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Ftse Below 5500 Now...

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p/e - this is price versus earnings? That can be used with houses to prove over-value perhaps? ie the cost to rent a house versus the cost to buy it? Help me out here!

It most certainly can. I've used it to justify not buying a house since 2004.

If you do the sums - provided you don't place a massive financial value on staying in one particular house for many years - and you're happy not to do a lot of DIY - then it will likely turn out that renting costs half what buying would cost. My own calculations have seen renting costing somewhere between one and two thirds as much as owning an equivalent residence...

I still want to own - even if it is (a little) more expensive... but I recognise that as sentimental bias. For example, I'd be willing to pay the additional cost of maintenance for the satisfaction of ownership and my choice of d├ęcor.

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the trouble with the ftse is that it is littered with monopolies and companies that always do well.Oil companies, banks, energy ect.These companies generally set there own prices for the goods and services.This is why in such shaky times the ftse keeps having spikes.Inflation is generally good for these.When everyone else that needs to compete are going down the tubes these companies just moan of costs and up your gas,electric, oil, petrol, intrest rates.Anyone else has to take the hit.

other indices are far better suited for a better picture of the economy, these are the retailers and garages and carpet shops and estate agents and builders ect.

The whole country could be going to the dogs but the ftse would just keep rising as they keep adding another 15% to your bill.

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  • 292 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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