Media Is Now Predicting A Massive 40% Property Price Crash

chucknorris

westernpromise wrote: »

Barbados is seriously worth thinking about as part of an exit strategy.

To buy a £600k property as a second home there costs about £18k including all legal costs. To buy a place of that price in the UK would cost you £38k in stamp duty alone. For that £600k in Barbados you'd get a 4-bedroom villa with private pool overlooking the sea on an island that's not had a hurricane since the 1950s (they miss to the north). In London you'd get 2 bedrooms in West Hampstead.

The annual property taxes would be about £1,200, so those are cheaper too.

The personal allowance is about the same as here, and you pay 16% income tax above that. There is no CGT and no IHT. Prices are driven by the dollar, so if you are bearish about the cable rate, it is a good hedge. You could sell somewhere in the UK, buy somewhere there, hold it for 10 years and it would likely buy more rather than less than what you sold in the UK if you ever felt the need to move back.

The main difference though is that in the UK, people with £600k second homes are envied and hated by the state. whereas in Barbados. they are welcomed. It's really not worth what I am charged in tax to live here.

It's a thought. You can get a lot for £600k somewhere like Scotland but the weather, people and politics are all nastier and from the south-east of London it takes almost as long to get there.

It would probably have to be either Spain or Portugal for us, because we wouldn't leave our dog behind, or put him in the hold of a plane.

Thrugelmir

economic wrote: »

I honestly do not understand why people even bother reading stuff from the media. Not only do they sell fear - they are coming from people who are not even qualified to write such crap. They are only journalists - anyone can do that job.

Are posting the same comment on every thread. :doh:

westernpromise

chucknorris wrote: »

It would probably have to be either Spain or Portugal for us, because we wouldn't leave our dog behind, or put him in the hold of a plane.

The concern I'd have around those is property rights in Portugal and planning issues in Spain. What are the IHT and CGT situations like, do you know?

chucknorris

westernpromise wrote: »

The concern I'd have around those is property rights in Portugal and planning issues in Spain. What are the IHT and CGT situations like, do you know?

I think that we are unlikely to buy, because we would only be there for about 3-4 months in the winter, and long term winter lets are very cheap. The only thing that would change that for us, would be if we struggled to get a decent rental property (bearing in mind that we are excluded from many due to having our dog with us).

PasturesNew

economic wrote: »

...They are only journalists - anyone can do that job.

Utter rubbish. If you read a lot more articles by journalists, you'll realise that not "anyone" can do the job - as at least 50% of those doing it are clearly failing at it!

ANDR£W

#100 5th Jul 17, 2:05 PM
“
Have you got an exit strategy, or are you going to leave them to family? We don't have family to leave them to, so we do need (have got) an exit strategy.
Originally posted by chucknorris
”while I have nice lot of rent coming in and whilst I am fit and well then I shan't be cashing out, no.

When the point comes I will probably do equity release on them and spen the money on cars, cruises, clothes, and several hookers. At once lol...............


& the rest you will Waste Bobby

AG47

patel007 wrote: »

We have put off buying another property for the last 6/9 months as we too expect a long over due price crash, but not the 40% predicted in the link but more like 30% in London at least.

We have noted that estate agents will always remanin bullish but properties going up on over inflated prices then 2/3 weeks latter reducing prices and whn sold, they sell for even less.

Prices are too high but rates at all times lows we can only see 30% down - the LTV is very, very high and the extra tax on second properties and tax releife reductions all will impact and once foreind investors make a run for it when the gov brings in new rules for foriegn buyers, CRASH - around london many prive, high rise developments are empty you can tell at night as no lights on, all waiting for a crash I Iguess


Here

http://www.dailymail.co.uk/news/article-4657812/Britain-brink-housing-price-collapse.html

quote from link

Such a shift could push many thousands of recent buyers into trouble. From 1989, the price boom fell apart over the next six years, with prices plunging by 37 per cent.
In its most recent figures, The National Association of Estate Agents reported the number of homes sold in May for less than the asking price rose to 77 per cent.
According to Prof Cheshire, the fall in real incomes – when wages fail to keep up with inflation – is likely to be the spark for a fall in house prices. I


Read more: http://www.dailymail.co.uk/news/article-4657812/Britain-brink-housing-price-collapse.html#ixzz4lfRi3inJ
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.

Property is more than 40% overvalued but won't correct until interest rates do

economic

AG47 wrote: »

Property is more than 40% overvalued but won't correct until interest rates do

how do you come up with 40% over valued?

also dont you think value is completely subjective? what something is worth or valued to you maybe different to what is is valued to me? this is the key to why you are wrong.

Thrugelmir

economic wrote: »

how do you come up with 40% over valued?

Seems to be historically based on the last major correction. Where prices moved on average 37%. Remember it well. Over a 5 year period bought a property at £88k. At it's peak was worth around £125k. Eventually sold it for £88.5k. Many people got stuck with negative equity for years. A neighbour cashed in and moved into a rental. We said at the time you are mad. Proved us wrong. At a stroke leapt up the ladder. Fortune favours the brave.

AdrianC

Thrugelmir wrote: »

Seems to be historically based on the last major correction. Where prices moved on average 37%. Remember it well. Over a 5 year period bought a property at £88k. At it's peak was worth around £125k. Eventually sold it for £88.5k. Many people got stuck with negative equity for years. A neighbour cashed in and moved into a rental. We said at the time you are mad. Proved us wrong. At a stroke leapt up the ladder. Fortune favours the brave.

Indeed - if you're lucky enough to get your timing right, selling near the peak and buying near the trough. VERY few do. Far more get burned by thinking they can do that.