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Debate House Prices
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Houses overvalued still?
SilverStandard
Posts: 174 Forumite
Who on here agrees that ALL asset classes do go from overvalued to undervalued?
Its always happened throughout history and always will.
There is no way that UK property is undervalued at the moment.
There will come a time in the future when UK property will be undervalued again.
Surely no one will disagree with this, this forum is all about when it will happen.
Look at my sig, in 1980 1000 oz of silver could buy an average house in the UK.
At the moment gold and silver are still undervalued and house prices are still overvalued.
Bottom line is that property is in a bear market, silver and gold are in a bull market, a primary uptrend lasting another 5-10 years, so even if your timing is poor, the uptrend will bail out your mistake. For example, when the gold price first climbed to $340, I was all vexed about whether it would correct to $320 or $290. Today all that worry looks silly, because the primary uptrend has bailed out those $340 and $320 purchases long ago.
Its always happened throughout history and always will.
There is no way that UK property is undervalued at the moment.
There will come a time in the future when UK property will be undervalued again.
Surely no one will disagree with this, this forum is all about when it will happen.
Look at my sig, in 1980 1000 oz of silver could buy an average house in the UK.
At the moment gold and silver are still undervalued and house prices are still overvalued.
Bottom line is that property is in a bear market, silver and gold are in a bull market, a primary uptrend lasting another 5-10 years, so even if your timing is poor, the uptrend will bail out your mistake. For example, when the gold price first climbed to $340, I was all vexed about whether it would correct to $320 or $290. Today all that worry looks silly, because the primary uptrend has bailed out those $340 and $320 purchases long ago.
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Comments
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shall i sell my investment house and invest in silver n gold u think?0
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Yes. Excellent idea.0
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I have done it already !!
I have sold my house and children, and am buying lots of gold, while STR'ing0 -
To me they are on-track to where they were around 20 years ago when i purchased my house.
I could currently purchase a similar property as to how mine was at that time with the same % deposit and wages multiples as to what i did then.
In 1990 we were in a similar situation to how we are now in the fact that prices had fallen around 15% in the previous year in my area. The prices didn't really fall any further but stagnated for a while and it took around 10 years for property prices to start to significantly rise again.
Ohh and the interest rates were mostly between 8-16% in those following 10 years from purchasing if i remember correctly.0 -
Why are you comparing 1980 to 2010?0
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SilverStandard wrote: »Who on here agrees that ALL asset classes do go from overvalued to undervalued?
Its always happened throughout history and always will.
There is no way that UK property is undervalued at the moment.
There will come a time in the future when UK property will be undervalued again.
Surely no one will disagree with this, this forum is all about when it will happen.
Look at my sig, in 1980 1000 oz of silver could buy an average house in the UK.
At the moment gold and silver are still undervalued and house prices are still overvalued.
Bottom line is that property is in a bear market, silver and gold are in a bull market, a primary uptrend lasting another 5-10 years, so even if your timing is poor, the uptrend will bail out your mistake. For example, when the gold price first climbed to $340, I was all vexed about whether it would correct to $320 or $290. Today all that worry looks silly, because the primary uptrend has bailed out those $340 and $320 purchases long ago.
But why could 1000 ozs of silver buy a house in 1980......... There is a very rational explanantion. That you appear to have overlooked.
House prices currently are more difficult to assess. As the true impact of the growth in "credit" has yet to be determined. There is a ball of string that is going to unwind as credit is contracted which could take as long as a decade.0 -
When was the last time house prices were undervalued then? Mid 90's?
When will they be undervalued again?0 -
The Bunker-Hunts were tried/convicted for cornering the silver market around 1980, so the price of silver then was vastly inflated.No reliance should be placed on the above! Absolutely none, do you hear?0
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Ohh and the interest rates were mostly between 8-16% in those following 10 years from purchasing if i remember correctly.
Far more 8% than 16% during those years.
http://www.bankofengland.co.uk/statistics/rates/baserate.pdf'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
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