Prices will rise up north, but slowly and cool down south, I love this chart:...
Prices will rise up north, but slowly and cool down south, I love this chart: http://news.bbc.co.uk/nol/shared/spl/hi/in_depth/uk_house_prices/img/0.gif Also, it is worth noting that with a BTL you can only lend 125% of the maximum rent payment, this is the banks putting a buffer zone to protect investors. Prudent money management and long term fixed deals will protect a landlord from any fluctuations in the market, the use of a 'let sure' insurance will also hedge against empty periods. I am heavily into the property market and there is a good deal a day to be done, in good times and in bad. Any BTL should be a 10 year investment, since 1948 when housing records began house prices have rose by an average of 10.8% a year!!! So history tells us the TREND will continue, so I buy with a long term view and " let the trend be my friend"
Thats a very sensible view and strategy. Of course the 10.8% is by no means spread evenly across the years, thus making when you enter the market still quite important. If you discounted growth from the last 4 years (approx 30%/year in south) I guess the figure is more like 5% or so.. ive not done the maths, Im just guessing
Ade, I agree totally, but like buying shares an entry point is very difficult to judge particularly with property and it's geographical differences. However with a long term view you cannot lose. I'm reading a biography of the famous landlord RACHMAN at present, I was astonished to find he was buying houses in Notting Hill for £1 in the mid 40's Quite amazing. How times have changed, I wonder if he worried about his entry point?
wow.. what a gangster!! - I just googled him and read a brief artical - thats certainly an interesting life he had there and by the sounds of it he managed to somehow prosper despite Ronnie Kray breathing down his neck. Im sure its a facinating book. The only entry points I bet he cared about were knife/gunshot bodily entry points
Seems that the 355s have held their value well over the last three years, most probably because the low end prices came in the reach of those using mortgage equity withdrawal. House prices may well level off, but with a reduction in volume and increase in housing costs (not just mortgage as many come off discounts, but also council tax rises) and a slow down in consumer spending, are we going to see a correction in Ferrari prices too?
I dont think property prices directly affect Ferrari prices, but I would say that there is a loose correlation - if house prices are high, more people can release equity and buy a toy so demand (thus price) is sustained. If the economy suffers and people need cash for other things, then their primary car may be on the list of things to be sold off....oh, I'll stop there and ask Dave:J (I think it was his post) to tell us about basic supply and demand All the best Jamie
I hope so... cause I'd like to add to my collection, A cheap 355C would do nicely In reality though, judging by the fact that by far most peoples Ferrari accounts for less than 20% of their net worth (recent poll results) , I dont think it will change that much
