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Debate House Prices
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Gold...Full house...
Comments
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Max Kaiser some months back began to look a borderline lunatic of the fuming mid west Baptist preacher variety, and this sort of event will likely make him go into full-on conspiracy hyperdrive.0
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Graham_Devon wrote: »
Why the hate over people who invest in gold? Why are the majority so pleased when they lose money?
I get the silver thing as we were inundated with silver talk.
Like I say, may be a stupid question and I may have missed something.
Because goldbugs have assulted us with thier fuming ranting bile for so long now, so it is kinda satisfying when thier balloon takes a pin. These frothing hyenas have been pounding the soapbox emploring us property people to wake up and smell the coffee telling us it is just so obvious gold is on a perma bullrun whilst we questioned thier myopic zeal over an incomeless asset.
Really B2L'ers are fairly cautios investors not particularly interested in specualtive arenas.0 -
One only has to look at graphs of house prices and gold prices to see that the HPI obsessives on here live in a little world of their own.
UK house prices are one thing and gold price another. What the ratio of the two has to do with anything I'm not sure.
I've never ever heard anyone, apart from on Moneyweek & in this forum, try and use the ratio of two unrelated assets to try and claim one of them is too expensive/ cheap.
May as well compare house prices to pints of milk (which has been attempted here but failed because of the lack of consensus about whether full fat or semi-skimmed is the best 'benchmark'.)0 -
Because goldbugs have assulted us with thier fuming ranting bile for so long now, so it is kinda satisfying when thier balloon takes a pin. These frothing hyenas have been pounding the soapbox emploring us property people to wake up and smell the coffee telling us it is just so obvious gold is on a perma bullrun whilst we questioned thier myopic zeal over an incomeless asset.
Really B2L'ers are fairly cautios investors not particularly interested in specualtive arenas.
Ahh right, so they insulted your property investment, therefore, you want them to lose money.
Makes sense now!
Especially since gold appreciated in value FAR more than your housing over the past couple of years proving them right for a while....
I think it was Gordon Brown who once stated he hated Vince Cable. Blair asked "but what if he's right". Brown answered "then I'll hate him even more".
This seems to run through on here quite well too.0 -
UK house prices are one thing and gold price another. What the ratio of the two has to do with anything I'm not sure.
I've never ever heard anyone, apart from on Moneyweek & in this forum, try and use the ratio of two unrelated assets to try and claim one of them is too expensive/ cheap.
May as well compare house prices to pints of milk (which has been attempted here but failed because of the lack of consensus about whether full fat or semi-skimmed is the best 'benchmark'.)
Of course you are right - I was not trying to compare the two.
The OP made 2 points, one about house prices not falling and one about gold not being a good investment over recent years.
I was just saying he was wrong on both counts.0 -
The OP made 2 points, one about house prices not falling
No, thats not correct.
He compared renting to buying. And he's right.
In most areas, you'd have been better off buying, even at peak, than renting since.and one about gold not being a good investment over recent years.
Well it's certainly been a terrible investment for the last 18 months.
And a mediocre one for the last 5 years. When you include yield, housing in many parts of the UK has outperformed Gold over 5 years.
And housing including yield has absolutely obliterated Silver over the last 5 years.I was just saying he was wrong on both counts.
He isn't.
Unless you change what he said....;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »No, thats not correct.
He compared renting to buying. And he's right.
In most areas, you'd have been better off buying, even at peak, than renting since.
Well it's certainly been a terrible investment for the last 18 months.
And a mediocre one for the last 5 years. When you include yield, housing in many parts of the UK has outperformed Gold over 5 years.
And housing including yield has absolutely obliterated Silver over the last 5 years.
He isn't.
Unless you change what he said....;)
Clearly gold has outperformed property as an asset over the "HPC" website years.
What he actually said was... "Rent until prices fall....FAIL".
Anyone who rented "until prices fell" and then bought did pretty well, thank you. Building societies were offering fixed rate bonds with 6 - 7 % interest (enough to pay the rent plus the council tax). Prices fell and a cash buyer could get 30% off peak prices.
All seemed like pretty good advice at the time - all about timing, I suppose.0 -
Clearly gold has outperformed property as an asset over the "HPC" website years.
Not when you include the yield from property (either imputed or realised) and the holding costs of gold.Anyone who rented "until prices fell" and then bought did pretty well, thank you.
That entirely depends on how long they had to wait in rented until prices fell.
If you were one of the tiny, tiny, tiny number of people who were first able to buy a house in precisely Q3 2007, and delayed purchase only until Q1 2009, then fair enough.
If you were renting from before that, and/or missed the bottom in 2009, (which seems to be most hpc-ers) it's an epic fail in most areas.Building societies were offering fixed rate bonds with 6 - 7 % interest (enough to pay the rent plus the council tax). Prices fell and a cash buyer could get 30% off peak prices.
Eh?
So now you're talking about STR?
Which was even harder to make money from than delay to purchase.... Just ask Merryn, with her now legendary £150K loss from STR.
And 30% off was only ever available in a very few areas, and in the rarest of circumstances, unless you live in Northern Ireland.All seemed like pretty good advice at the time - all about timing, I suppose.
Not really.
HPC got it badly, catastrophically, wrong.
If I'd rented instead of owning since 2007, I'd be the best part of £100,000 worse off by now. It would have been complete financial lunacy to have listened to the crashaholics for me.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »
So now you're talking about STR?
Which was even harder to make money from than delay to purchase.... Just ask Merryn, with her now legendary £150K loss from STR.
Not really STR. We sold at pretty much peak prices, to move to a different part of the country. Intended to rent for 6 months while we found the right place, but got lucky when prices started to fall.And 30% off was only ever available in a very few areas, and in the rarest of circumstances, unless you live in Northern Ireland.
30% off as a true cash buyer was not difficult to achieve - even towards the end of 2010. There were plenty of motivated sellers around who were open to offers.HPC got it badly, catastrophically, wrong.
Some of the advice on here and on other websites really helped us. I don't see why people just can't accept that prices did fall and that it was better to buy after the fall than before it. I also don't understand the rivalry/animosity (or whatever it is) towards another forum.If I'd rented instead of owning since 2007, I'd be the best part of £100,000 worse off by now. It would have been complete financial lunacy to have listened to the crashaholics for me.
I guess you are right in that there is no point listening to a "crashaholic" as they will give you the same advice whatever the circumstances - same goes for the the HPI cheerleaders on here. If you cut out both extremes, there is some pretty good opinion to be found.
I could tell you you how much we made/saved, but talking figures is pretty vulgar. :beer:0 -
30% off as a true cash buyer was not difficult to achieve
The indices, and actual achieved sales prices, show otherwise.
30% off was nearly impossible to achieve, for most people, in most areas.
That a very few could do so doesn't change the fact that most couldn't.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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