Media Is Now Predicting A Massive 40% Property Price Crash

Keep_pedalling

I actually think the OP would be mad to buy another property. Based on previous posts their entire investments are made up of 3 properties and a chunk of cash. Putting the cash into yet another property not only puts all of his eggs into one basket, but as he already knows makes IHT planning very expensive when single assets are currently carrying a large potencial CGT bill.

Did that IFA you had a meeting with, not cover diversity of investments at all?

conqueror01

Koldweather1 wrote: »

Never underestimate how far vested interests can kick the ball down the road. In 2010 who would have believed you if you said interests rate would be LOWER than they were 7 years earlier!

If there is any major correction the government will simply kick start another variant of HtB. No party will want a major crash to fall on their watch and so the politicans and perhaps more important the media/landed people who will lose ALOT of money if prices shoot through the floor will not allow a crash, or at least not willingly. As I said I can see a correction, but I think there are still yet more twistds and turns the Central bank and government can unfortunatly pull out the bag before it eventually does totally deflate

Yeah I agree with this.

Because [slightly madly] housing has become too central for our economy for it to go wrong for long. Efforts would be made to change a sitaution.

patel007

Keep_pedalling wrote: »

I actually think the OP would be mad to buy another property. Based on previous posts their entire investments are made up of 3 properties and a chunk of cash. Putting the cash into yet another property not only puts all of his eggs into one basket, but as he already knows makes IHT planning very expensive when single assets are currently carrying a large potencial CGT bill.

Did that IFA you had a meeting with, not cover diversity of investments at all?

Cheers Colombo

We will not sell either as our home and even our rental properties are in very good locations and good rental returns and as all are cash hardly any overheads. The money is piling up, and I'm tempted to but another expensive car, but waiting for a price crash and by a small 2 bed apartment near a station/ube and in a small block that is private and can only rent out to those in work.

Just look around you, irgnore the agents as they have a vested interest. Cehck out similar proparties same road that sold 3/4 months ago and you will note advertised rate are lower by a bit but actually on the whole fer at least 10% beleow that.

Landlors btl mortgages are jumping ship as new tax regimes kick in and interest rates likley to rise within 2/3 months.

There won't be the 40% crash as imo there is too much monolopy money in the economy since last crask ie quatative easy was the phrase the gov used.

Our son is a doctor and in his 4th year of training as a consultant, he gets paid well plus overtime, even he struggled to get a 200k deposti and a 100k from us for a680k semi in an ok road, nothing special - we told him to hold off, but he felt that rarely a property goes on sale on that road so he had a point

When we buy our next reantal, we won't get it at the bottom i think but hope to get it a lot less for what they are now

patel007

conqueror01 wrote: »

Yeah I agree with this.

Because [slightly madly] housing has become too central for our economy for it to go wrong for long. Efforts would be made to change a sitaution.

They can't lower the interest rates any furhter as the none mortgage borrowing rates are already sky high

AdrianC

It's worth pointing out that the Daily Mail do not "own" Zoopla.

The website is owned and run by ZPG PLC, which is a publicly traded company on the London Stock Exchange, part of the FTSE 250. The largest shareholders do include DMGZ Ltd (31.3%), which is a Daily Mail and General Trust group company. They also include several investment companies. They used to include Countrywide Estate Agents, but seemingly not any more.
https://www.zpg.co.uk/investors/major-shareholders

Keep_pedalling

patel007 wrote: »

Cheers Colombo

We will not sell either as our home and even our rental properties are in very good locations and good rental returns and as all are cash hardly any overheads. The money is piling up, and I'm tempted to but another expensive car, but waiting for a price crash and by a small 2 bed apartment near a station/ube and in a small block that is private and can only rent out to those in work.

Just look around you, irgnore the agents as they have a vested interest. Cehck out similar proparties same road that sold 3/4 months ago and you will note advertised rate are lower by a bit but actually on the whole fer at least 10% beleow that.

Landlors btl mortgages are jumping ship as new tax regimes kick in and interest rates likley to rise within 2/3 months.

There won't be the 40% crash as imo there is too much monolopy money in the economy since last crask ie quatative easy was the phrase the gov used.

Our son is a doctor and in his 4th year of training as a consultant, he gets paid well plus overtime, even he struggled to get a 200k deposti and a 100k from us for a680k semi in an ok road, nothing special - we told him to hold off, but he felt that rarely a property goes on sale on that road so he had a point

When we buy our next reantal, we won't get it at the bottom i think but hope to get it a lot less for what they are now

Still think you are nuts not to diversify a bit or gift some of this surplus cash to reduce you IHT burden, but I suppose this at least means you have finally given up on trying to avoid care costs.

Thrugelmir

patel007 wrote: »

There won't be the 40% crash as imo there is too much monolopy money in the economy since last crask ie quatative easy was the phrase the gov used.

That monopoly money as you call it will one day be withdrawn from circulation. The US is ahead of the UK curve. Be interesting to see how matters unfold.

forvar

conqueror01 wrote: »

Yeah I agree with this.

Because [slightly madly] housing has become too central for our economy for it to go wrong for long. Efforts would be made to change a sitaution.

What else can they do though? We surely can't lower rates again or print more money with inflation growing and the US looking to hike rates.

As house ownership declines, the government is only protecting one group at the expense of another. As we saw in the recent election - the younger voter is quite motivated these days. No government is going to be able to win the youth vote by making them pay for everyone else's mortgage.

Brexit, BTL changes, stagnant wages, an unproductive economy and growing inflation all point to a crash imo. It needs to happen if we are to stop rising inequality and have a country that actually produces value rather than just inflating asset prices.

conqueror01

forvar wrote: »

What else can they do though? We surely can't lower rates again or print more money with inflation growing and the US looking to hike rates.

As house ownership declines, the government is only protecting one group at the expense of another. As we saw in the recent election - the younger voter is quite motivated these days. No government is going to be able to win the youth vote by making them pay for everyone else's mortgage.

Brexit, BTL changes, stagnant wages, an unproductive economy and growing inflation all point to a crash imo. It needs to happen if we are to stop rising inequality and have a country that actually produces value rather than just inflating asset prices.

We are probably saying the same thing

My point is because our economy is not as well balanced compared to say Germany, which has more manufacturing than us (among other things)... That the govt would try to rectify a situation because we seem to rely on housing and financial services as part of our economy so heavily - of course those actions may not work...

Crashy_Time

500k London shoe-box anyone?