Wednesday, May 30, 2007
A bit depressing this from ‘the fool’
Fool.co.uk: Buy-To-Let Boom Isn't Over
I found this rather bullish piece a little depressing. I do hope they are being really foolish about their analysis here….
Posted by dougless @ 11:26 AM (101 views) Add Comment
17 Comments
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1. Davros said...
He can't ignore supply and demand. As more people enter buy to let, rents will drop further. With yields already less than savings rates, simple economics will ensure the end of the buy to let boom, despite what this bloke says.
2. Uncle Tom said...
A very lightweight piece by someone who doesn't know how to use his calculator!
CML data is seriously compromised by the fact that it only reflects the activity CML members, who at the last count only accounted for about 70% of the UK market. Moreover, their members market share is not particularly representative, and people moving their mortgages from members to non members (and vice versa) can suggest trends that don't exist.
Add to that this writers 'headline' figure of 48% - which (if he'd got his sums right) is actually nearer 20%
A piece to ignore!
3. Surfgatinho said...
As I have said before. When you get to the word Paragon in an article you can stop reading it. VI ramping at it's most blatant!
4. Andy said...
http://www.thisismoney.co.uk/biog_justin_harper
Say no more.
5. Wage Slave said...
"The authoritative Council for Mortgage Lenders says the number of buy-to-let mortgages rose by a staggering 48 per cent last year taking the total number to about 850,000. While figures for the first half of this year aren't available yet I feel sure they will show continued growth."
From the CML website statistics section :
Mortgages outstanding at end of period 2005 - 701,900
Mortgages outstanding at end of period 2006 - 849,900
That's an increase of 21% not 48% over 2006.
A google search on 'Justin Harper' reveals a bit more :
http://www.thisismoney.co.uk/biog_justin_harper
Assuming this is him it seems that he has recently taken out a 'sky high' mortgage.
So another vested interest talking the property market up.
6. paul said...
The last line is a bit of a giveaway:
"Like all the money that has been pouring into property funds, it shows the British obsession with houses is alive and well. For the majority of us let's hope it stays that way."
Wishing on a star ..... I'm wishing on a star .....
7. Marzipan said...
typical VI rubbish from the motley fool, the only useful thing about that site now is the discussion forums
8. Papabear said...
The article is basically saying: it's good that more FTBs are priced out of the market. Apart from it being morally disgusting, the statement is also quite stupid because without FTBs there is no support for the housing market. Unless everyone becomes a BTLer and we start renting from each other. What an economy that would be.
9. bidin'matime said...
Maybe he needs to read the Mail article next up the list on the blog - having taken out a 'sky high mortgage', he too will be in 'bonded labour' for a very long time...
10. george monsoon said...
Absolute b@ll@cks
check this link for all the reduced property in your area.. Just enter your postcode
http://www.propertysnake.co.uk
11. Noutram said...
It's highly likely that we are in a speculative bubble that may well decline someday but until there is some sort of substantial change in environmental condition the market will continue to rise in the UK.
Consider -we have:
1. A tight supply
2. A CPI figure that excludes key elements like housing (therefore not requiring an upward revision of interest rates to 'kill' the rise)
3. One of the strongest economies in Europe.
4. An mixed influx of people looking to a) rent, b) settle -from Poles to Abramovich.
5. A global climate of property investment that looks to London and it's year-upon-year returns.
Set against this we have the argument that property is expensive -so what? (That's a devils advocate comment btw, I am fully aware of the problems caused and am not saying it's a good thing!)
Regards, Nick.
12. inbreda said...
My spirits are high
Andy - excellent find! Who'd have guessed he had a whopper mortgage!?!?!
George - another great site. Added to my favourites for sure!
Ahhh. Sun is shining. Houseprices falling. What more could I ask for?
13. royston said...
Well done, Andy, for exposing this charlatan!
14. paul said...
Nice one Andy. If I may:
He likes:
• Freebies. Lots of companies give away free gifts, samples and incentives. Get them while you can.
• Saving money. Having recently taken out a sky-high mortgage and got married the finances have taken a battering.
• Biscuits. From Bourbons to Ginger Nuts I just can't stop myself.
15. tyrellcorporation said...
I Just emailed the article to highlight his lack of journalistic integrity... I suggest everyone else takes five minutes to do the same. There's a link on the article.
16. Happyrenterabroad said...
Property snake site looks like just another estate agents' window with lots of "reduced" signs on it...
17. Timelash said...
Thanks for the link, Andy. The name Justin Harper meant nothing to me, but as soon as I saw his photograph I remembered I used to work with him on the Colchester Evening Gazette. A nice guy, but hardly the voice of authority when it comes to economics. What he's doing on the Motley Fool is anyone's guess.