A Bear Story

Cleaver

rizla01 wrote: »

At long last SOMEONE is seeing from the same side of the fence as me.

He could have sold for a number of reasons.

To sell because he believes the bottom is going to fall a lot further is not very savvy, unless he knows somethig that most of us don't, I think.

He might possibly have been offered a 'Cant refuse' offer but decided to rent regardless.

Perhaps he intends moving jobs and prefers to be more flexible.

He is now looking at ALL options, no doubt - One of them a BTL (or two).

I just couldn't understand the reason for comments #2-#10!!

It never ceases to amaze me the mentality of the experts on here armed with such little info, who cast such unworthy judgements.

Sorry if that isn't in line with the norm, nowadays.

The only facts we have is that someone has sold their house on the basis that they think house prices are going to fall. They've now decided to buy BTLs.

I'm just saying that this doesn't seem the smartest financial tool in the box.

peakoil_2

maybe the bloke is planning to rent the 2 properties on a room basis and will live in one of the rooms?

Graham_Devon

Cleaver wrote: »

The only facts we have is that someone has sold their house on the basis that they think house prices are going to fall. They've now decided to buy BTLs.

I'm just saying that this doesn't seem the smartest financial tool in the box.

People buy shares all the time, thinking they are going to rise. Or they wait for them to fall, only to find that doesn't materialise and buy at a higher price.

I'm sure you have done it yourself, indeed, possibly got burnt a little with XEL.

Not everything goes to plan with investments, buying higher and lower. If they did, no one would lose. Doesn't mean they are financially illiterate.

No one on this board will call people financially illiterate because they bought a house and it has since reduced in value. But if they sell thinking there will be falls? Oh, different story, and they are idiots.

Cleaver

Graham_Devon wrote: »

People buy shares all the time, thinking they are going to rise. Or they wait for them to fall, only to find that doesn't materialise and buy at a higher price.

I'm sure you have done it yourself, indeed, possibly got burnt a little with XEL.

Not everything goes to plan with investments, buying higher and lower. If they did, no one would lose. Doesn't mean they are financially illiterate.

No one on this board will call people financially illiterate because they bought a house and it has since reduced in value. But if they sell thinking there will be falls? Oh, different story, and they are idiots.

Sorry, just to make the point again, I wasn't questioning the assets he's purchasing or whether house prices go up or down. I was making the comment that it seems a poor financial plan.

On another note, my current average on XEL is above the current share price, but it's a long term hold until production anyway.

Graham_Devon

Cleaver wrote: »

Sorry, just to make the point again, I wasn't questioning the assets he's purchasing or whether house prices go up or down. I was making the comment that it seems a poor financial plan.

Well thats likely to be due to the fact that what happened wasn't the plan.

The original plan didn't work. To the surprise of many I'd guess.

So plans have changed.

peakoil_2

Graham_Devon wrote: »

People buy shares all the time, thinking they are going to rise. Or they wait for them to fall, only to find that doesn't materialise and buy at a higher price.

I'm sure you have done it yourself, indeed, possibly got burnt a little with XEL.

Not everything goes to plan with investments, buying higher and lower. If they did, no one would lose. Doesn't mean they are financially illiterate.

No one on this board will call people financially illiterate because they bought a house and it has since reduced in value. But if they sell thinking there will be falls? Oh, different story, and they are idiots.

its a bit idiotic to sell and then buy back in at a loss, surely?

Cleaver

Graham_Devon wrote: »

Well thats likely to be due to the fact that what happened wasn't the plan.

The original plan didn't work. To the surprise of many I'd guess.

So plans have changed.

I'm not sure why we're discussing such a pointless OP, but my point was around the fact that he sold his house and was then "disappointed" by returns from the bank. Which suggests someone who sold a massive asset and then had no plans as to what to do with the proceeds. I'd need exact timeframes to clarify that though.

Thrugelmir

Graham_Devon wrote: »

People buy shares all the time, thinking they are going to rise. Or they wait for them to fall, only to find that doesn't materialise and buy at a higher price.

There's a fundamental difference between building a portfolio of shares over a period of time and buying a solitary property.

I build stakes in any share investment over at least a 6 month time window. Guessing when to invest is a punt. Averaging may limit the upside but as I invest for the long term not phased by a fall in the short term.

reweird

pinkteapot wrote: »

A guy in my office sold his house and is renting, as he believes house prices have got a long way to fall.

He's now looking at BTL flats as he's so unimpressed with the returns being offered by banks on cash.

:huh:

What a complete and utter retard. Imagine putting the safety and security of your family at risk in a pathetic gamble to try to earn free money. STR filth are the lowest of the low.

ruggedtoast

Thanks for the thread necromancy. This was just so awesome back in July I can see why you resurrected it.


By the way he hardly put the "safety and security" of his family at risk. Renting here is a pain but its not exactly one step away from the workhouse.