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Grayphil

Protecting From Inflation

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Ok so im wondering if this is the right thing to do.....

I realise that the value of sterling is going down, everybody says use gold or land to protect from inflation, now in the UK we are all writing on this internet forum because we have all cottened on the fact that houses & land is over valued in this country, so this clearly not a sensible investment.

I dont want to anger any gold bugs here, who say that Gold is off too the moon etc, but it does look quite expensive in my own eyes so how to protect my savings??

well I have done a bit of research now and it seems that Latvia has already had its property crash, I only did the research because the Girlfriend is Latvian, everything now is selling at 70% off peak at the very least, and it wasnt expensive in the first place,

ive already agreed to a place with one old farm house, a brand new house, complete with new kitchen bathroom, underfloor heating, everything, it also has a fishing lake, an orchard and a forest, about 20acres in total with more land for sale all around if needed, all of this for just over 40,000GBP

this is one of the more expensive places, because it has a brand new house on the land only 3 years old,

Many places are for sale old farms for much less than 10000GBPs

you can even buy run down mansions for less than 10000GBPs

http://www.ss.lv/msg/lv/real-estate/farms-estates/kuldiga-and-reg/nikraces-pag/clnex.html

Ive never posted a link before so im not sure its gonna work but that should be a photo of an old mansion which the owner will sell for 9500 LTS or about 11000 GBP

http://translate.googleusercontent.com/translate_c?hl=en&sl=lv&u=http://www.ss.lv/lv/real-estate/farms-estates/&prev=/search%3Fq%3Dss%2Blv%2Bsludin%25C4%2581jumi%26hl%3Den%26rlz%3D1T4TSNA_en___US363&rurl=translate.google.com&usg=ALkJrhho4Z5fhVcfnfUO8MKsZy7IpwCPHw

again tried to include a different link but im not sure if it works also!!

I am aware this is starting to seem like an advert, but Latvia is only a two hour flight away from the U.K, the younger generation can speak English, and just wanted your thoughts...

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Oh ! no replys...?

Better the devil you know.

If you're going to buy outside the UK know their property laws.

eg: in France if the local authorities build a road through your land (they can just take it !)

you pay for the work done.

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eg: in France if the local authorities build a road through your land (they can just take it !)

you pay for the work done.

Interesting stuff about Latvia but the translated link doesn't work, thanks for posting.

The statement above is wrong I think.

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I would be extremely cautious investing in anything in Eastern Europe as I would be worried about the long term political stability in the region. Latvia has a long history of political instability and whilst it may appear stable now who knows in 10-20 years.

The economic situation looks very unstable currently as well. Massive unemployment and the economy contracted massively for the last couple of years (20% and 16% I think)

The currency is pegged to the Euro. I would say the chances of Latvia joining the euro are now very low, this peg may come under threat. If the peg is removed the currency could devalue sharply. Considering the amount of euro denominated debt in Latvia this could crush the economy further.

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I do not know about Latvia - but I looked at buying in Lithuania a while ago. I was put off by the weather - these places do not seem to have a summer - and by the fact that most of the dynamic young people have left the country.

Having said that - I know Eastern Europe quite well and I think that these places have a potentially good future after about 5-10 years of extreme austerity - so that buying there now may be seen as an astute move 10 years hence.

I disagree about the instability as its anchored into the EU - which despite its short-term problems I see as a stable political area for the future.

Not knowing the language would also be a problem for me - I prefer Eastern Germany where I've recently bought a large place for little money.

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In 2007 people were drooling at the mouth over what they could buy in Bulgaria for 40,000.

What I now expect they are now finding is there is no one else to sell on to.

Should you wish to go and live in Latvia your plan makes sense.

Otherwise...its dodgy.

If you really must invest in foreign property I would suggest Ireland in about another 18 months.

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.....or maybe Greece....

Hmm..... Detroit if you own a bullet proof vest.

Iceland if you own a thermal vest.

Latvia...dont in vest.

Ireland... you know it makes sense.

Amsterdam ...ive heard a rumour about these tulip bulbs.

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I would be extremely cautious investing in anything in Eastern Europe as I would be worried about the long term political stability in the region. Latvia has a long history of political instability and whilst it may appear stable now who knows in 10-20 years.

The economic situation looks very unstable currently as well. Massive unemployment and the economy contracted massively for the last couple of years (20% and 16% I think)

The currency is pegged to the Euro. I would say the chances of Latvia joining the euro are now very low, this peg may come under threat. If the peg is removed the currency could devalue sharply. Considering the amount of euro denominated debt in Latvia this could crush the economy further.

Im guessing the reason that everything is so cheap at the moment is because of the high unemployment, and the country really has had a mass exodus, the average wage monthly wage in Latvia is appro 300GBP, if you can find a job,

As for the Euro peg, the government has recently taken huge austerity cuts to ensure they are allowed to keep the peg after the IMF origanally wanted to devalue the currency, but because of the large amounts Of Euro debt, they had to make these cuts, the house I have just bought was owned by two doctors who lost their jobs and are moving to the UK.

Im kind of hoping ive bought at or near the bottom, as the place I have was Originally for sale in 2007 for 120000 LTS, I got it for 37000

Its a bit of a gamble but it isnt life crushing figures we are talking about, and I was lucky to have a bit of cash for a deposit in the UK so its paid for in cash,

anyway guess ill find out in a few years.........

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I do not know about Latvia - but I looked at buying in Lithuania a while ago. I was put off by the weather - these places do not seem to have a summer - and by the fact that most of the dynamic young people have left the country.

Having said that - I know Eastern Europe quite well and I think that these places have a potentially good future after about 5-10 years of extreme austerity - so that buying there now may be seen as an astute move 10 years hence.

I disagree about the instability as its anchored into the EU - which despite its short-term problems I see as a stable political area for the future.

Not knowing the language would also be a problem for me - I prefer Eastern Germany where I've recently bought a large place for little money.

Well Latvia is very similar weather wise to Lithuania, it has much colder winters than the UK but strangely hotter summers with less rain, also it has white sand beaches around most of the coast, (and only 1km from where ive bought)

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Oh ! no replys...?

Better the devil you know.

If you're going to buy outside the UK know their property laws.

eg: in France if the local authorities build a road through your land (they can just take it !)

you pay for the work done.

yeah, im sure this is going to be the biggest stumbling block!! the girlfriends best friend is a lawyer, she helped with most of the details for the Contract, the house is in my name, the Land is in the girlfriends name, whcih avoids part of i think its called the Notaire system in France

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Ok so im wondering if this is the right thing to do.....

I realise that the value of sterling is going down, everybody says use gold or land to protect from inflation, now in the UK we are all writing on this internet forum because we have all cottened on the fact that houses & land is over valued in this country, so this clearly not a sensible investment.

I dont want to anger any gold bugs here, who say that Gold is off too the moon etc, but it does look quite expensive in my own eyes so how to protect my savings??

well I have done a bit of research now and it seems that Latvia has already had its property crash, I only did the research because the Girlfriend is Latvian, everything now is selling at 70% off peak at the very least, and it wasnt expensive in the first place,

ive already agreed to a place with one old farm house, a brand new house, complete with new kitchen bathroom, underfloor heating, everything, it also has a fishing lake, an orchard and a forest, about 20acres in total with more land for sale all around if needed, all of this for just over 40,000GBP

this is one of the more expensive places, because it has a brand new house on the land only 3 years old,

Many places are for sale old farms for much less than 10000GBPs

you can even buy run down mansions for less than 10000GBPs

http://www.ss.lv/msg/lv/real-estate/farms-estates/kuldiga-and-reg/nikraces-pag/clnex.html

Ive never posted a link before so im not sure its gonna work but that should be a photo of an old mansion which the owner will sell for 9500 LTS or about 11000 GBP

http://translate.googleusercontent.com/translate_c?hl=en&sl=lv&u=http://www.ss.lv/lv/real-estate/farms-estates/&prev=/search%3Fq%3Dss%2Blv%2Bsludin%25C4%2581jumi%26hl%3Den%26rlz%3D1T4TSNA_en___US363&rurl=translate.google.com&usg=ALkJrhho4Z5fhVcfnfUO8MKsZy7IpwCPHw

again tried to include a different link but im not sure if it works also!!

I am aware this is starting to seem like an advert, but Latvia is only a two hour flight away from the U.K, the younger generation can speak English, and just wanted your thoughts...

Is it overvalued here?

Low interest rates

Devalued currency

Central bank determined to inflate at any cost

No shortage of land buyers

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Is it overvalued here?

Low interest rates

Devalued currency

Central bank determined to inflate at any cost

No shortage of land buyers

Well i know what you mean, and Im hoping your not right, mabye im just on this site because mabye im bitter that I cant afford what I call a nice house in this country!!

I do eventually want to settle here in the UK, but ive invested plenty of time on this site ond others trying to do research before making a decision, I just feel that after all the evidence looked at, and all the different arguements by both Bulls & Bears, that yes UK land & property is overvalued,, It should be pointed out that I have been wrong about many things, but if you never try your never gonna know!!

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yeah, im sure this is going to be the biggest stumbling block!! the girlfriends best friend is a lawyer, she helped with most of the details for the Contract, the house is in my name, the Land is in the girlfriends name, whcih avoids part of i think its called the Notaire system in France

Without wanting to rain on your parade - what happens if you and your girlfriend split up? If the land is in her name, does it mean that she gets to keep Land + House? Of the house vs the land, which is the most valuable? Could be that the house is worthless :ph34r:

Bear in mind that most relationships will fail :(

And sadly, you cannot trust her word (or the word of her lawyer!) that everything is ok - we in Western Europe are like children, mollycodled from birth to death. Step outside that area and you will find people who are a lot more level-headed about life and survival. Your girlfriend will have role-played the "what happens to me if we split up?" in her head.

You will have to pay your own tame lawyer in Latvia and check that everything is Kosher. Sorry, but you cannot trust anyone else.

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Without wanting to rain on your parade - what happens if you and your girlfriend split up? If the land is in her name, does it mean that she gets to keep Land + House? Of the house vs the land, which is the most valuable? Could be that the house is worthless :ph34r:

Bear in mind that most relationships will fail :(

And sadly, you cannot trust her word (or the word of her lawyer!) that everything is ok - we in Western Europe are like children, mollycodled from birth to death. Step outside that area and you will find people who are a lot more level-headed about life and survival. Your girlfriend will have role-played the "what happens to me if we split up?" in her head.

You will have to pay your own tame lawyer in Latvia and check that everything is Kosher. Sorry, but you cannot trust anyone else.

This is depressingly good advice.

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Without wanting to rain on your parade - what happens if you and your girlfriend split up? If the land is in her name, does it mean that she gets to keep Land + House? Of the house vs the land, which is the most valuable? Could be that the house is worthless ph34r.gif

Bear in mind that most relationships will fail sad.gif

And sadly, you cannot trust her word (or the word of her lawyer!) that everything is ok - we in Western Europe are like children, mollycodled from birth to death. Step outside that area and you will find people who are a lot more level-headed about life and survival. Your girlfriend will have role-played the "what happens to me if we split up?" in her head.

You will have to pay your own tame lawyer in Latvia and check that everything is Kosher. Sorry, but you cannot trust anyone else.

yeah I think your right!!!!

i do speak Latvian (and a few other languages) & am ok to translate any contracts, i also have a seperate contract with her, which does state that in the event of seperation all land and house would be sold togther, and would be divided 70/30 in my favour (as i put the most money in)

I do understand that lots of relationships split up but again it is a fundamental part of nature, go out find partner, have children, are you suggesting that I do none of this???? (marrying kids etc..) and just live by myself in a pokey one bed flat or something??

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yeah I think your right!!!!

i do speak Latvian (and a few other languages) & am ok to translate any contracts, i also have a seperate contract with her, which does state that in the event of seperation all land and house would be sold togther, and would be divided 70/30 in my favour (as i put the most money in)

I do understand that lots of relationships split up but again it is a fundamental part of nature, go out find partner, have children, are you suggesting that I do none of this???? (marrying kids etc..) and just live by myself in a pokey one bed flat or something??

id certainly suggest you dont marry your kids, Latvias not Ohio

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If you really must invest in foreign property I would suggest Ireland in about another 18 months.

You mean "speculate", or "gamble", even. The word "invest" when it comes to residential properdee is top-notch Orwellian double-speak.

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Im guessing the reason that everything is so cheap at the moment is because of the high unemployment, and the country really has had a mass exodus, the average wage monthly wage in Latvia is appro 300GBP, if you can find a job,

As for the Euro peg, the government has recently taken huge austerity cuts to ensure they are allowed to keep the peg after the IMF origanally wanted to devalue the currency, but because of the large amounts Of Euro debt, they had to make these cuts, the house I have just bought was owned by two doctors who lost their jobs and are moving to the UK.

Im kind of hoping ive bought at or near the bottom, as the place I have was Originally for sale in 2007 for 120000 LTS, I got it for 37000

Its a bit of a gamble but it isnt life crushing figures we are talking about, and I was lucky to have a bit of cash for a deposit in the UK so its paid for in cash,

anyway guess ill find out in a few years.........

"It isn't life-crushing figures we're talking about..." - except for the two unemployed doctors who've probably lost a fortune. Still, nothing like Brits spreading the properdee disease abroad. Of course it could be that after a few years of austerity here, there and everywhere we will see a reversion to normal behaviour and foreigners who've "snapped up bargains" will be regarded much as English second home owners in Wales used to be not so long ago; and probably will be again.

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You mean "speculate", or "gamble", even. The word "invest" when it comes to residential properdee is top-notch Orwellian double-speak.

Buy what a property can do for you...not how much it can make you. ;)

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Well i know what you mean, and Im hoping your not right, mabye im just on this site because mabye im bitter that I cant afford what I call a nice house in this country!!

I do eventually want to settle here in the UK, but ive invested plenty of time on this site ond others trying to do research before making a decision, I just feel that after all the evidence looked at, and all the different arguements by both Bulls & Bears, that yes UK land & property is overvalued,, It should be pointed out that I have been wrong about many things, but if you never try your never gonna know!!

We had a classic bubble. Back in 2004 It was obvious to anyone bothered enough to scratch through the surface and do some thinking. The bubble predictably burst three years ago.

What wasn't so predictable was how the authorities would handle the fall out - four years of mild deflation/recession while the banks licked their wounds, like last time. No, what we got was a full and blatant admission of who actually controls the government. A ransom note, an offer you couldn't refuse, because you were up to your neck in it and stood to lose the lot.

They will inflate and we will continue to pay them for the privilege of creating our money supply.

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yeah I think your right!!!!

i do speak Latvian (and a few other languages) & am ok to translate any contracts, i also have a seperate contract with her, which does state that in the event of seperation all land and house would be sold togther, and would be divided 70/30 in my favour (as i put the most money in)

I do understand that lots of relationships split up but again it is a fundamental part of nature, go out find partner, have children, are you suggesting that I do none of this???? (marrying kids etc..) and just live by myself in a pokey one bed flat or something??

...go for it ...you seem well prepared .... :rolleyes:

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Thats true, im not looking for a profit, im also not looking for a loss though!!!!

If you are using it you are not losing on it....all you need to do is live in it, enjoy it,and pay for it......you will then wake up one day and it will all be yours ;)

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yeah I think your right!!!!

i do speak Latvian (and a few other languages) & am ok to translate any contracts, i also have a seperate contract with her, which does state that in the event of seperation all land and house would be sold togther, and would be divided 70/30 in my favour (as i put the most money in)

I do understand that lots of relationships split up but again it is a fundamental part of nature, go out find partner, have children, are you suggesting that I do none of this???? (marrying kids etc..) and just live by myself in a pokey one bed flat or something??

No, of course I am not advocating celibacy! "Someone for life" is the most amazing adventure.

However, I have seen too many "cross-continent" relationships where the partners were aiming at different goals, heck, even my brother-in-law is living in Thailand and managed to "accidentally" get his (Thai) girlfriend up the duff. Which was so obviously going to happen that it wasn't even funny :angry:

Cross-continent relationships can work (my OH is half-Peruvian and grew up there ;)) but you just have to remember that love is never enough on its own - you always need to keep your head about you.

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  • 259 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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