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Post by rgs2001uk on Jan 13, 2016 23:28:05 GMT 7
Property markets can crash, so can the stockmarket. But after the recovery, the house will still be there. Making money through investment no matter what that might be should be looked at long term imo as compared to the stockmarket which to me anyway seems to be more about short term gains. As one who has lived through this, yes the house might still be there, you may well not be the one living in it. I vividly remember the UK housing market of the late 80s, people throwing the keys through the leterbox and walking away, they couldnt afford the repayments, there then followed about 10 years of no growth whatsover. Another one of my favourites, oh I bought the house for 100k, paid for it over 25 years its now worth 400k, I made 300k profit, they forget to tell you how they made in repayments over the years. I am talking UK only now here, my first house cost 3 times the average wage for the area, the same house today will cost 7 times the average wage. No wonder people cant get on the ladder. Low interest rates are what killing it (IMHO) why stick the money in the bank to lose money, invest in property. Problems arise, people with money snap up the houses, pushing up prices. Short terms gains, , thats peoples future pensions right there. I personally believe there will be a point in the future when a lot of people are going to be very dissapointed with their pension plans performance. The same could be said for the property flippers that drove the cost of houses upwards.
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