Will there really be a crash?

POPPYOSCAR

Computer_Beginner wrote: »

Property may be a market, but it's certainly not a free market.
It's completely manipulated by the govt, via the planning system.

You don't own a property you have a mortgage on.

Err yes you do, legally as per your records held with Land Registry.

A mortgage is simply a loan against that property.

scd3scd4

Sapphire wrote: »

People (even wealthy ones) used to rent much more than they do now, and still do in other countries. In no way were they considered failures, at least not based on whether they rented or owned properties.

However, the system has become skewed in this country, due to property now being considered a 'market', which should never have been allowed to happen; homes should be places to live in, not to speculate on.

Advertising has plastered itself in gullible people's imaginations, giving them the impression that they are somehow better people if they own a property, which is nonsense. Someone above is even of the impression that you become 'upper middle class' when you own a property, which is also patent nonsense.

Who would care what a stranger thinks of them and what class they are in.


My mortgage is nearly paid for at 51, we put our daughter through Uni with no debt. Drive nice cars and have lovely holidays. I am happy to be working class, I really could not care less.

scd3scd4

Computer_Beginner wrote: »

Property may be a market, but it's certainly not a free market.
It's completely manipulated by the govt, via the planning system.

You don't own a property you have a mortgage on.

No, my mum has ownership of her £350 000 flat for the last 10 years.

lookstraightahead

This is such an interesting thread. I'm reading it while watching Edie.

lookstraightahead

chucknorris wrote: »

Bears like you never seem to realise that having some debt is not necessarily a bad thing, in fact, it can be a beneficial. For example we are approaching 10 years of low interest rates. For those 10 years, if I had wanted to, I could have paid off my mortgages, for which the rate is marginally over 1%. But the return on my equities (for which the total investment far exceeds the value of my mortgages) dividend income over that period, exceeds 3.5% (currently around 4%). Therefore it really is a 'no brainer' to retain the debt.

That might change however, when I sell one or two of my properties in the near future, because IMO it wouldn't be so wise to invest more into the stock market at my age (60). I will invest the equity into safer assets, probably single corporate bonds held to maturity.

Lovely. We have 3 businesses but I'm more interested in why people think they are superior when they own property, when lots of people don't actually really own it.

Crashy_Time

scd3scd4 wrote: »

No, my mum has ownership of her £350 000 flat for the last 10 years.

Why doesn`t she just stop paying the mortgage then?

scd3scd4

lookstraightahead wrote: »

Lovely. We have 3 businesses but I'm more interested in why people think they are superior when they own property, when lots of people don't actually really own it.

Renters own nothing and after 20,30 years..................... still own nothing. I know which one I would rather be.

HPC_Ghuol_Hunter

lookstraightahead wrote: »

I'm still not sure why owners think they are more successful than renters. I'm bemused by the amount of homeowners who take out massive loans for stupid cars. There's a new estate by us full of tiny four bed houses and sitting in the drive are brand new shiny 4x4s, presumably on the never never, Debt debt and more debt. Makes the money saved on buying a house pale into insignificance.

Are you a renter or owner? I am an owner of multiple occupancy properties throughout London and the UK, yet I drive a very modest car - you would not tell that I am a multi-millionaire.

chucknorris

HPC_Ghuol_Hunter wrote: »

Are you a renter or owner? I am an owner of multiple occupancy properties throughout London and the UK, yet I drive a very modest car - you would not tell that I am a multi-millionaire.

Ditto (although our properties are not multiple occupation), our car is an 11 year old zafira, worth less than £1k, I don't feel the need to buy another car yet, as it is extremely reliable.

chucknorris

lookstraightahead wrote: »

Lovely. We have 3 businesses but I'm more interested in why people think they are superior when they own property, when lots of people don't actually really own it.

Profitability (money) doesn't make anyone superior, it simply buys things, that's all. Although it does also provide financial security, which is important, and to that end, it isn't the number of businesses that you own that is important, it is the profitability, and the input required (not much use being cash rich and time poor, at the end of the day, time is worth more, we will all run out of time). But the point that I was making was that all debt is not necessarily bad.