The Present and Ex-House Owners Thread

[bogeyman]

And you're about to see 40% in real terms of the value wiped out in the next few years

If it happens over 5yrs a no risk cash depositor on say 6% interest will be be thrashing you with a 50%+ greater return (+30% vs -20% in actual money terms)

In short sir, bollux.

I have no borrowings.

Your gloomy forecast is only for the 'next few years' whereas I invest for the long term 20+ years. People will always need a roof.

What do you suggest I invest in then?

[Bagpuss]

It will no doubt correct, but my property investments are long term, in lieu of pensions (of which I have none, of any value).

I'm not into property as a 'Get Rich Quick' investment. I'm securing the future of my family.

Even with adjustments, property is still the best and most consistent performer.

I don't disagree with what you are saying, however I frimly believe cash is going to be king again for the next few years, and the bargains to be had will be for those with cash not those borrowing other peoples. Good for contractors not so good for mr average.

[threaded]

Ha haaaa, you may laugh, but when Gordon Brownstuff brings in a wealth tax to pay for all them feckless types that can't keep up their payments, sorry, hard working families and nurses, you'll be stuffed.

[bogeyman]

I don't disagree with what you are saying, however I frimly believe cash is going to be king again for the next few years, and the bargains to be had will be for those with cash not those borrowing other peoples.

I have a modest accumulation of cash for such an eventuality but increasingly reluctant to buy in the UK. I will however, hang on to my UK property assets even if I jump ship.

[Moscow Mule]

It will no doubt correct, but my property investments are long term, in lieu of pensions (of which I have none, of any value).

I'm not into property as a 'Get Rich Quick' investment. I'm securing the future of my family.

Even with adjustments, property is still the best and most consistent performer.

still just about as good as a bank account.

[BrilloPad]

There is a big difference between having cash and wondering where to put it - and have a property portfolio(1 or more) and deciding if to liquidate.

[bogeyman]

when Gordon Brownstuff brings in a wealth tax

Well he only seems to be hitting the working poor at the moment.

He blathers on about 'tax credits' when in fact if you are capable of working and actually do any, however modest your income, you are intelligible for said 'tax credits'.

Sit on your arse, have umpteen kids, smoke fags - voilla! TAX CREDITS.

Kafka himself could not have dreamed up the tax system that Cyclops Brown created.

[bogeyman]

still just about as good as a bank account.

That is complete balls. How did I mange to buy 3 properties outright (already owned 1) by speculating modestly in property over the last 15 years or so?

Did I put my money in a bank account and just suddenly find one day that I had enough money?

[ASB]

Even with adjustments, property is still the best and most consistent performer.

I don't think that is true at all. In real terms most of the "outperformance" of property is in the last decade. However accurate figures are very difficult to obtain for anything at all pre '73. also most of the indexes are flattering because the effect of the large inflationary bouts in the early/mid 70's is masked. Between '73 and '98 property made modest real terms gains and that is all.

I believe, though have no figures available, that long term property investment (in terms of capital values only) tends to yield roughly GDP growth in real terms - though we have just been through a decade of extraordinarily high growth.

But, that is not what property investment is about. The prime purpose of property investment is to provide a permanent and reliable income stream. It might at any given point be worth fourpence or 10 million. Certainly peaky asset prices make property as an investment appear overpriced at the moment, but there is a big difference between hold and sell.

[Moscow Mule]

That is complete balls. How did I mange to buy 3 properties outright (already owned 1) by speculating modestly in property over the last 15 years or so?

Did I put my money in a bank account and just suddenly find one day that I had enough money?

No, you're a contractor, that's how you've got 3 houses.

It was a flippant comment about some statistics I read. Edit (that ASB has also read apparently)