How far will house prices fall [volume 4]
Discussion
Mr Whippy said:
But everything is finite.
Speculate, growth, peak, correction, speculate, growth etc etc.
Where are we on the curve. I'd say a very big top, or a very wide bottom... which one is up to you to decide.
Indeed, that is true. Who indeed knows.Speculate, growth, peak, correction, speculate, growth etc etc.
Where are we on the curve. I'd say a very big top, or a very wide bottom... which one is up to you to decide.
Everything is indeed finite, except money, they keep printing the stuff. With the EU looking like it will take significant QE steps next, then i think the money will keep flowing into the system for some time yet, and thus I think there may be more hard asset price growth.
We shall see.
Yeah I agree.
They either inflate the economy to make money less valuable, or they just print more money to do the same.
Difference being with inflation you get a return in a bank account to balance it out. With QE you don't
In that case then buying stuff that is useful (ie, stuff that doesn't depreciate hard) with the money seems a better approach.
Dave
They either inflate the economy to make money less valuable, or they just print more money to do the same.
Difference being with inflation you get a return in a bank account to balance it out. With QE you don't
In that case then buying stuff that is useful (ie, stuff that doesn't depreciate hard) with the money seems a better approach.
Dave
fishballs said:
9mm said:
Interest rates will go up
When they do, rents will not increase to the same extent
Some landlords will find themselves paying for their tenants' accommodation
Some landlords will have to bail
More property will come onto the market
(Affordable) housebuilding will increase
Valuations will decrease
I think the only real question is the extent to which each of the above will happen. My only interest would be in whether I can rent my properties as I would have no mortgages on them. Capital appreciation, which seems to be the get out of jail card for a lot of people, is of no interest to me whatsoever, as I have no interest in >2035. Quoted yields seem like a bit of a joke to me, as they never never appear to take into account things like repairs, maintenance charges, periods where the property is unoccupied, tenancy disputes, unpaid rent, etc.
All of this just tells me that BTL is a possible investment but it's a very long way from a universal and guaranteed solution. Not sure I see any kind of catastrophic crash ahead but I can foresee a period of unpleasant stagnation.
Most of what you have written is pure speculation. The fact is we are in a very benign interest rate environment with low inflation. You won't see 10% interest rates again in your life time would be my best guess. Affordable housing will always lag the demand for teh simple reason there is more money in not so affordable housing. BTL are simply part of a well balanced portfolio. By the way some posters are carrying on they are preparing for WW3 and alien invasion.When they do, rents will not increase to the same extent
Some landlords will find themselves paying for their tenants' accommodation
Some landlords will have to bail
More property will come onto the market
(Affordable) housebuilding will increase
Valuations will decrease
I think the only real question is the extent to which each of the above will happen. My only interest would be in whether I can rent my properties as I would have no mortgages on them. Capital appreciation, which seems to be the get out of jail card for a lot of people, is of no interest to me whatsoever, as I have no interest in >2035. Quoted yields seem like a bit of a joke to me, as they never never appear to take into account things like repairs, maintenance charges, periods where the property is unoccupied, tenancy disputes, unpaid rent, etc.
All of this just tells me that BTL is a possible investment but it's a very long way from a universal and guaranteed solution. Not sure I see any kind of catastrophic crash ahead but I can foresee a period of unpleasant stagnation.
Justayellowbadge said:
Mr Whippy said:
I wonder what people would have written on Pistonheads in the late 38's and early 39's.
Dave
The Rover 14 is rubbish.
Has anyone tried this new fangled telegram dating? I'm so lonely.
There would also be a "British Union of Fascists - The Future" thread where people would be defending Oswald to the death as just the sort of plain speaking bloke we need, whilst decrying "Call me Nev" Chamberlain and the gurning union puppet, Clement Atlee
Higher wages would be immediately offset by higher price of goods/services though... otherwise where does the money come from.
So you earn more, pay more tax, but have the same relative expenditure.
Things won't move properly until the economic markets correct naturally, rather than being tampered with causing all sorts of weird distortions and influences, both good and bad.
Dave
So you earn more, pay more tax, but have the same relative expenditure.
Things won't move properly until the economic markets correct naturally, rather than being tampered with causing all sorts of weird distortions and influences, both good and bad.
Dave
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