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Habeas Domus

Housing can’t both be a good investment and be affordable

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A fundamental contradiction lies beneath most of our housing policy debates

At City Observatory, we’ve frequently made the case that promoting homeownership as an investment strategy is a risky proposition. No financial advisor would recommend going into debt in order to put such a massive part of your savings in any other single financial instrument—and one that, as we learned just a few years ago, carries a great deal of risk.

Even worse, that risk isn’t random: It falls most heavily on low-income, black, and Hispanic buyers, who are given worse mortgage terms, and whose neighborhoods are systematically more likely to see low or even falling home values, with devastating effects on the racial wealth gap.

But let’s put all that aside for a moment. What if housing were a low-risk, can’t-miss bet for growing your personal wealth? What would that world look like? ....


I'm increasingly thinking that when the housing bust happens it will be on a global scale and nothing that Westminster or the EU do will make any difference.

Politicians on all sides have been holding back the tide for over a decade and the leaks are starting to show.

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14 hours ago, Habeas Domus said:



The link is to the US.

UK does not have much of a hispanic sector.

US market != UK market.

The totally freaky factor of the UK is the access to investors of IO BTL.

In the US, they  people basically buy in cash.

Back to the UK, apply a commercial spread onthe money, make the loan amortising and poof! 90% of the BTL market goes under water, implodes

Inthe UK, theres always been cash buyer LL buying benefit houses in cheap locations.

Providing its regulated and above board I have no issue.



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On 03/11/2018 at 17:33, Habeas Domus said:

promoting homeownership as an investment strategy is a risky proposition.

A property should be a home never an investment.  It does not matter if prices go up or down in value if a person is not intending to move.  If it did go down and I did move the new property would also be less so it would not be a big deal. 

I guess the only way it should be seen as an investment is if a person owns there own home they will not have to cover rent costs from their pension later in life.  

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  • 152 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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