What is it with this obsession with house prices in the media. One week the media is saying house prices are going up, and that buyers have missed the chance to buy cheap homes, a few days later, the media says houseprices will go down and there will be a slow recovery. There are conflicting reports from The Council of Mortgage Lenders, The Land Registry, Rightmove.com, Banks, etc. All are giving conflicting views on the state of the market.
Is it even worth buying a house/flat? Lets say you spend 200k cash on a property and get £9600 per year in rent. You'd have to pay tax on this, yet that same money in a high paying bank account would get you about the same amount of money with no hassle from tenants.
There is currently a lot of confusion regarding the worth of houses as an investment. The only way to clear the confusion is to not pay attention to the news reports. The fundamentals are that Britain is in recession and will be for at least 10 years, as that is normal. The effects are not making themselves known enough yet. Look to America to see which way house prices will go. I am more pessimistic, and will probably only consider in investing further in property in about 2 years from now.
Is it even worth buying a house/flat? Lets say you spend 200k cash on a property and get £9600 per year in rent. You'd have to pay tax on this, yet that same money in a high paying bank account would get you about the same amount of money with no hassle from tenants.
There is currently a lot of confusion regarding the worth of houses as an investment. The only way to clear the confusion is to not pay attention to the news reports. The fundamentals are that Britain is in recession and will be for at least 10 years, as that is normal. The effects are not making themselves known enough yet. Look to America to see which way house prices will go. I am more pessimistic, and will probably only consider in investing further in property in about 2 years from now.
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