Friday, 11 March 2022

Inflation , How to avoid It 12/03/2022

 The best way to avoid IT :

House prices have tended to rise over time, so it is not hard to understand why people say this. £100,000 worth of UK property 25 years ago would be worth an average of around £451,000 today. This obviously varies by region. In London it would be worth around £660,000 and in Scotland, £378,000. These figures exclude any costs of ownership such as maintenance, repairs, insurance or taxes; any income generated by the property (not relevant for primary residence, only buy-to-let); and the impact of leverage/mortgage finance.

However, that same £100,000 invested in the global stock market (again, excluding any costs) would have grown even more, to around £727,000. This is 10% more than in even the best performing regional property market, London. Furthermore, it doesn’t matter whether you look at this over 5, 10, 15, 20, 25 or 30 year horizons. The stock market would always have resulted in a bigger increase in your £100,000 compared with UK residential property.

In fact since 1900 , UK house prices have risen by about 6.8% per annum .



In conclusion .

Gold 9%

Stocks 8.2%

Housing 6.8% 

If we can keep Inflation above 10% , even the Wealthy will level down .

In Conclusion , War is good for the Poor , high Inflation is even better though .

As long you

 have full employment .


Outstanding

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