The Daily Telegraph may be the mouthpiece of the Conservative Party but even I have to admit that it is a well written, serious and stoic piece of journalism.
A few days back it ran an article on why Warren Buffett is currently filling is boots with stocks and shares whilst others are running for cover.
The article actually slagged off property as an investment, however the arguments put forward for the Stock Market could easily be translated into bricks and mortar.
Here's how I see it: 1) Yields are now better than ever.
Last year, in my locality, you could expect a monthly income of £475 per month on a property that would cost you £100,000 to £110,000 to buy.
Today that same property would cost you £70,000 to £80,000 (if you find a distressed seller).
Therefore yields have increased significantly.
2) History shows that property prices in the UK always goes up over the long term.
Without wanting to sound too much like an Inside Track glossy brochure, the record shows that property prices in the UK every decade or so since the War.
Each decade has suffered a slip but that has simply been a stalling in an otherwise upwards trajectory.
The underlying drivers of house price growth in the UK are still in place so it is highly probable that prices will bounce higher than ever before long.
3) Prices in the UK haven't shown a uniform drop, in fact you'd be amazed by how few vendors have taken the drop in prices to heart.
In reality, the vast majority of really cheap sales have came under distressed circumstances or repossessions.
Once the level of repossessions calms down (as it already has to a certain extent), as newspaper headlines return from Canary Wharf to Posh Spices haircut, you'll find that sale prices very quickly return to their previous level.
I'd go as far to say that 50% of properties on the market in the UK at the moment are still being touted at a very similar price level as they would've been 12 months ago - despite the tumultuous events of 2008! Therefore should the mood change, and all the current bargains get snapped up then we'll be back to square one in a matter of months not years.
As this swing occurs many people will be left asking, "why didn't I buy when property was cheap?" 4) The stock market tells us that "buying the U" or picking up cheap stocks as the market falls is more profitable than waiting for the bottom.
This makes sense in the property world too.
Do people believe they are the local answer to Sarah Beeney? I live, eat and breathe the property market and even i couldn't spot the bottom so how could someone with only a passing interest do it? 5) The Telegraph asks "what is the alternative to equities?" Well the answer is still bricks and mortar.
Extra shares can be issued by companies to raise cash thereby devaluing all the other shares out there.
In the property world though the tap spilling out new properties was turned off at the mains a few months back!
A few days back it ran an article on why Warren Buffett is currently filling is boots with stocks and shares whilst others are running for cover.
The article actually slagged off property as an investment, however the arguments put forward for the Stock Market could easily be translated into bricks and mortar.
Here's how I see it: 1) Yields are now better than ever.
Last year, in my locality, you could expect a monthly income of £475 per month on a property that would cost you £100,000 to £110,000 to buy.
Today that same property would cost you £70,000 to £80,000 (if you find a distressed seller).
Therefore yields have increased significantly.
2) History shows that property prices in the UK always goes up over the long term.
Without wanting to sound too much like an Inside Track glossy brochure, the record shows that property prices in the UK every decade or so since the War.
Each decade has suffered a slip but that has simply been a stalling in an otherwise upwards trajectory.
The underlying drivers of house price growth in the UK are still in place so it is highly probable that prices will bounce higher than ever before long.
3) Prices in the UK haven't shown a uniform drop, in fact you'd be amazed by how few vendors have taken the drop in prices to heart.
In reality, the vast majority of really cheap sales have came under distressed circumstances or repossessions.
Once the level of repossessions calms down (as it already has to a certain extent), as newspaper headlines return from Canary Wharf to Posh Spices haircut, you'll find that sale prices very quickly return to their previous level.
I'd go as far to say that 50% of properties on the market in the UK at the moment are still being touted at a very similar price level as they would've been 12 months ago - despite the tumultuous events of 2008! Therefore should the mood change, and all the current bargains get snapped up then we'll be back to square one in a matter of months not years.
As this swing occurs many people will be left asking, "why didn't I buy when property was cheap?" 4) The stock market tells us that "buying the U" or picking up cheap stocks as the market falls is more profitable than waiting for the bottom.
This makes sense in the property world too.
Do people believe they are the local answer to Sarah Beeney? I live, eat and breathe the property market and even i couldn't spot the bottom so how could someone with only a passing interest do it? 5) The Telegraph asks "what is the alternative to equities?" Well the answer is still bricks and mortar.
Extra shares can be issued by companies to raise cash thereby devaluing all the other shares out there.
In the property world though the tap spilling out new properties was turned off at the mains a few months back!
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