Chartered Surveyor Posted August 4, 2013 Report Share Posted August 4, 2013 Its all about currency. In my opinion the £ is going lose value against the dollar. Link to comment Share on other sites More sharing options...
TrueNorth Posted August 5, 2013 Report Share Posted August 5, 2013 Very good interview Dominic. Would someone please post the text of the newspaper article Dominic and Max were talking about? I believe it is from the FT, but I don't subscribe, and don't want to for one article. Link to comment Share on other sites More sharing options...
drbubb Posted August 5, 2013 Report Share Posted August 5, 2013 A Good One ! http://www.youtube.com/watch?feature=player_embedded&v=UWFum8fscKE "They are trying to find a 'Magic Bullet'" Yeah. It seems like thay have dusted off the one - used so "effectively" by Alan Greenspan, to create the US Housing Bubble. Do we never learn ?? Link to comment Share on other sites More sharing options...
Van Posted August 6, 2013 Report Share Posted August 6, 2013 Funding for Lending has pushed rates down to... simply rediculous levels. I'm about to remortgage for 5yr fixed @ 2.99%. When you factor in yields of 5-6% (perhaps better outside London) many people will do the math and conclude there is no "reason" why they should not be buying if they can fix their costs and why the market could not easily go up another 20-25% before renting again becomes cheaper. I know it's a precarious, strategy that is doing unrecoverable damage to the UK in the long term, and rates can only go one way, but we all know that Osborne will do everything he can to prop up the housing market, so people are rightly concluding that they are individually better off to go along with it. Link to comment Share on other sites More sharing options...
drbubb Posted August 6, 2013 Report Share Posted August 6, 2013 What a rate ! Grab it ! (That's one advantage of being a homeowner, I suppose.) What will your mortgage cost be vis-a-vis renting? (Just curious) Link to comment Share on other sites More sharing options...
Van Posted August 6, 2013 Report Share Posted August 6, 2013 What a rate ! Grab it ! (That's one advantage of being a homeowner, I suppose.) What will your mortgage cost be vis-a-vis renting? (Just curious) The market rate for our flat would be about £1300/month gross or £15,600 pa, subtract service charge and some running costs.. call it £14,000 pa net. market value... roughly £270k... Interest on a 100% loan @ 2.99% (of course, you couldn't get 100% LTV at this rate) would be £673pm.. £8076, pa, so I am saving effectively 6kpa vs renting. 2.99% isn't even the lowest rate; if you have 40% equity there are a few lenders who will do 2.5% 5 year fixed, but rates for lower LTVs are also much lower than they were 2-3 years ago. Homeowners are making hay, private renters are being squeezed to death, and we continue to tie up all our capital in an unproductive housing stock and pay for them through the mcJobs that such an economy produces. It's a very unhappy country of haves and have-nots, all as a result of the government protecting the homeowner. Link to comment Share on other sites More sharing options...
Van Posted August 9, 2013 Report Share Posted August 9, 2013 A feb-2013 article: http://www.bbc.co.uk...siness-21381921 "The average five-year mortgage deal has come down in cost substantially in the past two years. Recent statistics from the Bank of England showed that in December 2012 the average interest rate being offered on a five-year deal was 3.89%. That compared to an average rate of 5.15% two years ago, in February 2011." Link to comment Share on other sites More sharing options...
chazza Posted August 9, 2013 Report Share Posted August 9, 2013 Lots of chat between my colleagues and friends about buying houses/starting BTL/property portfolios for the long game. Link to comment Share on other sites More sharing options...
drbubb Posted August 9, 2013 Report Share Posted August 9, 2013 Lots of chat between my colleagues and friends about buying houses/starting BTL/property portfolios for the long game. Headed-towards the Peak Talk? Do BTL investors get Help-To-Buy Link to comment Share on other sites More sharing options...
chazza Posted August 11, 2013 Report Share Posted August 11, 2013 Headed-towards the Peak Talk? Do BTL investors get Help-To-Buy Its crazy, there has to be a better trade....but then a lot of people said that 5/10/15 years ago. And if the trend is your friend.... BTL, i dont think they do Link to comment Share on other sites More sharing options...
drbubb Posted August 15, 2013 Report Share Posted August 15, 2013 HELP TO BUY isn't Helping ... BDEV is telling a different story BARRATT on the Edge ... Let's watch it ! I don't normally watch the 100d MA, but it seems to have worked for Barratt. Last time, BDEV hit it, it bounced - It is back there today, at the 318P level. BDEV / Barratt Developments Plc ... update : PSN-chart PSN has already broken the 100d-MA Link to comment Share on other sites More sharing options...
drbubb Posted August 16, 2013 Report Share Posted August 16, 2013 Property stocks spooked by governor's interest rate pledge Property Week News The Bank of England's announcement last week that interest rates would be fixed at 0.5% until unemployment fell to 7%, on the face of it, appeared a positive announcement for the property industry. Link to comment Share on other sites More sharing options...
Jake Posted August 18, 2013 Report Share Posted August 18, 2013 Lots of chat between my colleagues and friends about buying houses/starting BTL/property portfolios for the long game. Pre -frenzy feeling in (parts of) the UK right now. Link to comment Share on other sites More sharing options...
borassic Posted August 18, 2013 Report Share Posted August 18, 2013 MSM does have its uses - a very good piece by Faisal Islam and Norman "today has been a very difficult day" Lamont predicts bloodshed (both Guardian/Observer) http://www.theguardi...l-islam-housing Lamont becomes the most senior figure to raise doubts over the huge increase in the buy-to-let mortgage market, which has surged to levels not seen since the 2008 financial crash. Surely this is blindingly obvious to get the hell out of debt and remain liquid (obviously not sterling)? It's going to be an exciting time when business get back from its hols. Link to comment Share on other sites More sharing options...
drbubb Posted August 18, 2013 Report Share Posted August 18, 2013 This was the "meat" for me; Remarkably, through the credit bubble the likes of Northern Rock and Bradford & Bingley boasted to investors that Britain's "very limited" rate of housebuilding supported their doomed strategies. Successive governments delivered that help. The deal for Britain's young has transpired as follows: pay taxes, pay high rents and endure the sharpest points of austerity in order to help support a housing system that is delivering wildly expensive houses, or none at all, and to help bail out the failed banks that were built on that system. Are we going to load the burden of adjustment from a decade-long bubble on to people who happen to have been born in the 1980s and 1990s? Progressive voices keen to redistribute through benefits have said very little about the overarching negative redistribution caused by the trebling of house prices. All political parties claim to want to foster "social mobility", yet it seems that where you live will be determined more now by where your parents lived. The government is helping the BTL speculators with these mad policies, not the ones they should be helping Link to comment Share on other sites More sharing options...
borassic Posted August 26, 2013 Report Share Posted August 26, 2013 From today's Guardian - "Foxtons bosses in line to make £100m as estate agent prepares flotation" And a nice piece by Ann Pettifor - great phrase for the UK economy - Alice in Wongaland - she is good on media as well, see Keiser report. http://www.primeeconomics.org/?p=2030 It does seem odd and very depressing that George Osborne is carrying on the policies of Gordon Brown. Several thousand public sector jobs? - no, but we will do HS2 instead. Link to comment Share on other sites More sharing options...
drbubb Posted August 26, 2013 Report Share Posted August 26, 2013 It does seem odd and very depressing that George Osborne is carrying on the policies of Gordon Brown. Several thousand public sector jobs? - no, but we will do HS2 instead. gnashing of teeth here Link to comment Share on other sites More sharing options...
TrueNorth Posted August 27, 2013 Report Share Posted August 27, 2013 http://www.marketora...ticle41905.htmlUK House Prices Bull Market Soaring Momentum, 10% Inflation by October? Housing-Market / UK Housing Aug 19, 2013 - 03:11 AM GMTBy: Nadeem_Walayat Prospective U.K. home buyers who may have been persuaded by the pseudo-economists, financial / economic journalists that populate the mainstream press as to the sustainability for any rise in UK house prices will over the past few months been finding themselves in an increasingly panicky state as UK house prices have literally started to soar as illustrated by the latest data and news out of RICS that reported that house prices are now rising at their fastest pace in 7 years, with their indices giving their best readings since November 2006. Link to comment Share on other sites More sharing options...
TrueNorth Posted August 27, 2013 Report Share Posted August 27, 2013 graph from above article, Market Oracle Link to comment Share on other sites More sharing options...
borassic Posted August 28, 2013 Report Share Posted August 28, 2013 Others feel the same way as me then... http://www.youtube.com/watch?feature=player_embedded&v=vRQjdvHJwQw Link to comment Share on other sites More sharing options...
Van Posted September 2, 2013 Report Share Posted September 2, 2013 As pointed out by the ASI, Where America leads, Britain follows: http://www.adamsmith.org/sites/default/files/research/files/burningdownthehouseWEB_0.pdf Like the British government does today, the American government once waded into the mortgage guarantee business through a number of government-sponsored private enterprises (GSEs) – particularly the Federal National Mortgage Association, known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, known as Freddie Mac, both of which played a central role in the U.S. housing market for decades by purchasing mortgages and pooling them for securitisation. The primary benefit of GSE involvement in providing liquidity to the residential mortgage market was that the strength of the AAA American sovereign credit was implied upon the GSEs, reducing interest rates for, and increasing liquidity to, the housing sector, widening access in much the same way the government proposes to do with Help to Buy. Link to comment Share on other sites More sharing options...
drbubb Posted September 5, 2013 Report Share Posted September 5, 2013 I expected this a long time ago: Britain’s new breed of landlords should prepare for a political backlash By: Matthew Lynn .. 02/09/2013 Resentment at landlords is growing by the day, says Matthew Lynn. Would-be investors in buy-to-let could well get their fingers burnt. Britain’s new breed of landlords should prepare for a political backlash By: Matthew Lynn 02/09/2013 There may never have been a better time to be a landlord in Britain. .... Landlords always face risks, of course. If house prices collapse, they’ll be left with a capital loss. And interest rates might rise, even though Bank of England governor Mark Carney has promised to keep them low for at least another three years. But the biggest risk that landlords may be missing is not financial. It’s political. The rise of private landlords is starting to create a backlash – and it’s going to intensify. Already the Labour Party is discussing rent controls. Its housing spokesman, Jack Dromey, has been reported as privately favouring such controls. Even if he seems to have backed away from that in public, he is arguing for longer rental agreements to try to curb soaring rents, particularly in London. In the last election for London mayor, Labour’s candidate Ken Livingstone argued for a ‘living rent’, by which he meant that rental payments should not be more than a third of a person’s pay. ..... == == http://www.itulip.co...6406#post266406 Link to comment Share on other sites More sharing options...
drbubb Posted September 5, 2013 Report Share Posted September 5, 2013 Could this RISK of Rent Controls be impacting on BDEV's share price? Rising rates are imperiling the UK Housing Bull run A break of the Up-trendline, could bring BDEV all the way back to the bottom of the Green box - at maybe 230p within the next month. And even then, that support may not hold. BDEV ... update When the 21d-MA crosses the 76d-MA and the Uptrend is broken, it would confirm at least a serious correction is underway IMHO Link to comment Share on other sites More sharing options...
drbubb Posted September 6, 2013 Report Share Posted September 6, 2013 The agents are pumping some Expensive London properties, now that the summer is over... Le Corniche - would anyone else buy it ?? Link to comment Share on other sites More sharing options...
Perishabull Posted September 6, 2013 Report Share Posted September 6, 2013 The agents are pumping some Expensive London properties, now that the summer is over... Le Corniche - would anyone else buy it ?? Well perhaps Flipper might be interested? After all house prices are rising at the "fastest rate since 2010" according to the Beeb. (This is really a headline for the Daily Express) "UK house prices 'rise at fastest rate since 2010' UK house prices have risen by 5.4% in the year to August, according to the Halifax's latest house price survey. It is the highest annual rate since June 2010. On the Halifax's measure, the average price of a house also went through the £170,000 mark for the first time in five years. However, the figures are still well below the peak of the market in August 2007, when the average price was almost £200,000. The Halifax said housing market activity was up thanks to an improving economy, low interest rates, and government-backed schemes such as Help to Buy. Earlier this month the Nationwide said house prices in August were rising at an annual rate of 3.5%, slightly slower than in July. The Nationwide compares prices in one month with the same month a year ago. However, the Halifax compares a three-month period with the three-month period in the previous year. Continue reading the main story UK house prices Year on year % change Martin Ellis, the Halifax's housing economist, said: "Overall, house prices are expected to rise gradually over the remainder of the year." The Halifax believes below-inflation pay rises "are likely to act as a brake on the market". Property bubble The Halifax estimates the average price of a house or flat in the UK is now £170,231. The last time house prices were higher than £170,000 was in September 2008. The number of mortgage approvals for house purchases - an indicator of completed house sales - rose by 10% between the first and second quarters of 2013. Continue reading the main story House price calculator Use our calculator to see where you can afford to rent or buy In July alone there were 60,600 approvals, the first time the number has exceeded 60,000 since 2008. The rise in prices and market activity, coupled with the Help to Buy scheme, which offers a government-backed loan of up to 20% of the price of the property, have increased fears that the country could be heading for another property bubble. But last month Mark Carney, governor of the Bank of England, said he was "acutely aware" of the risks, and had a "toolkit" of measures he could employ to combat unrestrained mortgage lending. Matthew Pointon, property economist at consultancy Capital Economics, said: "A short-term imbalance between housing demand and the number of homes on the market is driving price increases. "But the rise in wholesale interest rates seen over the past few weeks may soon start to feed through to mortgage rates, dampening demand." There are already signs that mortgage rates may have bottomed out, with some lenders increasing rates earlier this week." Well isn't this just marvelous news for all those bright young things with newly minted degrees and tens of thousands of pounds of student debt. Link to comment Share on other sites More sharing options...
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