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Debate House Prices
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Risk
Comments
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MacMickster wrote: »At different times, both individuals and businesses should entertain different degrees of risk. I'm sure that Hamish would not recommend that someone approaching retirement should be looking at a high risk investment strategy for example. Another time when people may want to avoid a high risk strategy is during a period of consolidation, if a previous high risk strategy has gone against them.
It's true that as an investment, property means that you are never going to lose everything - IF you are buying it outright. If you are buying with only a small deposit plus a mortgage then you can certainly lose all of your equity and more.
From the banks perspective, there remains considerable uncertainty in the property market. The crash in Spain for example has left banks with negative balance sheets, and in the UK there remains a feeling that both the economy in general and the housing market in particular are dependent on the government winning a somewhat demented game of snakes and ladders. The next roll of the dice by the chancellor in his budget next week may bring wealth or poverty, but we will have to wait until other players in the game have rolled their dice too before we find out whether we have landed on a snake, ladder or plateau.
Everyone has an opinion or prediction, but in reality we are in a volatile situation with little real idea how things are going to play out long term.
Unless you believe 'no more boom and bust' then we are permanently in a volatile situation; only the timescale varies.
Having discounted nuclear war and a sudden ice age, I am confident that the population of the UK will continue to increase and that that population will continue to value 'nice' homes.
This means that property prices will continue to fluctuate but in reasonably desirable places the overall trend will be upwards.0 -
I find it rather sweet that McT thinks that the banks are told what to do by the government and regulators.
What a silly boy.0 -
Someone known to me has just lost all the profit they ever made on their by to let through one bad tenant and they were not sow in taking the required counter measures it is just an expensive process. Thus BTL while having a good average return is far from risk free.
What seems strange is that there is not a market for more housing rental companies that manage and diversify housing investment on behalf od individuals.I think....0 -
Someone known to me has just lost all the profit they ever made on their by to let through one bad tenant and they were not sow in taking the required counter measures it is just an expensive process.
Can you give us more details?
Why can't the costs be recouped?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I beleive the period of lost rent, damage to property and theft of funiture more than outweighed the depositI think....0
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Someone known to me has just lost all the profit they ever made on their by to let through one bad tenant and they were not sow in taking the required counter measures it is just an expensive process. Thus BTL while having a good average return is far from risk free.
What seems strange is that there is not a market for more housing rental companies that manage and diversify housing investment on behalf od individuals.
http://www.londonstockexchange.com/specialist-issuers/reits/reits.htm"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I beleive the period of lost rent, damage to property and theft of funiture more than outweighed the deposit
That sounds to me like a criminal matter.
Did they report to the Police? Get a CRN?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Graham_Devon wrote: »I nearly spat my coffee all over the laptop!
Tell yer what Hamish, when you have finally bought a BTL.... you know, those things you keep telling us are such great investments, which are only going to go one way etc....the thing you have told us you are "getting into" for the past 3 years, even moving your savings so you are ready to pounce..... but have never taken it upon yourself to actually buy one....
......then feel free to lecture us all on risk taking!!
Why have people thanked this post?
My politics are very close to your's Devon and we often agree but I cannot abide infantile tribalism, thanking without thought.
Your reply to the OP is entirely off topic side stepping his main question so anyone thanking you ought to be a bit embarrased.
Please people, try and be unbiased.
I'm just as likely to critiscise Hamish, and often do on things like immigration.
Now answer the question, who should we be lending to that will achieve the objective of wider home ownership whilst at the same time not presenting more risk on your cash savings?0 -
This means that property prices will continue to fluctuate but in reasonably desirable places the overall trend will be upwards.
The other major plus for me in investing in B2L is that the debt slowly reduces whilst the rent over time increases. 25 years from now there's every reason to expect the rent to considerably increased, not something I've found to be particularly the case with equities?0
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