Upsizing

daddypuff

Thanks racing blue – that’s a bit more like it, that’s the sort of idea. Not sure about where you mentioned though, although I think I may have a bit of Welsh in me – I’m always going for a leek. Probably too much tea.


Anywhere else you recommend I can buy for £50,000 and live like a king, doesn’t have to be UK but will need a broadband connection

AlexMac

Maybe I've misread this post, but you seem to be in favour of selling because house prices are going to drop as they did after a peak in 1987-ish (in some areas by about 25-30%), and, to a lesser extent, after a peak in 2007-8 (again, by up to 20% depending on area)?

If that's what you mean by 'pop'?

If you really feel that, or live in a part of the country where property is already over-valued, then pulling your equity out by selling then renting might seem a reasonable idea... but

I thought many pundits were forecasting housing price growth for the next few years? There are certainly significant recent increases in our area of SE London ...

- but I also see prices on the up in areas like coastal east Kent where (as we experienced on a property bought there in mid 2007) they plummeted in 2009 from averages of £205K to £185k but have now recovered to 2008 levels (based on the graphs but confirmed by two recent cases of successful sales by friends still living there).

You've presumably got 15+ years working life ahead of you, in which time I'd have reasonably forecast that house prices would continue to rise overall (based again on personal experience of our 40 years of home ownership, and even if you iron out the staggering increases of the 1990's). Add the factor of low interest rates on both savings and mortgages which again, seem set for a few years at least and I'd say that's an argument for holding on to owned property in the UK.

Of course, if you're feeling footloose and itch to travel... But even that's harder than it used to be. In my youth, Spain was a third world country with bargain basement living costs (altho the way its heading now....?) and you could go overland via Afghanistan to Australia as Hippy trail mates of mine did- one with her 3-year old kid. Try that now.

However you choose- good luck. You could try the old fate trick- toss a coin, and as it falls and determines your future, that butterfly in the tummy will kick in if your subconscious detects a wrong choice!

daddypuff

Thanks for your reply Alexmac. Some interesting thoughts and observations, I think I fancy Afghanistan less than the previous suggestions right now.

When you say house prices in Kent have recovered to 2008 levels, you must also consider how inflation would have eroded that value as well and the lost opportunities that elsewhere could have increased wealth since 2008. Over 5 lost years of capital appreciation.

Home ownership has fallen during the last decade, so it would appear that there may be better ways to house oneself, rather than saddling yourself with a 25 year work permit.

House prices are at a record high although London where I live somewhat distort the picture. For example London rose by 9.7%, but in the North East they fell by 1.3%.

With everyone becoming a budding landlord and every other programme showing people buying and selling properties you know it’s time to get out. It’s a bit like when your newspaper’s city pages tell you to climb aboard a certain sure thing, it’s probably way too late.

daddypuff

Thanks for all you replies. Not sure I am any the wiser, but some interesting thoughts nonetheless

System

The housing market is obviously not a free market. The government are intervening to stop a collapse. While the housing market has taken a hit, it certainly has not collapsed and it is unlikely to do so anytime soon due to the government seeming willing to do whatever it takes to keep people buying.

So I guess the question isn't whether your money is safe or not in housing but rather can you get a better return elsewhere.