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RIGHTMOVE's Big Drop announcement:

 

+ November sellers cut their asking prices by 3.2%, the biggest monthly drop since December 2007

+ Falls now recorded in 4 out of the last 5 months, as year-on-year price growth heads for zero

+ 24,028 new sellers coming to market per week, down 9.1% on previous month yet still outstripping muted mortgage approvals by 2 to 1

 

Unseasonally high number of unsold properties and longest ever time on the market mean sellers face tough competition, while winter buyers hang back waiting for bargains

 

/see: http://www.rightmove.co.uk/news/house-pric...x/november-2010

 

ANY ONE Surprised by that big drop ?

 

Last month, after a big jump, I said:

 

A 5% Shocker, or just a normal seasonal "cheeky trying it out"?

 

This year's 4.95% jump in Great London asking prices seems a shocker, until you see that last year's rise was 6.5%

 

For some odd reason, Rightmove doesn't refer to prior year JUMPS in October asking prices, which have always been huge:

Comparison:

Mon.: Rt'move : London : Hometrack / Na'wide H.old.SA Hali.SA Hali.nsa: H&Nindex : mom :DelusIdx

2009

S : : 223,996 : 390,768 : 156,118 +0.2% / 161,816 163,533 163,487 164,854 : £163,335 :+1.40% :137.1%

O : : 230,184 : 416,157 : 156,430 +0.2% / 162,038 165,528 165,349 165,430 : £163,734 :+2.44% :140.6% : RM '09 Hi

==================

chg: + 6,188 : + 25,389 (+6.50%)

2010

S. : : 229,767 : 399,019 : 157,600* -0.4% / 166,757 = n/a = 162,096 163,639 : £165,198 :- 1.49% :139.1%

O : : 236,849 : 418,778 : est.DI: 143.4%

==================

chg: + 7,089 : + 19,759 (+4.95%)

mom:+3.08% :+4.95%

 

Of that Pds. 25k gain last year, over Pds. 17k was given back in two months.

 

I reckon the give back will be even greater this year.

 

I didn't expect the "give back" in a single month !

 

The really surprising thing to me was that London asking prices held up so well - down only -0.4%

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I didn't expect the "give back" in a single month !

The really surprising thing to me was that London asking prices held up so well - down only -0.4%

Lol.

The HPC-ers still havent tweaked that London's drop was so small.

 

Or maybe they are just unwilling to discuss it (?)

 

OTHERS:

East Anglia: -6.0%

East Mids: -5.4%

So'west : -4.9%

North: -4.2%

 

These are CRUSHING drops !

 

East Anglia is now down -4.7% year-on-year.

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RIGHTMOVE's Big Drop announcement:

 

+ November sellers cut their asking prices by 3.2%, the biggest monthly drop since December 2007

+ Falls now recorded in 4 out of the last 5 months, as year-on-year price growth heads for zero

+ 24,028 new sellers coming to market per week, down 9.1% on previous month yet still outstripping muted mortgage approvals by 2 to 1

 

Unseasonally high number of unsold properties and longest ever time on the market mean sellers face tough competition, while winter buyers hang back waiting for bargains

 

/see: http://www.rightmove.co.uk/news/house-pric...x/november-2010

 

ANY ONE Surprised by that big drop ?

 

Last month, after a big jump, I said:

 

 

 

I didn't expect the "give back" in a single month !

 

The really surprising thing to me was that London asking prices held up so well - down only -0.4%

 

What do you think the smaller drop in London actually means?

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Greece house prices? Take a look at http://www.globalpropertyguide.com/real-es...-house-prices/G

Pretty bad but no where near as bad as Ireland.

Depends on how you look at it, I suppose, Rich.

 

Greece

76_graph2.jpg

 

Ireland

93_graph2.jpg

 

That 270% rise in Greece looks much more dangerous than the 135% rise in Ireland.

That's twice as far, and may need a much bigger correction.

 

Here's Britain from the same source:

204_graph2.jpg

 

Ireland is facing its property demons now. Greece and the UK may still need to do so.

 

Here are the Iberian twins:

 

Spain

176_graph2.jpg

 

- Notice that the peaks in Spain are almost exactly 18 years apart !

A bigger fall than last time seems likely now.

 

Portugal

156_graph2.jpg

 

If these are "twins", then they are twins like Arnie and Devito

 

1216667608592_5432_0002_mif_290_210.jpg

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London is Hanging on - so far

 

RIGHTMOVE's Big Drop announcement:

+ November sellers cut their asking prices by 3.2%, the biggest monthly drop since December 2007

+ Falls now recorded in 4 out of the last 5 months, as year-on-year price growth heads for zero

The really surprising thing to me was that London asking prices held up so well - down only -0.4%

 

What do you think the smaller drop in London actually means?

Reality is slow in coming to the Big Smoke

... because of "hot air" and rising rents, I suppose.

Or maybe because London is better at attracting gullible foreigners*.

 

Let's give it a few more months.

 

== ==

 

*Actually, this weekend they brought a new developed by Berkeley Homes to HK:

A place called Dickens Yard - prices sought were about Pds. 600 -650 psf - For Ealing Broadway!

 

dickens.jpg

/see: http://www.cabe.org.uk/design-review/dickens-yard

 

That looked very expensive to me. But one of the agents gave me "his" prices for Central London.

And that was about half of the numbers he was quoting, so it made a bit more sense.

 

The think that intrigued me was West Rail, and that this new project will be right next to a West Rail stop,

which I think will be completed in about 2017 - is that right.

 

If I did have such a Bearish view of UK property over the next 2-3 years, and I thought prices would

be "flat to up", I might have taken a very close look.

 

London's new infrastructure should help support property, but I think the undermining from Housing benefit cuts,

fewer jobs, and a return of a global financial crisis, will more than undermine the infrastructure stimulus.

 

If things get really bad, some of that infrastructure may get delayed, or even cancelled.

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CAUTION "to the winds", inspires... ANOTHER WARNING

 

Can you believe that people are still expanding their BTL portolios aggressively?

This post on PT was a show stopper for me:

 

AM I EXPANDING TOO FAST? : here

 

"Christmas is edging closer, but I should clarify that by the subject title, I'm not talking about my waistline. This question and any future responses should be useful for individuals in a similar position.

 

My background: I used to work for a buy-to-let sourcing company a few years back, but only in the last 12 months I have come into enough money to start purchasing.

 

So, within the last 9 months, I have completed on 5 properties and am looking to purchase a further 10-15 next year with an upper target of 20 by the end of 2011. I know that it's not quantity, but quality, but I'm buying at the low end of property (45k-60k) and cashflow is circa £250-£280 a month after all expenses (interest payment and lettings fees). I'm buying at 2003/2005 prices."

 

- AB on PropertyTribes

 

== so in reaction...

 

THE CORRECTION HAS HARDLY BEGUN

 

On Property Tribes, you can read postings like this one:

 

"... a correction of 20% is a crash. The UK housing sector has already had one. I am not saying that each country only gets one crash. Just that the argument that the UK has been spared is false. A crash that has happened is not a crash delayed." -

UNQUOTE

== ==

At the risk on sounding "boring", I want to sound another warning.

 

I think that PT's property investors are vastly under-estimating the severity of the correction that the UK is facing. If you agree that the UK can follow the path of the US, Ireland, and Spain, do you really want to wait around any longer before cutting your risk exposure?

 

Message to LL's :THE UK HOUSE PRICE CORRECTION HAS HARDLY BEGUN !

 

When UK-wide prices fell by 20% (per the H&N index), Greater London prices fell by only 6% (from Pds. 412,731 to 386,653, per Rightmove. For November, Rightmove has just annouced their current index is 417,279, which is above the 2007 high!) So Landlords in the London area, many of whom may think of themselves as well-tested survivors with appropriate "risk-management strategies" in place, were in reality almost unscathed, and never felt a proper correction. Gordon Brown and the BofE came to the rescue with ultra-low rates just when things were getting "interesting" in late 2008.

 

These charts might show the extent to which prices have corrected in other countries, and how small the correction has been in the UK nationally :

 

( see country price charts at: http://tinyurl.com/GPC-Warns )

 

- Notice that the peaks in Spain are almost exactly 18 years apart !

A bigger fall than last time seems likely now - we have started the correction phase.

 

In Ireland, average prices have fallen by 35%, while in the US they are down by 28%. As of October 2010, the average price of homes in the UK was just 14% off its August 2007 high. And as I have shown, above, Greater London prices are actually 1.1% above the 2007 high, according to Rightmove.

 

The UK has so far been spared from a deeper correction thanks to: the timely arrival of ultra-low rates in late 2008, and the (rather alarming?) lack of discipline in Housing benefits. An astounding 40% of privately-owned investment properties are let to subsidised tenants, and rents there have been allowed to rise, even though average rents in the private sector have fallen. And the UK's coalition government has now realised how expensive these generous benefits are to a hard pressed UK economy, and how excessive payments may be distorting the property market. Change is afoot, and we have begun to see it in asking prices. Rightmove has just reported a drop of more than 3% in asking prices - that's a big drop for a single month.

 

I think the second leg down may shock many BTL investors, especially those who think that the Greater London area is somehow immune to price falls. A market cannot be propped up forever, and one of the key props (Housing benefit rent rises) is being pulled away in 2011. Do you really want to wait until next year, and see what that will do to UK prices?

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CAUTION "to the winds", inspires... ANOTHER WARNING

 

Can you believe that people are still expanding their BTL portolios aggressively?This post on PT was a show stopper for me:

 

YES!!!!

Well come to THE REAL WORLD of the psyche of the average brainless brit and probably many other countries intoxicated with property "FEVER STILL".

 

I HAVE NO DOUBT AT ALL FROM PERSONAL CONVERSATIONS IN FACT NEARLY ALL that it it was'nt for this

http://www.bbc.co.uk/news/business-11784783

Mortgage lending still subdued, lenders say

Mortgage lending will stay subdued for at least the next few months :lol::lol::lol:, lenders say Mortgage lending continues to be subdued, the Council of Mortgage Lenders (CML) says.

 

Total mortgage lending in October was £12.4bn, the same as in September but the lowest October figure since 2000.

The continued rationing of lending has been the main factor behind the recent fall in house prices. ;) PURELY BY DESIGN.

 

The FOOLS would be purchasing houses until the iirredeamable perpetual annuity bonds did'nt have enough space for all the 000's to fit on them.

This is the REALITY of "GROUP THINK" "UNHEALTHY SENTIMENT" and all the other consistently quoted tags by many on here.

I have a very good freind who owns a national letting agency in his words we are RUSHED of our feet.We have never been so BUSY.Does he see the bigger picture ?ABSOLUTELY !!!Did he take my advice and purchase some PHYSICAL GOLD yes he did.One of only 3 (THREE) other people of the hundreds i have spoken to about buying Au.Everybody else wants to talk about property STILL and how WELL the FUTURE looks.Thats where the "GROUP THINK" "UNHEALTHY SENTIMENT" is

time to WAKE UP to the real world reality.

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http://www.bloomberg.com/news/2010-11-18/p...t-pressure.html

Prime U.S. Mortgage Foreclosures Rise to Record

...

Foreclosures on prime fixed-rate mortgages in the U.S. jumped to a record in the third quarter as unemployment strained household budgets of the most creditworthy borrowers.

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Oh dear doom and gloom we are all doomed!

 

Dr Bubb I have explained quite simply on propertytribes that I agree with you UK property prices are likely to fall. I've also explained why I don't see this as a threat to astute property investors, but an OPPORTUNITY. Still you seem determined to ignore what I and a number of others have said. It's a very British trait (not a good one) to wallow in the failure of others, or the anticipated failure in this case. Yet you aren't British. You will be disappointed because whatever the market does, there will be astute investors who make a profit. Many of those people reside on Propertytribes.

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Oh dear doom and gloom we are all doomed!

 

Dr Bubb I have explained quite simply on propertytribes that I agree with you UK property prices are likely to fall. I've also explained why I don't see this as a threat to astute property investors, but an OPPORTUNITY. Still you seem determined to ignore what I and a number of others have said. It's a very British trait (not a good one) to wallow in the failure of others, or the anticipated failure in this case. Yet you aren't British. You will be disappointed because whatever the market does, there will be astute investors who make a profit. Many of those people reside on Propertytribes.

 

Are you one of those astute rentiers living off the labour of others?

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Ha ha wouldn't that be nice! I suspect you'd like it too if you could figure out how to do it.

 

Short answer, No.

 

I spent much of today at the bottom of a muddy pit swinging a pickaxe to dig a new manhole. I also work bloody hard with my brain too, putting together deals, often late into the evening and at weekends, most of which fall thru when we get out-bid. I'm not a nine-to-fiver and I probably work at least twice as hard as the average wage-slave.

 

What do you do?

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Ha ha wouldn't that be nice! I suspect you'd like it too if you could figure out how to do it.

 

Short answer, No.

 

I spent much of today at the bottom of a muddy pit swinging a pickaxe to dig a new manhole. I also work bloody hard with my brain too, putting together deals, often late into the evening and at weekends, most of which fall thru when we get out-bid. I'm not a nine-to-fiver and I probably work at least twice as hard as the average wage-slave.

 

What do you do?

 

I used to be a rentier living off the labour of others but saw the error of my ways back in Spring 07 - sold up and put the proceeds into PMs. As for what I do, not much really - potter about in the workshop (miniature engineering) play chess, read, cycle, wonder about the purpose of existence - usual things.

 

Edit: BTW, I looked at your blog - We probably have a lot in common regarding building things oneself.

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Oh dear doom and gloom we are all doomed!

 

Dr Bubb I have explained quite simply on propertytribes that I agree with you UK property prices are likely to fall. I've also explained why I don't see this as a threat to astute property investors, but an OPPORTUNITY. Still you seem determined to ignore what I and a number of others have said. It's a very British trait (not a good one) to wallow in the failure of others, or the anticipated failure in this case. Yet you aren't British. You will be disappointed because whatever the market does, there will be astute investors who make a profit. Many of those people reside on Propertytribes.

Yes, I suspect that many are. And they just do not know it yet.

 

The "opportunity" will not come until most see the "disaster." That's the way it works in a big cycle downturn. People need to learn first that it is dangerous to buy the dips. That hasn't happened yet.

 

Rich,

I never attacked you or any individual.

What I do think is dangerous is the attitude of complacency which says: "we are different - we are safe."

I think LL's in the UK are not safe, and are very vulnerable, far more than most know.

 

If you are prepared and ready, that's great. Why not help others face the reality, and prepare too.

 

Just holding on, and hoping for the best, will not be enough IMHO.

 

SP banned bad news, and deleted bearish posts, and they actively enforced denial. PT is much healthier than that and Vanessa and other there encourage both points of view. But many PT posters do not like that, and call anything with the smallest amount of bearish commentary "boring." I have decided to post there less as a result.

 

There is enough cyclical material there already, and those that want it should be able to find it.

 

What I would like to see is: people on PT chipping in with a informational tidbits which show the deterioration of the market as it is happening. That is not happening yet. Most are still bolstering each other, telling them that they should not worry. My point is; THEY SHOULD WORRY. The smart ones and open minded ones should be able to see that, and will encourage truth-telling, not complacency.

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YES!!!!

Well come to THE REAL WORLD of the psyche of the average brainless brit and probably many other countries intoxicated with property "FEVER STILL".

 

I HAVE NO DOUBT AT ALL FROM PERSONAL CONVERSATIONS IN FACT NEARLY ALL that it it was'nt for this

http://www.bbc.co.uk/news/business-11784783

Mortgage lending still subdued, lenders say

Mortgage lending will stay subdued for at least the next few months :lol::lol::lol:, lenders say Mortgage lending continues to be subdued, the Council of Mortgage Lenders (CML) says.

 

Total mortgage lending in October was £12.4bn, the same as in September but the lowest October figure since 2000.

The continued rationing of lending has been the main factor behind the recent fall in house prices. ;) PURELY BY DESIGN.

The FOOLS would be purchasing houses until the iirredeamable perpetual annuity bonds did'nt have enough space for all the 000's to fit on them. :lol:

This is the REALITY of "GROUP THINK" "UNHEALTHY SENTIMENT" and all the other consistently quoted tags by many on here.

I have a very good freind who owns a national letting agency in his words we are RUSHED of our feet.We have never been so BUSY.Does he see the bigger picture ?ABSOLUTELY !!!Did he take my advice and purchase some PHYSICAL GOLD yes he did.One of only 3 (THREE) other people of the hundreds i have spoken to about buying Au.Everybody else wants to talk about property STILL and how WELL the FUTURE looks.Thats where the "GROUP THINK" "UNHEALTHY SENTIMENT" is

time to WAKE UP to the real world reality.

 

My own experiences back-up what Fitkid is saying about property-fever still alive and kicking! It seems as if the average property obsessed Brit is simply ignoring the fundamentals of massive State and private debt and is convinced that what is now happening, is just a hiatus and soon it will be back on the merry-go-round of money-for-nothing property flipping. One-trick ponies eh!

 

Still, I suppose that 65 million dimwits, is a hell of a lot of inertia and, like an oil tanker, takes a long time to change course!

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I used to be a rentier living off the labour of others but saw the error of my ways back in Spring 07 - sold up and put the proceeds into PMs. As for what I do, not much really - potter about in the workshop (miniature engineering) play chess, read, cycle, wonder about the purpose of existence - usual things.

 

Edit: BTW, I looked at your blog - We probably have a lot in common regarding building things oneself.

 

 

 

Sold up and put the proceeds into PMs eh? Living off the labours of others then.

 

Yes we probably do have a lot in common. I'd like to have the OPTION to be unproductive but the reality is I find work satisfying so never want to fully retire. Right now I'm working too hard tho!

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My own experiences back-up what Fitkid is saying about property-fever still alive and kicking! It seems as if the average property obsessed Brit is simply ignoring the fundamentals of massive State and private debt and is convinced that what is now happening, is just a hiatus and soon it will be back on the merry-go-round of money-for-nothing property flipping. One-trick ponies eh!

 

Still, I suppose that 65 million dimwits, is a hell of a lot of inertia and, like an oil tanker, takes a long time to change course!

I think you will see that the vast majority will still be married to their property in the UK even if the whole world financially crashed and burned, currencies included. As such they will learn too late what it is to be attached at the hip to an illiquid asset. But the numties 'won't mind' as they are living there etc etc and an Englishmans home is his castle and it's better than paying rent and and...

 

They will all be listening to/watching the band as the Titanic sinks, unawares. The annoying thing will be that as the pound sinks with them they'll see a largely unchanged nominal crash and will say again 'UK houses don't go down'. Muppets!

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Oh dear doom and gloom we are all doomed!

 

Dr Bubb I have explained quite simply on propertytribes that I agree with you UK property prices are likely to fall. I've also explained why I don't see this as a threat to astute property investors, but an OPPORTUNITY. Still you seem determined to ignore what I and a number of others have said. It's a very British trait (not a good one) to wallow in the failure of others, or the anticipated failure in this case. Yet you aren't British. You will be disappointed because whatever the market does, there will be astute investors who make a profit. Many of those people reside on Propertytribes.

I still retain a small property portfolio which is unlevaraged.The properties were 'purchased' many years ago before property was the most common/popular tv show and the most used word in the english language.I can remember clearly a friday night out in a popular local town in 2008 and EVERYONE i spoke to over the course of the evening was a property developer a property speculator a property landlord a property --------- etc etc etc.that was the REAL "SHOE SHINE BOY" momment for me.Having read Extraordinary Popular Delusions and the Madness of Crowds (1841) (a must read and free download here http://manybooks.net/titles/mackaych2451824518-8.html ) a history of popular folly by Scottish journalist Charles Mackay, many years ago it was like living his excellent reciting of the "tulipmania" "south sea bubble" the follie of john laws fiat experiment in 18th century france.ALL AS TRUE TODAY AS THEY EVERWHERE.

 

"THERE AINT NOTHING NEW UNDER THE SUN"

 

If i had been totally clinical i should have sold the properties and put all the proceeds into Au but as they were unleveraged and producing good yields i have retained them.would that classify me as RICH G definition as an "ASTUTE INVESTOR" or someone who was'nt so astute who missed a bigger better return by having further funds invested in PM's??

 

I can see a possibility for an ASTUTE investor returning to property when we have a rothschilds "BUY WHEN THERE IS BLOOD IN THE STREETS " momment not before.BUT if the catastrophic breakdown of the economy happens will the "ASTUTE" investor see property as an "ASTUTE" place to be ALLA the property experiences in rental yields in "WEIMAR" gemany as i recall the good dr's research into rental yields at that time elucidated that the rental yields were absolutely slaughtered.!!!

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I think you will see that the vast majority will still be married to their property in the UK even if the whole world financially crashed and burned, currencies included. As such they will learn too late what it is to be attached at the hip to an illiquid asset. But the numties 'won't mind' as they are living there etc etc and an Englishmans home is his castle and it's better than paying rent and and...

 

They will all be listening to/watching the band as the Titanic sinks, unawares. The annoying thing will be that as the pound sinks with them they'll see a largely unchanged nominal crash and will say again 'UK houses don't go down'. Muppets!

 

 

Englishmans home is his castle and it's better than paying rent

 

What most englishmen and mostly all men DONT realise is that the "free hold" legally expressed as "FEE SIMPLE" position in their property gives them only "EQUITABLE" title in their property not "ALLOIDAL" title.What does that mean?

SIMPLY as any bodies deed's will show that you are just a "TENNANT" it is another MAJOR misconception by most that having the freehold interest in their property means they own it.Yes you get the use and posession of the property ie 9/10 of the law but who has the other 1/10 the legal title oh yeah "THE CROWN".

You see you are always merely a tennant usually with a "MORTGAGE" does'nt sound to bad but what does that mean

"MORT"= latin =death

"GAGE" latin=pledge hold grip.

so the next time you think about having a mortgage think more like do i want a "DEATH GRIP" on me then you might think twice.

The current legal status as laid out in The property acy 1925 view here

http://www.legislation.gov.uk/ukpga/1925/2...19250020_en.pdf

evidences and legaly states these facts (please note NO CONSPIRACY ALL PUBLISHED FACTS for those who can be bothered to and have the capacity to understand the "colorable" words used in LEGALESE not english.)

 

So the actual position of your "legal" fiction as evidenced by the above act and other historical treaties with the vatican is that you at very best can achieve a 3rd position of claim on your freehold "equitable " interest in your property If you put a commercial lien in place (a registered charge at the land registry)

 

Otherwise the list of legal claim looks like this.for what you WRONGLY/ DECIEVED to believe is your CASTLE.!!!

 

1st legal claim The Pope as evidenced by http://www.britannia.com/history/docs/johncon.html

 

2nd legal claim The Crown as evidenced by

http://www.legislation.gov.uk/ukpga/1925/2...19250020_en.pdf

 

3rd legal claim Lincolns inn as evidenced by the above

 

4th legal claim Land charges registry (long title) as evidenced by the act of actual "re-gisteration"

 

5th legal claim Land registry (short title) evidenced by same as above

 

6th legal claim Bank/Lender as evidenced by the legal charge (lien) registered with the above

 

7th legal claim YOU.|(ie your legal fiction/strawman) as evidenced by your name(legal fiction) registered at the

above.

 

SO NOW WHO WOULD LIKE A DEATH GRIP.!!!!!!!!!!

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HEADLINES like this is what is spurring on the continued "property Frenzy" but i think the writing is clearly on the wall for "SERIOUS" corrections.

 

http://www.bbc.co.uk/news/business-11791358

 

Demand for rooms to rent is growing, according to the industry.

 

Frustrated buyers are continuing to push up the price of renting a property in the UK, according to a survey.

 

The average cost rose for the ninth consecutive month to £691 a month in October, according to LSL Property Services.

 

The price is rising as potential first-time buyers struggle to get a mortgage and so continue to rent.

 

A separate survey from Spareroom.co.uk suggested that seven people were chasing every room for rent.

 

It could be argued that this is vested interest journalism as LSL property services (hardly independent) clearly require a healthy housing market to function.http://www.lslps.co.uk/about.html

 

LSL Property Services plc (LSL) is one of the leading residential property services companies in the UK and provides a broad range of services to a wide range of customers including mortgage lenders together with buyers and sellers of residential properties.

 

LSL’s operations cover four key areas; surveying, estate agency, corporate services and financial services

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HEADLINES like this is what is spurring on the continued "property Frenzy" but i think the writing is clearly on the wall for "SERIOUS" corrections.

It could be argued that this is vested interest journalism

I work in publishing, and as far as I can tell, the journalists are all absolutely property fevered and extremely pro big government.

 

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An orwellian connundrum at its very best

LOVE IS HATE and HOUSING BENEFIT CUTS WILL STOP SOCIAL UNREST. :blink:

Answers on a postcard please!!!!

 

 

http://www.guardian.co.uk/society/2010/nov...fit-questioning

 

Housing benefit cuts will stop social unrest, claims Cameron

Social unrest would have been likely if housing benefit payments had not been slashed, David Cameron said today after claims that his cuts would lead to an influx of poor families from inner cities to hard-pressed suburbs.

 

He challenged Margaret Hodge, the chair of the Public Accounts Committee, to join him in the streets of her home in Islington, north London, to find out whether the public supported the cuts.

 

 

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An orwellian connundrum at its very best

LOVE IS HATE and HOUSING BENEFIT CUTS WILL STOP SOCIAL UNREST. :blink:

Answers on a postcard please!!!!

 

 

http://www.guardian.co.uk/society/2010/nov...fit-questioning

 

Housing benefit cuts will stop social unrest, claims Cameron

Social unrest would have been likely if housing benefit payments had not been slashed, David Cameron said today after claims that his cuts would lead to an influx of poor families from inner cities to hard-pressed suburbs.

 

He challenged Margaret Hodge, the chair of the Public Accounts Committee, to join him in the streets of her home in Islington, north London, to find out whether the public supported the cuts.

 

Who gives a flying...?

 

As long as the gravy train stops, i don't care who chucks their toys out the pram, give the police something to do.

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...I can remember clearly a friday night out in a popular local town in 2008 and EVERYONE i spoke to over the course of the evening was a property developer a property speculator a property landlord a property --------- etc etc etc.

...that was the REAL "SHOE SHINE BOY" moment for me.

 

shoeshine.jpg

 

The Shoe Shine boy stopped shining shoes, and instead became an estate agent,

and built up a portfolio of 12 Buy-To-Lets using his credit cards.

 

estate_agent.jpg

 

He was looked upon as "brave" and "entrepreneurial", as all the other shoe shine boys followed him in his choice of career.

 

And as the stood around having drinks, they thought all was fine, and could see nothing wrong with the state of the economy. They laughed at those who worked in normal jobs, and thought they were "wage slaves" and simply lacked the brains and the courage to go into property investing.

 

PropertyTutorlogo.jpg

 

As the game slowed down, they started teaching courses, living off "the glow" of their past success, and bringing fresh "suckers" into the game, even though the risk/reward was now very poor, and the market was having its last gasp.

 

Just as the game was coming unstuck in 2008, they were all saved by a reckless decision by the BofE to cut rates to ultra low levels. After a brief wobble, more were attracted to the game, and prices recovered most of what they had lost.

 

The former shoe shine boys told each other: as long as we are making positive cash flow, we will be fine. Don't worry : The government will save us again, if we get squeezed.

 

WhiteHorseTavernAtDusk.jpg

 

As they toasted each other, and spoke of their next BMV deal, the sun was setting... and some new dark forces were walking the streets. Some would not make it home safely to their warm beds that night.

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...I can remember clearly a friday night out in a popular local town in 2008 and EVERYONE i spoke to over the course of the evening was a property developer a property speculator a property landlord a property --------- etc etc etc.that was the REAL "SHOE SHINE BOY" momment for me.....

For me it was enough to just walk down a normal shopping street when I moved to the UK earlier this decade. Every n-th (n<10?) shop was a mortgage broker of some kind. I had never seen anything like it: the whole economy was circling around ever increasing house prices. I then understood that it was doomed.

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