UK House Prices.

counter_violent

Legendary member
11,267 3,005
Wishing you the very best in selling at what will likely be the top of the market, unless the Government further extends the cliff edge rapidly approaching. There's going to be the mother-of-all depressions when all this plays out and the magic money tree withers.

As you rightly surmise, the problem becomes what to do with the money before it becomes worthless. Or put more correctly, preserving wealth.

I'll happily mull over a range of ideas, suggestions and strategies in an appropriate 'Wealth Preserving Investments' thread, if that's the kind of thing you had in mind. It may well be a useful exercise to explore the options available.

Always with the caveat of course that nothing posted here is financial advice, merely opinion for entertainment, and posters are almost certainly not registered financial advisers and may very well have vested interests in their 'recommendations'.

We would have to see how many would contribute to the discussions. This is primarily a forum of traders rather than investors (not that the two things are exclusive, just that the most frequent* posters seem to comprise of FX and Index traders, more than stock or commodity investors). *Excepting that is, the complete lunatics locked in their own little asylums spewing endless drivel day and night. Which is free entertainment in itself.

Would certainly like to see more wealth management content being actively contributed.

:)
A few of us in the same boat . Thankfully, it's not the Titanic, as that's already sunk !

Wealth management thread is long overdue.
 
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Atilla

Legendary member
19,821 3,091
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.

From my pov, fwiw - if it is (aka your pension) then I suspect you'll want something to store it's value with some nominal growth. Certainly wouldn't like to keep it in cash. You might want to consider splitting it into buying a small property in Portugal as I'm bullish on the Euro. Either way if it doesn't work out you'll have somewhere to stay where it's lovely sunny and warm. If you don't stay there you can always use it as a holiday let to generate income.

Sticking excess monies into ISA's and investing in divi paying good stock an obvious option but limited to small sums in any one year. Thus, might take you a while to squirrel away all your cash into them.

I think buying a small amount of land is probably a good idea too as a store of wealth. I was thinking of buying some woodlands a while back. Still seems like a good idea to me to store value at a low cost of maintenance. Something to pass on to the kids.

Anything else probably need some specialist advice.

Nice sweet spot to be in. I hope you don't blow it away on a mid-life crises or something that comes out of the blue. (y)
 

Atilla

Legendary member
19,821 3,091
Yeah tbh I am just going to do what I am going to do anyway. If it works out like this bonus, if not then I am prepared anyway.
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. (y)
 

timsk

Legendary member
7,600 2,375
Nice sweet spot to be in. I hope you don't blow it away on a mid-life crises or something that comes out of the blue. (y)
Thanks At' - no chance of that happenning as, sadly, that ship sailed a while back! Interesting that you recommend buying property in Portugal given your views on Brexit - I'm quite surprised at that. As it happens, about 15 years ago, we came to within the width of a gnats cock (an old printing expression) of buying a flat in Malaga - a city we love and know extremely well. Along with my middle age - that ship sailed at about the same time. As you rightly say, preserving the capital - or storing value - is as much a concern as the interest/return on investment.

Thanks again for your reply.
Tim.
 
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new_trader

Legendary member
6,665 1,489
I have directly owned investment properties a few times in my life and as far as I'm concerned, never again. The last one was sold a few years ago which was a shared ownership with family members. My investment philosophy now is carefree investments. I only invest in property via ETF's and investment trusts. No concerns about insurance, maintenance, rogue tenants, this headache or that headache...just a lovely, regular dividend payment. Plus, if you ever need some money you can easily liquidate a small portion, you can't do that with property. Warren Buffett I believe has the same philosophy, one house is enough i.e your residence.

new_trader
1621836179638.png
 

IceThor

Active member
112 27
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. (y)
I have a large deposit already :)
 
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J Livermore

Active member
159 52
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.
 
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