UK House Prices.

[IceThor]

What I'd recommend is that you time the purchase of your 2nd property. ie Save up deposit now to buy number two when the crash comes your way. I recall back in 2008/09, mortgages were very hard to come by unless you put down 40%. You can then sell the first one when market recovers and await your time to invest your cash for the subsequent crash.

That's assuming housing market does crash in the UK, which I do not think so due to fundamental infrastructure reasons. What you suggest occurred in Ireland and Spain with total over building - excess supply. However, UK market significantly different with much stricter planning controls on land. We have excess demand. House prices, like wages are sticky downward. People will prefer to stay put rather than absorb loss. i.e. much like holding on to losing trades.

Good luck but don't hold out too long if your plan doesn't materialise in good time imo. 👍

I have a large deposit already 🙂

 

[J Livermore]

Mrs. timsk and I put our rental cottage (aka our pension) on the market last Tuesday. By the end of play Friday we had 16 viewings booked - one of which is a 2nd viewing. We're selling because we know that in 'normal' times it's a very difficult property to sell - for reasons I won't bore you with. Assuming we do get a buyer, we'll then be left with the 1st world 'problem' of what to do with the money. I'm tempted to play IceThor's game, but I'm worried about rampant inflation kicking in and even if/when there is a crash, property prices (although lower in real terms) will make the proceeds of our sale look like chump change. So, any suggestions from the great and the good on here would be much appreciated!
Tim.

Hi timsk,

I’m only an ok investor as I feel more comfortable trading but here is my two cents (or less) worth of advice:

You should spread your retirement money among different asset classes. Especially if you are expecting financial calamity in the UK. For instance, would you be interested in owning any foreign currency as a buy and hold investment? If so, would you ever consider opening a Swiss bank account and putting a small percentage of your retirement funds in francs? You won’t earn much (if any) in interest but when a wrecking ball swings you are really out to preserve wealth and not try to profit from it. At least you’d have some liquidity. Especially since calamities don’t arrive when expected.

Another idea I came up with which I like better are antiques and collectables. Here the choices are wide open and run the gamut from middle class affordability to for the rich only. Some of the many choices include antique cars, coins, stamps, furniture, model trains, ect. Antiques hold their value and over time, if you keep them in good condition, will appreciate in value. Almost any collectible that is old enough and in short supply should go up in value over time.

For myself, if I had cash that I didn’t need for years, I’d go with the antique coins because they are easy to keep in a safe deposit box. Just some food for thought.

 

[IceThor]

Had an offer for my house that we accepted so hopefully it will all go through 🙂

 

[Atilla]

On a month-over-month basis, home price growth declined to 1.8% from 2.3% in April.

• Annual house price growth rises to 10.9%, the highest level in nearly seven years
• Prices up 1.8% month-on-month, following a 2.3% rise in April
• New record average price of £242,832, up £23,930 over the past twelve months

 

[IceThor]

We probably overpaid for our house but we won't be selling for 20+ years anyway

 

[Atilla]

We probably overpaid for our house but we won't be selling for 20+ years anyway

I reckon you will move anytime between 7-11 years if not sooner. Just a feeling.

 

[IceThor]

I reckon you will move anytime between 7-11 years if not sooner. Just a feeling.

haha why do you say that??

 

[Atilla]

haha why do you say that??

Not many people stay in any one place that long. Probably age related and averages may move but to suggest you'll stay in one place for 20+ years sounds like a life sentence to me.

What have you done wrong? 😉

 

[Farm Yard Forex]

I read the other day that the average first time buyer deposit in the UK is now £57k! That's absolutely ludicrous!

 

[Atilla]

I read the other day that the average first time buyer deposit in the UK is now £57k! That's absolutely ludicrous!

It could also mean people are richer and have more money!

 

[Jungletrader]

That's scandalous mate !!
How do they expect people to have that capital I meanni understand the Supply Demand scenario but still shocking

 

[IceThor]

Not many people stay in any one place that long. Probably age related and averages may move but to suggest you'll stay in one place for 20+ years sounds like a life sentence to me.

What have you done wrong? 😉

AH lol...well we have lived in many places but what we bought is a 6 bedroom house and a forever home for us and the kids

 

[IceThor]

That's scandalous mate !!
How do they expect people to have that capital I meanni understand the Supply Demand scenario but still shocking

Big deposits are needed I guess

 

[IceThor]

In the UK, houses are pretty expensive. My wife and I tried to find cheaper options, but we needed furniture because we didn't have our own at the time. In this business, there are two options where you can go, namely private individuals or real estate agents. Individuals can bargain with you for a more loyal price, but those options are not as lovely and exciting as those that can offer you agencies. That is where we went because we found on the site of one agency a charming and very comfortable apartment. We liked it immediately, and so we bought it the same evening.

Yeah UK is very expensive in the South West

 

[WalletInvestor]

It could also mean people are richer and have more money!

Or it could be the result of mortgage rate cuts made since the beginning of the pandemic.