The House Price Spy Post Postcode Lottery
In the last 6 months we have been playing a waiting game, will the market crash back down to 2008 levels or will it keep growing and see us out of the recession by this time in 2010? The market has been fragile but moving gradually upwards, lending confidence has returned and anyone who is still in work finds themselves waiting it out rather than tightening their belts.
It seems lenders Abbey and Britannia Building Society know more than we do! They have introduced bonds which yield 50% off the growth in the property market called ‘guaranteed equity bonds’ or the Abbey version (Guaranteed Growth Plan Issue 26). As their index goes up bond holders can profit from the rise in house prices without buying themselves.
These plans offer 50% off the rise in the next 3 years or 11% whichever is larger, you need to get in quick if you are going to take advantage of these. Would you put your money where your mouth is and place your savings in one of these? I suppose it depends which index they are using as these vary wildly. Since the lenders put the country into this position in the first place this is like William Hill or Coral letting your place bets on which bank will go bust next or which big bank will lay thousands of staff off…maybe we should consider The House Price Spy Post Postcode Lottery where all members in the fastest rising poscode get a iPod!