Monday, October 30, 2006

House price gains vs. Stock market

House prices thrash stock market rises

In this VI inspired report we are shown just how wild house price rises have been relative to share price rises over the last ten years. Aren't they just saying that HPs are expensive and shares are relatively cheap now and will probably give better returns than property? Quote: "However, prices increases seen in the past decade are unlikely to be repeated in coming years because of affordability constraints. House price growth closer to earnings growth seems a more likely trend." So shouldn't investors should look elsewhere?

Posted by tinecu @ 03:50 PM (578 views)
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3 thoughts on “House price gains vs. Stock market

  • lol.

    It’s like safety in shipping. you draw a line after the titanic and count form there.

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  • x sigh x How many times do I have to say this. Investors should definately look elsewhere if they are wanting a short term investment but if they are wanting a tax free savings vehicle and excellent long term investment then you can’t beat property. Anybody investing for a short term profit just now needs their head checked unless they are a very experienced property developer.

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  • I think that it’s a totally valid point. property is great for long term investment. The problem I think is that the market currently is unregulated so any donkey who can apply for a BTL loan can become a landlord. the stock market is slightly more complicated and the tax is well, err taxing. I think this is why people stay away from it. (most people’s understanding is from wall street et al and no nothing of having a proper portfolio)

    However I don’t think property is tax free. you still have to pay CTG when you sell the place, and most BTL’s these days seem to want to buy a place to rent it out at next to no profit, because when they sell in 3,5,10 years time property prices will have gone up…

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