Originally posted by AtW
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New build is worst buy-to-let investment, experts warn
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ok, lets say you bought a house when valuations were at peak values - like about now, interest rates started going up and valuations dropped big time: you got negative equity so that if you sell then you will still be in big debt. Over very long time the house may regain its value either as face value due to inflation or actually due to new yet another speculative cycle. Sounds good eh?
Well, what good is it for you to know that the house will be worth more some years ahead, when due to higher interest rates and negative equity you can't move house and you can't afford ever-raising morgage payments? This means you lose house and all this long term thinking starts applying to someone else, not you - that's the point they don't tell you - the house itself might be worth again years later, but you might not be owning it to benefit from recovery.
Understand now?Comment
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Originally posted by AtWok, lets say you bought a house when valuations were at peak values - like about now, interest rates started going up and valuations dropped big time: you got negative equity so that if you sell then you will still be in big debt. Over very long time the house may regain its value either as face value due to inflation or actually due to new yet another speculative cycle. Sounds good eh?
Well, what good is it for you to know that the house will be worth more some years ahead, when due to higher interest rates and negative equity you can't move house and you can't afford ever-raising morgage payments? This means you lose house and all this long term thinking starts applying to someone else, not you - that's the point they don't tell you - the house itself might be worth again years later, but you might not be owning it to benefit from recovery.
Understand now?
Or as an earlier poster said much more concisely: with equities you get liquidity.God made men. Sam Colt made them equal.Comment
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Thing is - lots of people on this forum are certainly not representative of the average Joe: lots of things won't apply to most here, but it is wrong to extrapolate this over everyone else - the economy depends on behavioral patterns of an Average Joe, not Average CUKer: most people on here probably have got cash reserves to weather the storm, but most people don't - and it is them who would define when the crash comes and how severe it is going to be.
Originally posted by Euro-commuterOr as an earlier poster said much more concisely: with equities you get liquidity.Last edited by AtW; 9 May 2007, 12:11.Comment
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Originally posted by AtWok, lets say you bought a house when valuations were at peak values - like about now, interest rates started going up and valuations dropped big time: you got negative equity so that if you sell then you will still be in big debt. Over very long time the house may regain its value either as face value due to inflation or actually due to new yet another speculative cycle. Sounds good eh?
Well, what good is it for you to know that the house will be worth more some years ahead, when due to higher interest rates and negative equity you can't move house and you can't afford ever-raising morgage payments? This means you lose house and all this long term thinking starts applying to someone else, not you - that's the point they don't tell you - the house itself might be worth again years later, but you might not be owning it to benefit from recovery.
Understand now?Hard Brexit now!
#prayfornodealComment
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Originally posted by AtWThing is - lots of people on this forum are certainly not representative of the average Joe: lots of things won't apply to most here, but it is wrong to extrapolate this over everyone else - the economy depends on behavioral patterns of an Average Joe, not Average CUKer: most people on here probably have got cash reserves to weather the storm, but most people don't - and it is them who would define when the crash comes and how severe it is going to be."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Long term survival in bad times depends on reserves - when **** hits the fan and economy tanks then everyone will suffer: I'd prefer NOT to have this house pricing bubble because when it bursts almost everyone will bleed from ears.
The key problem with an Average Joe is lack of savings - this means they are simply not prepared for long term downturn in their fortunes, especially if they get negative equity which means they can't move to get new job elsewhere.
The outlook is pretty dire to be honest - there is house market bubble, commodities bubble, share bubble - probably only bubbly champagne is not yet overpriced. Come to think of it I keep one of those in my fridge just in caseComment
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Keep your powder dry. Some of us are going to make a killing at the next downturn.
Seriously I reckon I'll be a millionaire (without working) at the end of the next upturnHard Brexit now!
#prayfornodealComment
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I think the UK is all about micro markets, whatever that means, if you bought in London you’ll always sell at a profit same with any of the UK attractive cities. I’d be more worried for the house I’d bought that was built yesterday over some reclaimed landfill site, who wants that? Someone with no roof and little cash and needs the room pronto, that’s who. To pay top dollar for that kind of property at this time? Crumbs the materials would probably not make a quarter of the value it was built for, I’d rather take a job with the post office in the highlands."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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