In real money, British house prices are down by 70%

phil_b_2

benb76 wrote: »

Gold as an asset is something that I've always struggled to get my head round. Aprart from being nice to look at, it is actually fairly useless as you can't eat it, live in it or use it to make fuels. Another thing is that whilst it's supply is not infinite, it's never going to become scarce as we don't actually do anything with it, it just sits there either gaining or losing a perceived value.

And eventually the rest of the world will realise that.

chucknorris

Asheron wrote: »

As far as advocates of sound money are concerned, the UK housing market peaked in 2005.

Since then it has fallen by more than 70%.

Yes, 70%. House prices are now at levels last seen in the early 1990s, at the bottom of the last bear market.

The average house price is currently 25% below its average of the last 40 years.

"But, but, but," I hear you say. "The housing market has barely fallen. The latest Nationwide and Halifax data has been showing year-on-year price rises. The crash never really came. This is insane. You're talking rubbish."

Am I?

http://www.moneyweek.com/investments/property/uk-house-prices-in-ounces-of-gold-02110.aspx

How much rent does your gold earn you? Surely it doesn't just just grow in capital value does it?

Jonbvn

Loopgames wrote: »

Some of us are trying to do that

There are always exception to the rule.

Well if I tried to do that I would immediately lose 50% of my total wealth since the wife and kids would be moving out.;)

Wheezy_2

My house was worth 740,300 boxes of Asda Smart Price fish fingers in 2005
Now it's down to 456,220.
Should I sell now? Please advise.

System

So what you really meant, is NOT in real money, they are down 70%.

In real money, IE the money that everyone uses... well we all know where they are.

carolt

It's a stupid article because houses are one of the very few things which are not tradeable globally - it makes sense to look at the value of petrol, clothes or other things that you can move easily from 1 area to another, in terms of worth in other countries' currencies, or against some theoretical 'gold standard'.

With houses though, it all falls apart as a theory - because houses are by definition stuck in 1 place - they're literally built into the ground.

And whilst a few foreigners paid in dollars or euros or whatever may push up prices in central London, the reality is that the vast bulk of the UK housing stock is not sold to foreigners holding valuable other currencies (or gold) - it is sold to native Brits holding sterling.

So until we're all paid in gold (or dollars or whatever) this article just looks rather a waste of space.

Loopgames

Jonbvn wrote: »

Well if I tried to do that I would immediately lose 50% of my total wealth since the wife and kids would be moving out.;)

both hubby and I have decided it's best if we sell up and maybe travel for a bit with our 2 young children (5 and 2). Quite exciting actually - although when he first mentioned it I did suggest he go on his own lol...I've come round:D

Loopgames

benb76 wrote: »

Gold as an asset is something that I've always struggled to get my head round. Aprart from being nice to look at, it is actually fairly useless as you can't eat it, live in it or use it to make fuels. Another thing is that whilst it's supply is not infinite, it's never going to become scarce as we don't actually do anything with it, it just sits there either gaining or losing a perceived value.

It took me a while to work it out. But it does require some personal research and financial education to understand the reason why gold is true money and not paper currency.

It's not easy for anyone to explain to anyone else if they haven't got the basic understanding of it. Or even disagree that there is anything to understand in the first place.

I'm just in agreement with the concept that if people at least had some gold (maybe at least 10%) of their assets then at least it's an insurance for them for 'just in case' situations. Of course those need to understand why that is the case - hence the research each has to do to work it out.

Jonbvn

carolt wrote: »

So until we're all paid in gold (or dollars or whatever) this article just looks rather a waste of space.

Carol,

How come I agree with you twice in a month? Are you changing or is it me?;)

marklv

Asheron wrote: »

As far as advocates of sound money are concerned, the UK housing market peaked in 2005.

Since then it has fallen by more than 70%.

Yes, 70%. House prices are now at levels last seen in the early 1990s, at the bottom of the last bear market.

The average house price is currently 25% below its average of the last 40 years.

"But, but, but," I hear you say. "The housing market has barely fallen. The latest Nationwide and Halifax data has been showing year-on-year price rises. The crash never really came. This is insane. You're talking rubbish."

Am I?

http://www.moneyweek.com/investments/property/uk-house-prices-in-ounces-of-gold-02110.aspx

Arrant nonsense. I bought my small house in Reading for £225k in 2005 and now it's marketable at c.£280k.