Misery of the BTLers and property developers...

mp2

Dan: wrote: »

FTSE 100 19/03/1999 Closed at 6163
FTSE 100 on Friday Closed at 3842
So you would be approx 38% down if you invested 10 years ago.

Average Property prices in 1999 were approx £90,000
Average Property prices today approx £160,000
So you would be approx 80% up if you invested 10 years ago.

I know where I would want my money. Property wins, always.

i think youre missing the point. the arguement was that if you dont sell your property when prices fall, you havent lost anything.

so if i borrow £1million, buy £1million worth of shares, they drop by 35% have i lost anything?

or would you say as long as i dont sell my shares, my financial position is the same.

also you might want to consider the fact that with shares you can only lose 100%. with property people in negative equity are currently losing more than what they put in.

Dan:_4

FungusFighter wrote: »

You wouldn't say that if you were sat on a mortgage of half a million for some sh1thole the ea convinced you was worth £600k done up at the peak and now you couldn't sell for half that:A

Ask Onion Boy if he ever shows his face on this therad again:rotfl::rotfl:

I'd like to see a projection for what you think property will be worth in 2 years while we're at it mate, might be good for a larf:T

It don't matter if you have a mortgage worth 50K or 1 mil as long as you can afford the payments. You can get shot when prices rises, which will happen one day.

To answer your second question, in 2 years from now I think prices will be lower then today.

mewbie_2

Dan: wrote: »

To answer your second question, in 2 years from now I think prices will be lower then today.

...and I would guess that shares will be considerably higher than today. Therefore being stuck in property is now a losers game.

Dan:_4

mp2 wrote: »

i think youre missing the point. the arguement was that if you dont sell your property when prices fall, you havent lost anything.

so if i borrow £1million, buy £1million worth of shares, they drop by 35% have i lost anything?

or would you say as long as i dont sell my shares, my financial position is the same.

also you might want to consider the fact that with shares you can only lose 100%. with property people in negative equity are currently losing more than what they put in.

Property prices will rise again, at some point. As long as you don't need to sell during the bust, there is no issue.

FungusFighter

Dan: wrote: »

to answer your second question, in 2 years from now I think prices will be lower then today.

No !!!!!! sherlock :beer:

Personally if I were sat on any number of BTLs or so called investment properties with mortgages I would not be sleeping nights:eek:

No one can guaranteee there income or a tenant for the next 10 - 15 years :eek:

Dan:_4

FungusFighter wrote: »

Personally if I were sat on any number of BTLs or so called investment properties with mortgages I would not be sleeping nights:eek:

Thats because you have no balls

FungusFighter

Dan: wrote: »

Thats because you have no balls

No, that's because I have a) a brain and b) no desire to end up drowning in debt:beer::beer:

mewbie_2

I'm scoring this Fungus 75 Dan 48 at present.

mp2

Dan: wrote: »

It don't matter if you have a mortgage worth 50K or 1 mil as long as you can afford the payments. You can get shot when prices rises, which will happen one day.

To answer your second question, in 2 years from now I think prices will be lower then today.

this is precisely the problem. you are kidding yourself if you think that as long as you dont sell everything is ok. the market is not so forgiving.

banks today are all bankrupt, not because they arent making profits but because the value of their assets have collapsed.

Graham_Devon

Dan: wrote: »

FTSE 100 19/03/1999 Closed at 6163
FTSE 100 on Friday Closed at 3842
So you would be approx 38% down if you invested 10 years ago.

Average Property prices in 1999 were approx £90,000
Average Property prices today approx £160,000
So you would be approx 80% up if you invested 10 years ago.

I know where I would want my money. Property wins, always.

Hmmm.

So you compare the high of the FTSE, to a price today, and compare the low of the house prices, to the high of today, leaving out all service and legal costs, and then come up with the answer?

Maybe tho this is how I do my car thing above and say that actually, I bought my car at £9500, but I saved £9000 by buying it at 2.5 years old, therefore, although it's now 30% less than what I bought it for, I'm still making a profit as I saved 50%.

Therefore, I'm still up 12%?

Woop. Yer, I quite like this.