Why can no one be positive on this forum.

lostinrates

justpurchased wrote: »

So we are arguing housing is a great long term investemnt.:D
Only joking, but those figures would indicate it.

I agree.....but not if you bought at last year's price and need to sell at next year's. LONG term and timing is the key. when the bottom falls out of the market your investment takes a hit and plummets. Then its not one economisc cycle you had to time right for it to be an investment but TWO

(Likewise.....the only valued piece of furniture we own was DH's great, great grandmother's and was valued at about $12,000 three years ago. I wonder what she paid for it, and how much its dropped this year? ...)

baby_boomer

Unfortunately people tend not to drip feed into their housing investments.

Instead they gear up heavily and put all their stake on in one go .

Except when there are headlines of 10% pa falls in housing

justpurchased

neverdespairgirl wrote: »

My parents bought their semi in Blackheath in 1983, for £76k.

In 2006, £76,000.00 from 1983 was worth:

£177,178.11 using the retail price index
£177,280.17 using the GDP deflator
£261,966.59 using the average earnings
£304,026.40 using the per capita GDP
£327,083.73 using the share of GDP

So by any stretch of the imagination, the price of roughly £1 million is way more expensive.

Average wage 1983 £7700, not exactly an average house then and 10X average income. but they did well the average £1m in london in todays money cost £124k back then.
http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=424564&in_page_id=57

justpurchased

lostinrates wrote: »

I agree.....but not if you bought at last year's price and need to sell at next year's. LONG term and timing is the key. quote]

I agree you dont take future valu in to account so much when it is your home. If you are there for 25 years the current market does not mean anything to you the losses will be made back. It is only a problem if you are a forced seller.

lostinrates

justpurchased wrote: »

lostinrates wrote: »

I agree.....but not if you bought at last year's price and need to sell at next year's. LONG term and timing is the key. quote]

I agree you dont take future valu in to account so much when it is your home. If you are there for 25 years the current market does not mean nothing to you the losses will be made back. It is only a problem if you are a forced seller.

If you are lucky you could make a fortune. If you are unlucky you coud buy at a peak, go through an economic cycle and sell at a low. If you have got to your 20s, had a few jobs and 'climbed the ladder' and sat in your investment for an economic cycle or two avoiding being a forced seller, thats great, but of course, you approach the time where circumstances can't be hopped around so easily and forced sale becomes more likely

justpurchased

You are right. A lot of people hope buy at the bottom of the crash.
How many of them will be on here during the next crash moaning they can't sell their house, they have lost ther job and are due to be reposessed and will be lucky to pay of thier mortgage at auction.
While in the wings some one in taking the pee and saying they should not have been so stupid.
Interesting all this, isn't it.

tr3mor

justpurchased wrote: »

You are right. A lot of people hope buy at the bottom of the crash.
How many of them will be on here during the next crash moaning they can't sell their house, they have lost ther job and are due to be reposessed and will be lucky to pay of thier mortgage at auction.
While in the wings some one in taking the pee and saying they should not have been so stupid.
Interesting all this, isn't it.

By the time the next crash comes along I hope to be living mortgage-free somewhere in the countryside.

And I'll have better things to do than arguing with people on the interweb.

justpurchased

tr3mor wrote: »

By the time the next crash comes along I hope to be living mortgage-free somewhere in the countryside.

And I'll have better things to do than arguing with people on the interweb.

I am sure every one would but life is not quiet like that.
P.S. I am half way there just not mortgage free yet.

lostinrates

tr3mor wrote: »

By the time the next crash comes along I hope to be living mortgage-free somewhere in the countryside.

me too. not stuck halfway up a ladder. And if life intervenes, so be it...its all a gamble anyhow. At least I'll be better off than if I had bought last year in all probability

tr3mor

lostinrates wrote: »

At least I'll be better off than if I had bought last year in all probability

No doubt about it.

Sometimes I feel sorry for these people suckered in to buying a new-build poorly built hole on a very densely populated estate for god-knows how many times wages.

Other times I just laugh at their stupidity.

:rotfl: