It can make a lot of sense to buy now.

Housebear51

mitchaa wrote: »

:I suspect even when I keel over in old age around 60yrs from now, it will still be nowhere near worth £2.4m.

Do you think the Pound sterling will last that long?

Most dont think the present fiat currency system will last this decade let alone the next one?

So whatever we are using for money after the pound goes to zero will set the price of your house in 60yrs time.

Emy1501

What is behind your opinion? Last year it seemed to be based on the facts that at the beginning of 2009 more and more buyers were signing up to the agents and business was getting better.

Speaking to a broker who was saying similar to you last year his impression is that there are few buyers out there and lots of new property coming onto the market in the EA’s he works from in the SE.

I understand the argument that buying on the way down is better than the way up but I can’t see any evidence or reason for an upturn until the beginning of next year at the earliest so if I was a FTB especially, I would be waiting until at least Sept-Oct as unlikely sellers will be taking lowish offers

nembot

If you're buying and expecting to stay in the property as it's a family home, you can comfortably afford the mortgage, even if things don't work out so well - yes it's a good time to buy.

Should the average person go out and spend silly amounts of money on a shoe box right now, hell no!!!

Risky times, look at the bulls on here for instance - now that's frothing

doire_2

Conrad wrote: »

I was pondering some applications I'm currently dealing with. At the same time I was thinking back to people I know who bought in past recessions, particulary in 1973, 1978 and 1991.

Current case - apllicants have sold thier home for £500k, having paid £140k in sept 1999.
It's a semi in Surrey.
They are buying a detached wreck for £615k on a huge plot.
He will do it up himslef in evenings (did this with last home) and it could easily be worth £1m in todays market, let alone 5 or 15 years time.

The new mortgage is £300k on C&I basis, fixed for 3 years at £1390 pm which for them is about 1 third of net income.
Sure rates may rise after 3 years (a certainty) but they will cope and will be sitting on a mass of equity. He really does transform a property.

Back to 1973. I have an applicant aged 68 who bought a big pile bear Jamie Oliver for £2,500! It's now worth £700,000.

Imagine you were on this forum and we were in the same economic times as 1973 - all the bears would say it was reckless to buy!

1978 - a current client bought a huge detached home with 20 acres back then for £60,000. It's now valued at about £3m.
Again if we were experiencing the economic tapestry of 1978, the bears here would be urging restraint.

THE POINT - It's always difficult to see the light when times are dark, but the brave / carefree will be investing now and sitting pretty in 20 years time.

Bullfighter

This isn't your 1970's, 80's or 90's recession. We are facing 1930's devastation or even worse.

If you can't see that (or even include it in your risk assessment then you should stop giving 'advice'.

Housebear51

Bullfighter wrote: »

This isn't your 1970's, 80's or 90's recession. We are facing 1930's devastation or even worse.

If you can't see that (or even include it in your risk assessment then you should stop giving 'advice'.

You have hit the nail on the head there.

So many people still cant understand this, they think kicking the can down the road will sort it out. Its actually made the crisis worse.

phil_b_2

Housebear51 wrote: »

Most dont think the present fiat currency system will last this decade let alone the next one

Who? What? Where?

Housebear51 wrote: »

after the pound goes to zero

Bullfighter wrote: »

This isn't your 1970's, 80's or 90's recession. We are facing 1930's devastation or even worse.

:rotfl::rotfl: Gotta love this stuff.

Housebear51

phil_b wrote: »

Who? What? Where?





:rotfl::rotfl: Gotta love this stuff.

I take it you are one of these ones who laugh at the thought of a depression just like people did in the 1920s.



It must be very nice for you, ignorance is bliss after all.

Housebear51

We are not living under true free market capitalism right now. Free markets require free market money. Fifty percent of every transaction involves currency. You have to allow the market to pick what money is and what interest rates are (the price of money itself).

You cannot have a group of arrogant men trying to set interest rates and manipulate the economy. You cannot have governments giving special favors to their richest friends, the corporations and special interests that can afford to do all the lobbying.

This is what tilts capitalism to the point where it really isn't capitalism. This is no longer a free market.


Remember free markets require free market money and interest rates. Our free markets have been lost for almost a century now.

Free markets and crony printing presses for a select few are like oil and water, they will never mix.

The Immorality of it All

Fiat currency in conjunction with highly leveraged fractional reserve banking is the inflationist tool to create all sorts of rigged market mischief. Inflation, the expansion on the monetary supply simply increases boom-bust economic cycle severities and occurrences; inflation is the indirect theft of the average saver's capital. It allows nations to initiate and more easily fund endless wars. It enables a select few to more easily confiscate the wealth of the many.



Ask the common man on the street about gold and silver money, most are simply ignorant or misinformed on the subject and especially the implications of a world moving back in favor of hard and sound monies, silver and gold.

History simply repeats and repeats. When the public becomes desperate for precious metals they will offer goods, services, and investments at fire-sale values. By selling your gold and silver at that time, you will have taken full advantage using your current knowledge and understanding. The full weight of the upcoming wealth transfer will have swung in your favor.

I believe now is the time to capitalize on ignorance by acquiring and holding physical gold and silver bullion coins and bars.

Really2

Housebear51 wrote: »

I believe now is the time to capitalize on ignorance by acquiring and holding physical gold and silver bullion coins and bars.

Now that is a comedy line. It seems that's what every PM bug seems to want to do, ramping them on here!
Just that no one is falling for it.