Saturday, Apr 19, 2008
Comical Ali
Telegraph: It's tough out there, but the good times will return
Need there be such dramatic predictions about the property market? We need commonsense alongside financial realism.
It has been claimed that Britain is more vulnerable than the US to a collapse in residential property values because our level of personal debt is higher. I disagree.
Even if average values fell 20 per cent this would less than negate the average increase during 2003 alone.
First-time buyers are not disappearing. They comprised nearly a third of purchasers last year with an average 20 per cent deposit, usually thanks to parents and grandparents ploughing their property gains back into the market.
The buy-to-let sector is strong and growing. Almost 50 per cent of landlords plan to buy more, to take advantage of dipped prices.
Posted by little professor @ 06:33 PM (617 views) Add Comment
7 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. techieman said...
"Lorna Vestey is a former partner of a blue-chip London estate agency." nuff said?
2. confused76 said...
Is there a way to send complaints to the Telegraph?
First the picture of a scantily clad Krusty on the front page, then this sensless article. Is this "vested interest" weekend?
does this show - again - the lack of imagination of the current Tory leadership?
3. Davros said...
Sorry, the IMF say the market is 40% over valued, Morgan Stanley put the figure at 30% and so forth..
It's not a collection of ill informed bitter renters who are making these predictions.
4. alan said...
"We need commonsense alongside financial realism".
What is she suggesting? Buying when the numbers don't add up?
Obviously trying to talk up the market - perhaps this is so that the prices don't drop too much? it's called - VI Spin.
5. Scottie said...
Yes the good times will return but we are talking perhaps10 yrs not 10 months. This crash is going to be one for the books. Once you get negitive equity and its going to be a lot of negative equity I think 30 - 50 % fall is in the cards. The other loans you owe become irrelevant and you walk away.I see the banks are trying to raise capital on the market.They don't lend to the average joe when he is in trouble why on earth would we buy their stock when they are in trouble.They will all be in trouble shortly. Mortgage debt and falling house prices is only a very small part of the problem.
6. gone-to-colombia said...
Complete garbage, for example population density and land value - most Americans live in cities, land values are high. Most Americans prefer to live in subdivisions and not in the country. Therefore, the land that is used for houses is limited to around the cities that are popular. (low crime, Walmart etc)
In a way we might argue that the British love of country living allows for a far great area of land that might be acceptable to house buyers.
Also, because of the far lower crime figures far more of our country is considered acceptable as a place to live.
British house prices have risen to far greater heights than in the USA when considered as a multiplier of income, they have, therefore, far further to fall.
I have lived, worked and owned property on both sides of the Atlantic.
7. uncle tom said...
Where is the original source article for this frequently repeated (but so obviously wrong) stat that maintains that only some 78,000 would be in negative equity if prices fell by 20%?
It's credited to Experian, but I can't find a link to it on their site.
I'd like to see the original text to see what they actually said.