Boomed! House Prices going through the roof

[AtW]

It seems a no brainer now but why wasn't every man and his dog buying property in the mid 90s !?

Because those who bought houses at peak prices at the time got broken and had to sell, that's why not everyone bought houses back then.

[DimPrawn]

I bought most of my property in the mid nineties. Paid £53K for a 3 bed semi.

Cheap as chips and no one was interested in buying then.

[rootsnall]

Because those who bought houses at peak prices at the time got broken and had to sell, that's why not everyone bought houses back then.

Nah ! It was 90% sentiment and the masses regarded housing as a bad investment. By the time you'd missed the London boom then sentiment said it was a good time to buy. It'll be the same again this time round. Don't worry I was one of the cautious masses despite being on mega bucks at the time.

[Churchill]

I proposed doing what all the hostages bar one resolved to do. Sit tight and await a negotiated release. A strategy which paid off handsomely. The only one that put his life in danger was the flighty nervous plonker that plunged headlong into the jungle and had to be fortuitously rescued by stray jungle natives. That panic-induced knee-jerk reaction would have been your option would it churchill? Good grief, Nelson would be spinning in his grave at the thought that a naval man (however tentative the link might be!) could have been so gutless and short-sighted. Still, I suppose being dangled from wifie's apron-strings for so long may have blunted your logic somewhat, assuming you ever had any that is!

Panic? Who mentioned panic? For goodness sake man, don't try and impose your own shortcomings on others.

Admittedly some of us can assess a situation more effectively and quickly than others as shown by your <eventual> change of stance. Still, you got there in the end, eh?

[AtW]

Nah ! It was 90% sentiment and the masses regarded housing as a bad investment.

Yes that's for sure - markets are driven by fear and greed, right now we are in the greed phase, but (unless NL Brown stuff is actually right about permanent abolishment of the bust part of the economic cycle) fear will rule again, it is just the matter of time: in such cases I'd rather lose mythical profits than be in a hole with negative equity.

[milanbenes]

sasguru,

'I'll be a millionaire after those 10 years.',


are you not a millionaire yet man ?

what's the matter with you ?

by the time you're a millionaire, with your 10 year housing
boom bust cycle plan, you be lucky if your million pounds will
buy you a plate of fish and chips !

Milan.

[wendigo100]

I don't know if it's just me getting older & more cynical but there seems to be a glut of opinion in the media posted as 'facts' - she is hedging her bets by saying that the figures 'suggest' this & obviously at some time (like a broken clock) the doom mongers will be right, even housepricecrash.com. I seem to recall similar predictions in 2006 & 2007.

It's only my opinion but there's at least three differences from the last boom and bust:

1. Demand is maintained because the higher amounts of people entering the country

2. Borrowing, especially in higher amounts, has never been easier for everyone and his dog

3. There aren't many mortgage defaults and fire sales, because unemployment hasn't taken off

So prices are bound to leap ahead of the historical norm.

Beware though - there is more debt pressure in real terms than ever before! Who knows how much longer it can keep going - years and years perhaps. Tricks I foresee more of:

1. 50+ year mortgage terms, to be passed down to your children

2. Assisted purchase, where you only buy a proportion of the property and the government (i.e. taxpayer) buys the rest

[Spartacus]

The time to buy is when no one is buying, the time to sell is when no one is selling.

Buy low, sell high.

Simple.

[sasguru]

The problem with the 'waiting for the crash to buy big' strategy is that if you are a cautious type and haven't waded in to the market in the last few years then you won't be the type to buy when its all doom and gloom post a correction. It seems a no brainer now but why wasn't every man and his dog buying property in the mid 90s !?

I did. That's why I have a sizeable stash now. Point is I could have held my BTLs for a bit longer ...

[milanbenes]

sasguru,

sounds like you should leave the business to the real business men and stick with your mickey mouse software

Milan.