MSE News: House price rise predicted by MoneySavers

wageslave

Julieq, it's not that we dont want to debate with you, honestly it isn't. It is just that is Sunday night and it's back on the treadmill tomorrow.
Surely you aren't this unremittingly earnest all the time?

nearlynew

julieq wrote: »

See explanation about three posts up.

What, you mean your "keeping my cash as cash" comment?

That's not an explanation, it's a kop out.

If BTL is producing such good yields and you are "not afraid of debt" as you put it, then why would you not buy?

You are indeed a frustrated BTL wannabe.

I rest my case your honour and have nothing more to add.

bluey890

This is a great thread mewbs and julieq.
It might answer the age old "What happens when an irresistible force meets an immovable object?" paradox.

Scrudge

sabretoothtigger wrote: »

I think currency value is carried on a global scale and if uk property looks cheap enough then it will be more subject to international money.

Ok, so pound collapsed so to USD investors they might look as costing a lot less. But then if we get price per square meter then in UK it is much much higher then in many other locations worldwide.

The only way for foreigners to justify inverting in this extremely expensive in absolute terms market is by comparing house prices to incomes or to rents. As these are in pounds and did not rise over the year to foreign investors these have also collapsed and therefore house do not appear to offer better value for money then before.

wageslave

I can just see Julieq now. Head down, typing furiously......
All that pent up passion. It makes you wonder, it really does.

nearlynew

wageslave wrote: »

I can just see Julieq now. Head down, typing furiously......
All that pent up passion. It makes you wonder, it really does.

And thinking of nice long words to use and everything.

shakerbaby

nearlynew wrote: »

What, you mean your "keeping my cash as cash" comment?

That's not an explanation, it's a kop out.

If BTL is producing such good yields and you are "not afraid of debt" as you put it, then why would you not buy?

You are indeed a frustrated BTL wannabe.

I rest my case your honour and have nothing more to add.

The phrase 'putting your money where your mouth is' come's to mind. :rotfl:

HAMISH_MCTAVISH

Scrudge wrote: »

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% ?

Interesting point this, and it seems to be a repeated bull versus bear theme.

From my own perspective, I suppose my answer would be well so what if it does?

People investing in BTL for a yield should not worry one bit about short term price fluctuations. Price falls only result in a loss if you have to sell. If you have no need to sell, then you can wait until prices recover. Even if that takes 20 years or more. But all that time you are still generating a substantial yield.

If you have a fear of short term price fluctuations, then it's obviously not for you. If you're in it for the long term, then you have little to fear.

Graham_Devon

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?

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

:rotfl::rotfl::rotfl::rotfl:

Finally, we have someone more deluded than Hamish.

Classic post though, moaning about someone being objectional, then right after, starting a paragraph with that!!!

Cleaver

HAMISH_MCTAVISH wrote: »

Interesting point this, and it seems to be a repeated bull versus bear theme.

From my own perspective, I suppose my answer would be well so what if it does?

People investing in BTL for a yield should not worry one bit about short term price fluctuations. Price falls only result in a loss if you have to sell. If you have no need to sell, then you can wait until prices recover. Even if that takes 20 years or more. But all that time you are still generating a substantial yield.

If you have a fear of short term price fluctuations, then it's obviously not for you. If you're in it for the long term, then you have little to fear.

I understand your point, but (and I say this as someone who used to rent out a property) you always have a lot of your money in a very illiquid asset.

Let's say you have £60k of life savings that you could use as a deposit for a BTL. I'm fully in agreement with you that, over the long term, you'll get a good yield if you buy at the right price and are in it for the long term. But then it's there, very much stuck in one aseet. Which could be very profitable of course, but it is very illiquid. I guess the more attractive option now to me would be to take that £60k in a range of funds and investements that means you are heavily diversified and have liquid assets so that you can get at the money quickly if your life changes, or if economic circumstances change. Nothing stopping you putting a chunk of that money in propety funds of course.

So I'm agreeing with your point Hamish, but just offering my view as to why it wasn't for me and my Mrs. Which is what you said at the end of your post anyway. So, as normal, I'm not really sure what I'm saying here.