Why don't people cheer the brilliant elements of No-Deal crash- Such as making property affordable?

Herzlos

Exactly. Investments would need to generate the house price inflation + rent payments, after tax, just to break even. That could easily need a 30+% yield.

Thrugelmir

andrewf75 wrote: »

what investment could possibly be better than spending the same money you pay on rent on a mortgage and actually owning at the end of it?

Its the best investment you can ever make.

A whole generation opted for interest only mortgages........

Many given their overall financial circumstances , aren't seeing this as an investment opportunity.

triathlon

Autumn86 wrote: »

I personally can't wait for the No-Deal Crash which is now basically 100% guaranteed!

*Property prices will hopefully crash,
meaning prospective buyers like me with large cash deposits will be able to buy a property for a much cheaper price.

*There will be a shortage of available staff to cover essential public-sector jobs such as NHS, so pay will be forced even higher for jobs such as mine.


Brilliant stuff ~ Don't get why people aren't cheering & celebrating this property price correction.

Yes, it is just lovely that so many lives would be destroyed.

Unlucky for you though is that all the power that is needed to stop your spiteful wish is out of your hands in the hands of more balanced minds, Brexit will never happen, sorry

Newnoel

No deal brexit, although extremely unlikely, would lead to a drop in the value of sterling with a rush of foreign investors coming in to snap up bargains and a rise in the property market in sterling terms.

phillw

Newnoel wrote: »

No deal brexit, although extremely unlikely, would lead to a drop in the value of sterling with a rush of foreign investors coming in to snap up bargains and a rise in the property market in sterling terms.

It's becoming likely. But you're right, if your assets and capital are priced in sterling then you're unlikely to benefit at all from brexit.

You should have followed Rees Moggs example and moved your money into Russia.

Thrugelmir wrote: »

A whole generation opted for interest only mortgages........

Many given their overall financial circumstances , aren't seeing this as an investment opportunity.

Which is odd they would see it that way as they had the benefit of a property cheaper than market rents, without worrying every 12 months that they would have to move out and they can have whatever pets they want.

There are now even mortgages available for people who have reached retirement with no repayment vehicle. You then only lose if you have somehow ended up in negative equity, which for the people you are talking about probably means they pulled equity out to spend on something else.

lisyloo

with a rush of foreign investors coming in to snap up bargains

Don't foreign investors like posh new builds?
So it won't do much for the price of houses in say Luton? or perhaps anywhere except London?? and maybe one or two other cities?

David_Evans

lisyloo wrote: »

Don't foreign investors like posh new builds?
So it won't do much for the price of houses in say Luton? or perhaps anywhere except London?? and maybe one or two other cities?

The London property market should really be compared to cities such as Zurich, New York etc. Because that's the options wealthy foreign buyers will be looking at.

David_Evans

Newnoel wrote: »

No deal brexit, although extremely unlikely, would lead to a drop in the value of sterling with a rush of foreign investors coming in to snap up bargains and a rise in the property market in sterling terms.

I agree Sterling would drop.
But whether wealthy foreigners are keen to buy - I'm not so sure. Eventually, yes. If Sterling really fell hard. Maybe to about 0.8 USD etc...?

David_Evans

Crashy_Time wrote: »

It is though, or at least has been. People thinking that their house was a goldmine for the future and borrowing on credit cards because the house would pay it all back later has allowed politicians to hide the lack of real job prospects and stagnant wages for years.

It's even more complicated than that.

The UK banks have asset requirements, that are largely based on UK house prices.
The UK govt is heavily involved in the UK banking sector.
Sterling currency is only allowed (by the govt) to be created by High Street banks, when they create loans for house purchases (ie mortgages).

Priced in gold (or less so USD), UK residential property (outside London / SEE) is quite cheap historically.

David_Evans

Crashy_Time wrote: »

Depends how he invested elsewhere surely? How are you finding the tax changes for BTL?

I think you need to separate owning your own home, from BTL investing.

I would agree BTL is not a good investment now, for most people.
But owning your own home is (for most people).

If the govt brings in increased property taxes, 'imputed rent' (Schedule A) taxes, builds loads of houses, brings in rent control, secure tenancies etc - then maybe one day renting may be better. But that's a long way off.

One advantage of renting is asset protection - ie your property can't be seized by the govt.

The govt know this, hence they encourage home ownership because it helps maintain their power (via the courts etc).