Bears in Despair Part 3......

StevieJ

neas wrote: »

i must admit putting house changes in your sig will make you look like a complete nob if they change dramatically... its saying 'duh i was wrong'. Im fine to casually sit at the outskirts and wait to see. I wonder what will happen when the tories come in and ramp interest rates to 8-10%?

Yes I know what you mean, Devon did that with my predictions;) he removed it sharpish

StevieJ

Thrugelmir wrote: »

Well the OZ/£ exchange rate suggests its now time to return to the UK rather than leave. A friend of mine who's worked in Sydney for 20 years has bought herself a place in Devon as the rate is so good!

Good point, not only are they expensive internally the exchange rate has compounded the issue for Brits moving over.

Kenny4315

as the commentator in 1966 said,

the crowds on the pitch they think it's all over ..... it is now .....

Boo hoo said baby bear !!

Graham_Devon

StevieJ wrote: »

Yes I know what you mean, Devon did that with my predictions;) he removed it sharpish

Did you not do the same in your sig to me?!

skap7309

Kenny4315 wrote: »

as the commentator in 1966 said,

the crowds on the pitch they think it's all over ..... it is now .....

Boo hoo said baby bear !!

Whats that the 'shock' few months of rises? Happy days :rotfl:

StevieJ

Graham_Devon wrote: »

Did you not do the same in your sig to me?!

I did! but mine was more in sympathy

mizzbiz

Glad to see the same old arguments are still being battered about the head.

I remember late 2008 arguments about whether or not house prices would fall. Many were adamant they wouldn't and even then, only a few caved in a conceded, whilst prices were falling, that yes, they were indeed falling. The others left the site temporarily.

Now we have the same situation, only the ones who were saying they wouldn't fall are now back (some in new guises) to argue that they are now going back up! Hang on - I thought you said they weren't falling in the first place?

And yet many seem really intelligent - you can tell from the way they write. But, as Sophocles said, "It is terrible to speak well and be wrong".

System

Glad to see the same old arguments are still being battered about the head.

I remember early 2009 arguments about whether or not house prices would rise. Many were adamant they wouldn't and even then, only a few caved in a conceded, whilst prices were rising, that yes, they were indeed rising. The others left the site temporarily.

Now we have the same situation, only the ones who were saying they wouldn't rise are now back (some in new guises) to argue that they are now going back down! Hang on - I thought you said they weren't rising in the first place?

And yet none seem remotely intelligent - you can tell from the way they write. But, as Sophocles said, "It is terrible to speak well and be wrong".

Wookster

I just have to laugh at bull who think we live in a world of ever rising prices and growth.

Where do you think the money is going to come from to sustain price rises? growth?

chucknorris

Wookster wrote: »

I just have to laugh at bull who think we live in a world of ever rising prices and growth.

Where do you think the money is going to come from to sustain price rises? growth?

Well first of all I will emphasize that you should not invest in property purely for capital growth, that should be only be considered as a secondary benefit, the investment decision should be based upon an ongoing income profitability.

But to answer your question I need to refer to the capital growth, the answer to your question is 'inflation'. You might argue if the property only goes up in line with inflation then nothing has been gained in real terms. However this is not correct because if we assume a 15% deposit (probably not available now but easily was a few years ago), the investment is only 15% (plus ex's etc) but inflation effects the full 100% value of the property, therefore the inflation on the invested money is over 6 fold! Apply that super inflation for 20 years and the compounding effect will be huge.

Obviously thought must be given to an exit strategy to avoid having to sell in a property crash, so careful attention should be applied quite a few years before you would ideally like to sell up.