Some interesting charts of houses v Stocks over the long-term

Moneyweek: What’s best to invest in now – stocks or houses?

Some comparisons of stocks vs houses as an investment.

Posted by frizzers @ 07:19 AM 0 Comments

Friday, Oct 13, 2017

Friday 13 Bear food

Mortgage Solutions: Housing ‘bubble alert’ issued by mortgage adviser for 19 UK towns and cities

Mortgage broker One 77 Mortgages has issued a “bubble alert” on 19 mainly northern UK towns and cities, where house prices are rising but mortgage lending is falling.The research confirmed the “gap” is a measure of affordability by comparing the percentage difference between annual drop in lending against annual house price changes. With this metric, Cleveland was most at risk, with property values rising 11% between Mar 2016 and Mar 2017, while lending fell 0.9%. Following Cleveland was Blackburn, with a gap of 6.8%, and Blackpool, at 6.2%.

Posted by jack c @ 09:46 AM 2 Comments

Wednesday, Oct 11, 2017

Another

Daily Mail: £1.7m Georgian manor with 9-hole golf course and a helipad could be yours for £25... if you can complete this crossword

These scams always work the same way. Publicise in the local paper (or DM if you have connections); collect the money; then low and behold not enough tickets sold [this one will need 150,000 tickets) and the raffle gets cancelled, with the owner keeping 20% of proceeds "to cover administrative costs"..... A breathtaking £1.7 million six-bedroom Georgian mansion boasting a nine-hole golf course and helicopter landing pad is being offered as a competition prize. Donna Pirie, 54, is hoping to raise £1 million for charity by raffling off her stunning home for just £25 a ticket

Posted by little professor @ 01:24 PM 1 Comments

Tuesday, Oct 10, 2017

Thousands of feckless borrowers set to lose state subsidy

LoveBTL: Support for Mortgage Interest overhaul: thousands 'at risk of losing homes'

OAP and on an interest-only mortgage? Well come next April the government will stop paying your mortgage bill and will offer you a loan on fantastic terms instead.

Posted by landofconfusion @ 01:26 PM 10 Comments

Saturday, Oct 7, 2017

BoE is limited

BBC: Cost of fixed-rate mortgages starts to rise

"The cost of taking out a fixed-rate mortgage has started to rise, even though the Bank of England has kept base rates at a record low." Exactly! Interest on savings comes from the opposing debt, BoE has issued QE which is mainly interest free hence the UK banks have more in deposits than they do in debts i.e. the interest paid by the debtors cannot cover the interest earned by the savers because they don't match up anymore. Going forward the BoE can tighten by increasing capital requirements, any regulation that reduces credit expansion, but they can't meaning fully increase interest rates because no way rates can rise for savers unless QE is withdrawn. So more QE for deflation, micro-management of credit availability for inflation.

Posted by stillthinking @ 01:40 AM 4 Comments

Sunday, Oct 1, 2017

No supply side reforms

Buzzfeed: Prime Minister pledges tuition fee overhaul and £10bn boost for first-time buyers

May has come out with additional funding basically the same as Osbourne, so I think that clearly there is no intention from the Tories for supply side reform on housing. I also don't feel that a majority of the electorate is after cheaper housing. Corbyn I feel sure off the idea of compelling councils to purchase property, grant planning permission, and then sell onwards to capture the value, because it would kill two birds with one stone. Increase availability of housing, and also fund his election promises. It seems to me that 100,000 properties a year with planning permission values a conservative estimate of 50K = 5 billion to blow and thats per year. I wonder how the youngsters will vote they seem to be kingmaker.

Posted by stillthinking @ 01:10 AM 13 Comments

Friday, Sep 22, 2017

Your home their land; you keep paying

Grauniad: New figures reveal scale of controversial leasehold homes

Title says it all. Activity seems to have died a death on this news blog... ironic given that HPC just may, possibly, now be underway...

Posted by nickb @ 10:01 AM 16 Comments

Wednesday, Sep 20, 2017

Clueless Carney

Torygraph: Mark Carney doubles down on likely interest rate rise in face of 'inflationary' Brexit

As pointed out in the comments, the inflationary overshoot Carney so eagerly ascribes to Brexit might just be because the BoE dropped interest rates on the news and applied additional monetary stimulus.

Posted by stillthinking @ 01:45 AM 1 Comments

Tuesday, Sep 19, 2017

What nonsense | HPC saw it coming

BBC News: The collapse of Northern Rock: Ten years on

The "experts" want to ABDI-cate all responsibility for being clueless. This very forum provided sound insight into the CDO crsisi over 10 years ago.

Posted by lvmreader @ 06:52 PM 1 Comments

Sunday, Sep 17, 2017

Its not Carney you should consider..

Torygraph: Is the Bank of England running out of rhetorical firepower on interest rates?

Carney has bluffed to get the market to anticipate rate hikes thereby tightening for him, and has done so many times successfully as the article explains. As the BoE are truthfully in charge of setting the rate then if the market doesn't tighten on his behalf and he is forced to raise, they are wrong-footed, and if they do tighten in anticipation then the BoE does nothing. Its like being a successful blackmailer. Where this cunning plan breaks down though is if inflation starts breaking out outside of the financial markets i.e. wage inflation. I have often wondered for all the CPI, RPI talk, the only thing they ever consider is wage inflation, because all of the data on wage inflation is to hand direct from inland revenue, and if wages aren't going up then neither are prices.

Posted by stillthinking @ 12:07 PM 0 Comments

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