It's a bubble silly!

baby_boomer

A female aged 60 can get an RPI annuity paying a miserly 3.29% if she shops around hard enough.

No wonder buy-to-let is seen as the new pension. You get the same or more income AND get to keep your capital or grow it in the long term.

It may take a real crash, rather than a slowdown, to put a lid on the buy-to-letters who are likely to step in when prices fall by a substantial margin.

Where else can our career girls look to grow their retirement income?

The stock market is now yielding less than 3% .

mystic_trev

baby_boomer wrote: »

The stock market is now yielding less than 3% .

But with better long term growth prospects than Property.

roswell

Im not convinced thsi is a property only bubble, I think from my little mind that gold has reached all time highs, stock markets are breaking new records, property in my view has hit a ceiling,

if your looking for a assett short term in mind cash is the only safe option, theres a risk to stock markets when economys slow down, theres a risk to house prices when employment falls (economic slow down), cash is accepted in all outlets and is easy transferable.

Personnaly I think Japan / Asia are going to be the only places to see growth for the next 5 years +.
To a degree sub saharan africa may see more growth with service industries outsourcing there but localy they have a major problem with aids.

Mind you I dont really know what im talking about im not a IFA its just my observations from a distance.

baby_boomer

mystic_trev wrote: »

[The stock market may yield less than 3% but it has] better long term growth prospects than property.

I agree. It's most of the rest of the population who aren't convinced.

keeperbear

baby_boomer wrote: »

I agree. It's most of the rest of the population who aren't convinced.

Various stock market indexes are now at record highs. As this is the case, why is a stock market investment any less risky than a property market investment? Both are risky, but at least a property investment has a minimum resale value. You could lose everything when investing in a bad company.

IMO, it is amazing how the FTSE has climbed since March. One terrorist attack in the US or a market-related problem in China may see billions wiped off shares. Thus, current share prices are as much a bubble as property prices.

keeperbear

mystic_trev wrote: »

But with better long term growth prospects than Property.

Sorry, but I disagree. What about the London property market with the Olympics approaching? As with shares, investments in property need to be selective. You cannot talk about one property market, as London's market is booming whilst Manchester is currently stagnant.

baby_boomer

Try going on the Savings & Investments forum and convincing IFA dunstonh that cash ISAs are the real deal.

He'd not stop laughing at you.

roswell

baby_boomer wrote: »

Try going on the Savings & Investments forum and convincing IFA dunstonh that cash ISAs are the real deal.

He'd not stop laughing at you.

Thats fine, dunstonh is a respected member in that board, He has a world more knowledege than myself, i thought the topic of the thread was "Its a bubble" i stated i believe it is a bubble but isnt restricted to property only. I hold shares they at one point were doing very well .. they then went pete tong and so for im a whole 1.05% in profit my selling fees wouly cost me more than my profit ... the options to myeself are 1)admit I didnt know what i was doing and leave it to the big boys ... 2) Pull the money out making a loss 3) leave them there and hope for a recovery.

im going with option 3, The nature of all "Assets" is to appreciate over time, if your lookign to not loose your socks short term im saying I dont believe property or stocks are the place for your money at the moment in my opinion. if you have a volume of cash your willing to risk and arent bothered about loosing then play the field but risking your financial future when you dont need to is suicide.

Generali

It's a massive worldwide asset bubble IMO. The UK housing market is just a small part of it.

For example, if you buy Iraqi government bonds, the yield (interest paid) is less than 10%! Wanna bet that the Iraqi government will even be around in a few years to carry on paying you the interest, let alone the principal sum.

The Shanghai Stock Exchange was up 130% last year and is up a further 44% so far this year.

Venezuelan govt bonds yield about 7%. Their president (a Trotskyite) is crippling the economy by increasing government spending by 50% a year and is giving away large amounts of oil in an attempt to spread a form of modern communism across Central America.

Gold is at recent record prices. So is silver. And fine wine. And modern art. And most commodities you can mention.

UK housing is just another outlet for this huge wave of cash that is washing through global asset markets.

mystic_trev

keeperbear wrote: »

Various stock market indexes are now at record highs. As this is the case, why is a stock market investment any less risky than a property market investment? Both are risky, but at least a property investment has a minimum resale value. You could lose everything when investing in a bad company.

A lot of highly geared BTL's have gambled everything, which includes their homes which has been used as security on their "investment" They could end up going from Landlord to DSS Tenant in one easy move, if the market crashs!