Wednesday, Apr 23, 2008

Here we go

City Wire: House prices could crash more than 30% - top fund manager

M&G Investments’ bond fund manager Richard Woolnough has warned a crash in the UK housing market has the potential to be one of the worst in history.........................Cmon dont mince your words......

Posted by titaniccaptain @ 12:21 PM (1014 views) Add Comment

13 Comments

1. maddison said...

This guy has a VI in getting people to move out of property and into bonds....

Wednesday, April 23, 2008 12:34PM Report Comment
 

2. techieman said...

Maddison EVERYONE has a VI. Most bloggers here have a VI in downward prices - me (although marginally) included. Others have a VI in increasing prices. Regardless of a VI one way or the other a withdrawal of property profits could go anywhere not necc into Bonds.

Wednesday, April 23, 2008 12:40PM Report Comment
 

3. taffee said...

flats could fall 50% and still be grossley overpriced

Wednesday, April 23, 2008 12:42PM Report Comment
 

4. uncle tom said...

The penny is dropping - at last...

Little 'containable' price falls are not on the agenda - the speculators are gone, so house prices have to fall until the priced-out are priced back in. but the very fact that they are falling will dissuade huge numbers from entering the market - so prices will fall further.

Then, one after another, the mortgage lenders go down. NR has gone, B & B may be next, then A & L - more will probably follow, and those that remain will be severely embattled, effectively unable to lend.

The govt will attempt ever more desperate measures to intervene, unfortunately, but will not succeed..

Wednesday, April 23, 2008 12:48PM Report Comment
 

5. titaniccaptain said...

As uncle Tom said except sung to the tune of Jerusalem.........I dare you ta have a go

Wednesday, April 23, 2008 12:50PM Report Comment
 

6. plato said...

At last the future is beginning to look brighter. Be prepared for every charade,devious plan and weapon to be used by the upward VIs to maintain their relentless passion.
I hope my home goes down to 50 euros (can't type sterling anymore on my computer----------------- strange!!!) and my proper investments (Note 'proper') rise once again and give me decent retirement when I need it.

Wednesday, April 23, 2008 01:37PM Report Comment
 

7. tyrellcorporation said...

The trouble is a pseudo PM clinging to office will, I fear, virtually bankrupt the country in pursuit of his goal as he wields so much destructive power.

Wednesday, April 23, 2008 01:44PM Report Comment
 

8. dohousescrashinthewoods said...

I remember someone saying that the true cost of a flat (building materials, land, etc.) is about 50K. Even allowing for inflation, that's not going to be higher than 70K yet.

All those 210K "easy investments" are presumably going to lose two thirds of their value.

Wednesday, April 23, 2008 02:12PM Report Comment
 

9. mark wadsworth said...

Dohouses, yes that £50k figure is about right for a one-bed new build, maybe it's as high as £80k, who cares. It's a good way of estimating what the price floor might be.

Wednesday, April 23, 2008 02:32PM Report Comment
 

10. uncle tom said...

I can tell you that the true cost of construction is surprisingly low - setting aside the land value, and not going mad on the detailing and internal fittings, a decent three bedroom house can be built for £50k if you project manage the build yourself.

(that, incidentally, is hard work, but quite enjoyable)

Wednesday, April 23, 2008 02:58PM Report Comment
 

11. 51ck-6-51x said...

His VI is not in getting cash to flow from mortgages to bonds (although I'm sure he wouldn't mind!) it's actually for reduction in interest rates to make his fund more attractive and to help him realise profits on his open positions.

Wednesday, April 23, 2008 03:02PM Report Comment
 

12. bystander said...

"His VI is not in getting cash to flow from mortgages to bonds (although I'm sure he wouldn't mind!) it's actually for reduction in interest rates to make his fund more attractive and to help him realise profits on his open positions."

..absolutely right 51ck-6-51x. every time I hear the words 'slashing rates' I automatically shut down as I am listening to a VI determined to get the result he/ she needs to clinch the deal, profit take etc. I am sick to the teeth of hearing self-serving rhetoric coming from those who can get a soap box position in the media. Inflation is going to hit the poorest hardest and this 'fund manager' thinks only of one thing, his profit. How did we get to a place where spivs, criminals and gamblers hold all the cards?????

Wednesday, April 23, 2008 04:02PM Report Comment
 

13. planning4acrash said...

When VI's call the market, they call it higher than they expect, to control expectations. Expect more.

Wednesday, April 23, 2008 09:50PM Report Comment
 

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