uk.finance

On 14 Aug, 14:28, "tim....." wrote:
> wrote in message
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> news: @ ...
> On 14 Aug, 14:10, "tim....." wrote:
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>
>
>
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> > "Dave" < ...@ > wrote in message
>
> >news: @ ...
> > On Aug 14, 8:43 am, Mogga wrote:
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> > > On Mon, 13 Aug 2007 18:33:24 -0000, Dave < ...@ > wrote:
> > > >I am in my mid 20s, married, living in London. I would like to
> > > >purchase a property some time soon before house prices go even furth=
er
> > > >out of my league than they are already.
>
> > > And what if they drop and you've got negative equity that you can't
> > > afford either?
>
> > > /forum/ ?showforum=3D22
>
> > > >We have a joint income of just above =A330'000, some substantial sav=
ings
> > > >and recently been quoted a mortgage of 130'000. This leaves me short
> > > >for getting a small studio or 1 bed flat.
>
> > > >I am not a key worker. But might there be anything at all out there
> > > >that can help me get something to call home???
>
> > > >I have tried the CAB this morning but even though getting there a few
> > > >hours before opening, was still unable to see anyone. I may try the
> > > >council in a few days.
>
> > > >I am just looking at some advice on what options might be out there?
>
> > > >Any advice greatly received.
> > > >Kind Regards,
>
> > > --
> > > Ah fetch it yourself if you can't wait for
> > > delivery
> > > Or get it delivered for free
> > >I know that there's a risk in a price drop.
>
> > >But that doesn't really help me with my wish to buy a property.
>
> > But I think the point is why do you wish to buy a property?
>
> > Yes, I know that you've told us this, but is this reason
> > rational, given the downside risk?
>
> > If buying a house now, costs you more than the alternative
> > what is the advantage to you of doing this?
> >To hedge against further increases in property prices.
>
> A circular arguement.

Don't see how.

> Why does someone need to do this?
>
> Why does someone ultimately have to buy a house?

To gain exposure to a particular asset class and to pass something on
too the sprogs (I suspect a lifetimes worth of rental receipts
wouldn't quite cut it..)

The same reason you might invest in gold, guilts, bales of hay or
anything else.

Psychologically it is tangible and gives people a greater feeling of
security than other assets.
E=2Eg. if there is a run on the banks, currency devaluation or some
other financial mishap. Of course owning a house is ultimately just
another paper contract with the state.

Also you don't have landlords to deal with which many would see as a
plus.

> >One way to get around this used to be with a capitl guaranteed 5 year
> >property bond, but I think they are no longer available.
>
> tim- Hide quoted text -
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> - Show quoted text -