House Prices Up....

economic

chucknorris wrote: »

We have started to offload property now, my wife has sold (subject to contract) our most expensive property. I intend to sell my 4 Battersea flats as the tenants vacate, if they don't soon, I might increase the rent a little more, so it would be win win, if they stay I get more rental income, but if they give notice I can sell.

We are however going to upsize our home.

i think thats a good idea given your position. youve had a very good run and like all good runs it has to end sometime. equities looks a lot better imo, no hassle or tenant issues. just enjoy the dividends rolling in. for your size portfolio you dont even have to worry about capital returns.

chucknorris

economic wrote: »

i think thats a good idea given your position. youve had a very good run and like all good runs it has to end sometime. equities looks a lot better imo, no hassle or tenant issues. just enjoy the dividends rolling in. for your size portfolio you dont even have to worry about capital returns.

Because I bought in the 90's (we did buy one in 2008, but we are holding that one anyway) I don't have to be too concerned about selling in a small dip, because I definitely bought cheaply. They are up circa (on average) 7.25 times what I paid for them, and there has been significant rental profits too.

cells

economic wrote: »

for me it would be good for 30 yr fixed as i dont need to worry about remortgaging if for some reaon i have no or little income.

most the banks are quite decent about this (or the ones Ive used) they tend to allow 'product transfers' for residential without a full on secondary application. That is of course if you stay with the same bank. Its logical and makes sense but I suspect the hpc crew will blow a bulb when they get wind of this.

they have silly fantasies of banks calling in loans when the reality is that they try to be decent and helpful

westernpromise

AnotherJoe wrote: »

Report this morning - rental prices up.

http://www.bbc.co.uk/news/business-37308913

The cost of renting a home in England and Wales was 5.2% higher in July than the same month a year earlier, according to lettings agent Your Move.
Its survey, based on analysis of about 20,000 properties, suggested that average monthly rent paid by private tenants rose to £846.
The increase was sharpest in the South East of England.
The annual rise in this region of 14.9% was explained by a ripple effect from high rents in London.
London had the highest average monthly rents, at £1,273, the survey suggested.


This is higher than the experimental ONS figures, by a factor of about 2


But in either case, rents up, mortgages down.

And therefore I would guess house prices slightly down. Whenever house prices have been rocky rents have gone up and vice versa.

cells

economic wrote: »

interesting post by the only person i take seriously on investment and economic matters:

https://www.armstrongeconomics.com/markets-by-sector/real_estate/real-estate-turning-down/

have you Cells or anyone else heard of Martin Armstrong? ive been reading him for a whilst now and hes made calls that have come true.

interestingly hes saying the decine in real estate has begun. if you believe what he says, now is not the time to load up on property. i tend to agree with him. own home is ok. but having a lot of your wealth tied up in property just does not seem like a good idea to me.

Ive not heard of him and I dont tend to read many other economic sites or commentators although I do spend far too much time looking at housing related raw data myself. property is very regional. I dont agree with his water droplet analogy you can have regions that stay flat while others go up. Of course if two areas are very close, eg Hackney and Walthamstow then the two will be strongly linked as there will be a sufficient movement of buyers. the link between say Birmingham and London will be much much weaker. We can see this if we look back 10 years or 20 years London has outperformed

We are also going through the digital 'industrial revolution' and that in the UK is very highly concentrated in London. What it means is that London will grow its businesses faster than Birmingham or stoke on trent. If you look at regional GVA this has been true for the last 20 years and it will still be true for 20 years yet. if you expect UK growth to average say 2.5% over the next 20 years that might be 4.5% in London and 2% outside London. In this regard I still expect London to do better than the other regions even though there is now a very large price differential.


I also think the beyond 2025 years are going to be transformative and hard to predict. We will get the near AI technology kicking in it could mean a lot of things could go one way or the other.

Bonfire_Bride

Unbelievable how house prices can vary so much between areas (discounting London as that is just a whole new world). We recently sold a 3 bed semi for 85,000 in South Wales and have (hopefully) purchased a 4 bed detached in the middle of the Welsh rural valleys for under 190k. We purchased the house just before the economy crash in 2008 and even though we renovated from top to bottom including new bathroom/kitchen etc, the house has depreciated in value.

I commute to Cardiff for work which is only a 30minute drive/train journey away. I cannot begin to imagine how people in more expensive areas can afford housing as we are earning a decent wage.

Although many people view the welsh valleys as being bleak and without opportunity...I feel we are in a very good position.

padington

Prices up ? Who would have thought it ?

Crashy_Time

economic wrote: »

actually its worth more then i paid still. even if i lose 20-30% it doesnt eevn matter as i can buy another or upsize. being a home owner with mortgage costs covered means i can retire earlier. i feel sorry for you - always scared something might happen and so risk averse that you just dont do anything. you have lost out financially big time. i hope you can learn from your mistakes.

What, like a big HPC :rotfl: Woo Woo.... Scary :eek::rotfl:


If you equate not getting into the housing bubble as "just not doing anything" and take Cell`s posts as some kind of educational source then you really are in trouble

economic

Crashy_Time wrote: »

What, like a big HPC :rotfl: Woo Woo.... Scary :eek::rotfl:


If you equate not getting into the housing bubble as "just not doing anything" and take Cell`s posts as some kind of educational source then you really are in trouble

its youre lot who always claim people are buying into a bubble. what you dont realise or fail to admit is that you have lost out big time because you were scared to buy - as you thought it was a bubble. you simply do not understand how markets function and i feel sorry for you. do you have family? if you do i feel really sorry for them having to put up with your bad financial decisions because of some crap about a housing bubble.

but hey, we need people like you to lessen the demand so i can buy it cheaper. i welcome a crash simply so i can upsize.

westernpromise

economic wrote: »

i welcome a crash simply so i can upsize.

If you want to know who'll own houses after a crash, look at who owns them before.