Borrowing putting UK at risk of collapse

Jack_Johnson_the_acorn

Crashy_Time wrote: »

The world seems to be on their side at the moment ...


http://www.bbc.co.uk/news/business-42344170

Not really though Crashy........ Rather than going off of Foxton's share price, the US interest rate or your rent that's not changed in 100 years, why not look at the movement of "actual sold prices" since you've been posting your nonsense..........

Nationwide Avg House Price Index calculator

Valuation date 1 (Q1 2014):
£190,000
Valuation date 2 (Q3 2017):
£225,784
Percentage change:
18.83%

That must sting Crashy........... :beer:

Graham_Devon

mayonnaise wrote: »

Merry Christmas, Graham.

You too mayonnaise. :xmassmile

economic

Jack_Johnson_the_acorn wrote: »

Not really though Crashy........ Rather than going off of Foxton's share price, the US interest rate or your rent that's not changed in 100 years, why not look at the movement of "actual sold prices" since you've been posting your nonsense..........

Nationwide Avg House Price Index calculator

Valuation date 1 (Q1 2014):
£190,000
Valuation date 2 (Q3 2017):
£225,784
Percentage change:
18.83%

That must sting Crashy........... :beer:

The global stock market is up 50% during the same time period. And about 40% up if you exclude dividends.

If crashy had instead put his savings in the stock market he may have been better off not owning.

Jack_Johnson_the_acorn

economic wrote: »

The global stock market is up 50% during the same time period. And about 40% up if you exclude dividends.

If crashy had instead put his savings in the stock market he may have been better off not owning.

Your statement is completely irrelevant. Nobody must invest, everyone needs somewhere to live and Crashy has made some pretty strong statements about the housing market and the posters who have chosen to buy a place to live.

Apparently the housing market is a big Ponzi bubble and anybody who buys is a gullible idiot as the market is going to pop. He's been consistently wrong for 2 decades. :rotfl:

michaels

economic wrote: »

The global stock market is up 50% during the same time period. And about 40% up if you exclude dividends.

If crashy had instead put his savings in the stock market he may have been better off not owning.

Um - if you are a cash buyer you are 90% leveraged in property - in the above example your 19k is now worth 55k, so a 188% gain - of course there are painful transaction costs but against this there is no cgt on a ppr.

Thrugelmir

Graham_Devon wrote: »

So, anyone left? Or has the forum simply been overtaken by this claptrap and everyone, including myself, got utterly bored with it?

If you don't contribute to the forum in a positive manner. Then you aren't in a position to complain. Plenty going on in the wider world. Despite what the media reports or some posters on here believe. Not all down to Brexit either.

economic

Jack_Johnson_the_acorn wrote: »

Your statement is completely irrelevant. Nobody must invest, everyone needs somewhere to live and Crashy has made some pretty strong statements about the housing market and the posters who have chosen to buy a place to live.

Apparently the housing market is a big Ponzi bubble and anybody who buys is a gullible idiot as the market is going to pop. He's been consistently wrong for 2 decades. :rotfl:

Well if you look at the S&P500 (as a proxy for global stocks, which is a good proxy) it has tripled over the last 20 years (excluding dividends).

Uk housing market has also tripled on average over that timeframe. I dont have the breakdown but i imagine where Crashy lives (Scotland?) prices would have lagged the uk average. In which case it is very debatable if he would have been better off owning vs invested in the stock market.

The question is did he fully invest in the stock market? Given his posts probably not.

economic

michaels wrote: »

Um - if you are a cash buyer you are 90% leveraged in property - in the above example your 19k is now worth 55k, so a 188% gain - of course there are painful transaction costs but against this there is no cgt on a ppr.

For CGT that is true, but with stocks you have a ways to pay no CGT (pension, ISA, annual CGT allowance).

On leverage - you can also leverage stocks too, in fact if you spreadbet you can do so plus there is no CGT.

katebl

There might be more of a debate if every thread that has input from Crashy didn't descend into Crashy bashing from the herd despite his links being great fodder for actual debate... its a bit insular for anyone not on the bandwagon

chucknorris

michaels wrote: »

Um - if you are a cash buyer you are 90% leveraged in property - in the above example your 19k is now worth 55k, so a 188% gain - of course there are painful transaction costs but against this there is no cgt on a ppr.

You beat me to it, good point, well made about leverage.

I believe Crashy does actually invest in global trackers (in addition to holding cash). But I think the most important factor here (as you no doubt know) is that the benefits of home ownership are not restricted to just financial. Even if equities did out perform property (I don't believe that they have in the long term, although now I am almost equally invested in both, so I don't have an axe to grind) I don't think that it would be worth spending years living in rental accommodation just to make more money from equities (before anyone brings it up, I know and understand that buying isn't necessarily the right decsion for everyone).