Jump to content
House Price Crash Forum
Once in a lifetime

Investors Warned To Avoid Property

Recommended Posts

http://news.ft.com/cms/s/589049a8-9522-11d...00779e2340.html

Investors warned to avoid property

Investors should steer clear of buying UK properties for the next few years, the head of real estate at HSBC Private Bank has warned.

Willie Gething, managing director of property at the organisation, said the market - with the exception of London - looked like a bad bet, in terms of net yields and likely price increases.

The group has started advising clients against investment in property, both residential and commercial, in most of the UK. Instead, said Mr Gething, they should be allocating their money to international indirect property funds, which offer higher returns and a wider spread of risk.

Share this post


Link to post
Share on other sites

Pity they weren't stating the bleeding obvious last June when the market turned in the first place.............

Where is TTRTR when you need him?

3% yield?

Surely some mistake?

TTRTR has stated loud and clear for the past two years that he (and his many HPC alter egos) is making a killing of at least 55%yield on all of his inevestments and his tennants keep pushing him to raise the rents as he is such a decent landlord?

Sweden? Sweden? :lol:

Share this post


Link to post
Share on other sites

Net yields - the annual rental return on a building - are in some parts of the country as low as 3 per cent, lower than the cost of borrowing.

Thousands of investors are, nevertheless, still taking on big debts to build up large property portfolios. "People in Britain are still out there buying their flats on 98 per cent leverage, which is fine in the current interest rate environment, but if interest rates move up their investment becomes negative," said Mr Gething. "These buy-to-let investors are still fighting last year's war."

What an eyewateringly poignant article. No spouting of the the usual bull arguments defending property at current prices, but just simply stating that at today's prices property is very unlikely to go up appreciately further because the fundamentals are so bad, and therefore property makes a very poor investment going forward.

Share this post


Link to post
Share on other sites

For the simple investor (and bearing in mind that you will get a trickle of money coming in, rather than enough to buy a house all in one go) there doesn't seem much difference to me between this TTRTR bloke who buys property throughout the property cycle, and the investor who buys FTSE trackers throughout the shares cycle. they both end up with an average portfolio and are averagely happy with their average returns. If you are dedicated to property and understand it (or think you understand it) then it may be better to do this than keep switching in and out adn therefore getting stung on fees/tax etc.

Share this post


Link to post
Share on other sites

For the simple investor (and bearing in mind that you will get a trickle of money coming in, rather than enough to buy a house all in one go) there doesn't seem much difference to me between this TTRTR bloke who buys property throughout the property cycle, and the investor who buys FTSE trackers throughout the shares cycle. they both end up with an average portfolio and are averagely happy with their average returns. If you are dedicated to property and understand it (or think you understand it) then it may be better to do this than keep switching in and out adn therefore getting stung on fees/tax etc.

Ahhh at last TTRTR returns to HPC!!!

How are you oh 'impish' one?

What webs we spin eh TTRTR? :-)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.