Reply to: New build is worst buy-to-let investment, experts warn

[AtW]

That's because after the liberation free people of Iraq started valueing ecology, so value of houses in the Green Zone is especially high.

[tim123]

If there was Sharia law in the UK then this house pricing bubble would not have happened

Really?

Prices have apparently sky rocked in downton Bagdad.

tim

[AtW]

If there was Sharia law in the UK then this house pricing bubble would not have happened

[Euro-commuter]

I think the difference is more fundamental than this - you buy house with morgage which means you are in debt, but you buy equities with cash - you not incurring debt to get them, unless you are a hard core gearing speculant in which case you'd get all you deserve for borrowing money to speculate on a stock market, which is a con, but that's another story.

You put in the same amount of money per month, either to share purchases or to mortgage repayment. Either way, your equity increases steadily over the period. With property, you also have (nominally) full ownership from the start, but also a decreasing debt, mirror-image of the increasing equity; with equities you have neither of those.

There are really 4 asset classes in the subject here:
1. Equities bought cash.
2. Property bought cash.
3. Property bought on credit.
4. Equities bought on credit.

I think we all agree that #4 is a Weapon of Mass financial Desctrucion, so let's forget it.

#1 & #2 are the fundamental choices. Both will give income and capital appreciation, if you're lucky. With equities, that's the whole story. With property bought for cash and rented out, that's it too.

But if you can't afford to buy it cash, and can't buy it a piece at a time, you borrow to buy it. then, largely speaking, you are giving up the income to maintain the loan, in return for which you get all of the capital growth from the start.

But the capital growth in equities comes, in principle, from real economic growth of the companies you invest in. The capital growth in property comes from this asset class having higher inflation, induced by shortages. No real growth is happening. In fact you hope that it doesn't, because you are invested in shortages, that's what you're hoping to profit from. If you did that in penicillin or cup final tickets, you'd be called nasty names!

[andy]

All this liquidity in all kind of global bubbles is coming from 0% interest japanese yen which peeps borrowed for the last 10 years to invest globally.

If the japanese market starts recovering and its interest rate start rising which has already started, it will be mother of all recessions since all the yen will go home.

Apparently the money involved was trillions of dollars and nobody ,even the japs haven't a clue how much.

We saw this phenomenon at a small level during 1998 crash , this time it will be at greater scale.

[AtW]

give you a good price?

I said I am not motivated by money, but that does not mean I actually like to waste them

Time for SKA now - more bugs ffs

[scooterscot]

she looks like high maintenance to me, I could perform a reliability analysis for you, give you a good price?

[AtW]

Arabella.

[scooterscot]

what's her/his name then?

[AtW]

I am not motivated by money.

[sasguru]

I feel angry now, going back to SKA debugging:

Aren't you taking this a bit personally? After all if you've insider insights not available to the stupid public, you should be able to capitalise, n'est pas?

[woo]

zimbabwe is looking good for btl. house prices double every 4 months.
get in there milan.

[AtW]

if you bought in London you’ll always sell at a profit same with any of the UK attractive cities

True, even though it might take 10 years for price to recover: if you paid for house in cash then you might just be okay.

Other than that it is a rubbish myth that they want to believe you in order to con you into playing their con-game.

You know what cracks me up with UK public? Lots of paper stories about how those SMS/phone premium calls games are a con... because some people who called at the end were not included in the draw... big fking deal - the main point is that the whole game is a con - the chances of winning are low, that's the whole point of the con, its like picking on Grim Reaper for not wearing a matching tie - it does not matter ffs when he came to take your life!

I feel angry now, going back to SKA debugging:

[Euro-commuter]

It read better in the original Russian...

[scooterscot]

I think the UK is all about micro markets, whatever that means, if you bought in London you’ll always sell at a profit same with any of the UK attractive cities. I’d be more worried for the house I’d bought that was built yesterday over some reclaimed landfill site, who wants that? Someone with no roof and little cash and needs the room pronto, that’s who. To pay top dollar for that kind of property at this time? Crumbs the materials would probably not make a quarter of the value it was built for, I’d rather take a job with the post office in the highlands.