Housing a store of wealth?

[rockerboy]

With shares collapsing, Low Interest rates and a slump looming (increased taxes?), which is the better store of value in the long term- Gold or a house (owned outright)?

 

[hurlerontheditch]

3 minutes ago, rockerboy said:

With shares collapsing, Low Interest rates and a slump looming (increased taxes?), which is the better store of value in the long term- Gold or a house (owned outright)?

 

depends on your timeframe

[winkie]

I would say health and peace of mind.

[Will!]

A house has utility value - you can live in it.

[winkie]

15 minutes ago, Will! said:

A house has utility value - you can live in it.

That is why they were built.....only recently have they become a commodity to gamble with....or should I say betting on land.

There are still more reasonable value homes about, all homes are four walls, the location is important, like how safe feel in an area, community, how clean/fresh is the air, connectivity etc.......if fussy about the type of work or salary you want will have fewer choices.......all people everywhere have wants and needs, wants and needs means there will always be  jobs to do.

[stop_the_craziness]

2 hours ago, winkie said:

I would say health and peace of mind.

The ultimate “don’t know what you’ve got ‘til it’s gone” commodity

[Fromage Frais]

2 hours ago, winkie said:

I would say health and peace of mind.

If everything truly goes to shit.... guns

A house near a water supply land for food and a defendable entrance with enough neighbours to help work and defend.

A castle may be useful

https://www.castleist.com/poa-devon-uk-18th-century-listed-bailey-castle-for-sale

https://www.castleist.com/poa-staffordshire-england-substantial-moated-castle-for-sale

https://www.castleist.com/700k-hampshire-england-historic-sea-fort-for-sale

 

[Locke]

3 hours ago, Will! said:

A house has utility value - you can live in it.

Can you take it with you when you flee a communist dictatorship?

[jiltedjen]

Can’t get the massive loan on gold.

cant get the leverage.

cant live in gold. 

for most I think buying a house is not meant as a massive speculative position, it’s more of a spreadsheet outgoings type calculation. And space considerations 

but gold is a good hedge against a range of situations. 

FTSE100 is a bit of a lame dog.

for me the goal is, no debt, an income I don’t have to work for, and a job I can do part time, or at least have not need to work due to other commitments 

one way of achieving that is to realise what’s actually important and valuable in life, which is not the stuff that actually costs money. to live a humble life. Thus having low outgoings. To always buy quality goods secondhand, never buy rubbish or poorly made stuff that won’t last years, fix things yourself. 

the days of having a car being flash are over, new cars don’t have status they are moron markers for those who take on debt. Classic cars show class, not usually on crazy finance deals, and require owners who actually care for them.

you shouldn’t care about being flash anyway, I find now my ‘status symbols’ of old, are now classic cars, and their worth is much more in striking up convocations than anything else. it’s nice to have a 5 minute chat at petrol pumps with someone who takes an interest. 

driving around in a moron marker white Land Rover just shows you have no class, are antisocial and not very cultured, the type of person who wants to make their single mum mates jealous.

im sat looking at my pension investments and my metals have completely out-shone my stocks and bonds by a massive margin. 

at this snap-shot in time that is.

I am quite annoyed at the FTSE100 performance in general even when not including the recent falls.

personally I think  most in this country hold no trust for the stock markets, and people would rather have property. 

If you ignore the morals of it, it’s starting to seem that property probably is the way to go, but realistically not many people can access houses to rent out which are worth the hassle, as no-one wants to live in a crap 2 bed in the bad part of town. with bad tenants and hardly any rent paid. 

gold is great yeah, but it’s increases can take years, and your not earning an income from it, and you can’t expose yourself to it anywhere near as you can with houses or stock markets.

 

[stuckmojo]

The short answer to that is YES. However, it is not an infinite store of value and not necessarily one which will grow over one's lifetime. Look at Japan. Look at parts of Italy. (and some of the North of England).

To specify, a freehold house without any dependencies, in an area unlikely to become a ghetto or war zone, connected to major trade arteries, IS a store of value. 

A leasehold flat in London is a liability. 

[Dorkins]

A building is consumption just as much as a car is. When LVT is introduced land will become a liability.

[micawber]

1 hour ago, jiltedjen said:

I am quite annoyed at the FTSE100 performance in general even when not including the recent falls.

Why?

"How to interpret FTSE 100 total returns data

Because of the distortive impact of high inflation, it makes most sense to look at inflation-adjusted ('real') returns over longer time periods. Over the last 119 years UK equities have made annualised returns of +4.9% over and above inflation.¹ Therefore, if you think inflation will be 2.5% on an ongoing basis, you might expect your long-term returns to be around 7.5%.

This number masks significant swings in asset values. Over ten-year periods equities have made as much as an annualised +12.4% to -3.5% a year after inflation.

As an investor, making money from the FTSE 100 is dependent on capital returns from share price appreciation and income returns from dividends. Reinvesting dividends is the key to long-term wealth.

For example, the FTSE 100 index closed -2.9% lower in December 2018 than it did in December 1999 – but if you include reinvested dividends, investors would have seen returns of +81.3% over the 19-year period. This is an annual return of 3.18%."

[iamnumerate]

3 hours ago, Dorkins said:

A building is consumption just as much as a car is. When LVT is introduced land will become a liability.

You are very optimistic - there does not seem to be much public desire for LVT.  I would like it - but I would like many things that there is no public desire for.

Edited March 10, 2020 by iamnumerate

[Dorkins]

Just now, iamnumerate said:

You are very optimistic - there does not seem to be much public desire for LVT.

Bubbles end in revulsion, I think by the time we get to the end of this people will be sick of both heavy taxes on wages and expensive land. LVT is the solution to both.

[Patfig]

On 09/03/2020 at 11:46, rockerboy said:

With shares collapsing, Low Interest rates and a slump looming (increased taxes?), which is the better store of value in the long term- Gold or a house (owned outright)?

 

A house of gold...…….... win win