Reply to: The edge of the crash?

[Gonzo]

Sounds like a big risk to me. The "safe" thing is to follow the conventional path of "getting on the property ladder" regardless of how much you have to overstretch yourself to acheive it. It's the traditional investment for those who like to play it safe and don't have the balls to take risks.

I am quite interested to see how that is going to pan out in a low inflation environment. People have always streched their finances to the max to get a decent property and 15 years ago they could rely on inflation to quickly raise their income relative to the price their paid for their property, so their mortgage did not appear such a burden for very long.

If inflation and wages rises stay low for another decade then people that stretch themselves financially now will still feel stretched in ten years time. Maybe then they might not think that the sacrifice was worth it.

[SallyAnne]

only a fool would buy a house now

People have been saying that for the last 5 years!

[sappatz]

crash

only a fool would buy a house now

[Logie]

The crash is coming! In less than 100 years too!

I predict well before 2020.

[sasguru]

ah, that's what I failed to do....

tant pis, I'll build another empire.

The second should be better than the first, eh?

[expat]

You missed the "I sold them" bit ?

ah, that's what I failed to do....

tant pis, I'll build another empire.

[sasguru]

I could use fast access to half a mil myself. Trouble is, my wealth was all in property....

You missed the "I sold them" bit ?

[expat]

To answer you first question, my timing was lucky. I put deposits on 3 flats in London in the mid-late 90s and have now sold them. I woudn't do it now as I feel we have a classic asset-price bubble.

To answer you second question, the return's Ok but I will need fast access to it soon .....

I could use fast access to half a mil myself. Trouble is, my wealth was all in property....

[sasguru]

Nice to think that you attribute the machinations of the UK Property Market to my innards, but I must decline taking the credit. Presumably you too saw the advantage of buying rather than renting to have capitalised upon it, curious that you now seem so keen to argue against it. Perhaps you can explain?



Must be getting a great return on it too eh?

To answer you first question, my timing was lucky. I put deposits on 3 flats in London in the mid-late 90s and have now sold them. I woudn't do it now as I feel we have a classic asset-price bubble.

To answer you second question, the return's Ok but I will need fast access to it soon .....

[SallyAnne]

I'm sitting on close to half-mill in cash from property

How YOU doin'?

[shaunbhoy]

Hmmm Let me think. Do I trust Shaun's "inner feelings" or a statistical analysis from one of the City's most respected institutions?

Nice to think that you attribute the machinations of the UK Property Market to my innards, but I must decline taking the credit. Presumably you too saw the advantage of buying rather than renting to have capitalised upon it, curious that you now seem so keen to argue against it. Perhaps you can explain?

PS I'm sitting on close to half-mill in cash from property, so no lectures from you, my son.

Must be getting a great return on it too eh?

[sasguru]

Well done sasguru for googling and finding something fairly obscure and lacking in anything concrete or tangible related to the matter at hand. The fact is it is mostly flowery waffle full of contradictions and broadbrush assumptions. If you have not grasped that, whilst it may well be illogical, we British are far more fixated on the idea of owning our own place than any of our neighbours, then you will never benefit from this quirk.

Hmmm Let me think. Do I trust Shaun's "inner feelings" or a statistical analysis from one of the City's most respected institutions?

PS I'm sitting on close to half-mill in cash from property, so no lectures from you, my son.

[shaunbhoy]

Well done sasguru for googling and finding something fairly obscure and lacking in anything concrete or tangible related to the matter at hand. The fact is it is mostly flowery waffle full of contradictions and broadbrush assumptions. If you have not grasped that, whilst it may well be illogical, we British are far more fixated on the idea of owning our own place than any of our neighbours, then you will never benefit from this quirk.

[sasguru]

It would help the uninitiated here to stop drawing ridiculous parallels with what has happened in Japan, the USA, or Timbuktu for that matter. Behaviour towards owning property in this country is pretty unique to here as the British mindset is different to most others when it comes to owning your own "castle". I am not saying it is a good or wise thing, but until you grasp the notion that we look upon house-ownership differently to everyone else, you will never stand a chance of understanding the market here.

Wrong as usual, Shaun

http://www.dbresearch.com/PROD/DBR_I...0000203236.PDF

[shaunbhoy]

It would help the uninitiated here to stop drawing ridiculous parallels with what has happened in Japan, the USA, or Timbuktu for that matter. Behaviour towards owning property in this country is pretty unique to here as the British mindset is different to most others when it comes to owning your own "castle". I am not saying it is a good or wise thing, but until you grasp the notion that we look upon house-ownership differently to everyone else, you will never stand a chance of understanding the market here.