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binkybonka

Be Honest, Would You Have Done It Differently?

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Further to the time machine thread elsewhere.

If you had one now, would you go back to 1995 and do your utmost to beg or borrow funds to buy a property to live (and some to BTL?)

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Further to the time machine thread elsewhere.

If you had one now, would you go back to 1995 and do your utmost to beg or borrow funds to buy a property to live (and some to BTL?)

No - bad idea. I'd buy a load of dot com stocks, then dump them before the NASDAQ crash and buy up a few rows of terraces in South Manchester.

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No, I'd enjoyed the rest of my adolescence as best as I could, confident that come the late noughties house prices would tumble following one of the world's biggest credit/asset bubbles.

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1995 - late oughties is 15 years.

Would you have done things diffo in you adolescence?

Used better quips against girlfriends who dumped me. Get a better haircut. Try and bring my weight under 25 stone. Do less speed.

Definitely buy more tickets for Sound City gigs. That year they were sheer class, the height of Britpop.

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No - bad idea. I'd buy a load of dot com stocks, then dump them before the NASDAQ crash and buy up a few rows of terraces in South Manchester.

Sounds like a plan. Now, where do I get a time machine from?

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In answer to your question my answer is no. I could have done a lot better by using my time machine to pick up a copy of tomorrows Racing Post. Plenty of investments have done much better than property without the worry of capital gains tax

However, what you are saying is that 95 was a good year to buy property and I think we will all agree. Are you saying that 2006 is also a good time to buy? Personally I think it is a great time to sell which is what I am doing. I base this decision on the fact that I can rent 1.5x the quality of property for the same money and in a couple of years time as a cash buyer I expect to buy-back close to 2x the quality of property that I currently own.

Traditional measures of value have a habit of proving correct over the longer term. Just look back to the dot com boom, Psion in this chart hitting >20x profit to those who knew when to buy and - importantly - when to sell. You dont even have to hit the top exactly, you just need to recognise the bubble and sell during it to make a huge profit. Look at the 1 decade view -

http://bigcharts.marketwatch.com/javachart...time=&freq=

Just as a P/E ratio over 20 indicates higher risk (Psion hit P/E of over 1000!), an average house price to average earnings ratio of >3.5 indicates higher risk and yes, as that ratio hits around 7, I am betting the farm that prices will return to the historic averages.

Are you actually buying property right now?

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Guest Bart of Darkness
In answer to your question my answer is no. I could have done a lot better by using my time machine to pick up a copy of tomorrows Racing Post. Plenty of investments have done much better than property without the worry of capital gains tax

Or travel back to a lottery rollover that wasn't won that week and went to a triple.

Except that this time it wouldn't.

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  • 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%



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