Collapse of pound - UK now looking very affordable!

Despite living in London for 12 years, when I moved to Australia 5 years ago I completely lost interest in the property market. But now, with the pound collapsing to $1.65, I'm suddenly getting interested again!

A £300k flat in say Clapham now costs less than A$500k, whereas 2 years ago it would cost A$750k.

How can you not be tempted by this?
 
How can you not be tempted by this?

The thought that Jim Rodgers, Dr Doom and another who I don't know have predicted further collapse would prevent me from converting A$ to GB pounds.

I'm interested in Key Largo, but only if I can borrow in US$.
 
I was looking into apartments in London a while back. I didn't get as far as working out HOW to do it but definitely interested. My husband is English and we're there all the time. Maybe it's time to start looking at the 'How' now.
 
if ur looking to pounce on a bargain that has been on the market a while, check out propertysnake.co.uk and zoopla.co.uk. good info on these sites.

cheers
tab
 
if ur looking to pounce on a bargain that has been on the market a while, check out propertysnake.co.uk and zoopla.co.uk. good info on these sites.

cheers
tab

Zoopla is fantastic!

It's interesting how the US and UK websites (and real estate business in general) doesn't try to hide any of this data, whereas the Aussie agents do. On the other hand, I find that the Aussie sites are far superior to the UK ones when it comes to everything else, like property details, photos, etc.
 
Yes its all very interesting we sold our place in London 4- 5 years ago and its still worth the same amt that we sold it for. It took 13 years for it to reach that value after the last recession in the 90's it stayed at around 100 000 pounds for nearly 10 years - the market was so flat for so long - we got it for around that price and sold it a few years later for triple that- and that is where it sits for now - not going anywhere fast - and I have to say UK is not looking healthy ATM.

So my thoughts are if you have spare cash that you wont need for 10 -15 years yeh great time to buy but don't think you can get out at any time or fast - many houses were Neg equity for 10 years in the 90's - many in the UK still have big scars from that time .
 
one of my friends who has come to live from the UK only a few years ago, the first thing they saw in the property market and their first comment was, whats with these ridiculous yields,

back in my country you get up to 14% yield, and nobody buys neg geared properties...
 
You like the warm places Mr. Fish ;)

Yes but I do tire of our summers.

The reason Key Largo looks attractive is that it is about 25 deg N while Townsville is 19 deg S. The tropics look to be about 23 deg N/S so I could handle the heat.

In T'ville we are building terrible McMansion s' boxes. In Florida they build for the climate, with large patios fully screened to keep insects out. I could sell my junk-heap here for a "little mansion" there with it's own dock and hoists to lift your boat. Did I mention the pool?

The alarmists talk about guns and ammo being more valuable than gold but the archipelago would be more easily defended. Obviously if I though things could go that far I would stay here, but the thought crossed my mind. :D

I've been talking for a while now and Mrs F is still anti, so it prolly won't happen. :(
 
I should point out that when we were in the UK the banks would not lend us money ( or anyone for that matter ) if the property was not + geared . They don't understand -ve gearing and don't get a tax break from it either ( to be honest I don't understand -ve gearing either - it still cost you - but that's me being synclinal :D )

Its def food for thought - if only the cycles were not so deep and harsh .........
 
I should point out that when we were in the UK the banks would not lend us money ( or anyone for that matter ) if the property was not + geared . They don't understand -ve gearing and don't get a tax break from it either ( to be honest I don't understand -ve gearing either - it still cost you - but that's me being synclinal :D )

Its def food for thought - if only the cycles were not so deep and harsh .........

There is a difference between -ve gearing & -ve cashflow.... So no, it does not necessarily cost you ;) Quite the opposite actually.
 
There is a difference between -ve gearing & -ve cashflow....
If PI141 is correct and you don't get a tax break in England, there would not be much difference that I can see.

Res property here looks more like a tax scheme than an investment, especially as I do not believe debts "inflate away".
 
If PI141 is correct and you don't get a tax break in England, there would not be much difference that I can see.

Perhaps not, but in light of the following statement made:

....( to be honest I don't understand -ve gearing either - it still cost you - but that's me being synclinal :D .........

....it may then be fair to point out that an actual difference exists between -ve gearing and -ve cashflow.

Res property here looks more like a tax scheme than an investment, especially as I do not believe debts "inflate away".

The same could be said about salary & wages.... just depends on your point of view ;)
 
especially as I do not believe debts "inflate away".

we conducted an extensive thread on this a year or two ago and I think it was left hanging. IF a res property is neutral, then there must be an advantage to holding a debt in todays dollars and discharging it in tomorrows? hence the question is what is the value of that compared to the cost of any neg gearing you are prepared to carry?

plus you benefit from genuine appreciation of a property. as a median property becomes less and less desirable as it tracks out from the GPO, the scarcity value of your land drives it up and above inflation appreciation.
 
Quote:
Originally Posted by Sunfish
especially as I do not believe debts "inflate away".
Originally Posted by Ausprop:
we conducted an extensive thread on this a year or two ago and I think it was left hanging.

I've read the threads but remain unconvinced. You can call me stubborn but I prefer "independent thinker". :D

While interest rates remain "CPI+X%" (X approx 4) you pay as you go. Anything you "collect" later you've already "bought and paid for" so it is more like a "lay by". I guess it depends on how you would answer this question: "If inflation, measured by CPI were zero, would you still expect interest rates to be 7%?" My answer would be "No".

I still have a s/sheet on my HD which shows this but I think it was by one of the sceptics so it was not given due consideration.

I really don't want to re-open that debate, so let's keep it within the context it was written. ie "If you believe as I do......." :)
 
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