House for sale... or not...

My mother-in-law still has her house on the market. Regular readers will remember me talking about her situation in a previous post…..  Now she has 'decided to stay in the house', a sure-fire indicator from a property enthusiast that the market has tanked.

Well, this week my property fund indicated to me that it is time to quit the market.2016-11-06-try I will be selling my property investment on Monday and converting it to cash. Rather easier to do than it is for someone selling a physical property. No need to rent a property out, or paint the windows to make it look nice for potential purchasers. Just sell. Although this is a simple process, my property investment has been loss-making over the past few months. There have been three false 'buy' signals. It has been a trend-followers nightmare. But I regard this as insurance, the price that I pay to avoid a dramatic price collapse that can occur to any asset class at any stage.  Look at the graph below - this shows the iShares UK property ETF price. Look at the decimation that occured in 2007 - 09! The price has still not recovered back to 2007 levels. However, anyone buying in 2009 would have more than doubled their money by selling again at the end of 2015 when this up-trend reversed. 2016-11-06-iukp

Will the price drop further? Will it reverse, and climb again? I have no idea. I follow the trend and try not to predict where it will go.

Have a look at this video and see my thoughts about the different asset classes that I follow each week.

‘You have to be prepared to sit it out’ said the mother-in-law the other day…... Hmm.. not sure that I want to do that!

Hope you have a great week!

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