Rents soar to (another) record high

Malthusian

Crashy_Time wrote: »

You just post guff all day long that idolises the property bubble, people are going to be financially ruined for life in this crash, especially if interest rates start creeping up.

This thread illustrates how difficult it is to actually financially ruin someone in a modern economy, even if they make a monumentally stupid decision like selling their house and frittering away the money on rent for decades. If you are fit and able you can work yourself out of most situations (including bankruptcy) and if you are too old or never were the welfare state keeps the wolves from the door.

Meaning that no matter how many tens of thousands of pounds or more your decision has cost you, you can still convince yourself it wasn't ruinous as you're still alive, housed and fed.

Even if interest rates do go up to 10%, house prices collapse and buying a house becomes an awful decision that nobody would have done with hindsight, we won't see people being "financially ruined". People will simply cancel their holidays, do more overtime, make their kids wear hand-me-downs, keep paying their millstone of a mortgage and quietly struggle on.

chucknorris

Crashy_Time wrote: »

W there are more ways to be financially secure than hoarding property (in fact hoarding property is now officially the best way NOT to be financially secure)

Actually I disagree, your statement is far too generalised, someone that holds property without a mortgage is not affected by the reduction of mortgage interest as an allowable expense. It only becomes difficult with new investment with a mortgage. The main reason that I have started selling is because of my age.

What do you mean by 'officially'? If you mean your opinion, surely even you must realise that when it comes to financial matters, your opinion is worthless, except people doing the opposite of what you say of course. There is no 'official' best asset, in fact, a diversified portfolio is generally accepted as the best way.