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Response to So when will it be a good time for me (a previous repo sufferer) to buy?

from John (sharky_john@hotmail.com)
John,

I would advise you to wait for a few months and save some money.

1. It is obvious that in London and the SE house prices are unsustainable at their present levels. There will be a, hmmm shall we say "adjustment" in house prices in a downward direction as soon as Mr Gordon Brown realises that the market has been overheating for a while and he raises interest rates by at least 2% this will have the effect of increasing mortgage payments by a great deal.

2. The market is being artificially assisted by the "buy to let" scam and when the likes of John Major join the scam, it is obvious that the scam is over, rental revenues are dropping like a stone due to a glut of overpriced accommodation. The smart money will be getting out and soon the rest of the herd will too, causing a stampede to sell, this will cause prices to drop even further.

3. The people that are buying now are in their early twenties and have no knowledge of the 1990's double interest boom OR the crash that followed. Whats that line about a sucker being born every day ??

4. Joining the Euro will also cause an adjustment in interest rates as we have to "join" at the right time, how long will it take for europe to match economic cycles with the UK.

John, I would advise you to wait and watch, build up cash and pick up a bargain.

Rgds

JJ

(posted 7968 days ago)

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