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House Prices And Inflation

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hi all im a newbe i have been reading this site for some time and finally joined. i am trying to think ahead and while it is good that houses become affordable, how will the forcast massive inflation we are predicted to get, due to the collapsing pound, and the govt printing money to inflate us out of this mess, effect house prices. will it make houses worthless or will they increase in price to keep up with inflation. will they soon be seen as a good asset again any time soon.

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houses are not assets they are liabilities

hi m4rk

a bit drastic to say that. many people live in them and see them as necessary and are glad to have a roof over their heads. they are only a liability if you cant afford to live in them, or had bad luck to be effected by the current situation.even then its still better to have one to live in. will you buy one when they are dirt cheap or not bother with the liability

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Have they? What's your definition of affordable?

probably not there yet by a long way, historically around 3-4 times average salery maybe. but at that people will aspire to own, and not see as a liability, and look to own in preferance to renting. then the cycle starts again. people may not remember what is happening now any more than the depression of the thirties. generations tend to forget the lessions of the previous ones.

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hi m4rk

a bit drastic to say that. many people live in them and see them as necessary and are glad to have a roof over their heads. they are only a liability if you cant afford to live in them, or had bad luck to be effected by the current situation.even then its still better to have one to live in. will you buy one when they are dirt cheap or not bother with the liability

they are liabilities until the mortgage is paid off. sorry was having a blunt day that day

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they are liabilities until the mortgage is paid off. sorry was having a blunt day that day

no worries, i suppose money owed on anything makes that thing a liability, houses being the biggest. but you gotta live somewhere, and there comes a point where the rent is a bigger liability with nothing at the end to show for the outlay. thats why i think eventually they will be seen again as a better investment than a lot of other things, and of more use. you cant do without one especially in this weather and i am one of those hit by all of this

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in theory the thing to do during a period of hyper inflation is to borrow as much money as possible and put it into fixed assets, gold, gems, property.... As it is easiest to borrow against property then that's the most practicable one. The only difficulty is that interest rates will rise in line with inflation. If you really believe this is coming then borrow as much money as you possibly can on a long term fixed rate deal and buy a house (or an office building, factory, shop etc with either a government body or a bookmaker as the tenant).

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in theory the thing to do during a period of hyper inflation is to borrow as much money as possible and put it into fixed assets, gold, gems, property.... As it is easiest to borrow against property then that's the most practicable one. The only difficulty is that interest rates will rise in line with inflation. If you really believe this is coming then borrow as much money as you possibly can on a long term fixed rate deal and buy a house (or an office building, factory, shop etc with either a government body or a bookmaker as the tenant).

So what to do in deflation - does this mean don't borrow - in which case house prices will fall through the floor - won't they?

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So what to do in deflation - does this mean don't borrow - in which case house prices will fall through the floor - won't they?

yes, in deflation all leveraged assets should be got rid beforehand because the only thing that goes up in value is cash relative to all else

id also partly disgaree with whats stated earlier about high inflation id rather switch savings to a different currency than buy up assets as these can still fall in real terms quite heavily (look at Zimbabwe)

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As per my opinion that due to inflamation the prices of the houses also get down in the recent time.So the recession have an impact on the real estate industry also.

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houses are not assets they are liabilities

I was curious about this, then came across this statement which has made it a lot clearer (for me anyway) ;

"The mortgage is the liability, the house is the asset. The two are separate entities, but they combine to form what is called the “equity” in the asset… And your equity can be negative if you owe more than whatever you decide (and it’s a guessing game) is the cash value of the asset."

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I was curious about this, then came across this statement which has made it a lot clearer (for me anyway) ;

"The mortgage is the liability, the house is the asset. The two are separate entities, but they combine to form what is called the “equity” in the asset… And your equity can be negative if you owe more than whatever you decide (and it’s a guessing game) is the cash value of the asset."

Yes, there are a lot of curious views on here. But basically, you either have any money in it or you dont.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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