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Except for almost all of the modern era, cash under performs property, so you increase risk by going to cash.
Obviously past performance is no guide to future returns etc.
Let's all do a market timing experiment with our homes - i'm sure it'll be fine.
ChasnotRobert-
Except for almost all of the modern era, cash under performs property, so you increase risk by going to cash.
Just to be pedantic - Cash is risk free, almost axiomatically - You can always invest it at the risk free rate (i.e. supported by the national bank).
Property has outperformed cash historically, but has also been riskier, and the property portion of any portfolio has a higher risk weighting than the cash portion.
Any notion of protecting yourself against FX risk doesn't make much sense if your entire portfolio is based in one currency - Any instrument you try to hedge the risk with would already have that risk priced in, and you'd end up paying spread & transaction costs both when you enter into the position, and when you leave it.
Of course, we could all lose our jobs, sterling could go down the shitter, and we could all be left with big mortgages, a higher cost of living, and no jobs.
Anyone want a 4 bedder for £100k?
NotThamesWater
? If you’re worried about sterling, buy euros or dollars
I’m not convinced that London property is independent of FX anyway, so I think you are long sterling whether you have the property or whether you have cash. In reality, owning property is a levered exposure so you de-risk by going to cash.