Average cost of a home 'to hit £300,000 in five years'

Jorgan_2

Who knows whats going to happen, ask me in six years & I'll give you an honest appraisal of the previous 5 year housing trends.

I do remember reading a report produced by Merril Lynch (sp?) in 1995 which stated that house prices would rise by 50% by the year 2000, how we laughed at that one.

gallygirl

meanmachine wrote:

Interesting. So when the average property is "300K", and renting for the same as it is now, who will be buying exactly?

Sounds like the worst investment ever. (in 2010, not now).

And I thought rental yields at today's prices were pitiful.

10k deposit in 97, 30k property, 50pw rent, 8.7% gross yield
2006 assume no increase in value, 75pw rent, 13% gross yield, or
2006, actual value 80k, 75pw rent, 4.9% gross yield.

Sometimes low yields indicate a good investment - discuss