Is housing still a good investment?

Sisyphus

maddognellie wrote: »

Do you think we are heading for a recession, I would hate to buy just a prices are going down. Maybe i should ask a financial advisor. Estate agents just say that the prices are NOT going down, but there are a lot of houses for sale with no chain so i think they are buy to lets being sold. I dont think they are all executer sales. Thanks for the advice.

EAs don't want prices to fall. I prices fall, transaction volumes will dry up. Not good for EAs. Also most of them have never seen a falling market and wouldn't know how to deal with it.
I don't think most people realise how bad the credit crunch fall out will be.
People may still want to buy but lenders won't be able to provide the funds necessary to maintain curent levels.

Sisyphus

shelovestobuystuff wrote: »

Some areas are so sought after they are immune to UK market fluctuations so do some research.

immune at any price? Wow.

maddognellie

The problem is we lost our home in the last recession so if there is going to be another one we dont want to suffer. Maybe this time we could benefit from it.

wriggly

maddognellie wrote: »

Do you think we are heading for a recession, I would hate to buy just a prices are going down. Maybe i should ask a financial advisor. Estate agents just say that the prices are NOT going down, but there are a lot of houses for sale with no chain so i think they are buy to lets being sold. I dont think they are all executer sales. Thanks for the advice.

While estate agents think you should invest in a property so that they get a commission, be aware that financial advisors think you should invest in mutual funds so that they get a commission.

Not saying you shouldn't seek out a financial advisor if you're unsure what to do with your inheritance. Just be aware that they are typically coming from an equally compromised position.

If you have doubts, you're unlikely in the current environment to lose much by taking your time to decide what to do. In the meantime, I'd suggest you search online for the term Bogleheads. An excellent place to start is http://allfinancialmatters.com/the-bogleheads-october-project/
There's even a chapter on managing a windfall.

maddognellie

This forum is great, thanks for all your help.:D

adr0ck

don't buy a flat....................enough said

maddognellie

point taken

zappahey

wriggly wrote: »

While estate agents think you should invest in a property so that they get a commission, be aware that financial advisors think you should invest in mutual funds so that they get a commission.

Not saying you shouldn't seek out a financial advisor if you're unsure what to do with your inheritance. Just be aware that they are typically coming from an equally compromised position.

If this is a concern then it might be worth going to an FA who charges fees for advice. That should ensure some level of impartiality and the OP will know what the advice is costing upfront.

neverdespairgirl

With a considerable amount at stake, I'd strongly suggest you see an independent financial advisor - one whose time you pay for by the hour, rather than one who gets commission on selling you stuff.

OH inherited quite a big sum when his parents died 3 years ago. He has it spread between gilts, shares, and high-interest accounts, and saw an IFA first.