Debate House Prices


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The Next Nail in the Coffin

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Comments

  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    edited 28 March 2016 pm31 9:04PM
    economic wrote: »
    i think theres a lot of luck involved with what Chuck did. nothing smart about buying properties to let at the start and during the biggest real estate boom in uk modern history.



    Ha! Beat me to it, much more succinctly as well
  • economic
    economic Posts: 3,002 Forumite
    he did advise me to keep hold of my property and buy another in london. because im still young. i would say hes one of those buy and hold forever folks that will eventually lose it all if he doesnt sell.
  • padington
    padington Posts: 3,121 Forumite
    edited 29 March 2016 am31 1:05AM
    Some parliamentarian when considering how to vote once said, ' don't tell me anymore what was said, tell me who said it'.

    In your case crashy, this is never more true.

    London enjoys huge investment because investors invest where the opportunity is and where the profits are to be made.

    The fact that the kitchen sink is being invested into London, should tell you one thing, it's a good bet.
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Very encouraging that the busiest thread on here is called "The Next Nail in the Coffin" Tide must definitely be going out:rotfl:
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    padington wrote: »
    Some parliamentarian when considering how to vote once said, ' don't tell me anymore what was said, tell me who said it'.

    In your case crashy, this is never more true.

    London enjoys huge investment because you invest where the opportunity is and where the profits are to be made.

    The fact that the kitchen sink is being invested into London, should tell you one thing, it's a good bet.


    No, it tells me that it is a busted flush. A good bet pays it`s own way.
  • economic
    economic Posts: 3,002 Forumite
    there will be booms and there will be busts. there are just so many arguments for the boom to continue and there are also so many arguments for a bust coming.

    what is for certain is that cycles exists and that prices will come down at some point.

    because of this i would avoid any speculaton on london prices and only own a home ot live in if affordable. london is looking toppy and whilst it can go up more i think its fair to say theres more downside risk from here.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 28 March 2016 pm31 10:36PM
    When the base rate gets to 2.5% no FTB will be giving you half a mil for a flat in Battersea. With every day that passes your chances of netting a mug punter diminish.

    That simply isn't true, variable mortgage rates won't be that much higher when the base rate reaches 2.5% (certainly not 2% higher than they are now) but mine will, because I am only paying an additional 0.5% over base the base rate.

    If you do a search for variable mortgages (ignoring a period discount rate) based on a £500k property with an 85% loan:

    http://moneyfacts.co.uk/mortgages/mortgage-calculator/

    You will find that current variable mortgage rates have a margin of about 3.6% (ignoring an introductory discount). Lenders are now charging decent margins over the 0.5% base rate to protect themselves, those margins would not be maintained as the base rate rises.

    EDIT: There may be cheaper margins than 3.6% (I didn't spend much time searching) but I think the point remains valid.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • padington
    padington Posts: 3,121 Forumite
    Very encouraging that the busiest thread on here is called "The Next Nail in the Coffin"

    You kept the thread ' London has peaked' going for about a year after the 'peak' date when London actually had another mahoosive 10% plus upswing.

    With the Midas touch like that we should pay you to write here more often.
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • padington
    padington Posts: 3,121 Forumite
    No, it tells me that it is a busted flush. A good bet pays it`s own way.

    What's busted about London being the worlds favourite capital city once again? It's a bloody spectacular success. An all out royal straight flush.

    Literally.
    Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.
  • cells
    cells Posts: 5,246 Forumite
    economic wrote: »
    i think theres a lot of luck involved with what Chuck did. nothing smart about buying properties to let at the start and during the biggest real estate boom in uk modern history.

    not much different from most investments then

    what smarts was involved in say buying apple shares in 2006 at $10 and selling it this year at $100 ? any more or less than buying a property?
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