Friday, Jul 06, 2007
The end is nigh - for soaring house prices
MoneyWeek: The end is nigh - for soaring house prices
Yesterday's interest rate hike was accompanied by a spectacular outcry. But the lobby groups supposedly protesting on behalf of homeowners seem to forget that there's more to an economy than house prices.
Posted by mary @ 11:35 AM (111 views) Add Comment
4 Comments
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1. Hunthunthunt said...
This is a great article. I love MoneyWeek's schmarmy, in the know tone. Kind of like the FT after a few drinks.
2. mrmickey said...
Good article, Sterling will come before the housing market, once our masters the Chinese and Arabs get fed up taking our devaluing currency interest rates will go stratospheric in an attemp to prop up Sterling, you'll then see Gordo on TV telling us this will not effect the pound in your pocket as the currency goes down the tubes.
3. confused76 said...
"To get to that level with current rates of inflation, we'd be looking at a base rate of above 7%. That's "almost unthinkable" to most people at the moment, says James. But then again, less than 12 months ago, the idea that the base rate would hit 6% or more by the end of 2007 was beyond the realms of possibility, as far as most analysts were concerned."
wise words
4. deepak said...
I just can't understand the argument about "People are already stretched". as mentioned in the article by the Property developers
If you take a loan more than you can afford, it suddenly becomes the rest of the world problem if you can't pay.
And also selling homes at stupidly high prices, who is making the money. The guy you is buying or the property developers.
Over the last few days I have heard so many such arguments from these BTL associations people, Hedge fund managers, property developers associations argue against interest rate rise, I found them so hollow and selfish and greedy. Not in touch with the reality of life. Just want to make more more and more money and screw up every one else.
Guess what they don't even pay tax.