Property in 2011: the rich will get richer

Cumbria may be more inflated though: consider the £1.2 million being asked for a 2-bedroom bungalow with a view of the Langdale Pikes, or £400k for a small converted grange in Borrowdale with a local occupancy restriction.

The over-45s hold 83% of the UK’s property wealth; the over-65s, 40%. Skip to the under-35s and the figure is just 5%. And it’s a trend that’s likely to continue.

The above is hardly a surprise is it. Hasnt it always been that the older you get the better off you become, at least for most people? Longer spent working and saving, updating and upgrading your property, a few moves upwards with larger mortgages etc. There has to be some compensation for getting older and something to look forward to and work towards surely.

It is elementary, my dear Watson. If you want to be rich in 10 years, buy a house now and then buy another one. .

When you look at the longer term, say 2020, the demographics dramatically mitigate against any more real increases in prices, always driven from below (first time buyers).-only if the govt prints lots more money to give the banks to lend will loans become so freely available again.

Baby boomers who are looking to retire and downsize, with substantial equity removed to live on, had better get on with it asap. Landlords need to consider diversifying their risk.

Traditionally Londoners retired to the South Coast because it was cheaper; by 2020 the'll have to consider Turkey or Sri Lanka!!

Who on earth would want to live in the South East of England? Traffic's awful, the cost of living is ridiculously high, it's full of useless football teams, full of foreigners and our useless Government is located there! Give me the Northern half of the UK anyday!

Anon

THats what im doing more than one and another one and another

The cynic

Spot on comment - a totally different country!

Buying property is overrated. Shares perform much better over the long term......... as long as you buy the right ones! I've lived in a tied house all my life in wonderful locations and invested money in the stockmarket. Much more fun than troublesome tenants and property repairs

FAO Sutherland Shepard

I am really intrested in you comments about shares

Ive bought Shares and have done ok from them

The main differance I can see between buying property and investing in shares is you need to have capital in the bank to buy shares

When you Buy property You borrow 75% of the costs and use very little of your own money

The good thing of buying property is you get growth over the long term from the money you have borrowed ie 100% of the capital Value

Its leverage that makes money in Property but I would never borrow more than 50% of my properties Value

Also at present you can make positive cash on property ie after the mortgage and expences a nett sum in the bank

But I do understand your point if you are useing your own earned cash I think in the Long term Shares and dividends would be a better bet

I will start buying shares again when I cant make money on property Its like all things I belive there is a time to buy and a time not to Buy just like shares

Thanks great comment

i am well aware of the above..... its a case of buy property under the asking price improve it and so on to the next..

the banks are stashing money away..this makes no intrest so they increase the rate of return on money they do lend out to cover the amount they are not getting from the stuff in the vaults..

the goverment tell them to hoard it just in case then tell them to lend to businesses ..RIGHT

So let me thing about this one...errrr ... got it ...the bank of england prints billions and give it to the banks who put it in the vaults for a rainy day paying the bank of england millions in intrest to borrow it .

they increasing the mortgage rates loans and credit cards to cover there costs reduceing interest to savers to NIL.

the savers are told its because the mortgage rate is low that we cannot pay any intrest out...????? hands up all who have come across a loan or credit card at 3 or 4 % intrest.....NO !!!!

thought not ...i know the bankers get bonuses..would it be fair if i ask the bank to pay me a loyalty bonus i wonder..!!!

" O DEAR " better get of me soap box..now

So let me thing about this one...errrr ... got it ...the bank of england prints billions and give it to the banks who put it in the vaults for a rainy day paying the bank of england millions in intrest to borrow it .

No the banks buy bonds and the like with tier one capital

The cynic: Agreed with all you say about the south-east, except the claim that it is 'full of foreigners'. In my experience, it is (nearly) full of charmless Brits whose emigration would greatly improve the place.

FAO Dyslexic landlord

Agree about advantage of borrowing money for a mortgage. If I'd borrowed 100k and spent it on ASOS when they were 3p then I might have been able to buy one of those pads in Knightsbridge.....

FAO Sutherland Shepherd

Oh if only we had Hindsight

Best of luck regards DL

And why are house prices higher in south-east?: answer - it is more economically successful; and why is that? answer - Gov share of GDP in south east is less than 35%, in the rest of the country it is above 50% and in some areas abouve 60%; and why is that? answer: South-east has a lot of foreigners and immigrants who work instead of claiming benefits - QED

Put your thought to HYR on Aim, might get you a deposit it comes up Gushing..