Deloitte Economics (Bootle) reckon house prices down 5% this year and 8% next.
Get yourself a nice little Northern Rock buy-to-let mortgage....at 85% LTV...spend (its not investing) 15% on deposit plus purchasing costs of 2%+ and furnishings 3%. By end of next year you've lost 130%+ of your money...If rent doesnt cover costs you've lost well over 150%.
Bootle doesnt even think we're going to have a recession. Bootle is an optimist! What would your return be if we weren't?
Of course when I say "you" in our little hypothetical I don't mean "you" as in the well-informed, intellectually aware, morally upstanding members of the community that are reading this. I am referring to the short-sighted, blinkered, wishful thinking, armchair investing, lumpen ignoramiat.
100,000s will buy-to-let this year, 100,000s more did last year and will suffer the same consequences. If they buy, they will lose. If they have bought already, they will lose.
Our families will suffer for their ignorance. Keep spreading the word. This isn't the end of the beginning, this is the beginning of the end. By the time the Western world comes out of this depression think about what our politicians will look like. Think about the powers they already have vested in them and those they will seek in response to this unfurling nightmare. The West is surrendering its power and influence to the East. It isnt the East we should be afraid of but the reaction of our own Governments.
See you soon...