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Topic: Re:Re:Re:Re:Re:Re:Re:Mad property prices
Posted by: Adrian Irving
Date/Time: 08/08/14 15:11:00

What makes my blood boil is how the media and the vast majority of property owners see house price rises a good thing and even a slight† fall is nothing short of a disaster.
In reality very few people benefit from high house price inflation. We think we do because thatís what everyone tells us to think.

Say your property goes up 10% a year and was worth a million at the start. Great, you made £100,000 without even getting out of bed, right?
Wrong. Very wrong. Itís only in theory, you canít spend it and it may all evaporate in the next market price correction.

All that has happened is the gap between your existing property and the next you buy has widened probably so much you canít afford to move and even if you can† you will have to take a bigger mortgage and pay even more Stamp Duty. Effectively you are worse off and the only big winners are the banks and H.M. Taxes.†

First time buyers are left in the dust but all we do is come up with half- baked measures such as Help to Buy.

OK, if you are downsizing you will be better off but† after you have done the maths and taken into account the cost of buying and selling you will probably be in for a bit of shock as to how little you are left with.

I am no wizz kid economist but I have been in the property game a fair old while and I canít help but think it all started to go horribly wrong when the Buy to Let mortgages became available. Ask me why and I would struggle to give you a clear answer† but there is no doubt that before Buy to Let people looked on property as a place to live.

Now all we can think about is investment, investment, investment! The Banks and Building Societies chucked money at people wanting to become Landlords who in turn wanted to squeeze every last penny out of their investment thus pushing up both rents and property prices.
As an agent, even family buyers often ask me ÖĒ is it a good investment?Ē I smile and say there is no better investment in life than buying a home for your family.
Arh, you say, you agents stoke up prices so you are part of the problem. Partly true but in reality agents spend a great deal of their time trying to get their stock at sensible prices so that it will actually sell and we certainly† canít control market forces.

What does the future hold? Good question. My advice is donít listen to what I think† or anyone else for that matter. Take a good pair of† binoculars and scan the financial horizon for yourself to see whatís coming and plan accordingly.

Entire Thread
TopicDate PostedPosted By
Mad property prices08/08/14 12:29:00 Andy Pease
   Re:Mad property prices08/08/14 12:38:00 Andrew Cumming
      Re:Re:Mad property prices08/08/14 12:56:00 Pete Mayes
         Re:Re:Re:Mad property prices08/08/14 13:18:00 Andy Pease
            Re:Re:Re:Re:Mad property prices08/08/14 13:32:00 Vanessa Smith
      Re:Re:Mad property prices08/08/14 13:38:00 Pete Mayes
         Re:Re:Re:Mad property prices08/08/14 13:52:00 Andy Pease
            Re:Re:Re:Re:Mad property prices08/08/14 14:08:00 Russell Pearson
               Re:Re:Re:Re:Re:Mad property prices08/08/14 14:39:00 Kim Rugg
                  Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 15:07:00 Claire Moran
                     Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 15:11:00 Adrian Irving
                        Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 15:21:00 Pete Mayes
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 16:04:00 Adrian Irving
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 18:30:00 Anton Hirschowitz
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 18:45:00 Pete Mayes
                        Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 15:23:00 Micki Hawkes
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 15:26:00 Pete Mayes
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Mad property prices08/08/14 15:27:00 Pete Mayes
         Re:Re:Re:Mad property prices08/08/14 16:58:00 Andrew Cumming
      Re:Re:Mad property prices08/08/14 15:29:00 Flavio Zanrosso
         Re:Re:Re:Mad property prices08/08/14 15:52:00 Andy Pease
            Re:Re:Re:Re:Mad property prices08/08/14 16:17:00 Micki Hawkes
               Re:Re:Re:Re:Re:Mad property prices08/08/14 16:24:00 David Roberts
               Re:Re:Re:Re:Re:Mad property prices08/08/14 17:08:00 Pete Mayes
   Re:Mad property prices08/08/14 16:40:00 Chris Martin
      Re:Re:Mad property prices08/08/14 17:30:00 Gail Busza
         Re:Re:Re:Mad property prices08/08/14 17:36:00 Pete Mayes

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