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Realistbear

Latest Survey Reveals 12.1% Of B T Lers Want Out

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If house prices were to fall, would you sell your residential

property investments? (Q.11)

Getting on for nine out of ten respondents to this question (87%) said

they would not sell their residential property investments if house

prices were to fall with more than another one in ten (12%) being

unsure whether they would or not.

Only a tiny minority of 1.5% said that they would sell their residential

property investments if house prices were to fall.

This does not surprise me - a classic emotional response. It is a similar story in the stock market. Many private punters just hang on to loss making trades hoping that their investment will bounce back and in the meantime it just falls lower and lower. It is important with any investment to divorce yourself from emotion and be prepared to admit when you've got it wrong.

It's actually a silly question because it assumes a fall has already happened without stating to what degree or time period it applies. I suggest they insert the word "about", so it would read "If house prices were ABOUT to fall, would you sell your residential property investments?" I suspect the result would then be very different. ;)

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Does that mean 87.9% want to stay in - worrying!

If 12.1% tried to sell it would cause a massive flood of properties onto the market. Imagine 12.1% od all property coming onto the market at one time. Panic would spread and cause more to join the rush. If 5% tried to sell it would create havoc.

Edited by Realistbear

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More RB spin. Unfortunately this only boosts the position of the VI's who can point to thread headlines like this one and show geniune bearish bias as unhelpful as their own property can never go down rubbish.

12% said that they would "consider" selling. Therefore some proportion might do so. Hence 12% would not bail out on the basis of this survey, maybe 5% would.

I do agree that this survey was asking the wrong question, and that in the presence of actual falls, the answers given might be quite different.

Initially maybe only a few would bail out. The question is what would happen over a prolonged period of falls if this was accompanied by a less "nice" economy than the one we have at present.

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If 12.1% tried to sell it would cause a massive flood of properties onto the market. Imagine 12.1% od all property coming onto the market at one time. Panic would spread and cause more to join the rush. If 5% tried to sell it would create havoc.

Yeah, we just need enough to get to a critical mass of sales. Once people get wind of prices dropping substantially it could lead people to try to cash in.

Of course many BLT are in it for the long term, but if prices start to fall their sources of tennents will dry up and if rates go up then some will be forced to sell - half of them will no doubt end up wingeing on the BBC about it not being their fault but I will not care and will just laugh at them, as they have been laughing at people like me for the past couple of years! ;)

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More RB spin. Unfortunately this only boosts the position of the VI's who can point to thread headlines like this one and show geniune bearish bias as unhelpful as their own property can never go down rubbish.

12% said that they would "consider" selling. Therefore some proportion might do so. Hence 12% would not bail out on the basis of this survey, maybe 5% would.

I do agree that this survey was asking the wrong question, and that in the presence of actual falls, the answers given might be quite different.

Initially maybe only a few would bail out. The question is what would happen over a prolonged period of falls if this was accompanied by a less "nice" economy than the one we have at present.

More spin there 2mB!

The survey asks the Question "in the next 12 months, do you expect to sell some or all of your let residential properties?"

The response from 12.1% was yes. In other words, as my title suggests, that 12.1 would like to get out by selling.

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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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