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Dames

An Idea For You All.

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WHAT IS THIS?

A place where people are encouraged to agree to a period of time where they will not buy a house, but continue renting or living in the house they already own. The more people do this, the quicker prices will come down to a normal level. It's basic economics.

Jeez, Americans really are stupid, aren't they? :D Lucky there's nobody that daft over here. :rolleyes:

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If ALL FTBs went on strike the housing market would crash within a week.

What do you mean by 'crash'?

All that would happen is prices would soften to the point at which yields would make it attractive enough for professional landlords to buy up everything that hits the market.

What then?

Well after 2 -3 years (maybe) the 'strikers' will want to buy. And, guess what, they will be competing with FTB's 1-3 years younger than themselves for a diminished supply of property available to buy.

What effect will that have on prices?

The effect is similar to the idea that's mooted from time to time which suggests that motorists should boycott filling stations on particular days. All that means is there will be queues at filling stations the day (or two) after the boycott. Overall, consumption doesn't drop, so the oil cos. are not worried about such trivia.

Similarly, the propensity to have a roof over one's head (whether rented or 'owned') is, for all practical purposes, 100%.

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What do you mean by 'crash'?

All that would happen is prices would soften to the point at which yields would make it attractive enough for professional landlords to buy up everything that hits the market.

What then?

Well after 2 -3 years (maybe) the 'strikers' will want to buy. And, guess what, they will be competing with FTB's 1-3 years younger than themselves for a diminished supply of property available to buy.

What effect will that have on prices?

The effect is similar to the idea that's mooted from time to time which suggests that motorists should boycott filling stations on particular days. All that means is there will be queues at filling stations the day (or two) after the boycott. Overall, consumption doesn't drop, so the oil cos. are not worried about such trivia.

Similarly, the propensity to have a roof over one's head (whether rented or 'owned') is, for all practical purposes, 100%.

Exactly, and this is what most people on this site ignore. Never before in my lifetime has property investment been so widespread, with the expansion of the BTL market. This will never disappear now, and will always support the market.

There will be no crash - as soon as prices fall, in will come the investors. This actualliy is a new feature or paradigm, if you like.

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Exactly, and this is what most people on this site ignore. Never before in my lifetime has property investment been so widespread, with the expansion of the BTL market. This will never disappear now, and will always support the market.

There will be no crash - as soon as prices fall, in will come the investors. This actualliy is a new feature or paradigm, if you like.

yes 'investors' like to buy an asset thats falling in value ;)

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Good luck with your South Sea Co. shares.

I prefer tulips, myself.

But since the Duke of Westminster isn't selling his portfolio, and Warren Buffet isn't liquidating Berkley Hathaway's portfolio I think I'll follow their example.

Unless you know something they dont?

:unsure:

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yes 'investors' like to buy an asset thats falling in value ;)

I see you're beginning to understand how Warren Buffet made all his money then. :D

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They bought cheap, no doubt. I also doubt they are highly leveraged.

I think you will find that neither of them own any property that was ever cheap.

Sure they both bought right, judged their timing, and walked away from many more deals than they ever entered into. And of course low leverage reduces the overall return on capital employed during times of rapidly increasing prices.

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He didn't buy the 1929 crash 4 minutes in.

Not quite.

He buys businesses, not markets.

He buys businesses that are fundamentally sound when the price is right. Sometimes it takes negative market sentiment to price a business right.

HTH :)

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'Cheap' is a relative term, not a term of disparagement. I've bought fabulous places 'cheap'.

I said they 'are' not highly leveraged. No doubt they 'were' highly leveraged when it was appropriate (during the boom).

I can't disagree with either of those points.

I think we're about to start vigourously agreeing! :D

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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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