Bank of England DERANGED?!

john_s_2

sabretoothtigger wrote: »

Yea thats what Ive heard falling prices is a great time to move up the house chain apparently

Absolutely it is! Assuming the house you're upgrading to has gone down by the same amount (or more) than the house you're selling.

If you sell a house for £200K and buy a house worth twice as much (for £400K) then you need to find £200K to make up the difference.

But if prices crash and both houses halve in value:

You sell for £100K and buy for £200K. But you only need to find £100K

You want to downsize when prices are at their peak.

This is all on paper of course. A house is for living in and not an investment. But after living in a small flat with my wife and two kids for the last 17 years I'm certainly keeping a keen eye on the market!

dunstonh

It's all very well stating that, but shares are not exactly risk free investments and at least in savings accounts the money is still there at the end of each year - well hopefully it is!

I said invest. I didnt say shares. Shares are just one type of investment. There are other things. Although a spread is often the best way.

Also, your savings wont be there at the end of the day if you have to eat into the capital to make up for the lower interest.

sabretoothtigger

I think the idea is to reduce risk as you approach retirement, holding shares when you might need the money to live off in 5 years time would be like gambling but if your 20 or 30 years old and this is truely spare money then greater risks are acceptable as it can be justified by growth over the long term

Americans especially seem to take far too much risk with their investments, they all on the news saying they cant retire now

melbury

dunstonh wrote: »

I said invest. I didnt say shares. Shares are just one type of investment. There are other things. Although a spread is often the best way.

Also, your savings wont be there at the end of the day if you have to eat into the capital to make up for the lower interest.

Please could you enlarge on this - what are the other things? and how safe are they?

LesU

sabretoothtigger wrote: »

Yea thats what Ive heard falling prices is a great time to move up the house chain apparently, because the money saved on the bigger house outweighs the loss on your own smaller house sale.
Not a massive positive but a plus side to things if you have this leeway to use



About purchasing power, spotted this recently which is what I thought happened. The uk is better off then 10 or 15 years ago

I can't believe that Germany would lag so far behind us, especially after being the first country in the world to invent a fully functional time machine.
Anyone who can predict 6 years ahead with such accuracy should surely be worth a lot more on the world stage.
I'm more interested in what the above tables would have shown for 2008. Remember, back in 2003 Germany was still paying a fortune in taxes to re-integrate the East and West.
Whatever is the case, Holland is the place for me! All that purchasing power. I'll bet that almost every household is a 3 bike one!:D

sabretoothtigger

Netherlands has gas or something aiding them greatly

Germany is strong, they have no deficit afaik but yea cost of integrating with run down east germany and giving them all the western world benefits must have been a real drag but also the potential for future growth?

The 2015 part is clearly going to be wrong now I think, it was an old article

silentfox

http://www.telegraph.co.uk/finance/personalfinance/savings/4125356/Conservatives-unveil-4.1-billion-in-tax-cuts-for-savers.html

At least he seems on board

free4440273

Yes, they are deranged; similarly, the Fed is insane; only the ECB not being bullied by the markets thus far. We'll see how long that lasts :whistle:

Blah99

dunstonh wrote: »

me too. Keep doing down is all I can say. Yes, mine is going down to but larger ones are going down by more

Heh, it seems like there are quite a few of us doing this. I got out of the housing market at the start of 2007 and have been rubbing my hands with glee since then. We'll all be buying houses in central london with Tesco vouchers soon enough

sabretoothtigger

Nah, foreign wealth would come in and grab the land if it got that cheap. The exchange rate has already made it cheaper for them which I guess should be counted as a positive in the long run