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If house prices fell by 30-40% or even more, I imagine most of you ftb would buy.

The question is would you buy if HPI was linked to inflation, say 2-4% a year and not dependant on market forces, therfore no upturn after the crash.

Do you look at property as a place to live or that plus a nice little earner.

Honest answers appreciated.

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Guest wrongmove
Do you look at property as a place to live or that plus a nice little earner.

Honest answers appreciated.

I want a bit of value initially - not a killing, just a smaller mortgage, or a better house than currently available. After that, index linked house prices would be perfect. Nesting, not investing, is my motivation. I just want a better/cheaper nest.

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If house prices fell by 30-40% or even more, I imagine most of you ftb would buy.

The question is would you buy if HPI was linked to inflation, say 2-4% a year and not dependant on market forces, therfore no upturn after the crash.

Do you look at property as a place to live or that plus a nice little earner.

Honest answers appreciated.

of course! You should have done this as a poll, i bet the figure would be something like 90%.

the majority feeling amongst renting friends is the desire simply to have a home wher they are not worried about every little scratch, where they can make it theirs, and not be worried about when they will be "moved on"

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It's somewhere to live and is only cashed in once you are dead.  The fad for viewing domestic property as an 'investment' or an 'earner' will pass once the reality becomes apparent.

<{POST_SNAPBACK}>

You've hit the nail on the head Mr. M

It's a shame we're in the sitaution where a home has more value as a finacial investment than a home for you and your family

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Home. Don't care much about making money, thats what I go to work for. The ONLY way to make money from you 'home' is to STR. I may well have a property which increases by 50k in value over a couple of years but to get the cash I only have a couple of options

1) sell it and move to another house, I'd need to downsize of course to get the equqity because the same property will cost me the same money releasing nothing. DO I want to downsize?

2) remortgage up to current market value. But tehn I haven't eanred 50k, I've borrowed 50k, very different!

NO I'm afriad its very difficult to make real money from your home even in a hyper-House price inflation time.

When I buy next year I will be buying a home, what is important is that I like the place and that in 25 years when I'm 52 its paid for.

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It's somewhere to live and is only cashed in once you are dead.  The fad for viewing domestic property as an 'investment' or an 'earner' will pass once the reality becomes apparent.

why do you want to trade up then GM? surely you could make do with where you are? you don't ''need'' another house do you?

bigger and better is what you are after, just like the bulls who got the market where it is in the first place. ;)

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why do you want to trade up then GM? surely you could make do with where you are? you don't ''need'' another house do you?

      bigger and better is what you are after, just like the bulls who got the market where it is in the first place.  ;)

I don't think it is the bulls who have pushed the market up. It's the people who are suckers, who are scared and greedy. People who believe what estate agents tell them. Fearful people who are going to get hammered once they realise what fools they have been.

I cannot say that I have come across a property bull for ages. Well not a proper one who understands economics :P

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Thanks for replies.

So if we have a situation where the market dips and people buy their fist place, that is good news for them.

As educated and seemingly pretty sharp people you would no doubt consider buying two at near bottom of the market as this makes sound financial sense, as property is the ideal investment vehicle, it is tangible, has steady and sometimes remarkable capital growth and a good monthly dividend.

We all work for our cash and it is nice to get a little help from investments so my point is, fine buy your flat/house at the bottom of the market, great fundamentals, but only a fool would not consider the upside of the next five-ten years at this stage.

If we do get a 30/40% drop, you would probably see anyone will ability to raise cash jumping in, and the next boom would see a greater have/have not scenario than now with more rented accommodation and less about to buy.

Markets eh!

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property is the ideal investment vehicle

No it's not.

has steady and sometimes remarkable capital growth

No, this is what is has had in the PAST. Past performance does not guarantee future returns, etc

a good monthly dividend

Not necessarily, and certainly not at the moment.

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So if we have a situation where the market dips and people buy their fist place, that is good news for them.

As educated and seemingly pretty sharp people you would no doubt consider buying two at near bottom of the market as this makes sound financial sense,

If we do get a 30/40% drop, you would probably see anyone will ability to raise cash jumping in, and the next boom would see a greater have/have not scenario than now with more rented accommodation and less about to buy.

Markets eh!

Do you really think this? If so, why did it take until 1995 for the 1989 crash to pick up, and 1999/2000 for prices to finally get back to their 1988/9 levels.

Trying to time the bottom of the market is very difficult. If 40% comes off, and it will not be a 'drop' it will be a grindingly slow spiral down over many years, with loads of bear rallies, 'green shoots of recovery' and false dawns, all the way down to the bottom.

I think you are bringing a bit too much text-book theory or wishful thinking to this thread.

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errrrr is'nt that what bears do?  :lol:

What? are you telling us that house prices have not started to fall, even though the Nationwide, Halifax, RICS, Gordon Brown, B0fE, etc, etc, etc have all voiced concerns that prices are indeed going down, and will continue to do so over the next couple of years.

Come on BBB, you cannot deny it.

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What? are you telling us that house prices have not started to fall, even though the Nationwide, Halifax, RICS, Gordon Brown, B0fE, etc, etc, etc have all voiced concerns that prices are indeed going down, and will continue to do so over the next couple of years.

Come on BBB, you cannot deny it.

lighten up, i'm just pulling your leg.

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Guest wrongmove
We all work for our cash and it is nice to get a little help from investments

Historically, shares have done better. Recently, housing has been good, and shares poor, but over any long period, shares have done best, followed by property, followed by cash.

A basket of shares is much easier to look after, doesn't ring you up at midnight with a broken boiler, and has a yield, as well as potential capital growth. Leverage is also available for the more daring.

Housing may be at its highest point for many years to come. Demographics do not look good, long term, unless we ramp up immigration sharply over the next couple of decades or so. The baby boomers control the riches now, but they are aging. There is not another demographic bulge to replace them. This can only come from higher immigration.

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  • 442 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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