We have a pensions crisis in this country and many have jumped on the property bandwagon. If you bought five years ago it has been a great investment. But, if you buy at todays inflated prices it is a very bad one.
Property into SIPPs was seen as the saviour of the market by many. It is now not happening. Therefore, rather predictably, the vested interests in the property market are waging a publicity campaign to convince us all that prices are set to rise next year. Therefore, we should not fear investing in an already over priced asset. The property market relies on confidence.
It all sounds rather similar to 1989 when, in fact, prices didn't start to recover until 1995/6 (see below).
I believe in affordable housing giving individuals more disposable income to spend on consumer goods and services eg. Airline tickets, which in turn keeps me in a job.
The Sunday Times
SUN 05 NOV 1989
House prices may rise next spring
BRITAIN'S depressed housing market could pick up much sooner than expected, according to a forecast to be published this week. The Morgan Grenfell bank believes the housing market has reached a point where recovery is in sight. It says rising income...
The Times
THU 09 NOV 1989
House prices 'to rise'
Property prices in London, the south-east and East Anglia will recover next year and begin to increase by about 10 per cent a year, according to Morgan Grenfell, the merchant bankers, in a report on the housing market published yesterday. The recover...
The Times
FRI 17 NOV 1989
House prices to recover next year
House prices are expected to reach a turning point in the third quarter of next year after a two-year decline, Charterhouse the merchant and investment banking group said yesterday in its annual study of the housing market. A week ago another firm of...