Why I Love House Prices Crashing

b0rker

shakerbaby wrote: »

Time to buy is when no one will touch property with a barge pole.

I have kind of stopped getting into these kinds of discussions as I feel there are so many local housing markets in the UK that generalising about each as if it is one big market is just a waste of time and effort.

For example you will be dead before people stop touching homes with large amounts of money in my local housing market (Inverness), never mind a barge pole. I am sure there are plenty of local markets have dropped by nigh on 20% though so maybe all the bears from here should move to one of those towns/cities instead of holding out for 20% drops where they were born/brought up.

b0rker

Thrugelmir wrote: »

Buying doesn't suit everyone's circumstances. Moving house frequently is very expensive.

At the moment renting for many makes financial sense. As is cheaper than ownership.

I agree. I am probably coming across as have a very limited view of the whole paying someone's mortgage thing and certainly when I lived in London buying was never an option so...

Thrugelmir

b0rker wrote: »

so maybe all the bears from here should move to one of those towns/cities instead of holding out for 20% drops where they were born/brought up.

I left Surrey around 29 years ago as couldn't afford to buy. Nothings changed. Except a better quality of life in a more rural setting.

IveSeenTheLight

nearlynew wrote: »

It was.

Until I sold one earlier this year.

And you've never explained why you still keep the BTL and want this investment to drop in capital value.

It just doesn't make any business sense at all

chucky

nearlynew wrote: »

It was.

Until I sold one earlier this year.

that's your pension sorted then

IveSeenTheLight

chucky wrote: »

that's your pension sorted then

He had four in total (apparently but the story kept changing )

Sold one and used the proceedes for his personal use and recently one he inherited which gave him the luxury of paying off his mortgages on the other two which he had for circa 20 years.

Not sure about his business sense though. He still has a BTL but wants prices to drop. If that is so and he thinks prices will drop then he would have been better placed to sell and re-invest elsewhere or back into property at the bottom.

shakerbaby

b0rker wrote: »

I have kind of stopped getting into these kinds of discussions as I feel there are so many local housing markets in the UK that generalising about each as if it is one big market is just a waste of time and effort.

For example you will be dead before people stop touching homes with large amounts of money in my local housing market (Inverness), never mind a barge pole. I am sure there are plenty of local markets have dropped by nigh on 20% though so maybe all the bears from here should move to one of those towns/cities instead of holding out for 20% drops where they were born/brought up.

It was an expression of phrase not to be taken literally. You know like the one the time to get out of stocks and shares (and BTL :eek:) is when the shoeshine boy buys them.

Or sommat like that. :rotfl:

nearlynew

IveSeenTheLight wrote: »

And you've never explained why you still keep the BTL and want this investment to drop in capital value.

It just doesn't make any business sense at all

Haven't I ?
I thought I did the last time we went through this.

Anyway, here goes (again?)

From a business/investment point of view I am hedging my bets by keeping it. Diversification I think it's called. And I get a decent income as a bonus.

However, on a social and economic level I do not think high prices are a good thing. An economy based on people selling each other more and more expensive houses does not produce wealth but just leads to higher and higher debt levels and is not only unsustainable but damaging for future generations.

When my kids grow up I intend to give them the rented house to live in.
But they will probably not want to live together forever.

So, either one of them will buy the other out or they will sell it to provide themselves with a decent deposit for houses of their choosing.

In each of these scenarios it would be better if house prices were lower, requiring lower levels of debt.

So that's the way I see things and that is why I want prices to fall.

it might not make sense to everyone but it does to me. And that's all that matters.





edit: just seen your latest post ISTL. My story did not keep changing when we discussed this before. If you remember we ended up agreeing it was just a misunderstanding. So don't start all that again.

shakerbaby

IveSeenTheLight wrote: »

And you've never explained why you still keep the BTL and want this investment to drop in capital value.

It just doesn't make any business sense at all

Maybe a social conscience struck them? :rolleyes:

IveSeenTheLight

shakerbaby wrote: »

Maybe a social conscience struck them? :rolleyes:

Well then sell off cheaply and recontrol his social conscience.
It can't be that bad affected as he is still running one as a BTL.
Not that I see a problem with that, I have two of my own.

It just seems odd to give advice and opinions that property prices should drop but he remains invested in property.

Put me out of my misery nearlynew, explain why you want property to drop in price but still hold one as an investment?
It's like a damn secrect game that has no conclusive answer.