London Has Peaked

Bubble_and_Squeak

padington wrote: »

5 more years and it'll more probably than not be getting closer to a million.

Problem is bubbles, you're a pessimist.

You can deal with that by becoming mindful every time when you're looking at the glass being half empty in the morning ( count how many times you can spot yourself doing it ) and try counting success stories (glasses half full) you see throughout the evening.

Someone obviously didn't teach you how to do it though example as a child but you can teach it to yourself.

.... Or get yourself out of a Long term bull market, it's the worst place a pessimist can be.

i've heard such talk before
in the late 80s when i was knee high
my auntie said to my father
"you have to buy now because prices will keep going up and up"
she bought a BTL
then the bubble burst
then she sold at a loss

padington

Bubble_and_Squeak wrote: »

i've heard such talk before
in the late 80s when i was knee high
my auntie said to my father
"you have to buy now because prices will keep going up and up"
she bought a BTL
then the bubble burst
then she sold at a loss

There is a pretty simple rule, buy within your means occording realistic appreciation of interest rates and other expenses. Usually this means have a room you can rent out in an emergency, so be prepared to have to sleep in the front room of a one bed flat if necessary.

Anyone that doesn't plan for a rainy day obviously could get wet but that's a given right ?

As long as you have a back up plan, you can ride the market out. From that point it's pretty simple, just don't sell at a loss.

Libber

Bubble_and_Squeak wrote: »

i've heard such talk before
in the late 80s when i was knee high
my auntie said to my father
"you have to buy now because prices will keep going up and up"
she bought a BTL
then the bubble burst
then she sold at a loss

That's odd given that the BTL phenomenon didn't really pick up steam until the mid/late 90s when the renting laws got rewritten. Why was your aunt buying in at a time when the private rented sector in the UK was basically dead?

Jack_Johnson_the_acorn

Libber wrote: »

That's odd given that the BTL phenomenon didn't really pick up steam until the mid/late 90s when the renting laws got rewritten. Why was your aunt buying in at a time when the private rented sector in the UK was basically dead?

Got to take everything squeaky says within a pinch of salt....

robmatic

Bubble_and_Squeak wrote: »

i've heard such talk before
in the late 80s when i was knee high
my auntie said to my father
"you have to buy now because prices will keep going up and up"
she bought a BTL
then the bubble burst
then she sold at a loss

The important things to remember about this anecdote are:

a) it's probably not true
b) property prices have actually risen massively since the late 80s, so buying into that bubble would have been a reasonable decision

lisyloo

b) property prices have actually risen massively since the late 80s, so buying into that bubble would have been a reasonable decision

Long term maybe, but sometimes people - die, divorce, split up, get relocated, get made redundant and have to move for work etc. etc.

I think my perspective is different from some because I've had 2 colleagues die (mid 40's) and have also seen sickness and redundancy,
Sometimes it appears that young people think these things don't really happen and are just made up.

MFW_ASAP

lisyloo wrote: »

Long term maybe, but sometimes people - die, divorce, split up, get relocated, get made redundant and have to move for work etc. etc.

I think my perspective is different from some because I've had 2 colleagues die (mid 40's) and have also seen sickness and redundancy,
Sometimes it appears that young people think these things don't really happen and are just made up.

It's incredible that those mid 40 year olds who died didn't plan that into their house investment strategy. I hope they didn't lose out too much financially?

lisyloo

It's incredible that those mid 40 year olds who died didn't plan that into their house investment strategy. I hope they didn't lose out too much financially?

Pretty sure my colleagues families were fine.

The scenario you've picked out (death) is probably the exception to rule - especially in view of the fact that the persons pensions funds become available.

However in general, I do agree that financial planning for the possibility of redundancy, sickness, divorce, relocation, unplanned pregnancy etc. is incredibly bad. Plenty of reports in the media to suggest most people wouldn't last very many months at all before being down the food bank - so yes I agree with your point.
High house prices have made things worse - people not contributing enough to pensions and cutting back on insurance etc.

chucknorris

MFW_ASAP wrote: »

It's incredible that those mid 40 year olds who died didn't plan that into their house investment strategy. I hope they didn't lose out too much financially?

That reminds me of one day when my wife said 'be careful of investing too much in your pension, in case you die early'. To which my obvious reply was 'If I die early, that is the tragedy, not that money was lost in a pension'!

padington

Bubble_and_Squeak wrote: »

i've heard such talk before
in the late 80s when i was knee high
my auntie said to my father
"you have to buy now because prices will keep going up and up"
she bought a BTL
then the bubble burst
then she sold at a loss

Your aunty said your father should buy then you say your aunty bought ?

Hmmm ...