Monday, Jun 18, 2007
Ooops... market not that stable after all!
Guardian: Why homebuyers face a bond bombshell
Words like "bust" are used here in the Guardian. Is the fate of the UK housing market is in the hands of the US bond market (mostly controlled by China) and the BoJ rate decisions? And re creating incentives through taxation... "If the proceeds of a land tax were used to lower income and corporation tax, it might pay Britons more to work or start a company than to own property, which is ultimately an unproductive asset. Food for thought." uhmmm... maybe Labour will eventually do something progressive and less feudal some day (... after Gorge W's poodle leaves no 10)
Posted by confused76 @ 07:29 PM (146 views) Add Comment
3 Comments
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1. sold 2 rent 1 said...
Karen Ward, economist at HSBC, points out that while interest rates are low in historical terms, the huge rise in debt levels over recent years means that 20% of incomes are now going to service debt. The last time that happened, interest rates were at 12%.
WOW
2. sold 2 rent 1 said...
If the economy slows, unemployment rises and some of the newly arrived immigrants from eastern Europe go to seek their fortune elsewhere, demand could fall sharply, and prices with it.
For now the banks seem very keen to prevent that happening. They have increased the salary multiples they are willing to lend. For first-time buyers these have hit a record 3.33 times salary, up from 2.33 a decade ago. Lenders are beginning to offer mortgages of up to 50 years. They are determined to keep the good times rolling. But they must be getting nervous
3. sold 2 rent 1 said...
Great article.
The land tax opportunity was missed in 2004 or earlier - Fred Harrison's book states that
No amount of building or land taxes can stop the bust now.
HPC is all set to start in Q4 with stocks leading the confidence hammer blow.