inflation, money and houses

justme111

Dithering_Dad wrote: »

However, I suspect it more likely that you could lose your wealth in a fire or robbery than with Zimbabwe style hyper inflation.

.

Well it does not take HYPERinflation to eat out the savings. If someone has £30000 after a year it will become £24000 if inflation is 20%. Ok, interest will compensate , suppose 10% but £30000 becoming £ 27000 do not look very appealing either.

Cannon_Fodder

Well don't keep it to yourself...

the suspense...

wintersunshine

!!!!!!? wrote: »

I happen to think that there is an appalling lack of financial awareness amongst the general public. Sorry if you pick that up as a denegration, it's an observation on my part. Maybe you should chill out.

Maybe you should chill out too.

!!!!!!? when you have actually achieved something in life come back and lecture us then. You are middle aged man living in rented accomodation in a suberb of Manchester, England. Your biggest aspiration is to own a three bedroom semi. You have a job that allows you to post constantly on MSE so it's obviously not very demanding.

You obviously have a very high view of your own financial acumen but it's not made you a bean has it? Frankly even when you have achieved your dream of owning a three bedroomed semi in the North of England at age 40+ I doubt most people would think you were still in a position to lecture.

A little quote:-

"It is easy for somebody to be modest, but it is difficult to be modest when one is nobody" Jules Renard

Dithering_Dad

wintersunshine wrote: »

Maybe you should chill out too.

!!!!!!? when you have actually achieved something in life come back and lecture us then. You are middle aged man living in rented accomodation in a suberb of Manchester, England. Your biggest aspiration is to own a three bedroom semi. You have a job that allows you to post constantly on MSE so it's obviously not very demanding.

You obviously have a very high view of your own financial acumen but it's not made you a bean has it? Frankly even when you have achieved your dream of owning a three bedroomed semi in the North of England at age 40+ I doubt most people would think you were still in a position to lecture.

A little quote:-

"It is easy for somebody to be modest, but it is difficult to be modest when one is nobody" Jules Renard

Wow, can I just say that this is one of the most insightful and accurate postings I have ever seen on the housing boards. It never ceases to raise a smile with me when I read !!!!!!'s self aggrandising posts, full of his Gold purchases, his recession proof job, his 'lucrative' foreign contract, his large deposit of foreign cash, his huge savings pot and how he pours scorn on others, including myself for their lack of business acumen.

The reality, as you have correctly identified, !!!!!! is middle aged and single with no children to drag his finances down and yet after 13 years of working in IT (including said lucrative foreign contract) he has zero pension savings, a relatively small amount of house savings and no other investments. Hardly the economic guru he portrays.

Because of his negative personality, !!!!!! is fearful of economic disaster and probably has been throughout most of the 10 year economic boom. He therefore hoarded his meagre cash savings instead of taking even a slight risk and trying to generate more income with investments. Sometimes being too careful with your money is as counter productive as being to free with it.

I have no doubt at all that his negative personality and meanness with cash is the contributing factor in why he is approaching age 40 and is single, childless and probably rather lonely. He mocks people who have been more reckless with their money, but I have to say that given the choice between !!!!!!'s solitary and strooge-like existence, but with no money worries (well, at least until he retires and tries to live on the state pension) or having a loving wife and children and constant money problems; I know which option I would choose! Money is definitely second place to a loving relationship and kiddies. !!!!!! needs to re-evaulate his life and his priorities.

wintersunshine

Well someone had to say it DD. I am heartily sick of the way other MSE communities are pilloried on this board. It's time for us to give as good as we get;)

StevieJ

I think I sense some repositioning here, post after post !!!!!! moves nearer to buying, even CF mentions price drops of 6 - 12 months ( 6 being May) just think of the stick I received when I said I think they will bottom in April09.
I do agree that property is a top hedge against inflation esp if you can secure a lengthy fix whille interest rates are low.

monkeymaster

StevieJ wrote: »

I think I sense some repositioning here, post after post !!!!!! moves nearer to buying, even CF mentions price drops of 6 - 12 months ( 6 being May) just think of the stick I received when I said I think they will bottom in April09.
I do agree that property is a top hedge against inflation esp if you can secure a lengthy fix whille interest rates are low.

Sorry but no chance. Every indicator suggests this is not going to happen, momentum in the housing market takes a long time to turn as we found out when prices were rising. Leading indicators such as lending and approval figures as well as well as consumer confidence and unemployment figures are still on a downward trend. Even if all these reversed tomorrow it would still take months before that would be reflected in house prices.

purch

!!!!!! needs to re-evaulate his life and his priorities.

Bl**dy Hell I was only trying to have a little joke !!!

Everyone takes it all so personally (and seriously !!! ) ............ :eek:

StevieJ

monkeymaster wrote: »

Sorry but no chance. Every indicator suggests this is not going to happen, momentum in the housing market takes a long time to turn as we found out when prices were rising. Leading indicators such as lending and approval figures as well as well as consumer confidence and unemployment figures are still on a downward trend. Even if all these reversed tomorrow it would still take months before that would be reflected in house prices.

How does it take months for something (property) not to drop any further? This is all about bank lending and required deposits, I can assure you that if the banks were handing out 100% mortgages the market floor would be in now.

John_Pierpoint

chucky wrote: »

who's Nathan Hobbs?

Who wants to own up to this:

http://petitions.number10.gov.uk/NoBTLBailout/

Mind you if the BTL brigade get repossessed, their tenants will be out on the street.
I wonder if tenants are checking out the credit rating of their landlords? It is difficult. I've tried.