UK House Prices -The next bubble waiting to burst ??
Little Beaker - Wed, 14 Dec 05 :
alexx - 13 Dec'05 - 19:55 - 15013 of 15023
IG Index house price future for sep '06 has just gone up 3.4 to 177.2, the actual house price for sep '05 was 168.3, this means anyone taking an up bet needs 5% a year rise in Halifax figures just to break even before paying the spread, and of course for a down bet the same, this seems well silly
alexx - 13 Dec'05 - 20:00 - 15014 of 15023
so a down bet gives 5% profit if prices remain stable, do the house bulls on here think more than 5% rise is on the cards, just interested
>> Erm, presumably the spread is 3-4%, meaning you'd only make 1-2% on a static market, which isn't a good bet IMHO, DYOR.
