If we vote for Brexit what happens

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peter_we wrote: »

There lies the fundamental flaw in your argument.

Where's his flaw?

You can argue whether property prices are high (I'd agree they are)

But like most other assets which are scarce and can produce a cashflow, property/land over the long term will increase in price. The rate of increase is exponential, as is anything else subject to compound growth - like peoples wages or inflation.

This doesn't mean bubbles can't form or there couldn't be a crash in prices.

ukcarper

Thrugelmir wrote: »

The joys of home ownership come at a price. Worth having a savings pot for those repair and renewal jobs that will crop up every so often. Property requires maintenance it's not cost free.

IT the short term renting can be cheaper but if you look at the long term you are not saving the difference between rent and mortgage payments but the whole of the rent. I've owned my house for 7 years saving me at least £84k or a lot more if I wanted to rent a house similar to mine.

Mistermeaner

Conrad wrote: »

I'd like youall to insert a picture of your thingy as your avatar,

done
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Conrad

Nice n cheesey

mwpt

Conrad wrote: »

Whoa.... you mean we can actually do schit without the old men in Brussels managing us?

Nope, I don't believe you. Im on the look out for the experts recession

But we are still in the EU. Which means we always could do schit and were not hampered as you guys like to make out.

Harper123

My issue is this. I've recently sold a house and made a bit of money so my deposit going forward is between 30-40%.

Renting costs a lot more than my mortgage would. To rent a smaller place than I could afford to buy would cost me £350 more a month minimum.

Prices in Hertfordshire commuter land aren't suddenly coming down, because brexit only happened 3 weeks ago, and as a seller it would be ridiculous to suddenly slash 40% off your asking price when there is no evidence of anything currently happening, other than people waiting to see what happens.

I think we're only truely going to see the effect of brexit in 3 years time. Things will plod along over the next two years during negotiations and then everyone will hold their breath again in 2 years time when we actually leave to see what happens.

So if you're going to commit to this whole waiting brexit out thing you're going to have to commit to 3 years. Because even if prices are down in a year who's to say they won't fall again further when we actually leave? I mean if you're going to commit to waiting to get that rock bottom price you might as well commit!

So in 3 years I will have paid £12,600 more in rent than I would have in mortgage (not taking into account rent rises, mortgage would have been fixed for 3 years) and I would have missed out in paying £11,250 off my mortgage in repayments. So that's £23,850 I'd have wasted renting.

I'd also have the uncertainty of renting. In my 8 years of renting I had to move 7 times. And had to put up with all sorts of problems. Mound. Mice. Leaks. Broken appliances.

So do I put my life on hold for these 3 years and try and play the market game to make me some money? Or do I get on with my life and buy a home?

Also if prices do fall by 40% I'm not convinced how long they'd stay that low. A 40% fall would see commuter Hertfordshire very affordable, even to single people on average salaries like me. So wouldn't they then be snapped up? And as there is a shortage of properties around here wouldn't demand then outstrip supply and thus prices rise back up again?

mrginge

mwpt wrote: »

But we are still in the EU. Which means we always could do schit and were not hampered as you guys like to make out.

I think the point is that such deals can and will continue despite us being on the verge of leaving.

The argument about whether such deals were previously possible is moot.

brodawel

And renting like for like would cost even more. To rent the same kind of place that we want to buy would be unaffordable to most of us. I'm renting a tiny place while waiting for my purchase to go through. I couldn't and wouldn't rent a place like the one I'm buying because it would be double the rent of what I'm paying for this tiny place.

Markets, shares etc all going up, some now higher than they've been for a year or more. Even development companies have seen rises. I think a lot of the recent wobble was more down to the Prime Minister resigning, or at least made it a lot worse, his timing was unfortunate! and that kind of uncertainty always sends jitters around the world for some strange reason.

peter_we

The rate of increase is exponential, as is anything else subject to compound growth - like peoples wages or inflation.

It cannot grow exponentially forever, unless wages do the same. So a crash is guaranteed, not just a possibility.

brodawel

peter_we wrote: »

It cannot grow exponentially forever, unless wages do the same. So a crash is guaranteed, not just a possibility.

By "crash" do you mean a dramatic sudden drop, or just bumble along going up and down every now and then.