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House Price Crash Forum


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  1. Negative REAL interest rates and massive gearing = Good debt Positive REAL interest rates and massive gearing = Very bad debt The problem is, one can quickly become the other. Assuming all debt invested in assets will produce a net positive return over any term is ridiculously naive and, frankly, laughable.
  2. Found one! An Aussie though I'm ashamed to say! from Propertyinvesting.com IP = Investment Property PPOR = Primary Place of Residence (CGT exempt in Australia) CGT = Capital Gains Tax So this muppet was actually going to claim a capital loss for tax purposes based on a valuation she had done when she shifted out at the height of the boom... despite making a capital gain. F.
  3. I think there may be a conspiracy* here... My story: I've been an avid reader of HPC for close to a year now, but shortly after the last server upgrade, I found I was unable to access the site both from my home and (err, other) computer. I assumed that the site was just experiencing 'technical difficulties'. Yesterday during a bout of extreme HPC withdrawls, I reverted from Mozilla to Iexplorer^, and the site worked... but (and it's a Kirsty sized BUT), I had to approve the download of the following cookie first: Name: BBC-UID Content: e4d26f19e323f4dfa183951b410b2efd1fdd17c5d080e083...
  4. So until a house sells, the person selling it is a potential vendor? A single lesbian is a potential lesbian? Someone planning to blow up an aeroplane is a potential terrorist? Between now and your next post you're potentially illogical?
  5. Yes, I am a 733T 73TT3r. That's the way to put it. In property, your future is guaranteed whether you are in it for capital gains or cashflow. See this article for PROOF! http://melonmail.melon.com.au/vemail//view...u=2949&id=27520 If you have equity in your own home, use it to buy BLTs. If you don't have any houses yet, buy a house on a 130% mortgage. This will give you NEGATIVE EQUITY! Negative? Isn't that bad? Nope, you can take it and use it as a deposit on another house right away! See how negative equity is actually a GOOD THING?! Want more negative equity? Buy at the PEAK OF
  6. I take it you can't see the positive side of Darwinian evolution then?
  7. Why would negative cash-flow and falling capital be a bad thing? Providing the bank continues to put equity* in my account? Even without pesky tenants, I can use this to pay the mortgage and over the long term property prices will go up. History has proven that FACT! *nb Gamover – equity money is the same as regular cash money except you don’t have to work to earn it! The banks calculate it on a monthly basis using a derivative of the yield formula I gave you above: 0.72*WMD/WTO see it really is too easy! Sledgehead - who is the troll?
  8. Great theory Timmy, and interestingly one raised over the weekend with a couple of friends & couple of beers. As the oldies downsize deliberately cause high inflation, taking a leaf out of the US books? Perhaps your Mr Blair was actually insider trading when he overpaid on his new mansion*? *err... allegedly! Just musing...
  9. 1, Please explain "Yield"? Yield is a measure of the true value of a property, expressed as a percentage. To translate it into a simple (meaningful!) currency format use the following: Yield(%) = (CPR - KMA)/72 * SQRT(WMD/SWAK^IR) 2, Do you think the BTL market will be going well for the next 50 years? Its on going isnt it, always property for BTL'ers to buy to let? As new property is being built, bocomes older/flr sale etc, seems to me like an ongoing market, WHICH IS GREAT! Yes, the older a property is, the better! (Higher yeild due to to significant CPR gains - see answer to 1 above) In
  10. Umm, ok, so I missed the "real house prices" bit... things are a little different in your market to mine. Still, if you'd bought in 1972 AND failed to sell during the period of 3-4 years in the late 80s/early 90s where prices had actually passed your purchase price in real terms, my post is kind of right!! My reading of the chart would suggest that you could still lose out by selling after the recent peak also.
  11. Uh, could it be that if you factor in inflation, it took 30 years for the heady prices of the early 70s bubble to be breached? IIRC that bubble was underpinned by years of high inflation...
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