House Prices The Truth about recent Rises

When did House prices really begin to deflate 2005? Golds response to excess liquidity and a house price comparable to Gold shows 'The Truth'.

Category:

News & Politics

Tags:

• House Prices
• UK
• Dollar
• Pound
• GBP
• Property
• Nationwide house stats
• collapse
• Gold

[TheMarketSniper]

If you can see off the rate hikes over the medium term, you will make money in appreciation over the long run. Just do not be caught as a forced seller whilst many others are too, is my best advice.

Long run Property increases to exceed a dubious 'official CPI' and to be worthwhile but you will need to manage borrowing levels and capital costs aggressively and ensure you are always let.

[TheMarketSniper]

The currency devalutions in £ and $ ensures this inflation and rate increases will occur, as other commodities (incl softs ie. food a big inflationary factor).

[joandandy987]

Hi,

Very interesting link, I have several properties and debating whether to sell them all or not?

Would you sell at the moment or wait? If you were to wait how long do you think it will take to recover?

Best regards, Andrew

[TheMarketSniper]

Hi

Jon it depends on your circumstances.

More Nominal house price increases are likely, but against Gold I believe it will continue to rerate downwards, more slowly however.

In a future inflationary environment both Shares and housing climbs.

The concern is how far interest rates will go up by. Rentals will lag initially in a break out of higher rates.

[TheMarketSniper]

so if your leverage is lowish you will ride out Interest hikes with fair nominal appreciation.

If you are 75% plus LTV's and interest rate sensitive maybe be defensive.

New Build appt stock away from London and the SE may not sell well however, so be a lending rate 'tart' to keep funding costs as low as possible - I never recommend Fixes, but subject to levels at present a 3 -5 year may for once be value.

Good luck -

[TheMarketSniper]

I have a few investment properties too and consider this question as relevant personally.

[redroofestates]

Superb presentation. Many thanks.

[joandandy987]

Unfortunatly I paid top wack, my portfolio began in 2007!! This is why am showing my conerns, at the moment I might be lucky to see a 15-20K gain on each property which is why I am questioning keeping or selling.

I know for a fact that if I sell now, in 10 years time I will be kicking myself.

But at the same time needs must and all that and if I wait for the real unemployment rate to be disclosed I could be looking at heavy losses???

Lifes full of t-junctions, just need pointing the right way