the building society to go to 4 times gross. A lovely elderly aunt came up with the deposit of about £1,000. Afraid I cannot remember the interest rate, but of course there was no such thing as interest only mortgages, we had to repay principal as well at the same time. Didn't leave much for any other necessities, let alone luxuries like holidays abroad.

Paying off a capital repayment mortgage just doesn't work like that! I'm really sorry and I really don't want to be rude at all, but it just doesnt work like that. It demonstrates you have very little understanding of how paying off a mortgage actually works. What you have actually described is similar to how an interest only mortgage works but is still incorrect.

If you google, mortgage amortisation calculator you can plug in loan amount, equity, term, interest and see how it all works when you vary the variables. You can also see how little you actually pay off with a 30 year term, a modest interest rate and a sizable monthly repayment.

I'm afraid you continue to prove my point that the previous generation needed not to pay so much attention to detail about such things because they clearly don't understand them (in the most part) and never really needed focus so much attention on them.

 

[Resolution]

Re: Nope !

Paying off a capital repayment mortgage just doesn't work like that! I'm really sorry and I really don't want to be rude at all, but it just doesnt work like that. It demonstrates you have very little understanding of how paying off a mortgage actually works. What you have actually described is similar to how an interest only mortgage works but is still incorrect.

If you google, mortgage amortisation calculator you can plug in loan amount, equity, term, interest and see how it all works when you vary the variables. You can also see how little you actually pay off with a 30 year term, a modest interest rate and a sizable monthly repayment.

I'm afraid you continue to prove my point that the previous generation needed not to pay so much attention to detail about such things because they clearly don't understand them (in the most part) and never really needed focus so much attention on them.

Oh dear oh dear Steve. My thirty odd years as a banker have apparently not taught me much, let alone nearly fifty years running a number of different types of mortgage loans myself. There is indeed a great gulf between us in our understanding of the subject. Bye.

 

[steveej]

Re: Nope !

oh dear oh dear. It's ok, I know a number of bank managers who don't understand it either. I'm not sure my mortgage broker really understands it, but he is very valuable because at least he understands the T&C's of each deal he proposes to me for our home and our rental properties so I can then work out the best deal for myself. I'm only a 36 year old accountant and my wife's only a veterinary surgeon who doesn't need to work but does a day a week to keep her finger in the door so what do we know.

Now I'm going to get personal......

I was born in 1981, my parents were divorced in 1998, I have a sister and three step brothers so there are 5 of us and it gets pretty competitive when everyone is vying for attention. I was the first year in Uni when they brought in student loans and tuition fees. It took me until I was 33 to pay them off when they were a thousand pound a year! Not 9k like they are now! I worry about those kids who are taking on substantial debts before they even have an income to pay them off with clueless parents who send their kids to Uni to satisfy their own ego.

I grew up in the 'posh part' of S.Wales had 3 x A's at A levels, Maths, Physics and Geography so I was born to be a sailor! lol! went to University and managed to get a job in a big 4 accounting firm. I worked 50+ hours a week on top of a 3 and a half hour commute. I left my house at 0620 and got home at 2100. It nearly destroyed me at the time but there was no other option. By the time I'd paid my travel expenses and rent I had about 20 quid a month left and this was in the early noughties. Not a house, girlfreind or holiday in sight!

I don't know how I managed it.

At 25, I bought a 1 bedroom flat for 150k this was in 2007. In 2008 it was worth 100k,

In 2012 my 'wife-to-be' decided she was 30 next year and decided to get herself pregnant, injected herself with local anaesthetic and pulled out her rod.

We spent 18 month's in a one bedroom flat with a newborn baby in an inner city flat before finally moving into a house.

We moved into a house in 2014 that cost the best part of 300k. The neighbour turned out to be a drug dealer and the language coming through next doors walls was the worst you can imagine. Then she put a restraining order on him, and shortly after she committed suicide!

City living at it's finest.

I'm afraid to say there is just a massive void of understanding these days and a mindset of they've never had it so good. We have a budget for the next house of 450k without having to sell our two rentals. We are very lucky and it is like one extreme to the other.

These types of discussions do cheese me off. It's always uncomfortable to put yourself in other peoples shoes

 

[bedouin]

Re: Nope !

I'm afraid if you have to ask a question like that...............You've proved my point

Go on the explain - don't forget I am a Cambridge Maths Scholar and have 20 years experience in financial maths so I might just be able to understand your explanation if there is even half a degree of truth in it.

What you are demonstrating is that you don't have the faintest what you are talking about.

 

[bedouin]

Re: Nope !

Paying off a capital repayment mortgage just doesn't work like that! I'm really sorry and I really don't want to be rude at all, but it just doesnt work like that. It demonstrates you have very little understanding of how paying off a mortgage actually works. What you have actually described is similar to how an interest only mortgage works but is still incorrect..

Do tell me - what it is about the word "Interest" that was clearly stated that you do not understand?

Do you really not understand the difference between interest and capital repayment?

No - I thought not - no other reason I can see for your ridiculously arrogant and mistaken attitude.

 

[solent clown]

Re: Nope !

I think if all moorings came with a choice of a fluffy kitten or a floppy eared puppy things would be much better.

 

[steveej]

Re: Nope !

Do tell me - what it is about the word "Interest" that was clearly stated that you do not understand?

Do you really not understand the difference between interest and capital repayment?

No - I thought not - no other reason I can see for your ridiculously arrogant and mistaken attitude.

Must have been a different Cambridge Math degree than mine

 

[bedouin]

Re: Nope !

Must have been a different Cambridge Math degree than mine

Clearly was since I understand basic arithmetic a good deal better than you.

 

[steveej]

Re: Nope !

3x salary at 15% interest - so 45% of gross salary in interest - and finding a 25% deposit.

Now you might buy at 5x but 2.5% interest - that is only 12.5% so a much lower proportion of income albeit a much larger deposit. I know it is hard to get on the property ladder but it is not as bad as people make out compared to what we faced.

Try and sell that to the corporate world, best of luck to you.

 

[steveej]

Re: Nope !

Go on the explain - don't forget I am a Cambridge Maths Scholar and have 20 years experience in financial maths so I might just be able to understand your explanation if there is even half a degree of truth in it.

What you are demonstrating is that you don't have the faintest what you are talking about.

I have a very clear understanding of the difference because it has a direct impact on me and my family. Thank you very much. Did you ever leave university or are you stuck in it?

 

[solent clown]

Re: Nope !

or maybe every mooring should have a wall with a graduated scale... So we could see who could wee the highest. The fluffy kittens and floppy eared pups would have to avert their eyes of course

 

[Blue Sunray]

Re: Nope !

Oh dear oh dear Steve. My thirty odd years as a banker have apparently not taught me much, let alone nearly fifty years running a number of different types of mortgage loans myself. There is indeed a great gulf between us in our understanding of the subject. Bye.

Northern Rock, RBS or Lehman Brothers?

 

[steveej]

Re: Nope !

and we wonder why the new generation is not forthcoming.

 

[steveej]

Re: Nope !

or maybe every mooring should have a wall with a graduated scale... So we could see who could wee the highest. The fluffy kittens and floppy eared pups would have to avert their eyes of course

bloody good idea!

 

[jac]

Re: Nope !

or maybe every mooring should have a wall with a graduated scale... So we could see who could wee the highest. The fluffy kittens and floppy eared pups would have to avert their eyes of course

What about ickle bunnies with soft fluffy tails. They would help.

Or a pink spangly unicorn. I'd have a mooring if I got a unicorn. My daughter would love me forever!!!

 

[Resolution]

Re: Nope !

Northern Rock, RBS or Lehman Brothers?

Tut tut. Jealousy will get you nowhere.

 

[rwoofer]

Re: Nope !

How many people here genuinely believe we had it better and would not rather be our children's generation?

I was born in 68, so just missed out as a baby boomer, but caught some of the benefits of the housing market, free education etc.

I genuinely fear the situation my children will be in, so do think I had it much better and easier than they ever will. I know I'm having to plan to help them out as the only way they will get close to the start in life I had. My parents who are baby boomers do seem quite oblivious of the situation, but thankfully I don't need to rely on them.

 

[dslittle]

Re: Nope !

​

You ( and moreso your brother) took huge risks to their personal safety that people born from say 1945 - 1965 have no concept of.

Of course now the baby boomers are older, we have a triple lock, granny bonds through NS&I.
As for younger generations inheriting I'm not sure they will. Some of course will do very well but have a couple spend a year in a nursing home and the equity soon goes.

EVen if they inherit, those who are baby boomers are now mid 50's to about 70. Their children will be 30's and 40's. By the time the baby boomers start dying in serious numbers, their children will be 50's and 60's ( if not more) so a bit old for them to start enjoying the fruits of the inheritance but maybe enough for them to pass onto their own children who by then might be 20's or 30's and needing a hand.

I fit into your age bracket. I have been shot at and blown up, ostensibly to protect you so please don't assume that you had to be in WWII to be at risk. I have also worked hard and saved my money. My first mortgage was about 75% of my then income. I provided for my children to have a good education and start in life. I have been able to support them as they have struggled with the current economic situation. I hope not to have to spend future money in a Nursing Home as my children will look after me in my dotage. One of my children is currently working on a 54m yacht and living the dream whilst acknowledging that he is living his life the opposite way to me and will have to work longer (sort of coming back onto topic about younger people sailing...). I am living a very enjoyable life reaping the rewards of hard work and sensible planning. NO ONE ever gave me anything nor did I ask for anyone to.

Perhaps you might consider working hard for the things that you want in life rather than whining about what others have earned.

 

[rotrax]

Re: Nope !

Well said.

In life you can only play what is in front of you. You live the life of the time you live in.

Some people are ambitious, some are freeloaders and wasters, some are criminals and some are good decent people.

In my experience-70 years worth-I have found you get out of life what you put into it.

My brother does not have a pot to piss in. Same education, same upbringing with all the right values reinforced, but the moment he discovered beer and crumpet he was on a downhill slope. He never got back to the top.

My first house, new, in 1971 was £5050.00.

£505.00 Deposit was more than 6 months salary.

I worked 80 hour weeks and repaired cars and motorbikes after work to earn the deposit. I ran £25.00 cars, we lived on £1.50. a week shopping and saved like mad to get the deposit together.

After paying the 50 quid plot deposit we had 3 months to find the balance. We had £8.00 left in the bank.

I have had aquaintances tell me how lucky I am. Being able to own my own home AND go motorbike racing.

They usually told me this as they tipped their fifth pint down their neck, opened their second packet of twenty fags and played with the keys of their newish car.

I have never had anyone give me anything of substance. Everything I have is from working hard and taking flyers, some of which could have definitly reversed my fortunes.

The increase in property values has given me the money to live the life I live.

To you knockers-should I, as a matter of principle, not taken the capital gains?

Would you have neglected to take them in the same situation?

Tax was paid, the origional capital reinvested and the cycle starts over. It was not my fault that the houses I chose to live in, after tidying up and presenting them well increased substantially in value.

The market was bigger than me, these increases happened without concious input from me.

First Mate and I have two houses, both modest, a lovely boat, an appartment in Wellington NZ and an old steel Hartley yacht, also in Wellington.

We took advantage of the oppertunities presented during our lives. We have assisted both our sons to get on the property ladder, one in the UK, the other in NZ. Look after your family if you can.

You cannot do more than that.

 

[bedouin]

Re: Nope !

I have a very clear understanding of the difference because it has a direct impact on me and my family. Thank you very much. Did you ever leave university or are you stuck in it?

You are dodging the question and resorting to insults - that usually means you have lost the argument.

If my figure of 45% gross salary on interest is wrong please give the correct figure. Just a one line calculation will do