Monday, Aug 11, 2008

Still pushing the high risk debt drug "investment"

Sunday Times: Bag a bargain in bricks and mortar

"As prices fall investors see opportunity knocking on the home front.
PROFESSIONAL investors are starting to see buying opportunities in that most bombed-out of areas – property.
UK house prices have tumbled more than 11% to an average £177,351 since last August’s peak, based on the Halifax index, after a decade of booming prices that added 145% to the average home’s value.
However, moves are afoot to reignite the market: the Treasury is working on a package of measures, including the suspension of stamp duty, to help hard-pressed families. And lenders are cutting rates."

Posted by doomwatch @ 01:03 PM (776 views) Add Comment

5 Comments

1. Eternal Sceptic said...

I suspect a professional investor will be waiting for the "buy one get one free offers to appear"
The market is about as lively as a dead parrot, and nothing short of a miracle will change it.

Monday, August 11, 2008 01:16PM Report Comment
 

2. mark wadsworth said...

AAARGH!

It's not just bricks and mortar!

At today's prices, about 40% of the price relates to land values. Bricks and mortar hold their value surprisingly well, but land values go up and down like a yo yo, a 10% fall in house prices is actually a mixture of 0% fall in bricks and mortar value and 20% fall in land values.

For comparison, people who bought houses in the mid-1990s paid bugger all for land values - the rebuild cost of bricks and mortar was actually greater than the whole cost of the house.

Monday, August 11, 2008 01:27PM Report Comment
 

3. tyrellcorporation said...

OMG! I really think this journalist believes what she's saying!

Monday, August 11, 2008 01:31PM Report Comment
 

4. japanese uncle said...

A Japanese saying goes like 'The blind will not fear venomous snakes'.

Monday, August 11, 2008 01:42PM Report Comment
 

5. Ah-so said...

I absolutely refuse to believe that a 2-bed flat in Holloway, on the market for £149,999, will rent for £300 p/w - that is fantasy.

I have found the flat on Rightmove (it was easy, the only 2-bed flat cheaper than £160,000). Ex-LEA, of course.

£300 p/w will rent an extremely spacious, modern 2-bed apartment.

Monday, August 11, 2008 04:25PM Report Comment
 

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