Is the property market as rigged as LIBOR?
The Independent: Theres a lot of flapping and clucking in the UK luxury apartment market as the chickens come home to roost
"I was told this week by an industry insider that 85 per cent sold really means £2,000 deposits paid on 85 per cent. And because they face an economic slowdown at home, Chinese investors in particular are saying: Keep the £2,000 and if you dont like it come after us in the Chinese courts. They are defaulting, in other words, with no consequences. And the result is that some developers are left holding a huge supply of apartments that few onshore buyers can afford. Prepare, said my nark, for 50 per cent-plus price drops."
Buy to rot!
Zero hedge: These Vancouver Homes Sold For Millions In 2011 And Have Been Vacant And Rotting Since: Here's Why
Over the pond in Vancouver Chinese investors ( sorry money launderers) have bought multi million pound properties and left them to rot. Exactly the same has happened in London, except that high rise apartments don't rot.But the impact of pricing locals out, having zero positive effect on ongoing GDP are exactly the same. Australia has taken action against this, The Chinese governement is supposedly coming down heavy on it and it looks like Canada will follow suit. How long will it be before this becomes an international issue like immigration and the UK takes action as well. I can see the possibility of a number of black swans colliding mid air when government policy on buy to let, non doms, and eventually foreign ownerships collides with economic reality.
'experts' dont know why?
Britain's version of the Beverley Hills tour
Absolute disaster, please respond with anger
In this backwards proposal, married couples are treated as individuals and so will pay additional tax if they buy a new home and cannot sell their existing residence on time, with potential for a refund, but where will they find cash for the new tax? Also taxing those who need a second home for work or those who own a property overseas, maybe for family reasons. Meanwhile, the big corporate buy to let companies are EXEMPT from the tax, and unmarried couples can have two principle homes!! They are incentivising big landlords and also making moving house a total chore and creating a massive tax reason to get divorced or not get married. These people are clinically insane. Please let your MP know how angry you are.
I thought there was a massive lack of supply
Tulips in Central London
Articles describes how major portals are awash with top end resales of luxury flats in developments in London. This end of the market has been a casino for some time: People buying property but not living in it. Many of these concrete blocks with glass facades are soulless and not luxury living.These buyers are not immune from world events. The housing market oftne starts in Central London and snowballs out, if there is a crash in the central London apartment ponzi it will be interesting to see how this effects sentiment in the wider market
And BTL folk wonder why they have no mates?
No shame at all - and no doubt a fair whack of the rent on these comes from Housing Benefit. And then this kicker: "He charges a weekly rent of £755, which equates to £39,260 p.a. His current gross yield is 6.3pc, but a new tube line opening nearby means he expects this to increase to 8.4pc by 2020." So nice to see where my taxes are going...
Out-going tide revealing trash
No bear food here
So, leading the pack are: Reading 17.1%, Barking & Dagenham 15.3%, Hillingdon 15.2%, Luton 14.7%, Slough 14.1%, ENFIELD 13.4%, Thurrock 12.5%, Greater London 12.4%. Overall monthly growth of 1.2%, annual 6.4% for the UK with a clear ripple effect gentrifying previously marginal spots as existing hot spots become maxed out for starter homes. Will Luton be the new Shoreditch?! (It is after all just 24mins from from London).