How does losing a fifth of your wealth feel?

Wookster

FungusFighter wrote: »

If houses have crashd 21% from peak, how are those who bought at the peak feeling?

Unfortunately this is one of the major problems of the UK economy. This mad connection between the difference you paid for your house & its current price and the perception of wealth.

There is no connection, as we are so painfully finding out now.

According to https://www.dictionary.com, the economic definition of wealth is:

Economics:
a. all things that have a monetary or exchange value.
b. anything that has utility and is capable of being appropriated or exchanged.

Equity simply bears no resemblance to cash, unless you're daft enough to pay (interest) for the 'privilege' of withdrawing it.

Pobby

In a selfish way let them drop to the lowest point. I want to move to a different, more expensive area. The rungs would be far closer together.

FungusFighter

moggylover wrote: »

I feel fine about it tbh:D .

Sorry for those entering negative equity, sorrier still for those that find that something to crow about;) . Karma peeps - never does one any favours to gloat at others misfortune:D

I may not approve of BTL, but they were only doing what our Society encourages and trying to make themselves rich. There are worse ways to do it, tbh.

Hon, noone will say it but your absolutely right

Sez to me your to sensitive a flower for one of my threads, best take cover babe before the crapola starts a flyin:eek:

FungusFighter

Wookster wrote: »

Unfortunately this is one of the major problems of the UK economy. This mad connection between the difference you paid for your house & its current price and the perception of wealth.

There is no connection, as we are so painfully finding out now.

According to www.dictionary.com, the economic definition of wealth is:



Equity simply bears no resemblance to cash, unless you're daft enough to pay (interest) for the 'privilege' of withdrawing it.

So what you saying here mate? Are you luvvin it or what?

System

In fact, I imagine a lot of people who have lost "20% of their wealth" are in fact massively better off at the moment with the interest rate so low.

Cat695

How can they lose something they never had?? Its not wealth until its in your bank account.

FungusFighter

Cat695 wrote: »

How can they lose something they never had?? Its not wealth until its in your bank account.

Babe, some greedy nasty peeps bought to sell on at a profit and got caught with there pants down when the music stopped

Ordinary folks like me couldn't give a gonad:cool:

Rochdale_Pioneers

Cat695 wrote: »

How can they lose something they never had?? Its not wealth until its in your bank account.

They have been educated by all those Channel 4 Property Shows that all you have to do to get rich is buy a house - any house - and in 3 years it will be worth enough for you to sell and buy a big pad in the country. OR buy any rundown poohole, spend £20k on restoring it and its worth double your investment.

For the people who believed this it became their RIGHT to have that cash. They have the cash because they own the house and its worth £x and they can sell it for even more. I live on an estate with several of those. New build, they bought off plan, moved in and put it on the market within 6-12 months for a £40-£50k premium vs what they paid.

Unfortunately they didn't do their research - phases 2 and 3 were still under construction and for sale at less than they demanded. One house a few doors from me went through 3 different estate agents demanding that premium and apparently firing the agency when their failed to deliver their cash for them. Now they and a few others are stuck in an investment they have failed to profit from.

chewmylegoff

Rochdale_Pioneers wrote: »

OR buy any rundown poohole, spend £20k on restoring it and its worth double your investment.

it's it more, "buy run down poohole for £100k, spend 18 months and £20k on doing it up, then sell it for £200k. then get told that you would still have been able to sell it for £200k if you had done no work on it whatsover, so you've actually lost £20k by doing it up?"

FungusFighter

chewmylegoff wrote: »

it's it more, "buy run down poohole for £100k, spend 18 months and £20k on doing it up, then sell it for £200k. then get told that you would still have been able to sell it for £200k if you had done no work on it whatsover, so you've actually lost £20k by doing it up?"

Nice one mate, except now it's buy for £100k, spend £20k, can't get £80k for it:D

That lanimate flooring just aint considered quite as classy as it once was:rolleyes: