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tomandlu

If You Had Known What Was Going To Happen To Property

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It's not public, so be honest... B)

To really 'leverage up', you would have had to keep withdrawing equity to fund the next purchase.

If you knew to get out in 2007 then doing so would have obviously been a fantastic move.

However, if you held on till today and start to contemplate how that massive leverage affects you on the way down, the situation starts to look very different.

I certainly would not like to own 20 houses now with a 10% equity margin.

With perfect foresight..... Would I do it?

Well, I always have and still do think it's immoral. More so that the system has allowed it.

However, I think I still would have done it, simply because everyone it has proved to be the only way to keep up.

Edited by Kyoto

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Actually this is quite a good poll.

I think if people were honest they would have taken the opportunity to make shit loads of money. Not all but most.

It`s almost as simple as saying if you knew what the lottery numbers were before the draw, would you pile on?

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Actually this is quite a good poll.

I think if people were honest they would have taken the opportunity to make shit loads of money. Not all but most.

It`s almost as simple as saying if you knew what the lottery numbers were before the draw, would you pile on?

As above, I think I would do it, but BTL is a mucky old game:

You're in shed loads of debt all the time;

It's a lot of responsiblity;

You have to deal with EAs and bad tenants;

You may have to turf people out of their home if they hit hard financial times;

You're running a constant risk in relation to capital, margin calls, interest rates;

It's a lot of stress.

Even today I am turning down maybe 7% yields for 3% in the bank for the same reasons above.

300% return with perfect foresight would have been too tempting, but a lot of people will just want an easy life and not get involved in the rubbish above.

Edit - I guess with perfect hindsight, it wouldn't have even been worth renting them out. Shows how crazy it all was!

Edited by Kyoto

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If I coud go back in time I'd buy gold, Gordon Browns gold, alot easier then managing properties, easier on the conscience too.

Nah, if you have a time machine the best thing is the gee-gees. Twenty horse win accumulator with tax paid on stake ;).

Or Euro Millions lottery, or any form of pure gambling.

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OP didn't say if you knew what would happen to gold or shares or anything else, only property.

Like the other posters, I'd prefer other options, less morally questionable and less trouble, but that wasn't the question.

I confess I would have done the dirty deed and bought 2000, sold 2007.

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It is immoral but the government and banks who run the system and should set standards have no morals, they therefore force people to abandon theirs or lose out.

Sadly, I voted yes.

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OP didn't say if you knew what would happen to gold or shares or anything else, only property.

Like the other posters, I'd prefer other options, less morally questionable and less trouble, but that wasn't the question.

I confess I would have done the dirty deed and bought 2000, sold 2007.

Yes ok I'm sorry, if I could go back in time I wouldn't have eaten that pie.

But yeah maybe I would have taken advantage of this bubble, why not?

Edited by Papa Serf

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It's not public, so be honest... B)

Yes, if I knew what last week's lottery number was I would have brought that too.

It would have been a gamble that governments would print money to bail out the banks (and overstreched people in the UK). But that's what gamblers do, they take risks without thinking of the consequences and only think about winning.

It will end soon, only the super rich will get richer from this. Most middle class will be reduced back to working class. But most middle class UK won't admit they are middle class anyway, so it serves us right.

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Not buying a house in the '90s was the worst financial decision I (n)ever made.

Not buying a house in the '00s is increasingly looking like the best financial decision I ever made...

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This bubble has been painfull, so holding a small position in property to offset that pain would have been worthwhile. I would not have been greedy or smug about it though.

Edited by Papa Serf

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Yes I would have bought.

I like to think I would have had the grace to continue to email ramping newspaper feature writers etc trying to educate them in the perils of bubble-nomics. And that I would have still voted for any party that promised to control house prices - though of course no party did use that platform except the party that presided over the bubble.

It's like my public sector salary. I think it's too high. I accept it, but make my views clear in discussion with friends, web forums etc... though not with my boss. Does that make me hypocritical or more honest than most (who I presume wouldn't say so to anybody at all)?

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Actually, why the guilty tone?

Yes I would have bought. I have never felt it is the moral responsibility of the individual investor to refrain from entering a get-rich-quick scheme. I have always felt it is the responsibility of those in power to ensure that such schemes are not socially damaging.

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too right i would have, if i knew exactley the exit date 10 years earlier, i would have ploughed everything into it and i would have amassed a huge portfilio. then i would have dropped the lot in 2007 taking out all the proffit i could. with no care or thought to the mass public, etc.

no one else would give a shit about me in the same situation, so why should i?

but alas, this is a hyperthetical question, and one that will never be forfilled.

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I'd have done it.

Yes its immoral. Yes it destroys communities/society. Yes it destroys the competitive nature of the UK. Yes it takes money that could be invested in creating things and diverts it into non-productive wealth generation.

But i can see where my ethics and old fashioned business sense have got me. I run 2 companies that create things, employ 20 people and positively effect the countries GDP. I can't afford to buy anything more than a two bedroom flat (average price down here about £250k) Meanwhile bog cleaners (no disrespect) that bought at the right time are living in 4 bedroom detached houses. And property gamblers who borrowed millions to bet on a one-way bet - and are living in beautiful houses whilst working people pay them rent to ensure they never have to lift a finger.

If I could go back to 2000 i'd never go through all the aggro of employing people and risk all my savings to build businesses when I could have just borrowed to buy properties and have a much better lifestyle.

Although I will admit that the people who did this also took risks - they had no idea that the tax payer would help them out if it all turned to sh*t.

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I wouldn't have bought multiple properties, basically because I couldn't be bothered, rather than the immorality. I wasn't really thinking about finances, I wasn't feeling liquid enough to invest money anyway.

I did buy a house in 2001, I was feeling very well off after having a big pay rise, which hasn't improved above inflation since. I remember thinking that I had probably bought at the peak because I did a 4x salary for what what I thought a teacher earned and realised that they couldn't get a mortgage on anything but a 2 bed.

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  • 140 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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