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cavafys

Madness ? Paranoia ? Or Reason ?

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Hi there,

I' am new to this forum.

I bought a 1/2 of a house (other half owned by housing association) during the 1990's for 26K

As it is in a prime location, now it costs a minimum of 88K (55K PROFIT)

I am beginning to really really worry of what I see as a coming financial meltdown and I am trying to see what I can do to protect my family.

Questions.

i) Shall I sell my house and rent ?

ii) If I sell and go on the Rent what would be the most solid investment from a preservance of wealth perspective ?

iii) If economy melts what is a better possition ? 1/2 housing association house on a low mortgage, or 50.000 in the bank and renting ?

iv) how can I make sure that if economy tanks my 50 K doesn't turn to worthless paper

Edited by cavafys

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Hi there,

I' am new to this forum.

I bought a 1/2 of a house (other half owned by housing association) during the 1990's for 26K

As it is in a prime location, now it costs a minimum of 88K (55K PROFIT)

I'm not having a go at you but what's the point of shared ownership, you have enjoyed 50% of the increase whilst everything else has inflated up and away. You need to live somewhere and what sort of house can you buy for £55k or £88k? It just becomes a notional figure on a bit of paper, the average property price will not fall to that level. In the 90's that £26k would have been better spent on a deposit on a discrete private property.

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If the house is worth 88k then you only have 18k profit since the HA own half of the profit too.

if house prices crash its in your favour since the HA half of your house is going to be cheaper to buy

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Hi ya, its my half of the house that costs 88 k .

Too late to sell now. Just be thankful you have a roof over your head and you haven't got a gaint debt that will get more and more expensive to service as IR go up.

;)

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Hi there,

I' am new to this forum.

I bought a 1/2 of a house (other half owned by housing association) during the 1990's for 26K

As it is in a prime location, now it costs a minimum of 88K (55K PROFIT)

I am beginning to really really worry of what I see as a coming financial meltdown and I am trying to see what I can do to protect my family.

Questions.

i) Shall I sell my house and rent ?

ii) If I sell and go on the Rent what would be the most solid investment from a preservance of wealth perspective ?

iii) If economy melts what is a better possition ? 1/2 housing association house on a low mortgage, or 50.000 in the bank and renting ?

iv) how can I make sure that if economy tanks my 50 K doesn't turn to worthless paper

I believe there will be a house price crash, quite soon. However, in your situation, I think I would look closely at the disadvantages of selling to rent. In effect, you are half renting now. It's quite likely that the housing association's rent is significanly lower than commercial rates of rent. You will also lose security of tenure. If you sell to rent you could be kicked out of your home at a few months notice. Not so bad if you are single, very disruptive if you have a family.

You say also that you are in a prime location, though the actual value of your home is 176K (that's 2X88K). If you rent, you may not be able to find somewhere pleasant that's also inexpensive.

50K isn't a huge amount of cash in today's environment, so I would think long and hard whether it was likely to be worth it. If you are in a situation where you sell your home to realise 50K, a building society or national savings instant access account is the best place. Gold for example fell 20 percent recently - I wouldn't be happy speculating without really substantial savings.

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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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