11 house hunters for every home on the market

chucknorris

Crashy_Time wrote: »

Don`t recall ever saying that wealthy people store all their wealth in cash? Instead of second guessing people on the internet your time would be better spent making sure you get your timing right for when you do actually sell and realise some equity, or you might be buying premium bonds, not government bonds ... :rotfl:

Indeed, that's why I never said that you did say that (I was using wealthy people as an example of where best to store your wealth), you seem to have missed what I am saying, which is that storing your wealth in cash isn't the best value (its hardly rocket science).

The time is approaching to sell some property, but it will almost be a reluctant sale, the alternative returns will not be as good as they are from property. The original focus was never about HPI and capital gains, it was more about rental income providing financial independence. Selling is more about my age and wanting to spend the equity (before death, because the amounts are significant, I need to sell decades before my anticipated death). The decision to sell isn't anything to do with fear of a property crash, although that said I would be a fool to take my eye off what the market is doing.

I'll never buy premium bonds, and in any case you can only hold a max of £50k in PB's, I wasn't referring to gilts (Gov bonds), I was talking about corporate bonds (you didn't let me down by misunderstanding that though :rotfl:).

lisyloo

These HPC guys *are* sitting on their cash, aren't they? It's all there ready and waiting for the crash, isn't it?

Those who can live frugally i.e. single could certainly have assets (liquid or not).
Anyone with a family who needs bedrooms will be paying rent and element of which is paying the LL mortgages and an element of which is paying the LL profit. That eats into their ability to have a huge pile of assets and the longer HPI goes on the more capital appreciation they loose out on too.
There are going to be some people in bhoth camps, but it works better if you're able to live frugally.

wotsthat

Crashy_Time wrote: »

Nonsense, the housing Ponzi scam is one of the biggest heists in history and needs discussing. IMO HPC serves that purpose well, and regularly has hundreds of people viewing. You should feel glad that you are awake enough to be part of the discussion, many are not, and can only suck up their debts along with their regular dose of Facebook and Soaps.

You've lost your marbles. Nobody has heard of HPC - it's occupied by people at the extreme of a niche argument. The Google crawlers probably snigger when they cache it the same as I do when I read some of the stuff.

You might think the subject matter worth discussing but don't kid yourself HPC is a beacon of light in the darkness. It's a backwater - about the 3600th most popular site in the UK which is about 3600 places behind MSE, Rightmove et al

I'm bemused by people who support political parties like football teams but websites?

chucknorris

gadgetmind wrote: »

Probably nothing. We all know that stock markets correct and even crash from time to time, but equities are still a great investment. Even when capital values drop, even for decade+ periods, you still get dividend income. Similarly with a house, you either get income directly as rent, or indirectly by not having to pay rent.

Will you be looking at the forthcoming Lloyds share offer? I don't like single company shares, but I might be tempted by the 5% initial discount and the further 10% discount for holding them for a year, giving a 15% cushion against a fall in value. The problem will probably be the restriction on how much you can invest though. I suppose the best person to ask about the downside is Thrug.

gadgetmind

chucknorris wrote: »

The problem will probably be the restriction on how much you can invest though.

With it likely we'd only get £1k each, I just can't work up the enthusiasm to look into it!

chucknorris

gadgetmind wrote: »

With it likely we'd only get £1k each, I just can't work up the enthusiasm to look into it!

Do you think that they will be that popular? Wasn't that the same as RM, but you ended up being able to get £10k (£20k if done separately with your partner), or was it £5k I forget. If it is only £1k, then I agree it just isn't worth it.

gadgetmind

We got 227 shares, initially worth £749.10 at the 330 p float price, which we flipped in our ISAs rather sharpish and got £250 for our troubles. However, that one clearly was deeply discounted.

chucknorris

gadgetmind wrote: »

We got 227 shares, initially worth £749.10 at the 330 p float price, which we flipped in our ISAs rather sharpish and got £250 for our troubles. However, that one clearly was deeply discounted.

I can't remember how much I invested (it also wasn't that much), but what I do remember was when I asked my wife (who was previously not interested) if she could buy some for me, all of a sudden she too wanted to invest. It reminded me of my dog's attitude to sticks, he has no interest in sticks on the ground, but the minute I pick one up, it suddenly becomes valuable.

gadgetmind

With RMG no-one really knew the actual value other than "probably more than floatation price". With LLOY, the value has been established in the market, and a 5% discount is OK but isn't much of a buffer.

chucknorris

gadgetmind wrote: »

With RMG no-one really knew the actual value other than "probably more than floatation price". With LLOY, the value has been established in the market, and a 5% discount is OK but isn't much of a buffer.

I agree, but there is also the additional 10% bonus for holding shares at least 12 months, that tips the balance for me, if the market isn't looking too toppy at the time.