On the housing ladder and i cant be more depressed

westernpromise

mubeye wrote: »

It's quite interesting talking to Europeans and reading American forums, where the rent vs buy debate is more subtle, both financially, eg due to property taxes, and culturally. They discuss pros and cons with saintly politeness in comparison.

America doesn't have a Labour party to excuse, normalise and validate envy.

mubeye

triathlon wrote: »

I assume you rent then

Yes I am literally the only person in my circle who rents and does not have kids and I might as well be a Martian.

the childfree by choice vs family lifestyle is a good comparison. Majorly polarised with both sides claiming to have the better lifestyle and pitying the other.... Freedom vs responsibility etc

Some people end up on the wrong side of the fence, than they might prefer deep down, so take an embittered, one sided and militant view of things

My mrs is making noises so will probably be respectable and cash poor very soon.

Freud would have a field day

triathlon

mubeye wrote: »

Yes I am literally person in my circle who rents and does not have kids and I might as well be a Martian.

the childfree by choice vs family lifestyle is a good comparison. Majorly polarised with both sides claiming to have the better lifestyle and pitying the other....

Some people end up on the wrong side of the fence, than they might prefer deep down, so take an embittered and militant view of things to defend their position.

owinng a house is tightly related to the family debate. Freedom vs wealth etc

There are complex mixed feelings of resententment on both sides of the fence. I am sure the emotional responses on both sides have deep roots.

My net worth is higher than any property owners in my circle but that is partly due to kids....

Freud would have a field day

You have answered your own question I think, forgot for now the rights and wrongs of these people you think so judgemental. People choose very well when it comes to picking their living environment, more so when they have kids.
There are some lovely neighbourhoods where I live full of liberal lefty tree hugging people who will protest about the horrible people who are anti immigration for example and go around patronising all those people that are financially worse off them.

But the reality is we have one really massive no go area full of one particular ethnic group where many of us keep well clear of because of endless trouble, these same liberal lefty types would not in a million years go near these places.

We judge people and groups and places deep down, that's just life, very few people are honest about it though.

PokerPlayer111

mubeye wrote: »

It's quite interesting talking to Europeans and reading American forums, where the rent vs buy debate is more subtle, both financially, eg due to property taxes, and culturally. They discuss pros and cons with saintly politeness in comparison.

Americans of average IQ are more economically literate vs brits of average IQ. Capitalism is more accepted over there. They understand and are more comfortable with basic trade in every day life. From running my business i rarely have problem customers from americans (maybe 1%), UK customers probably 2-3% problems or unrealistic expectations, at least double the issues anyway.

Over here we've managed to create an unhealthy obsession with house owning that we cant shake. I'm currently renting and will probably buy but its only a hedge since i can make more money speculating the cash - you have to hedge bets though.

Currently i rent and it works out great in some ways, i've got enough assets to buy probably 2-3 houses but my rent is cheap and the place i live in is large and i can move within days if i had to, my accountant works out how to deduct large amounts of my rent from taxes due to using it as a place of business.

Crashy_Time

triathlon wrote: »

I assume you rent then

http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/


..and that is before rates rise and taxes mount...wonder how many of the Circus Entertainers on here will get out with their swimming trunks intact :rotfl:

mubeye

Neutral questions for my private research.... Do you have FT kids crashy? If no, would you buy at any cost if you did?

bobbymotors

Crashy_Time wrote: »

http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/


..and that is before rates rise and taxes mount...wonder how many of the Circus Entertainers on here will get out with their swimming trunks intact :rotfl:

It's all doom and gloom Mr. Mainwaring.

Seriously, there will be ups, there will be downs, there will be mini booms and there will be periods of nothing at all.

What there won't be is a crash...by crash I mean anything more than a 25% reduction from current prices.

And in 10 years time, we'll all be laughing (financially) and you'll still be renting: and predicting an imminent crash.

We are an island. Too many people want to live and work here: they aren't making any more land. No crash. Get over it, it's not happening.

If you've got any sense at all, buy yourself a place to live and stop burning £50 notes by renting.

You won't do it, we all know that. But you should, you really really should.

chucknorris

Crashy_Time wrote: »

http://www.propertyindustryeye.com/dramatic-slump-in-buy-to-let-lending-blamed-on-government-intervention/


..and that is before rates rise and taxes mount...wonder how many of the Circus Entertainers on here will get out with their swimming trunks intact :rotfl:

Crashy there is something that I have been meaning to ask you for a while:

You hold some global equity trackers, you will of course know that at some point there will be an equity crash, and your investment will fall in value. But of course it will eventually recover again, and you will also have the opportunity to invest more at the lower (crashed) price. But property isn't any different in that it will also recover, why do you see property as being so different?

economic

chucknorris wrote: »

Crashy there is something that I have been meaning to ask you for a while:

You hold some global equity trackers, you will of course know that at some point there will be an equity crash, and your investment will fall in value. But of course it will eventually recover again, and you will also have the opportunity to invest more at the lower (crashed) price. But property isn't any different in that it will also recover, why do you see property as being so different?

unrelated to this thread but in another thread i asked you about a multiplier of 28.5 being applied to an income stream. is this based on market annuity rates i.e. 1/28.5 = 3.5%?

chucknorris

economic wrote: »

unrelated to this thread but in another thread i asked you about a multiplier of 28.5 being applied to an income stream. is this based on market annuity rates i.e. 1/28.5 = 3.5%?

When I started thinking about what multiplier was appropriate (for me) to use, I started with thinking about annuities, but obviously the seller of annuities take admin costs and profit out of that. So I ended up (roughly) basing it on what I think the drawdown rate would be on my portfolio. I can't pretend that it is very scientific, it is just my best hunch, but I wanted to value both my DB and state pension, to help me evaluate the correct balance of assets for my retirement portfolio. I would have thought drawing down at 4% is reasonable (multiplier of 25), but things can go wrong with drawing down assets, so I settled on 3.5% (multiplier of 28.5) to account for the reduced risk.