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Golden Shower

Money Going Into Property

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Sorry, people have always had to do this in the early stages to get on the ladder.

But I agree, property is overpriced today and we are heading for a fall. High Rates will make sure of that.

But not yet, its too early you will have to wait a while longer at least 18months.

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I found a graph yesterday, was going to post it (part of a review of the housing market). It had relative graphs of % of income going towards housing both for FTB's and OO's trading up, both looking to be just as much in the mire from the graph.

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The money does not disappear from the ecconomy. You buy a house from someone and give them loads of money. This goes up the chain to the person who is dead or downsizing. In this case they or their kids have loads of money to spend in the ecconomy.

You are now paying off your mortgage. Most of this is interest repayments, which go towards the paypackets of the bank staff and the dividends of the shareholds, therefore going back into the ecconomy.

The only money which is not finding its way back out into the ecconomy is the repayment on the loan, but as we are only 5 years into the housing boom, this is a tiny part of the repayments on mortgages from the boom properties.

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Sorry, people have always had to do this in the early stages to get on the ladder.

But I agree, property is overpriced today and we are heading for a fall. High Rates will make sure of that.

Sorry, not been able to read all of the site if this is an old one - but do you consider that to be a national trend, or localised in those places that went mental in 2001...... ? Bizarrely, the more expensive parts of the country (historically) have gone up little in the last three.four years, places like Fulham, the 'better' bits of W London, Home Counties and the like - the surge has not been at the top of the market, it's been a compression at the bottom in those areas - it's raised the floor, not pushed the top quite so hard.

It's the places outside the higher wages that don't have the ready jobs available that will go first, BTL will retreat to behind their gates and ride it out, the biggest casualties wil be those with little equity who pushed to buy and (often) bought unwisely, maybe because of FTB naivety, maybe because they wanted a house that suited them but would not really be as saleable in a flat or down market, a property with too many compromises. The slack will get taken up and masked by BTL lemmings, by that I mean the ones that dived in with no idea of that the hell they are doing, or a strategy that made money because the market moved, not because they made money, like they have all over London since 2001, they will have more chance of losing a packet than making it.... - once they buy in at the top, if the snowball starts rolling, they will then have increased exposure on their own house, etc. etc.... all it takes is job losses all over the place and down they go..... but the professionals who managed risk and the sensible people will still probably make money.....

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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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