Monday, Sep 22, 2008
Answer - Possibly a LOT
John Stipek at MSN: How Much Will Our Obsession with Property Cost us?
More sense from Mr Stipek - good parallels with Japan
Posted by kingwowns @ 12:35 PM (560 views) Add Comment
4 Comments
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1. shipbuilder said...
I'm sure that this has been mentioned before, but how long was Japan's boom and how many bought during that time? Have the same proportion of the UK been exposed to the boom? If not, I doubt we will see falling prices for the same amount of time. The existence of this site suggests that a fair proportion of the normal housebuyers in the UK didn't, or couldn't buy because of speculation. These people will look to buy in the next few years at reasonable prices.
Now that will only support the market at more normal levels, but I believe it will eventually stop Japan's situation from happening. Who knows?
2. george monsoon said...
love it !
A really well written "DIG" at the last 10 years of our greed fueled property bubble.
3. japanese uncle said...
Why were they spared the curse of ever-rising property prices?
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This is actually not quite precise, as Tokyoites have seen yet another property bubble growing for the past few years, which yet again is now collapsing. Not a few Japanese investment bankers employed by American investment banks reportedly have taken on huge mortgage (yet again!, these retards will never learn lessons from history!!) to speculate on urban condominiums often priced at more than 100 Million yen (GBP500,000) whose prices are now in the midst of implosion at this very moment! Many of them have already dropped by 30%. LOL
4. drewster said...
JU,
As recently as last year, MoneyWeek magazine was recommending Japanese property as a cheap investment. See here:
MoneyWeek: Fund managers may be nervous, but Japanese property is a clear buy
"Imagine being able to buy into a property market where you can take out a fixed mortgage at 2% and buy an apartment that yields 6%."
With all due respect, having read many of your comments you do seem overly bearish on pretty much everything. I know the Japanese economy has been through a long tough period, but is it really so bad now?