Nationwide Oct: +0.6%

the_flying_pig

hamish's £10k is entirely, 100% sensible if you accept his '7% yield, 2 and a bit % interest rate' assumption - which i don't view as being applicable to anything other than very unusual circumstances.

IveSeenTheLight

the_flying_pig wrote: »

your calculation, your, what shall i call it, a kind of post tax return on equity, it's unduly influenced by a transient factor, namely interest rates. best not to conflate two very different questions of what the yield is & what the cost of borrowing is, along with a third factor [namely capital structure]. best to look at them all seperately.

Not at all.
It's important to understand what the nett return is for any investment.

My example showed that whilst a lower percentage RY was calculated, the nett return on the investment was significantly higher .

If prices rise, it's a bonus for when you come to sell.

Ifprices lower then arguably, your getting an even better return on your investment (assuming you've lost equity)

Personally, I see my property investments as giving a decent return with lower risk to my capital investment.

I've tried shares before and been stung.

I do have a strong pension contribution which is linked to a share portfolio so don't want to invest further there.

Paramount

It's important to remember with these statistics that the average UK house price would change dramatically if you took London out of the equation! I always like to look at regional averages too to get a better picture.

Mr._Pricklepants

Paramount wrote: »

...the average UK house price would change dramatically if you took London out of the equation!

But then it wouldn't be an average UK house price anymore, would it?