Reply to: Chart of the day

[sasguru]

Well if you look hard there are still opportunities around. Need to do your legwork though and take some calculated and quantified risks. Remember that there was a time when 100K seemed like a lot of money.

Here's what's going to happen in the future. The slowdown in the economy is due to a retrenchment among consumers who are paying down their debts. This process is well in train, though and should last for another year. Barring a huge economic shock in the US, the economy will bump along for a year of so of zero growth. Unemployment will rise steadily but not enough to materially affect the housing market. Don't forget the last crash (90-91) was due to massive redundancies across the board. This will not happen this time as companies have very little fat to trim. When the new pensions law comes in allowing investment in property, this will boost the market a little and the slack will be taken up when people start spending again sometimes in 2007. From there we will see rises of 1%-3% a year - the days of massive price rises are over. However over the long term property is still a good investment - think of it as a forced savings vehicle rather than a get-rich quick scheme.

[Joe Black]

Dont tell me about missing the boat. If you want a missing the boat story I have the mother.
Whilst at college in 1980 a mate said he was going to invest in some property and asked if I wanted to bung in, even if it was only a few quid. I didnt have any spare so politely declined.
He bought a couple of old warehouses somewhere called Docklands. D'oh.

Tell me about.

I had a mate who suggested a similar thing 10 or more years ago about us buying a loft apartment or two on York Way in London, at the time still a very dodgy area (perhaps a bit even now?).

At the time they were going for circa £70K for a very large 2 bed open plan loft, now (with the Eurostar terminal and all the other renovation) your'e looking at around £400-500K.

[The Lone Gunman]

Ah....yes, Pete Best springs to mind

LG, 666 posts. Do you smell of brimestone?

I dont want to post this, I like that number.

The smell is my normal aroma, sorry about that!

[WageSlave]

Ah....yes, Pete Best springs to mind

LG, 666 posts. Do you smell of brimestone?

[The Lone Gunman]

God, you are old!

Definitely have the feeling I missed the boat (or is that missed the house?) with the property market. When property was still at a reasonably sane price I was a pikey student. Then, just as soon as I start to make a little money, whoosh...prices rocket. Bugger

Dont tell me about missing the boat. If you want a missing the boat story I have the mother.
Whilst at college in 1980 a mate said he was going to invest in some property and asked if I wanted to bung in, even if it was only a few quid. I didnt have any spare so politely declined.
He bought a couple of old warehouses somewhere called Docklands. D'oh.

[WageSlave]

Oh well I was only 9 at that time [1978]. My pocket money didn't afford me to save 20k. :-)

God, you are old!

Definitely have the feeling I missed the boat (or is that missed the house?) with the property market. When property was still at a reasonably sane price I was a pikey student. Then, just as soon as I start to make a little money, whoosh...prices rocket. Bugger

[AtW]

Things is AtW - you would have been the same guy moaning about prices 10 years ago and unwilling to take the plunge then.

I would not complain - watch me in a few years time and you will see.

[snaw]

Per month - its the best part of (still central) Birmingham.



I don't care about other people really -- I have zero jealosy towards them.

I would not have cared completely if it was not for fools like you were not responsible for one of the biggest asset bubbles the world has ever seen - you are responsible for this by overpaying for house to live in your dreams how you will actually own it in 20 years.

Things is AtW - you would have been the same guy moaning about prices 10 years ago and unwilling to take the plunge then. I didn't overpay - I bought a house, in an area I like, for a fair price, which I can afford and will still be able to afford if rates jump a lot higher. You're a bottom feeder - waiting for a bargain basement crash price that's just not gonna happen and you're pissed. It's all about supply and demand and if you're not willing to buy now, when prices are off their highs I suspect you'll never buy.

[AtW]

£315 per week or per month and which city do you live in again?

Per month - its the best part of (still central) Birmingham.

Ever heard of diversifying AtW? Why are you so hung up on other people's property interests, you secretly feel like you might have missed out on something?

I don't care about other people really -- I have zero jealosy towards them.

I would not have cared completely if it was not for fools like you were not responsible for one of the biggest asset bubbles the world has ever seen - you are responsible for this by overpaying for house to live in your dreams how you will actually own it in 20 years.

[Francko]

While those of us who bought a 3 bed detached in 1/4 acre in 1978 for less than £20K

Oh well I was only 9 at that time. My pocket money didn't afford me to save 20k. :-)

Moral - In the long run its better to buy than rent - property is better than a pension fund.

Clear and simple concept. Can't understand how this can be argued. We are not discussing about buying a property to speculate, we are simply talking about buying a place to live.

Well, maybe it's peak time, but how long are you going to wait? 1-2-5-10-20 years???? 20 years ago people thought the same. I had been waiting for 1 year, yet prices were not going down at all and indeed growing up. Decisions have to be made in a realistic timeframe sometimes.

[snaw]

Yes - I pay £315 for 50% of 3-bedroom (big!) house, huge living room, 2 big bastard gardens with half price council tax and other bills in a fantastic location - those on this board who know Harborne would agree.

How much and what do you pay for snaw? Please breakdown your monthly payment into interest+repayment.

£315 per week or per month and which city do you live in again?

Me, well my wife and I pay £1500 per month and my mortgage is £200 more than my rent was in the same area. I've got an extra bedroom on a better street than what I had renting. In 20 years I'll own it, whereas your good self will have paid someone else's off. If rates go up I'll cut a holiday or two a year. No biggie. We've got a place we bought in Aus a few years back and made some decent dosh on, we've also got a place in NYC a couple of years ago which has almost doubled in value in that time. Best investment I've ever made (Wish I could say shares have been as good).

Ever heard of diversifying AtW? Why are you so hung up on other people's property interests, you secretly feel like you might have missed out on something?

[AtW]

Moral - In the long run its better to buy than rent - property is better than a pension fund.

Timing is everything -- only fool would make the biggest purchase of lifetime when prices are at peak.

[FrankScribe]

ALM, those people are simply red of jealousy since we, who bought in the late 90s already have a retirement plan (especially if we cashed in a smaller flat with no mortgage as I did) to rely on, while they will struggle until their last days hitting their heads on the wall thinking how better they would have been had they bought it before.

However, to those who think that buying now is a great investment I would dare to say that it's not as we can't expect prices to go up a lot more (if they keep going up which is not even guaranteed in the next years). Last but not least, I think the first house is still the best investment since 99% of the people are not such great savers (and why should we be, we only live once) so even if they would be better off by investing in the financial markets, most of the people just blow money off in cars and tropical holidays.

While those of us who bought a 3 bed detached in 1/4 acre in 1978 for less than £20K with a with profits endowment policy not only got the profits from the policy but are now sitting in a unmortgaged larger house on the same plot worth about £600K - Oh and I have two holiday flats in Torbay - the holiday lets yield about 7 to 10% net and I have something to sell when I decide to retire.

Moral - In the long run its better to buy than rent - property is better than a pension fund.

[Francko]

Dude - a guy who can afford to buy a castle for a few millions DOES NOT GIVE A FECK ABOUT PRICE CRASH!

I personally think this is one of the most beautiful castle in the world.



Vytautas was certainly a person of taste.

"fabulous treasures were kept in the castle. Even the saddles on thoroughbred horses were made of gold. Some of the saddles were presented to Russian prince Vasiliy I."

[AtW]

What if the house prices crash? Are castles immune to that?

Dude - a guy who can afford to buy a castle for a few millions DOES NOT GIVE A FECK ABOUT PRICE CRASH!