"Colin Shepherd" <[email protected]> wrote: Mr Steve Haywood charmingly wrote:
>> What a load on nonsense you talk. Oh, I do enjoy a courteous debate. Look, I consider much of what you say is based on questionable assumptions and insufficient data, and illogical. However, I try to reply to you politely, addressing what you say rather than who you are. May I suggest that you do the same? Insults are never an effective replacement for rationality, you know. You appear not to like your views being challenged. I also suggest you get used to that happeningt. That's life. I respect people who disagree with me effectively. They help me learn. I hope you may prove to be one of them. >By this definition no one would ever lose >any money on any asset; it would just be a matter of waiting until the asset >value rose again. The value of many assets (and real estate is a good example) seems to be cyclical about a general trend. For real estate, in light of the fact that there is a fixed amount of land but a rapidly increasing demand due to a growing population, this trend appears to be long-term upward. So, it appears to me (and others) that the smart thing to do when real estate prices fall is to hang on to what you've got, and consider buying more. "Buy low, sell high", you know? So, yes, I *do* think that wrt BW's property portfolio, "waiting until the asset value rose again" is the smart thing to do. There's an old saying in the stock martket: "Bulls can make money; bears can make money; pigs always lose money". Pigs are those who sell at the bottom. There is a surprisingly large number of them. >Ever heard of the concept of 'yields?' The things that have been falling >like a stone in the London property market way before the banking crisis? Colin Shepherd has already answered this sensibly (copied below): >I suspect that a good proportion of the property is relatively long leases >so unless the tenant goes bust the yield in pounds will stay pretty stable. >During my 38 years as an accountant in Local Government and Universities we >never revalued our freehold properties as we had no intention of selling >them so it saved the considerable cost of getting them revalued every year. Adrian Adrian Stott 07956-299966
