Wise words for the HPC fans...

westernpromise

GreatApe wrote: »

The only difference between me and you is I am jealous and envious for about 1 minute a week (and mostly in the form of dam i wish i had bought those when they were that cheap) while you are jealous and envious and hateful for half the day ever day. Not a good way to live.

A Jag drives past a Conservative voter and a Labour voter.

Conservative voter: I want to be in one of those one day.
Labour voter: I want you out of that one day.

economic

GreatApe wrote: »

You are probably one of the crash cheerleaders

What most of them don't seem to grasp is that house prices are set by supply and demand. Just in England a decent 3 bedroom house can cost anywhere from £100k to £1 million plus. The huge difference is due to supply and demand. Not banks not laws not regulations not credit not the base rate not speculation not BTLers not boomers not the currency not taxes not the government. All of those things are the same in the £100k property area as they are in the £1m property area the only difference is supply and demand.

Why don't the crash cheerleaders accept this obvious fact. Well to do so would mean accepting the foolish 10-15-20 year house price crash bet. But its always better to cut your losses than to hold on and make things worse.

In the UK there is no housing crisis and house prices are affordable.
This too is obvious by the fact that only 14% of UK born rent privately and only 3% rent privately long term (10+ years). If only 3% rent privately long term that means 97% manage to buy or get social housing so where is the problem?

As for landlords having done well.
Yes I am jealous too. Seriously I am!
But I an also jealous of those who bought google or Amazon shares at 1/10th the current price
The only difference between me and you is I am jealous and envious for about 1 minute a week (and mostly in the form of dam i wish i had bought those when they were that cheap) while you are jealous and envious and hateful for half the day ever day. Not a good way to live.

totally agree. you would have to be pretty unusual to not feel some sort of jealousy even if you seem like you have it all. it is a natural human emotion.

but it can also work against you. when you start to feel bitter and envious all the time it really does effect your judgement and decision making ability.

i am also jealous of landlords and those who bought shares really cheap. but the best thing to do is to learn from your mistakes and adapt to the situation. it wont ever remove the jealousy but it will help to move forward.

i bought my first home in 2013 after the london market started its boom. i sold and bought my 2nd place in 2016. i am jealous of GreatApe being the same age as me and having done so well with property. but i dont mull over it and have a grudge against GreatApe. I realise i corrected my mindset and mistakes and am very happy with the decisions i have made.

I started buying shares in 2012. I get jealous of people who bought in the 2009 bottom. but i dont mull over it as i realise i have done quite well on my purchases and i am glad i learnt from my mistakes.

life is really about learning and adapting to the situation at hand. lot of this is about learning about yourself and your emotions and what you can and cannot handle.

if you are feeling anger and bitter towards others who have done well there is something wrong with your approach and thinking and it needs to be fixed or else more mistakes will be made.

economic

As people can see from my post above (#75) i am nothing special in terms of market timing or making decisions about money. i always felt i have been a bit late to the "party" - in a lot of areas in life. but what i have learnt to do is learn from mistakes and make decisions based on this learning. its better to be slightly late to the party then never arrive.

economic

There is also a time element as well. Why do crash trolls spend all their time worrying about a crash and posting nonsense on forums portraying their anger and bitterness? not only have they missed out on cheaper housing/ lower rents, but they have wasted a lot of time in posting nonsense and not learning from mistakes. imagine if a crashtroll learn from their mistakes within a year, bought their home and stopped renting. imagine how much more productive they would have been by no longer posting nonsense, feeling bitter towards the world. they would be getting on with their lives.

so its not just the money wasted on rent / higher property prices, its the time wasted by not being as productive as one could have been.

Jack_Johnson_the_acorn

economic wrote: »

As people can see from my post above (#75) i am nothing special in terms of market timing or making decisions about money. i always felt i have been a bit late to the "party" - in a lot of areas in life. but what i have learnt to do is learn from mistakes and make decisions based on this learning. its better to be slightly late to the party then never arrive.

I suppose the timing was down to daddy... After all he did give you £100k. Otherwise you could have been a crash cheerleader too.

Charliez81

It's just a shame that the government refuses to build enough homes so that supply caters for demand. That said, A HPC will lead to a guaranteed recession for the country.

economic

Jack_Johnson_the_acorn wrote: »

I suppose the timing was down to daddy... After all he did give you £100k. Otherwise you could have been a crash cheerleader too.

not really. i could have easily bought myself with my own money.

westernpromise

Charliez81 wrote: »

It's just a shame that the government refuses to build enough homes so that supply caters for demand. That said, A HPC will lead to a guaranteed recession for the country.

Is it the state's job to build houses, then? Is there a Ministry of Building Houses? Would the tenants be allowed to buy them ever or would they be forced to be renties for life?

getmore4less

GreatApe wrote: »

Putting existing property into a company is a two step process. You sell and the company buys.
Since I wouldn't buy a new property in a company right now it makes no sense to buy a new property in a company just because the property I would be buying in the company is one I would sell as a sole trader.

Also if there are gains in property values owning via a company is worse off. You pay the corporations tax @19% on the HPI and you also need to pay either dividend tax or income taxes on taking the money out of the company. With the double taxation of the HPI it works out a lot more than the 28% CGT individuals have to pay. Corp tax plus divi tax is just over 45% vs 28% CGT

My current thinking is I would pass on my main home to my kids when I hit 65-70 and all my non capital gains assets too eg ISAs cash savings etc. Then move into one of my rentals. Basically I would have no assets but my investment properties at age 70. Then when I die the CGT is void and my estate pays 40% above the £1milliok threshold. That way you can nullify upto £1 million in CGT

Not saying pensions or ISAs are bad I will fill up my ISA and possibly Max out my pension over my working life. But right now at an age close to you I am very overweight inner London property and don't see an obvious reason to divest and diversify

The biggest reason would be if rent controls come in or if I could predict in advance an upcoming London property price crash/correction but as the hpc cheerleaders can attest to predicting a hpc is not easy

it can get even better if you have spouse/civil partner that has a chance of living another 7 years

inherit with no IHT and can gift the places with no CGT.

triathlon

And a Happy new year to beary Mcbear face, the wig, veneger and all of HPC, I am sure the inevitable property crash will be this year, you have only been waiting 2 decades now