A Recent History Of House Prices

[laughing_goat]

Another to discuss by another STR friend.

http://www.fool.co.uk/news/foolseyeview/20...m?ref=foolwatch

[bears all]

It's quite an interesting article, and if I had more time I'd, well, spend more time looking at it. One thing which struck me straight off though was that if you look at his ten-year periods, the return on property varied wildly from about 12% to about 160%. Now, if you took a ten year period starting say in 1999 you find that - according to the Halifax surveys - property went up by 98% during the first five years. Only twice since the Halifax records began has the ten year return been better than that. It seems to me that therefore that the chances the current growth-fest being continued are very small.

[laughing_goat]

It's quite an interesting article, and if I had more time I'd, well, spend more time looking at it. One thing which struck me straight off though was that if you look at his ten-year periods, the return on property varied wildly from about 12% to about 160%. Now, if you took a ten year period starting say in 1999 you find that - according to the Halifax surveys - property went up by 98% during the first five years. Only twice since the Halifax records began has the ten year return been better than that. It seems to me that therefore that the chances the current growth-fest being continued are very small.

I've read it after I finished work (been working nights, hence the daytime posts) and my brain isn't fully engaged to take it all in.