Unrealistic asking price?

System

Thrugelmir wrote: »

BOE will do nothing. As the banks have strong enough balance sheets to weather the storm.

The BoE will do nothing to fight the coming recession???? If so, that recession will be a major depression.

An interest rate cut of 5% on average is needed to fight a recession. When the base rate is already down to only 0.75% before any recession has even started, do you really think the Bank of England can take it to minus 4.25% in a recession? The reversal rate (the negative rate that starts to cause damage to banks) is around minus 0.5%, which is the limit of policy. The Bank of England is out of ammo.

caprikid1

"Owning real estate may be the absolute zenith of your life's achievement and your orgasmic dream, but that's just you. The very expensive riverside apartment I fully owned in central London gave me no sense of fulfilment, although it would no doubt be your dream come true. "


For someone who has so little interest or desire in housing you seem to be spending a lot of time trying to talk down house prices to the point you can re-enter the market at a point you feel acceptable and not an embarrassing mistake in exiting.

System

caprikid1 wrote: »

"Owning real estate may be the absolute zenith of your life's achievement and your orgasmic dream, but that's just you. The very expensive riverside apartment I fully owned in central London gave me no sense of fulfilment, although it would no doubt be your dream come true. "


For someone who has so little interest or desire in housing you seem to be spending a lot of time trying to talk down house prices to the point you can re-enter the market at a point you feel acceptable and not an embarrassing mistake in exiting.

Yes, for me, owning a large asset such as property that is depreciating is a nightmarish thought, which I would very much like to avoid. I am very glad I exited the central London market when I did, before it fell, not least because I wanted to get out of London. I saw the writing was on the wall for London property prices because of all the new building that was taking place. At the moment my capital is much better employed elsewhere, and luckily I have the financial freedom to take advantage of profitable opportunities that are growing my capital at quite a rate, unlike property would. I like to monitor many different asset classes.

caprikid1

"Yes, for me, owning a large asset such as property that is depreciating is a nightmarish thought"


Sorry I am confused, I thought you paid an agent to find you one ? My mistake.

System

caprikid1 wrote: »

"Yes, for me, owning a large asset such as property that is depreciating is a nightmarish thought"


Sorry I am confused, I thought you paid an agent to find you one ? My mistake.

I did, and it was a terrible mistake, and a bad experience. We live and learn.

AdrianC

Diocletian_II wrote: »

Yes, for me, owning a large asset such as property that is depreciating is a nightmarish thought, which I would very much like to avoid.

Just as well property isn't a depreciating asset, then.

'course, if you're paying rent instead...

System

AdrianC wrote: »

Just as well property isn't a depreciating asset, then.

'course, if you're paying rent instead...

The London market has certainly depreciated substantially in nominal terms, I could buy back my apartment for £200k less than I sold it for. Plus, the UK market is now depreciating in real terms, and the next step down on the path is to nominal depreciation. On the other hand, my investments are appreciating very happily.

AdrianC

Diocletian_II wrote: »

The London market has certainly depreciated substantially in nominal terms

Over what period?

Plus, the UK market is now depreciating in real terms, and the next step down on the path is to nominal depreciation.

I'm not sure those terms mean what you think they do.

On the other hand, my other investments are appreciating very happily.

Do you live in them? Or are you also paying rent?

System

AdrianC wrote: »

Over what period?


I'm not sure those terms mean what you think they do.


Do you live in them? Or are you also paying rent?

1. Go look up the Fulham market since 2016
2. Go look up what nominal and real terms mean.
3. I don't notice my rent. It is insignificantly small in relation to my capital, returns and income.

Thrugelmir

Diocletian_II wrote: »

The BoE will do nothing to fight the coming recession???? If so, that recession will be a major depression.

Discussion is in relation to the housing market. Not the wider economic situation.