@mudshark the return on equities hasn't even been close to property. I put a chunk of money into my pension around the year 2000 and the ftse 100 is pretty much at the same level today, zero return apart from the tax break. Property has more than doubled and that's on an un-leveraged basis.
Looks like the housing market is off again...
Time in the market, not timing. Reinvest dividends.Check where that strategy would have got you if you'd invested in the Japanese stock market when their housing market was similarly overpriced. 25 year on you'd be 60% down.
Markets are all about timing.
I persuaded my then girlfriend to sell her house in 1989 against the advice of her family and friends
We lived in rented accomodation and invested in shares throughout the 90s buying property in 95, 96, 99 and 2000 when prices were as low as they got here.
The last property purchase was made by selling our entire share portfolio against every bit of advice I got in March 2000. I was advised to borrow half the money to retain a share portfolio.
Since then I've sold one property and dabbled without conviction in the stock markets but have done no better than our fixed term investments.
tbh the more national this bubble goes and the quicker it goes up, and the more people are affected by it - including the lawyers and the bankers, the more likely a) BoE will have to step in and increase rates b) the more of an electoral liability it becomes, rather than an asset - and therefore puts pressure on Gideon to stop ruining people's chances of owning their own home.
All it will take will be a suspicion of the bubble bursting and sentiment could change very quickly...
Very idealistic but i suspect youl be waiting a while.
heres a classic example of why things will only get worse...
Britain’s bankers will have been delighted with the appointment of Andrea Leadsom as City minister.
She also assumes the brief for George Osborne’s “help to buy” scheme, currently boosting values of houses across Britain and thus of her own investment portfolio.
In 2003 the high-earning Leadsom and her husband Ben – also an ex-Barclays banker now running an algorithm-based trading company – set up Bandal Ltd to invest in £1m worth of buy-to-let properties in Oxford.
How do you do it? How do people afford to live in these places? Did you all just have the foresight to buy property in the 80s when they were giving houses away with Green Shield stamps?
I did buy my first property in the mid 80's. It felt expensive and we needed two incomes to buy it. it was £75k and the bigger houses opposite where £100k and we wondered how we would ever afford that. 3 friends of mine bought a three bedroom flat clubbing all their incomes and savings together (this was in 1984). The point your first property has always been a stretch.
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