Reply to: Boomed! House Prices going through the roof

[DimPrawn]

Easy enough with one or 2 properties but if you have a few and want to cash in then how does one go about it !? You've done well on this thread, a few early bites and then dragged yourself in to the debate.

You'll have to spend £20 to find out.

http://www.taxcafe.co.uk/property-tax-guide.html

No doubt you'd rather just cough up the tax than investigate the possibilities.

[AtW]

The biggest effect will be on economy - even though lots of people on this board might not be affected directly as they either bought houses early, or paid them off already (which implies they bought early), or just smart to rent for a while - but lots of people in this country have negative savings rate and losing houses would result in slump in consumer demand: this would hit everyone very seriously.

From this point of view I'd rather not have house pricing crash, but these things are inevitable.

[expat]

Question, if house prices did crash, and mortgage interest rates rise further, would anyone here be affected ?
...
Milan.

Well, yes, I suppose. I do not currently own a property, and am now about to buy in SE England with no real deposit. May only stay a couple of years so I do care what happens to prices. With current inflated prices in the area, I do care what happens to interest rates.

[shaunbhoy]

This post wins the "Self-deluded twat of the day" award.

Wow, you are such a wag sasguru. The long winter nights must just fly past with your witty repartee filling the time!

[sasguru]

Cool clinical assessment from day one, it comes naturally to some of us you know..............

This post wins the "Self-deluded twat of the day" award.

[Swiss Tony]

This post wins the "No tulip, Sherlock" award of the day.

alas I wish others saw it that way Dr Watson

Indubitably (spelling?) I wish others could see the clues

[shaunbhoy]

Panic? Who mentioned panic? For goodness sake man, don't try and impose your own shortcomings on others.

Admittedly some of us can assess a situation more effectively and quickly than others as shown by your <eventual> change of stance. Still, you got there in the end, eh?

No change of stance from me churchill, if you could have kept up you'd have realised that. Cool clinical assessment from day one, it comes naturally to some of us you know.............or maybe you don't.

[sasguru]

Yeesh Follow the herd mentality!

I think most here will agree that things are cyclical. Also that the best time to buy is when the price is low and then sell when the price is high.

I’m sure seeing as that majority of you are in the IT profession that you all remember the 90’s and especially the bust in 2000.

Back then everyone was raving about IT and how it would be stupid to invest anywhere else. Majority of trusts and other investment vehicles were linked to the IT arena. Of course come the bust allot of money was lost and a lot of faith and trust was lost as well.

People then looked into what would be a good thing to invest in that could not be reduced in value over a days trading. Property appealed as it has the ability to be touched hence an emotional response is activated. Plus mortgages were restructured to accommodate investors insuring the banks had a long list of clients owing them money.

In summary (I know I am rambling on!) those that knew what they were doing bought property in the 90’s when things were low. In the same vein now that prices are high the smarter investor will look to another investment that is not selling way above value. (I do not have the answer to the million pound question as to what)

But property in the UK will not be able to sustain the price rise. Mortgages will go up and eventually the rent will not cover the property. People will rent where it is cheapest and the market will dictate the price. A lot of money will be invested into projects that not everyone will be able to afford and then the property will be sold at low prices as people will wish to exit the market. Hence the cycle begins again.

The papers (and media) will sell what people want to read before anyone harps on about what they have read in the press! Look at a financial paper from 1998 there will not be much about property!

Moral of the story: something about eggs and baskets!

This post wins the "No tulip, Sherlock" award of the day.

[rootsnall]

CGT is easy to avoid on property. Piece of piss.

Easy enough with one or 2 properties but if you have a few and want to cash in then how does one go about it !? You've done well on this thread, a few early bites and then dragged yourself in to the debate.

[Swiss Tony]

baaaaa

Yeesh Follow the herd mentality!

I think most here will agree that things are cyclical. Also that the best time to buy is when the price is low and then sell when the price is high.

I’m sure seeing as that majority of you are in the IT profession that you all remember the 90’s and especially the bust in 2000.

Back then everyone was raving about IT and how it would be stupid to invest anywhere else. Majority of trusts and other investment vehicles were linked to the IT arena. Of course come the bust allot of money was lost and a lot of faith and trust was lost as well.

People then looked into what would be a good thing to invest in that could not be reduced in value over a days trading. Property appealed as it has the ability to be touched hence an emotional response is activated. Plus mortgages were restructured to accommodate investors insuring the banks had a long list of clients owing them money.

In summary (I know I am rambling on!) those that knew what they were doing bought property in the 90’s when things were low. In the same vein now that prices are high the smarter investor will look to another investment that is not selling way above value. (I do not have the answer to the million pound question as to what)

But property in the UK will not be able to sustain the price rise. Mortgages will go up and eventually the rent will not cover the property. People will rent where it is cheapest and the market will dictate the price. A lot of money will be invested into projects that not everyone will be able to afford and then the property will be sold at low prices as people will wish to exit the market. Hence the cycle begins again.

The papers (and media) will sell what people want to read before anyone harps on about what they have read in the press! Look at a financial paper from 1998 there will not be much about property!

Moral of the story: something about eggs and baskets!

[DimPrawn]

CGT is easy to avoid on property. Piece of piss.

[sasguru]

sasguru,

sounds like you should leave the business to the real business men and stick with your mickey mouse software

Milan.

Benes as it's you I'll treat that comment with the respect it deserves.

[rootsnall]

I did. That's why I have a sizeable stash now. Point is I could have held my BTLs for a bit longer ...

Did you pay your CGT !?!?!?! The taxman will get you !!!!!!!!!!!

I've been sat on a stash for years but more kids mean I've bit the bullet and bought a bigger house, hey presto, instant switch from arch bear to reluctant bull !

[milanbenes]

sasguru,

sounds like you should leave the business to the real business men and stick with your mickey mouse software

Milan.

[sasguru]

The problem with the 'waiting for the crash to buy big' strategy is that if you are a cautious type and haven't waded in to the market in the last few years then you won't be the type to buy when its all doom and gloom post a correction. It seems a no brainer now but why wasn't every man and his dog buying property in the mid 90s !?

I did. That's why I have a sizeable stash now. Point is I could have held my BTLs for a bit longer ...