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Bagehot

"buy A Property Now Before Prices Start Increasing Again In 2yrs."

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There I was at dinner and an old and very well educated friend says: "Buy a property now. Now is a good time to buy as prices are flat. In 2 years time prices will start to go up again. Her property lawyer friend said prices only every go up in the long term." She said she was not going to invest in equities as she doesnt understand them. Instead, her pension will be a second flat. I said I was happy renting a 3 min walk from where I work. She said well then buy a property and rent it out. I said I would lose money as the rent(+costs) is lower than my bank account (net interest).

I explained how if the stockmarket doesnt do well - and better than housing - than chances are property wont do well.

I dearly love this friend and she is really intelligent on most issues (not an economist or any real financial understanding).

The above is the same rationale I use to hear at the height of the tech shares boom. However, it also helps to explain why the HPC has not really begun and why it may take another 2 years before we see consistent falls.

The psychology of the masses is too positive.

THERE WILL BE NO HPC UNTIL THE ECONOMY STARTS SHRINKING OR INFLATING (IDEALLY BOTH).....

BUT IT WILL COME AS THE FUNDAMENTALS OF THE UK HOUSING MARKET & ECONOMY JUST DONT MAKE SENSE.

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Thanks Bagshot. This is great news though. When educated people start breaking up the mantra ( House prices only ever go up (breath) House prices only ever go up (breath) House prices only ever go up (breath) ) , there is something very big going on.

House prices only ever go up in the long term (breath) just doesn't have the same calming affirmative quality!

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Doc, did you post a graph with the price of gold to UK property over the last 20-30yrs? If so could you post the link again.

Sorry for the off topic post but I think it would be relevent to prove how - expensive - property is in regard to gold. Or how - cheap - gold is right now. $500/oz is just the beginning in my humble opinion.

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Doc, did you post a graph with the price of gold to UK property over the last 20-30yrs? If so could you post the link again.

Sorry for the off topic post but I think it would be relevent to prove how - expensive - property is in regard to gold. Or how - cheap - gold is right now. $500/oz is just the beginning in my humble opinion.

On the front page of this website is a graph that show how expensive houses are in relation to money.

Or should I say how cheap money is in relation to houses.

It would be a good idea to sell the expensive housing and buy the money while it's cheap.

These windows of opportunity don't stay open for long.

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  • 302 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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