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For Your Unsophisticated Joe Property Is The Only Game In Town To Beat Cash


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You raise a very good topic. Questions that spring to my mind:

1. What other skills does average Joe have? HPI after HPI probably diverted many into property & property. All eggs in one basket?

2. Impact on wider economy?

3. Holding power. How long can average Joe keep going? Will he have to trade his property for food in a prolonged bear market?

4. Ho many years' bear market will bring the situation in #3 situation?

I went to an auction 1.5 yrs ago. Bidding war, local builder successful with a bid of 20%+ on an already HPIed guide price. Spent 3-4 months doing up the property. Needed a complete refurbishment - central heating, new plumbing, rewiring, re plastering, new flooring (may be new joists as well), new bathroom, new kitchen, front and back gardens were untamed jungles. Probably a fortune to get to the current state. One year plus, property still on market for an asking price of (purchase price + £115K). Nice detached house on a sort after road with a good school catchment but no buyers. Don't know how long can he hold on?

Edited by Fairyland
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You raise a very good topic. Questions that spring to my mind:

1. What other skills does average Joe have? HPI after HPI probably diverted many into property & property. All eggs in one basket?

2. Impact on wider economy?

3. Holding power. How long can average Joe keep going? Will he have to trade his property for food in a prolonged bear market?

4. Ho many years' bear market will bring the situation in #3 situation?

I went to an auction 1.5 yrs ago. Bidding war, local builder successful with a bid of 20%+ on an already HPIed guide price. Spent 3-4 months doing up the property. Needed a complete refurbishment - central heating, new plumbing, rewiring, re plastering, new flooring (may be new joists as well), new bathroom, new kitchen, front and back gardens were untamed jungles. Probably a fortune to get to the current state. One year plus, property still on market for an asking price of (purchase price + £115K). Nice detached house on a sort after road with a good school catchment but no buyers. Don't know how long can he hold on?

Providing he beats the cash saving rate he won't care. House prices are still going down of course.

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And thats just how it is. We're still in a property bear market. But unsophisticated Joe doesn't know anything else to do.

I hate to say it but it`s beginning to look that way around my way

BTL have started bailing out for sure ...but most are just coming back up for rent ...never underestimate the size of the pool of greater fools in this country

And prices are falling

Edited by long time lurking
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And thats just how it is. We're still in a property bear market. But unsophisticated Joe doesn't know anything else to do.

I agree. It's a deposit account, an annuity, or a BTL. And BTL enjoys special status because you can't really leverage the other two and become an "esteemed shrewd player" in the eyes of friends and family.

I'm pretty confident S24 will pummel leveraged BTL landlords sufficiently that we'll see a meaningful drop in nominal house prices. But for the reasons you state, i.e. the lack of alternatives, I think the main declines won't be until 2020 when S24 is finally fully implemented.

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Keeping property in a bull market in the UK even when it really should have been a bear market this past decade is childs play for those determined enough, just over populate the country and don't build homes, throw in billions of un challanged housing benefit and it goes on and on

+1

Sadly most people say "supply does not affect prices "or "you have to get used to being poorer than your parents".

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Cash is worthless. The bank can even take it off you if they have have a bad bet on a derivative, the politicians are VI scum with porfolios as big a Average Joe BTL slumlord. The politicans even have Carney pumping the free money machine to infinity. You cant go wrong with properdee... What could possibly go wrong?

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How is buying a house easier than a couple of hours research and opening a S&S ISA!? It's perception rather than the reality.

My brother has recently moved house and the process of buying the new one sounded like a complete pain that took weeks/months.

An ISA takes about 20 minutes to open and set up your regular investment in a global tracker. It astounds me that people think that 'shares' are more difficult.

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How is buying a house easier than a couple of hours research and opening a S&S ISA!? It's perception rather than the reality.

My brother has recently moved house and the process of buying the new one sounded like a complete pain that took weeks/months.

An ISA takes about 20 minutes to open and set up your regular investment in a global tracker. It astounds me that people think that 'shares' are more difficult.

Agreed. But the concept of an index fund or tax efficiency is beyond most people.

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