MSE News: House price rise predicted by MoneySavers

shakerbaby

nearlynew wrote: »

I love you rewired.

Rewired is presently having a nap. He will be back with you shortly.

julieq

nearlynew wrote: »

:rotfl:


................... Priceless.


It's not often that you make me laugh more than mewbie, but this is brilliant.

Thank you julie.

(in fact it is the only funny post you have ever written)

OK, let me rephrase that.

I have the cash to invest in BTL, but I have other priorities, i.e. educating my children which means I'm keeping my cash as cash. I stand by what I've been saying about BTL for months, it is a good investment opportunity just at the moment, even if you take a pessimistic view on prices, with a return to CURRENT prices over a 7 year period.

Carol, are you trying to claim that prices haven't been rising strongly since February? I'm not sure I follow your argument. Neither do I understand your point about yields - certainly the return on capital where I live is more than 5%, which is an excellent return anyway compared to what you can get elsewhere, but given that costs are low even leveraged investors are coining it. You may not like that, if you're struggling to get out of your rented accomodation, but it doesn't stop it being true. Where else can you get a safe 5% on £150K+ with a degree of protection against inflation? Not in a savings account certainly.

Mewbie, you're back as usual to your snide little ad hominems. I agree that we're not going to agree, I don't make a point of saying you post sh1te because I disagree with you, so why do you find it necessary to be so objectionable? As I suggested before, if you have something to contribute, contribute. If you don't, then !!!!!!.

julieq

Scrudge wrote: »

I see what you are saying but then gold is itself a an asset not less speculatory in nature then houses.

I think that it is more meaningful to think in terms of price of a basket of goods - and there has been no inflation over the last year. So pound did not loos real value so fat from the inflation perspective.

HOWEVER all this money printing that contributed to devaluing the pound will most certainly result in hyperinflation in about 6-12 months time - this will wipe out probably 20-30% of real vlaue from houses. People with cash should move their cash into inflation protected products as soon as there are first signs of hyperinflation - and then they might in fact see the CRASH and benefit from it.

Errm, the pound has depreciated about 20% in comparison with the dollar and the euro. The analysis saying that house prices have reduced in absolute global value is spot on. I pointed that out a couple of times recently. Add the actual fall in £ to the value reduction in $ and you have very close to the bear's predictions. It's all about how things appear to an external observer.

A house will always be worth exactly one house. If there is hyperinflation, which is very very unlikely, then having a house is probably not a bad thing. Unless you can live in a pile of assets.

mewbie_2

julieq wrote: »

Mewbie, you're back as usual to your snide little ad hominems. I agree that we're not going to agree, I don't make a point of saying you post sh1te because I disagree with you, so why do you find it necessary to be so objectionable? As I suggested before, if you have something to contribute, contribute. If you don't, then !!!!!!.

Lol.

I will !!!!!! when I choose. Could be today, tomorrow, or when I get PPr'd.

You mention yields. Rightmove linky please?

julieq

You're perfectly free to post whatever you want Mewbie. I was asking you why you find it necessary to be so objectionable?

I think you know I can run rings around you in an argument so fast it'll make your ears bleed. You certainly know that you've so far had the most execrable success rate in making predictions about the current situation. So I guess trying to take on a cheekie chappie persona and playing to a willing gallery with a string of sarcastic one liners is about the best level you can aspire to. Sadly.

Where I am in the South-East, you can buy a three bedroom semi-detached house for around 200K. You can rent it out for £1250 a month. That's a 7.5% gross return on investment.

So how about some actual fact based arguments from you? Are you man enough?

nearlynew

julieq wrote: »

Where I am in the South-East, you can buy a three bedroom semi-detached house for around 200K. You can rent it out for £1250 a month. That's a 7.5% gross return on investment.

So why don't you buy one then?

julieq

nearlynew wrote: »

So why don't you buy one then?

See explanation about three posts up.

julieq

Good for you Rupert. A man shows his worth by the company he keeps.

Scrudge

julieq wrote: »

Where I am in the South-East, you can buy a three bedroom semi-detached house for around 200K. You can rent it out for £1250 a month. That's a 7.5% gross return on investment.

But the principal is not protected - that's the key thing. So basically you are saying that if house prices stay the same then you will make 7.5%. But what if they fall 20-30% ?

mewbie_2

julieq wrote: »

You're perfectly free to post whatever you want Mewbie. I was asking you why you find it necessary to be so objectionable?

It just sort of is.

julieq wrote: »

I think you know I can run rings around you in an argument so fast it'll make your ears bleed.

Blimey.

julieq wrote: »

You certainly know that you've so far had the most execrable success rate in making predictions about the current situation.

I still believe house prices have much further to fall. Not ready to admit defeat just yet.

julieq wrote: »

So I guess trying to take on a cheekie chappie persona and playing to a willing gallery with a string of sarcastic one liners is about the best level you can aspire to. Sadly.

As far as it goes I seem to be quite good at it. Not much of an achievement granted.

julieq wrote: »

Where I am in the South-East, you can buy a three bedroom semi-detached house for around 200K. You can rent it out for £1250 a month. That's a 7.5% gross return on investment.

So how about some actual fact based arguments from you?

OK. Still would prefer a Rightmove link in order to check prices and rents though. 200k - 1250 is 6.25% not 7.5%. I think you failed to allow for 2 months void. Take off agent fees - 15% - I now make it 5.3%. Redecorate once every couple of years? Couple of thousand? I make it 4.8% now. What is the best mortgage deal you can get on that 200k for a BTL - 5,6,7%?

I can't make it add up. But just for you julieq... I tried.

julieq wrote: »

Are you man enough?

Not sure about the man enough thing, is it supposed to be a slur? As I am a female classics graduate, rather fond of Pot Noodles, kind of went over my head.