Has the market peaked?

AG47

London rents and asking prices are still falling slow and steadily down down down

GreatApe

95% property 5% shares for me.

Rebalancing doesn't seem wise at the moment as my property returns on the proceeds if I sold up is about 10%. FTSE doesn't offer 10% return so it doesn't make sense to sell up and pay down debt or sell up and go into a FTSE tracker.

Conrad

AG47 wrote: »

London rents and asking prices are still falling slow and steadily down down down

According to latest survey this week by TMW, just 5% of London Landlords report rent falls.

chucknorris

GreatApe wrote: »

95% property 5% shares for me.

Rebalancing doesn't seem wise at the moment as my property returns on the proceeds if I sold up is about 10%. FTSE doesn't offer 10% return so it doesn't make sense to sell up and pay down debt or sell up and go into a FTSE tracker.

I know what you mean, but I more or less had to start the process though, because of my age (60 next year, and no children to leave it to).

chucknorris

Conrad wrote: »

According to latest survey this week by TMW, just 5% of London Landlords report rent falls.

I haven't noticed anything on rents, and the flat that I sold last month was probably about 1% below last Summer's value, so nothing really in it.

economic

ilovehouses wrote: »

Here's Lars Kroijer with his take on why you shouldn't over invest in property.

https://www.youtube.com/watch?v=vO3cxbl7TR4

Worth a watch if only because the argument is rational. Sometimes property investment discussions do get a little over emotional.

nice video. totally agree with him. it is one of the reasons why i decided to sell my previous place rather then rent it out, when i bought my current home.

from a pure rent perspective, sure property offers decent returns vs equities (although london yield comes quite close to ftse100 yield - and ftse100 is more diversified then a london property).

however u need to consider total return - rent + capital growth. who knows what is more attractive and im sure this is very emotionally driven decision.

GreatApe

Property is an indirect investment in the local economy and should be viewed that way.

So while a house in Middlesbrough and a house in hackney are both property they are very different investments and have had very different returns.

I still think London property will hold it's value and could even go higher in real terms simply because London is geared to profit from a richer world in ways most other towns and cities across the UK and the world are not.

chucknorris

GreatApe wrote: »

Property is an indirect investment in the local economy and should be viewed that way.

So while a house in Middlesbrough and a house in hackney are both property they are very different investments and have had very different returns.

I still think London property will hold it's value and could even go higher in real terms simply because London is geared to profit from a richer world in ways most other towns and cities across the UK and the world are not.

I only agree with the video if you happen to live in not a particularly good area to invest in, but even then you can move, I actually moved about 300 miles to invest in London (although there were other reasons, but that was the most significant one). You don't have to invest in your local area, you can move, and if you are ambitious that isn't too big a step to take, particularly at a pivotal time like graduating (which was when I moved).

Even before that when I was a student at Leeds poly, I noticed the price wave coming up North from London in the late 80's, and I rushed in to buy my first house in Newcastle in 88 for £24k, just before my year out started, and I spent my year out in Newcastle both working and refurbishing the house. I sold that house for £51.5k less than 3 years later.

padington

AG47 wrote: »

London rents and asking prices are still falling slow and steadily down down down

Prices still powering by almost 7% in my patch of woodgreen in last twelve months.

Sweet spots are still sweet.

Thrugelmir

GreatApe wrote: »

I still think London property will hold it's value and could even go higher in real terms simply because London is geared to profit from a richer world in ways most other towns and cities across the UK and the world are not.

The world is geared with debt. What goes up at some point will come down. Until the next time.