Reply to: House price porn

[tomtomagain]

True. Its only a proxy. Effectively taking a position on large commercial landlords.

I bought IUKP in 2009 and its returned about 60% excluding the dividend which has been between 4 - 5% a year.

The question was. Can you take a position in the property market without buying a house?

An REIT ETF is one answer. Other property funds are available.

[DimPrawn]

I holidayed in Portugal this year.

Don't remember too many brick houses.

Another tulip "news" story.

If you want to invest in property without buying a house by a REIT.

IUKP or IUSP are two etf's that cover the UK and US property market.

Paper houses are like paper gold.

Look at the IUKP price 2007 to 2009 compared with real UK house prices.

[tomtomagain]

I holidayed in Portugal this year.

Don't remember too many brick houses.

Another tulip "news" story.

If you want to invest in property without buying a house by a REIT.

IUKP or IUSP are two etf's that cover the UK and US property market.

[original PM]

The problem is that as the article says we need to train more people.

So more people will have the skills and so the demand becomes less and so the daily rates go down and so people look elsewhere to find a job that pays more money so we end up with a shortage of skills, so we go abroad to get the skills and so the government says train people so we have more people with the skills and so the demand goes down.........

and it is a very angry circle indeed.

[DimPrawn]

Thank god for low paid immigrants to build the tiny tulip boxes!

Builders forced to hire bricklayers from Portugal on £1,000 a week - Telegraph

[Bunk]

Another method to control the demand is to lower the train fares for the commute trains from outside M25 into London.

As well as speeding up the trains so that the commutable area becomes larger.

[sal]

Another method to control the demand is to lower the train fares for the commute trains from outside M25 into London. Plenty of people will be glad to get far away from central London if they can afford to commute in.

Instead the Gov is going to spend 40 odd billion on HS2 that no sane person will be able to afford to use anyway, with prices higher than plane tickets to most parts of Europe.

The situation is not new or unique to UK/London and the solutions are well known, what is lacking is a will to implement them, as they are in direct conflict with the Lobbies lining the politicians pockets.

[OwlHoot]

The whole circle is further fueled by greedy Real estate agencies that are now days trying to prioritize the sales to investors instead of people who want to live in that home, because they make double profit - first time from the sale commission and then from the property management fees. ...

All good points, especially this

[sal]

I used to think that rising property prices was a good thing. Great, it will double every 10 years.

Then you realise you're on a merry go round of feeding the beast with increased mortgages, stamp duty, fees, etc, etc. Bad enough but then you consider how it must be for young people. Pretty much ZERO chance of owning their own home. No wonder the country is in such a state, no wonder the young are disillusioned.

Then you get those that say "who cares"? Only problem is they'll be stuck with homing their offspring that can't afford to move out. Ha ha.

In many respects I wish we return back to sensible lending criteria like we had before all the cheap and easily available credit madness of the past 2 - 3 decades. Imagine the restriction of 3 times salary, having to bank with the same building society for years even to be considered for a mortgage. Kept a lid on mortgage availability and realistic property prices.

Killing the HTB and reducing the ability of locals to afford homes won't help. A large portion of the demand is generated by foreign investors, attracted by the ever rising prices offering high returns coupled with comparably low risk of residential property investment. The whole circle is further fueled by greedy Real estate agencies that are now days trying to prioritize the sales to investors instead of people who want to live in that home, because they make double profit - first time from the sale commission and then from the property management fees.

The new developments don't have to be in the green belt, there is plenty of land even inside M25 that isn't "green", just look at some satellite imagery.

But the government isn't doing anything about it because they profit from both the increase of tax and the inflated economic figures caused by the house price hike.

[d000hg]

Can one buy shares in some sort of HPI tracker, like one can in a FTSE tracker? e.g. is there some company who owns thousands and thousands of properties and you can buy shares in that portfolio? Buying a single house as an investment not only needs a large amount of money, but you only have one house. From an investment perspective that would be considered risky in any other market - only owning shares in one company, etc.

[PurpleGorilla]

I used to think that rising property prices was a good thing. Great, it will double every 10 years.

Then you realise you're on a merry go round of feeding the beast with increased mortgages, stamp duty, fees, etc, etc. Bad enough but then you consider how it must be for young people. Pretty much ZERO chance of owning their own home. No wonder the country is in such a state, no wonder the young are disillusioned.

Then you get those that say "who cares"? Only problem is they'll be stuck with homing their offspring that can't afford to move out. Ha ha.

In many respects I wish we return back to sensible lending criteria like we had before all the cheap and easily available credit madness of the past 2 - 3 decades. Imagine the restriction of 3 times salary, having to bank with the same building society for years even to be considered for a mortgage. Kept a lid on mortgage availability and realistic property prices.

If there was less money spent on servicing housing debt; there would be more disposable income, maybe cut benefits a bit to balance it up and help reduce gov debt. But this is a pipe dream, the UK gov business model has high prices as an essential. Hence all the HTB tulip.

[oliverson]

I used to think that rising property prices was a good thing. Great, it will double every 10 years.

Then you realise you're on a merry go round of feeding the beast with increased mortgages, stamp duty, fees, etc, etc. Bad enough but then you consider how it must be for young people. Pretty much ZERO chance of owning their own home. No wonder the country is in such a state, no wonder the young are disillusioned.

Then you get those that say "who cares"? Only problem is they'll be stuck with homing their offspring that can't afford to move out. Ha ha.

In many respects I wish we return back to sensible lending criteria like we had before all the cheap and easily available credit madness of the past 2 - 3 decades. Imagine the restriction of 3 times salary, having to bank with the same building society for years even to be considered for a mortgage. Kept a lid on mortgage availability and realistic property prices.

[BlasterBates]

It will be fine until interest rates go up. Not quite the same as a stock market crash though where everything just gets dumped in a day.

[PurpleGorilla]

House price porn




Question is, where are we on this cycle? Honestly, I don't know. But the state of the global economy does not bode well for future prices IMHO (no more feeding the bottom of the pyramid).

[BrilloPad]

UK looks cheap. Property can only go up. Supply and demand. yield, Green belt, an island, Immigration, Pensions. iPad generation have it easy.

Might as well close the tread.

They said that in Japan 25 years ago.

Though the top of the UK house market has been called regularly since 2004. I thought in might be coming in last few years - but now with help to buy" I have to agree with you.