Should i put my savings into bricks and mortar?

stphnstevey

BobProperty wrote:

Sorry that's complete Bollards:
From my own experience
Bought 1983 sold 1996 same price give or take few 100 quid
On market 1989 agreed to sell at £120k twice - fell though both times. On market on and off throughout the 90's never at anything other than £120k until after 1996
Bought 1988 and spent lot on complete re-furb and conversion. Cost approx £65k-£70k I had valuations in the early 90's for £43k and £46k.

Now go on, say those 4 little words I want to hear:
"It's different this time"

After 1996 and the early 90's they went up then? - exactly what I was saying then!:rotfl:

Of course sometimes they are low and sometimes they are high. In the seventies you could buy for 30-60K. Those properties are now worth 300K. Over the LONG TERM they rise. Surely if you are into property, you realise that fundamental fact, otherwise why buy a property as an investment!

stphnstevey

BobProperty wrote:

It's called the global economy.
"What the ****'s Japan got to do with the UK market" well nothing so long as we don't trade with each other, invest in each others countries and have no connections with any other country/economy where either the UK or Japan trade or invest. Simple. The mentality of some people...

So Japan's property market has a direct result on the UK property market. Right!

BobProperty

lynzpower wrote:

....If you believe it will happen ( repeat after me)

"Within five years I will be buying repossessions at 38% their current prices.
Within five years I will be buying repossessions at 38% their current prices.
Within five years I will be buying repossessions at 38% their current prices."

(I still think that's a bar of chocolate your avatar is holding )

BobProperty

stphnstevey wrote:

After 1996 and the early 90's they went up then? - exactly what I was saying then!:rotfl:

Of course sometimes they are low and sometimes they are high. In the seventies you could buy for 30-60K. Those properties are now worth 300K. Over the LONG TERM they rise. Surely if you are into property, you realise that fundamental fact, otherwise why buy a property as an investment!

Right, so if you pick the right start date you can prove anything. And I don't know where you were buying in the 70's at prices like that, but you paid way too much.
Over the LONG TERM they rise.
"Surely if you are into property, you realise that fundamental fact, otherwise why buy a property as an investment!"
"Surely if you are into shares, you realise that fundamental fact, otherwise why buy a shares as an investment!"
"Surely if you are into gold, you realise that fundamental fact, otherwise why buy a gold as an investment!"
"Surely if you are into commodities, you realise that fundamental fact, otherwise why buy a commodities as an investment!"

F_T_Buyer

stphnstevey wrote:

What the ****'s Japan got to do with the UK market??? I wish someone would consider moving to Japan. The mentality of some people...

You do make me laugh. You clearly have no idea do you. Where do you think all that money that is lent to you comes from? Japans economy, which is recovering from deflation will mean higher interest rates.

The problem with you is you have only had experience of a rising market. Your examples show that, but i'm talking about investing in property now.

You say I don't understand about property, but you don't understand about simple things like markets, risks and economics. Gearing is all important, and you totally understate the risks involved.

And when I talk about a deflationary recession, i'm talking about falling wages. it is a possibility because of global levelling with the UK competing with the rest of the world. I'm not refering to property as such, just that is will fall as a result of less dissposable income.

stphnstevey

Finally, yes, over the long term house prices DO rise (as I have been saying in the posts below for a while now......).

and yes, so does gold and shares, but not at the same return on investment (ROI). (see below my comparison with F_T_Buyers shares). Over the LONG TERM, my property is rising at an average of 10% per year. Sometimes they return more and sometimes less, (but the race is long, and in the end it's only with yourself!), on average they return a 10% rise.

As I generally only need to put a 10% deposit on my BTL (the bank give me special terms as I have a few), that equates to a 100% ROI (or generally 50% ROI for a 20% deposit). Compare that to F_T_Buyers probably 15-30% ROI, I make more than three times that!.

stphnstevey

F_T_Buyer wrote:

You do make me laugh. You clearly have no idea do you. Where do you think all that money that is lent to you comes from? Japans economy, which is recovering from deflation will mean higher interest rates.

The problem with you is you have only had experience of a rising market. Your examples show that, but i'm talking about investing in property now.

You say I don't understand about property, but you don't understand about simple things like markets, risks and economics. Gearing is all important, and you totally understate the risks involved.

And when I talk about a deflationary recession, i'm talking about falling wages. it is a possibility because of global levelling with the UK competing with the rest of the world. I'm not refering to property as such, just that is will fall as a result of less dissposable income.

I have no idea! I'm not the one with no balls to invest, who doesn't even own his own house let alone had an ounce of experience in investing in property to give an informed opinion. Just because of his own insecurity, crys wolf to everyone else that will listen, so that they don't get ahead of him.

I make money in a rising market as well as a downturn and beleive me, I have rode both ponies.

Lets face it, your attitude to risk is just different to mine. Your not going to convince me and I'm not going to convince you.

When I retire early though, I'll promise not to bother you behind the counter at BurgerKing:rotfl:

Gorgeous_George

Oh dear, another thread on house prices.

An interesting point was made by F_T_Buyer though. Not enough people are having children. Sadly, this is only true of the workers in life. I note that working people marry/live with other working people. This may be because thay meet at work but, more cynically, it's because they can only afford to exist together if they both work. The great unwashed on the other hand are encouraged to have as many children as they want. More kids = more benefits = more fags and booze and a bigger excuse not to work. It's Darwin's theory of evolution - in reverse.

My view on house prices FWIW. They will be stable and rise steadily UNLESS there is a major war in the UK or bird flu wipes out a few million of us.

Demography is the key and this link (Paragraph makes sense to me.

OP. Have you considered buying some land and joining the Freemmasons? You might just get planning permission.



GG

Jim_B_3

stphnstevey wrote:

Hardly 'a big fat lie'!!!!!!! Thanks for your most intellectual input though, I am as thick as two short planks! :rotfl:

I thought I should explain it in terms as simple as the lie you told. I was prepared to point out to you a number of cases where property prices fell, but it seems lots of other people have done it for me.

Perhaps what you meant to say was that over the long term, property tends to rise in value (although you should really have qualified it by pointing out the exciting property crashes of recent times).

stphnstevey

If you took it in CONTEXT with the question before that, rather than focusing in on a small part of my response, you would have realised that Bob had said prices don't seem to be higher than they are now.

I responded that 'house prices are always rising' so if you compare now with the past, it is likely that because house prices tend to increase over time, that they will always be at there highest at this moment in time. Before I get someone saying, this is not always the case, generally, if you compare prices now to 10, 15 or 20 yrs ago, they will always have risen.

I then went on to say, I felt that prices were not the highest they have ever been realtive to affordability.

Hardly a LIE. Just a miss-interpretation of something I wrote as I was replying quickly. I will choose my words more carefully next time as some people are so quick to call someone a liar else.