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About reginekierkegaard

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  1. The mortgage rate is so low because of BOE hesitates to hike rate. Fed had been hiking rate but the Austrian school of economists, would suggest that they are not aggressive enough. QE and historically low interest rate, would only lead to one thing, Inflation. Inflation in goods, services and assets prices. The boom plants the seed for future destruction.
  2. In this case, if you are buying a house with a mortgage, you are effectively buying on Margin. You hope that the increase in prices would outpace the cost of borrowing. You make money on your 'margin'.
  3. Something is happening in the global housing market. Australian market had crashed. Hong Kong is seeing some sharp 'correction' and even US house market is softening. All the while, the S&P500, FTSE 100 are in correction territories. Emerging Market and Asia pacific stocks are now like a war zone with blood everywhere. There is a flight of capital to the US dollar. 10 year T bill now yield well above 3%. GBP is now reaching another low. With the uncertainty over the stability of UK currency, investors would think twice before investing. Most investors are more concern about protecting their capital now than buying some overvalued residential properties that produce no where enough rental yield to cover their cost of leveraging. This is not a seller market.
  4. No, she has not. You were meant to get some well second hand skis from ebay (or better yet, buy some discounted new ski in summer at a big discount!) and head for Cairngorm / Glencoe to support the local skiing industry. I skied in Scotland in the past, I saved thousand of pounds but it was a bit of a gamble. There are days that was way too windy and time that we did not have enough snow but it is cheap.
  5. Landlord are providing certain values in some situations. There are always people who could only stay in the area for no more than 1 -2 years. If people are committed to buy a place and keep selling every 1 -2 years for their jobs, this will only create values for the taxman (stamp duty), estate agents, surveyors and solicitors. There are always some 'landlords' who owns one property in an area, where they cannot stay (due to their new job) and unable to sell or unwilling to sell due to high cost of transaction. They opted to rent their former home out and use that to offset the rent they pay in another area. Buffett said, in one way or another, buying a home and taking out a 30 years mortgage is like betting against the fiat currencies that would continue to depreciate over time. It is a one way bet. The government would love you all to starting blaming one another for the high housing cost but ultimately, we know it is due to our fractional reserve banking system, quantitative easing, ridiculously low interest rate, a fiat currency that is backed by nothing and intrinsically, they are worthless.
  6. We need to think about this the other way round. I don't think the house prices are overpriced. It is the salary that is underpriced. Years of quantitative easing is not driving the asset bubble as much as we thought, it is driving all our wages down. It looks expensive because we are all earning less.
  7. If you are buying a 3 beds for £150k, it does not look like you are buying into an area that is too overpriced. You do however want to leave some money in cash for some unexpected bills - new boiler, wear and tear and insurance to evict a non rent paying tenant. It all depends on your personal circumstance. You certainly want to make use of your annual ISA allowance. Not many things in life are 'tax free'. You can purchase some shares with that (Shares). You can still get the 3 beds by leveraging and let your tenant to service the interest of your debt (Real estate). Leave some money in heart cold cash, some in bonds to cover all major currencies in the world (US dollars, Euros, Janpanese and Renminbi) - whom they all form part of the 'special drawing right' of the IMF - you need the money in safe places i.e. T bills but you also need them to at least beat the inflation. (Cash and Bonds) If you still have money to spares, people sometime put around 5% of their net worth in commodities as a hedge against inflation i.e. gold, rare metal, or to speculate in the oil futures (Commodities). Once you have done that, you have diversified into all five assets classes - real estate, shares, cash, bonds and commodities. Disclaimers: All investments, including real estate, is speculative in nature and involves substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to get personal advice from their professional investment advisor and to make independent investigations before acting on information.
  8. Something is going on in the economy. It is not just a few outdated retailers that are being affected. A few clothes stores and some restaurants are being affected too. They are all closing and shutting down. Consumer spending is slowing. Car sales grind to a hold. There is a consumer debt bubble several times the size of our fiscal deficit. Saving and investments are at record low. Trump is threatening trade war and the stock market is doing 'funny' thing. S&P 500 had just broke through the 200 days moving average. Libor (London Interbank Offer Rate) is at all time high (USD). If we are lucky, we are heading for a bear market and a recession. If we are not lucky, there will be a crash. Years of funny money had only delayed the inevitable. Strange: Look around you. It's over. Baron Mordo: You think there will be no consequences, Strange? No price to pay? We broke our rules, just like her. The bill comes due. Always!
  9. Do not underestimate how much the central banks will print after the next crash. (DOW will get to 60000 because the dollar is worth-less!) When the market tanks, the only thing the Fed, BOJ, BOE, ECB know, is print more money. This time, it will stoke huge inflation. Welcome to the era of Stagflation. In the last crisis, IMF mobilised their SDR (Special drawing right) to bailout some of the central banks and they will not hesitate to do this again. Prepare to take a hit if you hold US dollars, Sterling, Yen, Euro or Chinese Yuan. I am not staying this is the crash - unless there is a black swan event that I have missed but a crash is coming and it would be worse than anything we have seen in our lifetime. Be afraid, Be very afraid.
  10. The market is seeing something that we missed. There are cracks in the story of an era synchronised economic growth. There is a 'black swan event' lurking somewhere. FTSE had broke through the previous support level at 6980 and was heading down toward the next line of defence at 6800. If it breaks through this, it is likely that we would enter into a bear market. S&P 500 is now getting very close to its 200 days moving average. Stocks felt across the globe. Trumps made threat of trade war. China plans to retaliate by putting up tariffs and reduce their purchase of Treasure bills. If Trump threaten the EU, EU will retaliate too. There are housing bubbles in across the world, starting from Hong Kong, New York, London etc. In the UK, consumer spending are at a low. Car sales are struggling. Households have too much leverage (debts). Shops and restaurants are closing. Was it all driven by our changing spending habits? i.e. spending more online than in shops or restaurants or is there something lurking around the corner that we have missed?
  11. We are thinking of purchasing a new build home from a reputable builder. We have been told that the houses are 'freehold' but yet there are management and estate charges (two separate charges). Although the quote they gave us was relatively modest at £289 per year, it does go up with inflation over time - they said it would track the Retail price index (pricier than the CPI in most instances). We are concerned that this would affected the resale value and how much the management fee would go up over time. We left that development and tried our luck in the others. We found that almost all of the new builders has similar scheme - this includes Persimmon, Taylor Wimpy and David Wilson, to name the few. Does anyone in here has experience living in a new build, paying for 'service charges'?
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