G0ldfinger Posted September 12, 2009 Author Report Share Posted September 12, 2009 Prices in Las Vegas. http://www.lasvegassun.com/news/2009/sep/1...s-condo-prices/ “If you were looking at the data in a vacuum and what was happening at all the other condominiums and condominium hotel projects, that data suggest prices are down 50 (percent) to 70 percent,” Govertsen says. Link to comment Share on other sites More sharing options...
FWIW Posted September 13, 2009 Report Share Posted September 13, 2009 Reality is coming back into focus... http://www.thisismoney.co.uk/mortgages-and...ticle_id=490624 House prices may fall for three years Dan Atkinson, Financial Mail 13 September 2009 House prices could fall for another three years, acting as a drag on the economic recovery, according to a Government-sponsored report to be published this week. Skip additional links Houses and money Heading down: House prices may continue to fall for three years, a Government-sponsored report will say WANT TO KNOW MORE? * Property to fall as 'irrational' rally ends * House price tables: Who says what? * Find the best mortgage deal for you OTHER STORIES * Isa boost for over-50s: how to use it * Product placement to be allowed on TV * Pensions mis-sold and badly compensated * Energy giants refuse to cut prices * Snooper's handbook for council tax hikes Buyers and sellers will drop out of the market, according to the Economic and Social Research Council. It warned also that unemployment was likely to continue to rise, despite tentative signs of a recovery, and said this would lead to an increase in the numbers of divorces. The ESRC, funded mainly by the Department for Business, has compiled a major piece of research on the economic situation entitled Recession Britain. According to official figures, which measure the price paid for homes on completion, house prices have been falling since the summer of 2008. In the year to June, they fell 10.7%. Warning that they could keep falling for another three years, the report notes: 'As prices decline, more potential sellers take their houses off the market. 'With fewer houses on the market, potential buyers know that it will be harder to find a house that matches their tastes or needs, so more buyers drop out of the market, leading to further declines in prices.' It adds: 'By reducing household wealth and thereby reducing consumer spending, falling house prices can cause or sustain an economic downturn.' On jobs, the report warns that unemployment may continue to rise well into the recovery, as happened in the early Eighties. And it has bad news for graduates: 'There is certainly a risk that there will be lifetime earning losses for the generation of graduates that comes onto the market in the middle of a downturn. The situation in this recession may be worsened by the fact that, in recent years, the supply of graduates has increased dramatically.' On the social cost of recession, the report warns: 'People who lose their job in Britain increase the chance that they will lose their partner. A woman losing her job is increasingly likely to lead to partnership dissolution the longer the partnership has lasted. The effect of a man being made unemployed is the same regardless of how long a couple has been together.' And immigration is likely to decline as unemployment rises. 'History and recent experience suggest that every 100 jobs lost in a high-immigration country result in ten fewer immigrants.' Link to comment Share on other sites More sharing options...
FWIW Posted September 13, 2009 Report Share Posted September 13, 2009 oh dear...what's happened to the recoveryeh? http://www.timesonline.co.uk/tol/money/pro...icle6831802.ece Lenders ignore Bank rate freeze Despite the Bank of England base rate freeze, experts are warning that mortgage rates could soar to 10% undefined Elizabeth Colman and Alexandra Goss * 3 Comments Recommend? Two of Britain’s biggest lenders hiked the cost of new mortgages last week — one day after Bank rate was kept on hold for the sixth consecutive month. Royal Bank of Scotland (RBS), 70% owned by the taxpayer, increased the cost of new mortgages by up to 0.7 of a percentage point. The move takes some of its five-year fixed-rate deals from 5.99% to 6.69%, increasing the cost of a £200,000 loan by £1,400 a year. Nationwide, Britain’s biggest building society, also hiked rates for remortgages last week — by up to 0.2 of a point. Lenders have consistently put up the cost of new mortgages in the past six months, despite Bank rate being on hold at 0.5% since March. Experts warned that fixed-rate mortgages could soar to 10% when the Bank of England starts to raise rates again, if lenders continue to profiteer. Related Links * Mortgages: Fix, track or stick - the big debate * Building societies hit out at FSA curbs Fixed-rate mortgages reflect “swap” rates — the cost of funding on wholesale markets — but these, too, have plunged to record lows. Darren Cook of Moneyfacts, the financial data firm, said: “It’s astonishing to see margins continuing to grow at the expense of borrowers. If mortgage rates continue to increase like this — and they will, the closer we get to the Bank increasing interest rates — we could soon see mortgage rates of close to 10%.” Research for The Sunday Times shows that banks have also refused to play fair on savings and credit card rates. Here, we look at the worst offenders: MORTGAGES Yorkshire building society has increased rates on average fixed-rate deals by 1.76 percentage points — more than any other lender — in the past six months, said Defaqto, the data firm. Its two-year deal is now 5.79%, against 4.03% six months ago, and its five-year fix is 6.55%, compared with 5.36%. Northern Rock, the nationalised bank, is the second-worst offender, with its average two-year fix up 0.6 points to 5.49%. SAVINGS NatWest has cut 1.51 points off its eIsa rate in the past six months. At the start of the tax year in April, savers were able to net a rate of 3.51%. Today, it pays as little as 2%. Meanwhile, Tesco has cut its easy-access rate by 0.5 points to 1.5%, and ICICI has lowered rates on its once-popular HiSave account by 0.75 points to 1.7%. Rachel Thrussell at Moneyfacts said: “There’s no excuse. This has been a tough enough time for savers without unnecessary interest rate cuts.” CREDIT CARDS RBS has hiked the rate on its Classic card — a best-buy six months ago — from 12.9% to 16.9%, according to Moneysupermarket. The four point increase will cost customers an extra £100 a year on the average balance of £2,500. Abbey has increased its purchase rate from 15.9% to 18.9%. You can do better than that Financial institutions may have refused to play fair in the half-year that Bank rate has been static at 0.5%, but there are ways to outdo them. Go for consistent savings rates The Albion 30 account from Leeds building society has been one of the most consistent notice accounts over the past 18 months, says Moneyfacts, the financial data firm. It pays interest of 2.5% on balances of £5,000 or more. The notice period is 30 days. Among no-notice accounts, Beverley building society’s postal account has paid 1.65% over the past three years. Lock in to the top five rates The Investec High 5 account pays the average of the five top-rate savings accounts, as published by Moneyfacts each week. The current rate is 3.15%. It requires an opening deposit of at least £25,000 and three months’ notice to make a withdrawal. Switch to 0% APR Virgin Money Mastercard gives the longest 0% interest period on balance transfers — 16 months. There is a handling fee of 2.98%. The Santander credit card, from Abbey, promises 0% on balance transfers for 15 months with a 3% balance transfer fee. Pick the right mortgage rate First Direct has the market-leading two-year fix at 3.49% for customers with a 40% deposit. The fee is £1,298. Repayments must be made from a First Direct current account and deals are offered on a repayment basis only. Most brokers are suggesting fixing for longer as current two-year deals will finish when Bank rate is expected to rise. If you want to protect yourself, HSBC offers a five-year fix at 4.95% with a 40% deposit and £999 fee. For those with just a 25% deposit, HSBC has the top tracker, at 2.95%, while Newcastle building society has a five-year fix at 4.99%. Link to comment Share on other sites More sharing options...
planit Posted September 13, 2009 Report Share Posted September 13, 2009 This is crazy, we have a situation where the banks have priced risk higher and also cut the LTV they will lend. Also they want to limit the downside to any housing crash as they are already up to their eyeballs in it. At the other end they are flooded with cheap money so they don't need to attract savings. So the borrowers and savers are both screwed by the banks helped by government policy. Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 13, 2009 Author Report Share Posted September 13, 2009 This is crazy, we have a situation where the banks have priced risk higher and also cut the LTV they will lend. Also they want to limit the downside to any housing crash as they are already up to their eyeballs in it. At the other end they are flooded with cheap money so they don't need to attract savings. So the borrowers and savers are both screwed by the banks helped by government policy. That's why there is a central bank first place. Anyway, the money will find it's way into something, e.g precious metals. Link to comment Share on other sites More sharing options...
planit Posted September 13, 2009 Report Share Posted September 13, 2009 That's why there is a central bank first place. Anyway, the money will find it's way into something, e.g precious metals. And a shares bubble! Link to comment Share on other sites More sharing options...
nicejim Posted September 13, 2009 Report Share Posted September 13, 2009 This is crazy, we have a situation where the banks have priced risk higher and also cut the LTV they will lend. Also they want to limit the downside to any housing crash as they are already up to their eyeballs in it. At the other end they are flooded with cheap money so they don't need to attract savings. So the borrowers and savers are both screwed by the banks helped by government policy. An offset mortgage is becoming more valuable every month. Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted September 13, 2009 Report Share Posted September 13, 2009 From: http://www.youtube.com/watch?v=5IeixTAzhjE From: http://www.youtube.com/watch?v=Kin1fxZAJZE Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 13, 2009 Author Report Share Posted September 13, 2009 And a shares bubble! Much less in the general stock market (consumer stocks). Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 14, 2009 Author Report Share Posted September 14, 2009 Wrong thread! Link to comment Share on other sites More sharing options...
burbelly Posted September 14, 2009 Report Share Posted September 14, 2009 Beginning to doubt whether this is just a dead cat bounce, maybe we have underestimated the British obsession with property. Could the property cat have ten lives? Spoke to a friend who is a small time property developer/landlord in Wimbledon, and he says property around there is selling at an all time high, higher than 2007/8 and very quickly. He reckons anyone who had the guts to buy last winter would have made 15 to 20% in a matter of just a few months Where the hell are people getting all this money from? house in SW19 are not cheap. A small terrace will set you back £600k Link to comment Share on other sites More sharing options...
azazel Posted September 14, 2009 Report Share Posted September 14, 2009 Beginning to doubt whether this is just a dead cat bounce, maybe we have underestimated the British obsession with property. Could the property cat have ten lives? Spoke to a friend who is a small time property developer/landlord in Wimbledon, and he says property around there is selling at an all time high, higher than 2007/8 and very quickly. He reckons anyone who had the guts to buy last winter would have made 15 to 20% in a matter of just a few months Where the hell are people getting all this money from? house in SW19 are not cheap. A small terrace will set you back £600k I cant see it lasting. The reasons for the bubble that poped in 2007 are no longer there. Income is falling, banks offering BTL loans are dead. Investment banks are gone. House prices either fall or the value of money falls due to QE as the property market gets proped up. Link to comment Share on other sites More sharing options...
John Doe Posted September 14, 2009 Report Share Posted September 14, 2009 Appears good areas doing OK, bad areas really suffering. Can't last though, as a lot of the cash rich are, apparently, now back in. http://news.bbc.co.uk/1/hi/business/8253017.stm Link to comment Share on other sites More sharing options...
njpurser Posted September 14, 2009 Report Share Posted September 14, 2009 Beginning to doubt whether this is just a dead cat bounce, maybe we have underestimated the British obsession with property. Could the property cat have ten lives? Spoke to a friend who is a small time property developer/landlord in Wimbledon, and he says property around there is selling at an all time high, higher than 2007/8 and very quickly. He reckons anyone who had the guts to buy last winter would have made 15 to 20% in a matter of just a few months Where the hell are people getting all this money from? house in SW19 are not cheap. A small terrace will set you back £600k "A small terrace will set you back 600k"-precisely. The bubble is right in front of you, my friend. Tulipmania mkII. Nick Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 14, 2009 Author Report Share Posted September 14, 2009 "A small terrace will set you back 600k"-precisely. The bubble is right in front of you, my friend. Tulipmania mkII. Nick Only much more delusion, because the government spouts nonsense along the line that they will try and sustain the bubble! They even took some half-hearted action pointing into this direction. You could not make this stuff up! Link to comment Share on other sites More sharing options...
ziknik Posted September 14, 2009 Report Share Posted September 14, 2009 Beginning to doubt whether this is just a dead cat bounce, maybe we have underestimated the British obsession with property. Could the property cat have ten lives? ... It's going to be like this for the next 20 years IMO. Those who caused the mess have been rewarded and those who were prudent are being punished. It's going to get worse There will be more bailouts for the feckless and more taxes for the industrious. Link to comment Share on other sites More sharing options...
andrew Posted September 14, 2009 Report Share Posted September 14, 2009 It's going to be like this for the next 20 years IMO. Those who caused the mess have been rewarded and those who were prudent are being punished. It's going to get worse There will be more bailouts for the feckless and more taxes for the industrious. I feel I have to agree with you ziknik,it's all so wrong that I no longer feel angry......just sad. Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 14, 2009 Author Report Share Posted September 14, 2009 Very good news for house prices. They're going to go lower. Great for anyone who wants to own a house (i.e. 100% of the population). http://www.telegraph.co.uk/finance/persona...king-Group.html Buy-to-let investors face £3m credit limit at Lloyds Banking Group Investment landlords have been dealt a blow by an announcement from Britain's biggest buy-to-let lender that it is to introduce new lending limits. ... Lloyds Banking Group has over 50pc of the buy-to-let market, one expert said ... Borrowers had previously been able to take out up to nine mortgages from Lloyds TSB's Cheltenham & Gloucester arm, with a further nine from any of the former HBOS brands, with loans from the two groups totalling up to £6m. ... The buy-to-let market has been hit hard by the credit crunch because of its much heavier reliance on the wholesale money markets to fund lending. Only 181 different products are available to investment landlords, down from 3,648 mortgages in July 2007, before the credit crunch first struck – a 95pc drop. Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 16, 2009 Author Report Share Posted September 16, 2009 http://www.birminghampost.net/comment/post...65233-24703455/ The young professionals in newly-built Birmingham city centre apartments might be surprised, alarmed even, to discover they paid over the odds to live in properties written off by a Conservative councillor as the “slums of tomorrow”. ... It has been revealed by the cabinet member for housing, and he presumably is not joking, that even the city council has turned down offers to buy these properties for homeless people on the grounds that they are not good enough for council tenants. Link to comment Share on other sites More sharing options...
dietcolaaddict Posted September 17, 2009 Report Share Posted September 17, 2009 A little bit of anecdotal...... I'm moving to a new job at the end of the month and looking for a city centre flat (flat, not luxury apartment ) to rent for the first six months. A typical low-end BTL-athon willl do just fine while I settle in at work and decide where to live longer term in the city. However, letting agents are very busy and hard to get hold of, and indeed most flats are gone by the time I get through to them. I've checked that I am not being played by the agents (I've asked friends to make seperate enquiries), so am a little suprised at the high demand-low supply situation here as new builds are everywhere in this city. A little bit puzzled as to why this is. A temporary consequence of the dead cat bounce, or something more ? Link to comment Share on other sites More sharing options...
nicejim Posted September 17, 2009 Report Share Posted September 17, 2009 ...in this city. Very interesting. Is that Nottingham, as per your profile, or is that where you're moving from? Link to comment Share on other sites More sharing options...
dietcolaaddict Posted September 17, 2009 Report Share Posted September 17, 2009 Very interesting. Is that Nottingham, as per your profile, or is that where you're moving from? Actually, It's your city jim - Liverpool. Any local factors involved here - large new employer starting up or something? What is also wierd is that I am competing with loads of students for these places (I realise that is a seasonal effect by moving now). In my day, students lived in their own part of town in 3-6 bedroom doggy digs, not one bedroom city centre flats. Link to comment Share on other sites More sharing options...
nicejim Posted September 17, 2009 Report Share Posted September 17, 2009 Actually, It's your city jim - Liverpool. Any local factors involved here - large new employer starting up or something? What is also wierd is that I am competing with loads of students for these places (I realise that is a seasonal effect by moving now). In my day, students lived in their own part of town in 3-6 bedroom doggy digs, not one bedroom city centre flats. I don't know the lettings market but I do know someone whose luxurflat has become a "Buy To Live" rental. They had no trouble finding new tenants over the summer once they found a decent agent. They didn't manage to hike the price up but were more concerned with having an income than having a big income. It's near the hospital so is popular with doctors, and is bigger than the average 2-bed. Not that I keep up with local goings on very much, but there aren't any local factors I can think of other than a new university term. Don't students expect more these days as the loans make them "more affluent"? Link to comment Share on other sites More sharing options...
burbelly Posted September 17, 2009 Report Share Posted September 17, 2009 slightly out my budget but some of you guys might be interested http://www.struttandparker.com/property-fo..._LON090211.html Link to comment Share on other sites More sharing options...
G0ldfinger Posted September 19, 2009 Author Report Share Posted September 19, 2009 It had totally escaped my attention that this major project had gone down the toilet. http://edinburghnews.scotsman.com/topstori...-out.5562746.jp Ex-Caltongate owner officially rules out developing on site ... THE former owner of Caltongate has formally dropped its interest in the site – but insisted it still wants to invest in Edinburgh. The massive site became available five months ago when owner Mountgrange Capital plunged into administration. Link to comment Share on other sites More sharing options...
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