house buying?

[BlasterBates]

If you've got capital, put it stocks, worldwide. GAZPROM for example.

Stocks have just corrected so you'd be looking at fairly rapid 30% gains, generally P/E's are at normal levels or somewhat below. (avg P/E ratios are 14%). Anything below that is giving a good return, just think of P/E ratio of 10 as the company earning 10% on your investment per year.

You won't get that from a house in the UK.

[Hart-floot]

If you've got capital, put it stocks, worldwide. GAZPROM for example.

Stocks have just corrected so you'd be looking at fairly rapid 30% gains, generally P/E's are at normal levels or somewhat below. (avg P/E ratios are 14%). Anything below that is giving a good return, just think of P/E ratio of 10 as the company earning 10% on your investment per year.

You won't get that from a house in the UK.

Try Pork Bellies mate!

[SameOldStory]

Of course it depends on whether you want a house as an investment or as a place to live.

Buy it for cash, live in it, and the future house prices are irrelevant unless you forsee a need to sell it.

[DimPrawn]

Try Pork Bellies mate!

That's what Threaded did and look what happened to him.

[Davros]

That's what Threaded did and look what happened to him.

[shaunbhoy]

You obviously missed the "short-term" in my earlier post.

As indeed did you.

Are you saying the IMF are wrong when they warn that a house price correction is the most serious threat in the medium term to the economies of the US and the UK?

They have been waffling on about it for years now. Wake up and smell the coffee, it hasn't happened. There is nothing "short term" about buying a house anyway.

[Francko]

There is nothing "short term" about buying a house anyway.

I know it's pretty useless to discuss with you, but what do you mean there is nothing "short term"? What if you want to move abroad or to another town? what if you need to buy a bigger flat/house as you had 2 new children in the meantime? If the price goes down you will have to cover the difference when repaying the mortgage.

* Not that I expect a sensible and/or polite answer from you but anyway, just talking to myself....

[Pondlife]

Slightly

But Halifax are swamped with fixed rate mortgage apps right now based on the expected rise in IR in the coming months.

[SameOldStory]

I know it's pretty useless to discuss with you, but what do you mean there is nothing "short term"? What if you want to move abroad or to another town? what if you need to buy a bigger flat/house as you had 2 new children in the meantime? If the price goes down you will have to cover the difference when repaying the mortgage.

* Not that I expect a sensible and/or polite answer from you but anyway, just talking to myself....

1) only if you have a mortgage
2) you only need extra money if you are then in negative equity
3) "need" a bigger flat/house due to 2 new children - lots of issues here, 2 children takes quite some time to procure, and should involve planning, including "can you afford it"
4) if you're buying another house in an area with similar house prices that have moved the same amount, you simply end up with the same equity and same mortgage on a similar house (minus moving costs), irrespective of which way house prices move. If there is a price differential between the areas then this (and changes in it) could be much more relevant than the abosulte change in average house prices.

[shaunbhoy]

I know it's pretty useless to discuss with you, but what do you mean there is nothing "short term"? What if you want to move abroad or to another town? what if you need to buy a bigger flat/house as you had 2 new children in the meantime? If the price goes down you will have to cover the difference when repaying the mortgage.

* Not that I expect a sensible and/or polite answer from you but anyway, just talking to myself....

Francko,
most of the doomsday scenarios you depict can be avoided with a bit of forward thinking and vision. Not a strong suit amongst the Italians I admit. Maybe you should just follow the lead of most Italian men nowadays and stay at home tied to Mama's apron strings?