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[racechick]

What if he's not kidding.

[Hammer278]

I like how the thread took a turn towards real estate and not stocks.

Real estate VS stocks for a 10y plan....what do you think? I've had debates with friends and colleagues alike, if anything it's geared more towards stocks. They say the property market is slowing down now due to price level going through the roof. (or have they always said that?)

[racechick]

I like how the thread took a turn towards real estate and not stocks.

Real estate VS stocks for a 10y plan....what do you think? I've had debates with friends and colleagues alike, if anything it's geared more towards stocks. They say the property market is slowing down now due to price level going through the roof. (or have they always said that?)

My view is stocks are more of a gamble. You can loose a lot more...win a lot more as well of course. Real estate is more steady but generally goes up if you sit tight. It's only a problem if you have to sell in a dip and get into negative equity, but if you're buying as an investment that shouldn't happen, it's when people have bought their 'live in' house at a high and need to move and sell at 'low'.

[sagi58]

...They say the property market is slowing down now due to price level going through the roof. (or have they always said that?)

Property prices keep going up, here in Canada; but, people need a place to live and companies need a place to run their businesses (in most cases), so there will always be a demand. And, with the Bank of Canada keeping a lock on interest rates, there will always be a bank willing to give just about anyone a mortgage.

The other important aspect of the property market, at least it is here, is that construction is the cornerstone of the economy. Without it, everything slows down.

[Hammer278]

Really interesting points RC & Sagi.

I think the property 'flippers' are the ones who find it getting tougher as time goes by, but the buying for rental path is still reasonably healthy.

Any property seminar I go to though, most speakers began in the stock market and then abandoned it for the property market! Which says something in itself. For myself, I'm a strong advocate for the property market but I have a friend who completely disagrees and doing well in the stock market while being happy with his returns! I guess it's down to personality and which avenue suits who.

[Jabberwocky]

The trouble in the UK is the house prices are too high for 1st time buyers.

Sent using NCC-1701

[LRW]

I dont own my own house. Never got in when young enough, and now the house prices round my way are just idiotic.

[Jabberwocky]

The thing is, you pay someone elses mortgage and a little bit more on top as rent. However you go to the Bank and say I want a mortgage and they say "Sorry you don't earn enough" erm... but I pay more than that every month anyway!!

£26,500 average salary.
Mortgage lender will lend 4 times salary
Average UK house price hits £250,000

Just does not add up.




http://www.mirror.co.uk/news/uk-news/uk ... es-3002995" onclick="window.open(this.href);return false;
http://www.bbc.co.uk/news/business-26239609" onclick="window.open(this.href);return false;
http://moneyfacts.co.uk/guides/mortgage ... row011211/" onclick="window.open(this.href);return false;

[LRW]

My rent is only £1k a month. Id need to make mortgage payments of £1600 a month. Plus a £40k deposit (£20k on the government scheme).

[Jabberwocky]

what is that for a 380-400k house?

[LRW]

yep.

[racechick]

But you can start off in a house cheaper than that! When my current house was getting built the rental I was in for 18 months was only about £600 a month. I still didn't like paying it, It's dead money paying rental.

Ok. I'm midlands and it's cheaper than the south but there's still a lot of variation here depending on the area you choose.

[LRW]

But you can start off in a house cheaper than that! When my current house was getting built the rental I was in for 18 months was only about £600 a month. I still didn't like paying it, It's dead money paying rental.

Ok. I'm midlands and it's cheaper than the south but there's still a lot of variation here depending on the area you choose.

I need to live near London. My industry is 80% in London and South East.

Anyway, lets not get into an argument why I should either buy a one bedroom flat in a nice place, or a a 4 bedroom house in somewhere I might get stabbed going from car to house.

[racechick]

But you can start off in a house cheaper than that! When my current house was getting built the rental I was in for 18 months was only about £600 a month. I still didn't like paying it, It's dead money paying rental.

Ok. I'm midlands and it's cheaper than the south but there's still a lot of variation here depending on the area you choose.

I need to live near London. My industry is 80% in London and South East.

Anyway, lets not get into an argument why I should either buy a one bedroom flat in a nice place, or a a 4 bedroom house in somewhere I might get stabbed going from car to house.

the choices don't have to be that extreme!

[Ichabod]

But you can start off in a house cheaper than that! When my current house was getting built the rental I was in for 18 months was only about £600 a month. I still didn't like paying it, It's dead money paying rental.

Ok. I'm midlands and it's cheaper than the south but there's still a lot of variation here depending on the area you choose.

I need to live near London. My industry is 80% in London and South East.

Anyway, lets not get into an argument why I should either buy a one bedroom flat in a nice place, or a a 4 bedroom house in somewhere I might get stabbed going from car to house.

Could you not settle for a kicking on the way to the chippy ?