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UK House prices: News & Views


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When you look at that second chart ... what does it actually mean?

It means that you should have at least a few thousand ounces of silver tucked away, if you want an average place to keep warm and dry in, which cost you peanuts a few years ago. :P (Or pay for the extension now and build it in a few years on 'maturity').

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Doesn't that chart show that, on balance, over arbitrary time periods within the last 40 years, houses have been a better investment than silver?

That maybe so. But for the last 10 years the boot has been on the other foot... 49,000oz of silver to 7,560 oz today. Buy low (10 years ago), sell high (next 5 years or so).

 

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And yet, somehow, we no longer pay tithes to the squire

I would swap my tax burden for a10% tithe in a heartbeat.

or work in dangerous factories until we drop from exhaustion.

That'll be back the moment cheap energy supplies fail.

No revolution changes things for the better immediately - often things change for the worse for a while. But, look back through history and you'll see nothing changes unless people revolt against the situation they find themselves in.

Look back through history and the chances are you'll see evidence for whatever theory you happen to support at the time. At least that is what I find.

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Meanwhile, rents keep rising and the transfer BaB has been discusing continues.

http://www.bbc.co.uk/news/business-12637242

IF this is a truly accurate description of the market NOW:

 

Rental costs on an 'upward trajectory'

 

Some 40% more surveyors reported that rents rose rather than fell, the highest level recorded since the Royal Institution of Chartered Surveyors (Rics) survey began in 1998.

 

Demand from tenants was growing, but they were chasing space in fewer properties, the poll found.

. . .

 

Finance pressure

The proportion of social tenants had risen during tough economic times, the Rics residential lettings survey suggested.

 

Meanwhile, the proportion of student lettings had dipped compared with the previous three months, surveyors said.

 

Surveyors in all areas of Britain expected rents to continue to rise in the three months to April.

 

"It is unlikely that finance for first-time buyers will become much more readily available, while uncertainty over the economy may also deter potential homebuyers," said Rics spokesman Jeremy Leaf.

 

... then I am wondering where the Money to pay higher rents is coming from ?

Is government still handing out big Housing benies? Sounds like LL's are getting more rent cheques from "social tenants"

 

usa%20inc%20-%20growth%20in%20entitlemen : Red = Blood supplied to vampires

 

Absurdly high entitlements are going to bring down Western economies. But those on entitlements are going to find their blood supplies cut off fair soon, I would have thought.

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Absurdly high entitlements are going to bring down Western economies. But those on entitlements are going to find their blood supplies cut off fair soon, I would have thought.

I wonder when they will realize that it would be more beneficial to let housing crash and the economy with it, rather than gut the economy and pass on all that money in benefits to landlords-the few. I guess only when they realize that more cannot be paid as more join the benefits queue and those in employment become less and less. Stalemate to go with stagflation and denial. Ummm... lovely.

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I wonder when they will realize that it would be more beneficial to let housing crash and the economy with it, rather than gut the economy and pass on all that money in benefits to landlords-the few. I guess only when they realize that more cannot be paid as more join the benefits queue and those in employment become less and less. Stalemate to go with stagflation and denial. Ummm... lovely.

 

One things for sure, it's gonna make wicked telly.

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It means that you should have at least a few thousand ounces of silver tucked away, if you want an average place to keep warm and dry in, which cost you peanuts a few years ago. :P (Or pay for the extension now and build it in a few years on 'maturity').

 

Nice if you have the money to buy silver - and pay your rent or mortgage, council tax, income tax, national insurance, VAT, food, clothes, cars, petrol, utilities etc. etc. etc. etc.

 

And, of course, if you happen to get lucky and buy silver at the right time.

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Halifax down 0.9% MOM and 2.8% YOY

 

http://www.lloydsbankinggroup.com/media/wo...ebruary2011.doc

 

Reading their release, the price/earnings ratio stands at 4.46, quoting a mystic figure from the Annual Survey of Hours and Earnings (ASHE).

 

Without looking at that release, a quick calculation shows the average wage to be...

 

 

36470.179372197309417040358744395

 

36.5 GRAND!

 

 

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All renters have to do is buy a bit of gold or silver to stay ahead of the rent rises. Far better than buying a house, IMO.

 

But you can't live in a bit of silver and many renters use their spare money to save for a deposit on a house - so they don't have to keep paying rent to someone else who does own a house (or at least manages it on behalf of a bank).

 

And, who is to say if you buy silver today it won't have gone down in price when you want to sell it.

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And, of course, if you happen to get lucky and buy silver at the right time.

That's why I am posting these charts to give you a clue when to buy silver/gold, and when it will be time to buy houses again. Don't you see the cycles?

 

UK_House_Prices_in_Gold_LOG_GUESS.png

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I would swap my tax burden for a10% tithe in a heartbeat.

Me too. Unfortunately, in the days of serfs and the landed gentry, tithes of 50% - 75% were the norm.

 

 

That'll be back the moment cheap energy supplies fail.

I'm paying 2 grand a year for gas and electricity and £1.30 a litre for petrol - cheap energy supplies? Surely it will only be back when cheap labour supplies fail - i.e. when the costs of employing labour in Asia are high enough to make it worth manufacturing in the West again. Even if and when this happens, the jobs will be done by robots.

 

 

Look back through history and the chances are you'll see evidence for whatever theory you happen to support at the time. At least that is what I find.

That is true. But one conclusion I think you can safely draw from history is that unless someone tries to change something, the vested interests (that benefit from whatever situation someone else wants to change) make sure things stay just as they are.

 

I do think that if young people want to change the fact that they are being stuffed mightily by my generation, the government and the banks, they need to do something about it.

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Australian home prices the world's most overvalued: The Economist

 

HOME prices in Australia are the most overvalued in the world, a leading global report said today, intensifying a growing debate in the country on the possibility of a housing bubble.

 

The report, published in The Economist magazine, comes as Australia's housing market continues to face stiff criticism both domestically and overseas.

 

"There may be good reasons for Australian prices to have risen so far, but people made similar, and ultimately incorrect, arguments for the run-up in prices in the West," author of the property special in The Economist, Andrew Palmer, said in a statement.

 

Several recent data reports have shown growth in housing prices is either starting to slow or turn negative.

 

International investors and even the International Monetary Fund have recently argued the local housing market is overvalued.

 

As prices have dipped, some economists and investors -- most notably GMO chief investment strategist Jeremy Grantham -- have even argued recently that a housing bubble is being created in Australia.

 

Still, local economists and even the country's central bank have dismissed claims there is a property bubble, noting there has never been a "credit-fuelled speculative boom" in Australian prices.

 

In the report, The Economist noted the ratio of house prices to rents in Australia is 56 per cent above its long-run average between 1975 and 2010.

The second most overvalued house prices in the world were in Hong Kong, at 54 per cent above historical average, it said.

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Halifax, down down down

http://uk.finance.yahoo.com/news/Halifax-U...954286.html?x=0

Now that's more like CCS.

Indeed.

A boost for those who were "faint of heart" !:

 

House prices fell at their fastest annual rate for 16 months during February as faltering demand continued to put downward pressure on the property market, mortgage lender Halifax said.

 

Property values were 2.8pc lower than a year earlier, the biggest drop since October 2009 - based on average prices during the three months to the end of February and the same period a year earlier, according to the Halifax house price index for February .

 

Prices fell by 0.9pc during February itself, more than wiping out January's 0.8pc rise.

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Biggest annual fall in house prices since Oct. 2009

 

More

 

I have also read that the number of homes being put up for sale in the UK jumped 7.5pc in Feb., the biggest monthly increase for three years.

The Panic may be about to set in - if it hasn't already.

 

I was phoned today about "discounted London properties" being offered in Hong Kong this weekend.

Are they getting desperate ? This is only the second time I have been phoned like this, and the first time they volunteered discounts.

The property is in the Royal Docks area, I believe, and offered at about Pds.350 psf - cheaper than most coming thru here.

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The Panic may be about to set in - if it hasn't already.

 

I was phoned today about "discounted London properties" being offered in Hong Kong this weekend.

Are they getting desperate ? This is only the second time I have been phoned like this, and the first time they volunteered discounts.

The property is in the Royal Docks area, I believe, and offered at about Pds.350 psf - cheaper than most coming thru here.

If you look at NSA figures ... it looks very flat:

 

Mon.: Rt'move : London : Hometrack chg./ Na'wide H-oldSA HalifaxSA HalifaxNSA: H&Nindex : mom : DelusIdx

2011

J. : : 223,122 : 413,259 : 154,300 - 0.5% / 161,211 = n/a = 164,173 161,470 : £161,341 :- 0.33% :138.3% :

F. : : 230,030 : 430,680 : 154,000 - 0.2% / 161,183 = n/a = 162,657 161,680 : £161,432 :+ 0.06% :142.5% :

 

M : : ? ?

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

mom: + 3.1% : + 4.2% : Est.DI: 142.5% /: -0.02%: = n/a = : -0.92% : +0.13%

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