Interest Rates and House Prices in 2009

[rootsnall]

There is a very good article somewhere showing newspaper clips from 1989 right through to the late 90s. The VIs are predicting imminent upturns and producing 'buy quick before it's too late' articles starting in 1989 and then every few months after that. There were a few minor dead cat bounces of a month or two in the figures but I think it was 1996 in London and quite a few years later in most of the country that things turned. We are in the very early stages of a major crash with years to run before it turns.

[MPwannadecentincome]

There is a very good article somewhere showing newspaper clips from 1989 right through to the late 90s. The VIs are predicting imminent upturns and producing 'buy quick before it's too late' articles starting in 1989 and then every few months after that. There were a few minor dead cat bounces of a month or two in the figures but I think it was 1996 in London and quite a few years later in most of the country that things turned. We are in the very early stages of a major crash with years to run before it turns.

But this should not stop you buying if:

1 - you have a large deposit or equity
2 - you can get a mortgage
3 - you need to trade up to a bigger place or better area
4 - you are buying a house to live in for a few years
5 - even if you do have to move again in a few years that the next place you buy will be cheaper if prices have come down

As someone else said, the market is regional and by property type, investigate the risks and take action accordingly.

[Cyberman]

But this should not stop you buying if:

1 - you have a large deposit or equity
2 - you can get a mortgage
3 - you need to trade up to a bigger place or better area
4 - you are buying a house to live in for a few years
5 - even if you do have to move again in a few years that the next place you buy will be cheaper if prices have come down

As someone else said, the market is regional and by property type, investigate the risks and take action accordingly.

He was referring to the stock market...... Doh !!

I agree with you on the housing market though.

[DimPrawn]

But this should not stop you buying if:

1 - you have a large deposit or equity
2 - you can get a mortgage
3 - you need to trade up to a bigger place or better area
4 - you are buying a house to live in for a few years
5 - even if you do have to move again in a few years that the next place you buy will be cheaper if prices have come down

As someone else said, the market is regional and by property type, investigate the risks and take action accordingly.

Makes no sense to me at all.


The only way it makes sense to buy now is if you can negotiate the likely drop in prices to the bottom now in your purchase.

Otherwise you are going to lose most or all of your deposit equity if you move again.

But hey, everyone can play the property market however they like and if you are happy, go for it.

[BlasterBates]

There are some extremely good stocks out there, but you need to read analysis. Coca Cola isn't General Motors, do you have a can of coke to hand?
Yes the chances are you do. Is Coca Cola a good investment? of course.

The logic that stocks are all going to go down for the forseeable future, presumes that we all sit around consuming nothing and we will all die of thirst within a week. So...obviously, for example, water companies aren't going to go down the tubes are they. Also I went to the supermarket and surprise surprise I saw customers buying things.

If you buy index funds you can't really go wrong.

Whatever you do don't touch property. Those that have property as their top priority will lose money. For example since November my stocks portfolio has gone up by 10%, in the same time property has gone down.

Just look at this:

Mining stock

Since its low in November or December it has trebled in value.

Now that aint bad really is it

[Cyberman]

It's laughable that you think you can make a fortune out of Coca Cola. If the mining stock has already increased by three times, then most of the major gains have already probably gone.

[BlasterBates]

It's laughable that you think you can make a fortune out of Coca Cola. If the mining stock has already increased by three times, then most of the major gains have already probably gone.

sorry about that, follow Cyberman's advice and invest in Northern Rock.

[Cyberman]

sorry about that, follow Cyberman's advice and invest in Northern Rock.

That's exactly one reason why I am saying avoid stocks. Even the safest shares are under threat from HMG as they attempt to fill a burgeoning black-hole in finances. HMG stand to make billions out of the Rock at the expense of shareholders, but they cannot nick my house.

[MPwannadecentincome]

Otherwise you are going to lose most or all of your deposit equity if you move again.

No - if the NEXT place you buy is also cheaper you are no worse off.

In fact, if you trade up, the next place you buy may be even more cheaper as 10% off £300K is less than 10% off £500K so you could be BETTER off!

[BlasterBates]

Yes but even when you take into account the trebling of Coca Cola it is tsill well down on where it was before the crash, so I doubt it'll go down, but I haven't seen the target price with respect to earnings, but what it shows is the fact that shares recovery is well underway and is likely to continue. The S&P 500 is up on its lows and stable. So subscribe to a research bulletin, which gives you the recommendations.