Looks like they government is going to keep the economy going sideways 1 more year, whilst they prepare for war with Iran.
War with Iran will probably involve Russia and China.
The 95% Mortgages are Back! and 100% Mortgages
1 More Year People!
Right now we are in a situation where if you don't become a Debt slave. And think you are clever by saving your money in the bank, inflation will actually steal your purchasing power.
hedi, on 04 February 2012 - 11:31 AM, said:
a lot of people on here recently are getting disgruntled about how things have panned out.
i personally left the market a few years ago with a hopefull expection that the boom was over. well, the boom is over. outside of london houses have been slipping somewhat slowly, but slipping. no there has not been a crash. well with .5 pct base rate that not really a supprise. the govenment has done all it can, along with banks who would go bust,lets be honest if a crash happened, to maintain prices as best they can.
a lot of us took the perfectly rational view that booms come to an end one way or another. we never invisaged a reasonably sound economic state printing money, who did.
but that was our gamble. thats what investment is.
the question is what to do now, not bitch about how we might have got it wrong.
if you need a large mortgage to buy then a house must me looked upon as an investment that can lose money. if you are buying for cash, then it somewhere to house you rent free.
as an investment , i think that the housing market has little going for it long term. there are many aspect often overlooked.
forget about short term things like interet rates and btl, they can in some ways be contrived by amanipulation, but other things can not.
the big one is financial demographics. simple logic, poorer people cannot afford more expensive housing. and we are going to get poorer, in real terms, and barring some unknown unknown thats a fact. this applies to the whole of europe.
the young are the hpc saviours. if you are fifty or sixty and sitting on your 1m pound property hoping to sell in 10 years for 2m and retire, i am affraid you are in for a nasty shock. where on earth do you think someone who is 30 now is going to get that sort of money, when they are years away from their first flat. and remember baby boomers, there are an awful lot of you who will all want to be selling at the same time, just as you all wanted to buy at the same time. (incidently forcing up prices) and how many are going to want to sell the second homes as well.
demographics is the real clue to long term investment. and from what i can see we are going japanese. moreso in the rest of europe than here.
the real question is what now. as far as i can see the govenment and bank are trying to stear the good ship uk economy( and west in total) between the rocks of depressive deflation and the waterfall of hyper inflation ( consequence of money printing) . now at the moment it looks like they are succeeding.but the straights of water between the two are getting narrower and there is no sign of open ocean yet, what ever they tell you.
baised on historical evidence the good ship britian will hit the rocks or go over the water fall. the problem is that the debts are so vast that depression could come or they are printing so much money it could be hyper inflation. now im no expert and from what i read no one really has any idea which way this will go. so all i think you can do is hedge your bets, have some multinational assests, have some cash. and jump one way or the other when it becomes clearer.
accept that you are not an expert and that you are going to become poorer in one way or another, keep an eye to trends stop worrying about volitility and try to come out of this with as mouch as you can save.
This post has been edited by Asheron: 05 February 2012 - 07:48 PM