Doomed (yet again, really this time...)

[sasguru]

I suspect bigger pain for more people this time, credit has been a lot easier to come by than in the late 80s and the debt hasn't been eaten away by inflation to anything like the same extent. Buying in a falling market is only for the very brave, it might not pan out like last time, look at Japan.

There is a corollary to this. There is also more real wealth in the country (including non-doms and other foreigners etc). The economy has become more global and there's more money sloshing around.

[wendigo100]

...there's more money sloshing around.

I heard someone with an obviously non-existent grasp of maths use those words to justify buying into that "Empowering Women" scam a few years back ("the money sort of sloshes round and round and you get your £800 off the top").

Not that I'm accusing you of not knowing maths!

The point is, most people believe what they want to believe.

[Muttley08]

There is a corollary to this. There is also more real wealth in the country (including non-doms and other foreigners etc). The economy has become more global and there's more money sloshing around.

I thought we had records levels of debt (crap at remembering numbers...) so is there more money, in real terms? Or do we just have over-valued assets based on availability of cheap money?

[rootsnall]

There is a corollary to this. There is also more real wealth in the country (including non-doms and other foreigners etc). The economy has become more global and there's more money sloshing around.

corollary = big word !?

I think a lot of the 'other foreigners' will bog off sharpish when the money stops sloshing around. The non doms are here to avoid tax and keep most of their wealth offshore and I don't think they'll prop up the housing market if we have a recession. The more sloshing now the more pain when it dries up.

[alreadypacked]

I would really like to have somewhere in London, but it makes no sence at the moment. Why buy when you can rent cheaper.

[Lockhouse]

I'm putting my BTL on the market in two weeks. I only hope I've not left it too long.

[Muttley08]

There's an interesting article in Moneyweek about it - estate agents still preaching crap - but some economist bod talking a lot of sense and advising to sell all BTL's.

[Bagpuss]

If you have made gains it seems reasonable to sell now unless you are in it for several years more and can ride out any storm

[sasguru]

I heard someone with an obviously non-existent grasp of maths use those words to justify buying into that "Empowering Women" scam a few years back ("the money sort of sloshes round and round and you get your £800 off the top").

Not that I'm accusing you of not knowing maths!

The point is, most people believe what they want to believe.

Maybe I'm biased by working in the City, but billions of pounds have paid out in bonuses over the years. That's not debt. And some of these guys (admittedly not many but they have a disproportionate influence simply because they're super rich) need to stick their money somewhere. If you have no mortgage to worry about property is a good long term investment.
What do you think the average house will be worth in 25 years, crash or no crash?

[Muttley08]

Houses are a good long term investment - just not a good short term one at the moment. You might as well invest money safe for a couple of years and buy low sell high etc...

The old saying is a long term investment is a bad short term one