Buying properties for investment

Raggie

van_persie wrote:

The BOE's remit is to control inflation, nothing more. If you think they are responsible for controlling anything else, you are very much mistaken.
Irresponsible borrowing should - and will - be punished.

Rates in Europe have just gone up and futures are pricing in further rises. Japan is about to come out of 0% interest for the first time in years, the Fed are pricing in several more hikes. Sterling will tank if it doesn't come in line. IR rises are on the way.

Reading this thread with interest (no pun intended), but are not your two statements above contradictory.

If the BOE on remit is to control inflation. (Which it is)

They can not increase IR in order to prop up sterling.

That was the great day when things got silly and IR hit 15% so we could maintiain our exchange rates and meet the requirements of the ERM.

The rules have sinced changed.

If the BOE is only looking at inflation, and nobody has money to spend because of high IR on the Houses BTL & BTS no one can afford all the nice things in life.. tv's food' cars petrol etc then spending stalls & therfore inflation will dip. The BOE must maintin 2.5% (i think) growth, so if we drop bellow that then IR will need to fall to prop up the economy and growth.

if I got that the right way rounnd...lol....


(BTW have have not an "F in Clue" what house prices will do.. but I can't wait to find out......)

sukey13

eurows wrote:

It is simple why you think property is the only way forward.

You lack intelligence.

Any fool can borrow money and rent out houses. We will see where all these fools are when IR's go up and house prices fall.

The clever money left property last year and probably made a mint on the stock market. The fools are still there proping up a soon to fall market. The trouble is the fools don't know what to do next.

Mensa would disagree with you on that.

sukey13

ChrisFTB wrote:

Hi there

If is the case that as well as live in Somerset, you buy property there also, the recent Halifax report must have made worrying reading...

"38 counties have seen a modest fall (an average of 4%) in prices over the past year with these counties being mainly in southern England and the midlands. Four of the 10 counties recording the biggest falls are in the South East, two in the South West and West Midlands and one each in the East Midlands and East Anglia. The biggest house price falls over the past year have been in Somerset (-10%), Oxfordshire (-9%) and Hertfordshire and West Sussex both with -7%. These falls, however, need to be viewed in the context of the substantial price rises recorded in these parts of the country during the last few years."

http://www.hbosplc.com/economy/includes/UKQ42005.doc

Chris

I am not worried - not going to sell investment properties. If I already have my own money back out of a property and I bought below market value then I could still sell and make at least 10% profit now anyway. Those that are bought have taken into account lots of information before we buy by using Hometrack, etc. Those bought to sell usually require work, turning the worst house on the street into the best and breaking the ceiling barrier on that street is what has always happened.

eurows

I am not worried - not going to sell investment properties. If I already have my own money back out of a property and I bought below market value then I could still sell and make at least 10% profit now anyway. Those that are bought have taken into account lots of information before we buy by using Hometrack, etc. Those bought to sell usually require work, turning the worst house on the street into the best and breaking the ceiling barrier on that street is what has always happened.

10%.... Please don't make me laugh. That could be wiped out faster than you can reply to this post. Hell fire. Your thicker than I didn't give you credit for.

sukey13

wibble68 wrote:

My reference was to this kind of thread (VI's v HPCer's) appearing on a monthly basis.

Everyone is entitled to their opinions, which is what makes this such a good web site.

However, you seem to get very upset when people offer an opinion that contradicts yours.

Maybe you have a lot to lose if the market suffers a correction.

Sorry, but I am not getting very upset. I just don't like rude people like yourself not contributing and saying things like "is it your time of the month". How is that constructive? It isn't offering an opinion at all it is trying to belittle people because they are female.

Would you like me to apologize for having an opinion, say "Yes Sir, No Sir" to you?

I will not be frightened off of a chat board by some people that think they know better. It isn't necessary to tell people that they lack intelligence, just because their opinion differs from their own. At the end of the day, I have read and studied far more successful people and would rather emuliate them than listen to you. If you read the rich list how many of them are in property?

If you don't have anything worth saying, don't bother. Well actually carry on and I'll just ignore you next time.

Oh and if house prices fell 27% it would make zero difference to my property portfolio. And I would only make about £45K instead of about £90K on those I am selling. In fact I would probably rent them out as HMOs and sell them later.

sukey13

Please can all you MSEs take a look at what our friend (eurows) is really up to...

http://www.housepricecrash.co.uk/forum/index.php?showtopic=25939

Thanks so much mate you got thousands of people to look at my blog ;0) I am sooo impressed - you are my new buddy!!!

eurows

Thanks so much mate you got thousands of people to look at my blog ;0) I am sooo impressed - you are my new buddy!!!

I'm more than pleased I can help. I hope you also take my advice.

heathcote123

"I don't think IR will go up unless something catastrophic like a war breaks out."



Now thats looking really unlikely eh?

jonclarke

Raggie wrote:

Reading this thread with interest (no pun intended), but are not your two statements above contradictory.

If the BOE on remit is to control inflation. (Which it is)

They can not increase IR in order to prop up sterling.

That was the great day when things got silly and IR hit 15% so we could maintiain our exchange rates and meet the requirements of the ERM.

The rules have sinced changed.

If the BOE is only looking at inflation, and nobody has money to spend because of high IR on the Houses BTL & BTS no one can afford all the nice things in life.. tv's food' cars petrol etc then spending stalls & therfore inflation will dip. The BOE must maintin 2.5% (i think) growth, so if we drop bellow that then IR will need to fall to prop up the economy and growth.

if I got that the right way rounnd...lol....

(BTW have have not an "F in Clue" what house prices will do.. but I can't wait to find out......)

I don't think you're correct. The BOE's remit is to control inflation, thats true. However, if the US interest rate increases above our own, money tends to flow out of the UK and we "import" inflation because our currency is devalued and imports become more expensive (not least oil as its traded in US$). So this inflationary effect forces an increase in our own interest rate.

Propping up Sterling isn't the prime objective, rather an indirect effect of the BOE MPC having to increase IRs in line with the US to keep a lid on inflation.

Take a look at the graph here : http://www.hbosplc.com/media/pressreleases/articles/halifax/2006-02-04-00.asp

The UK interest rate has always had to stay above the US rate to stave off a sterling crisis and the inflation it creates. Look where US interest rates are headed ... and there's plenty of speculation in the US that they haven't finished yet by a long way.