Jump to content
House Price Crash Forum

JustYield

Members
  • Posts

    5,786
  • Joined

  • Last visited

Posts posted by JustYield

  1. I think this is an issue that we'll be returning to a lot over the coming years (assuming the forum is around that long).

    A fair assumption I think. Maybe the forum could be renamed, HousePriceErosion?

    I was in Phuket in June and some of the 100+ year old fir trees in front of the Marriott hotel had been undermined and swept into the sea, the day before we arrived. Coastlines never stay the same for very long.

  2. iii) ... I was talking to someone that lived and worked in Canary Wharf and he said when the riots kicked off a few years ago, he had seen startled neighbours living in the Wharf with Ferrari's realsing there was no safe way out to the countryside....

    DLR to Greenwich, run up the hill and grab a minicab from Mad Mike's Cab's to New Cross, get on next train to T-Wells (or the secret villages to the south). Sorted. You'd have to leave the Ferrari behind, granted.

  3. I know you've explained before FreeTrader, but what is your interest here? Is it anomalous valuations, the madness of the property market or do you have some specific affinity to eroding coastlines and the properties thereon?

    What happens when these houses are eventually swept away - is there any insurance on them? Will they get bailed out, just "because"?

  4. <faux_outrage>

    Really JustYield - "[a]necdotally, a long time ago", and yet enough to support a rather dismissive assessment of UK renters. Anyone would think that you were trying to bait other posters! :P

    </faux_outrage>

    I solemnly promise that I'll counter offer nothing and move if push comes to shove. The growing local glut of rental property should concentrate minds. 8 come on every week, and three go off. How long can that go on for?

    I don't know if she successfully passed on her increased variable costs to the renters! Just sayin' - she thought this was a perfectly valid course of action. It does amaze me how many people seem to want everything their way. It doesn't occur to everyone that they can say "No" (or the Anglo Saxon equivalent there-off).

  5. Has there ever been a situation in a free market where there has been a shortage of a basic necessity with a constrained supply that has not let to a price rise?

    That is one reason for marginal price rises, sure. Does not mean it is the only reason or indeed the main reason.

    In a shortage scenario for basic necessities, people will make alternative arrangements (e.g. more people to a house, basically, thus reducing demand). Demand is quite elastic in the rental space. Only those who can afford to will pay ludicrous rents, either because they are not bothered, have financial assistance or are so downtrodden they are willing to part with the majority of their take home pay for shelter will participate.

    Anecdotally, a long time ago an amateur landlord told me she'd sent a letter to her tenants to demand an increase in rent because her mortgage interest rate had increased! Apparently renters in the UK just suck it up.

  6. What the actual ******?!

    It's as if a company were to do a rights issue and say, "you can participate [by putting up new cash] but don't worry, if you don't we'll compensate you anyway [for the price fall per share]". And who is to be compensated: those who are selling or those who have no intention of selling in the near term?

    Remember an economy does well if lots of people are in work in the community buying goods and services from each other. House prices follow, not lead.

  7. I think BTL is dreadful.

    I think BTL is fine. Renting should be encouraged and made less shit though. Let someone else own the property, what's this obsession with owning?! Ultimately rents will be whatever people can afford, from post-tax unlevered income.

    Edited to chop long quote of OP which I thought was funnily-long.

  8. The fix is to stop private companies creating money from fresh air in the first place.

    Oh for goodness sake. The value was already demonstrably there (by comparable sales). Crystalising by selling is just monetisation of this value - the banks didn't create the value and thus the money. They are not "creating money out of thin air (backed by nothing)" - this meme is out of control, as I think I mentioned in about 2005. Even Lord Turner is spinning the meme.

    If only everyone had taken a course in capital asset pricing we wouldn't be in this mess.

  9. I understand that the government and the banks can keep house prices high if they keep giving out lots of cheap mortgages to every tom dick and harry , but that is not happening any more is it?

    And what about rents? Why are rents so f-ing expensive if there is no housing shortage? And for rabbit hutches! Where are the large family homes? Even flats are too expensive! Old people live in large empty family homes, but they keep campaigning against new developments. It happened in our own town! A few months ago we got a leaflet through the door from our local Residents Association about a meeting to organise opposition against a new development. I really wanted to go but i was so f-ing angry that my girlfriend didn't allow me to, cause she was afraid we would get into trouble, being against everybody else there. I still regret not having gone though. I really should have gone.

    You should have gone. Has this generation given up on politics?

  10. I've no idea where this thread should go. I'm filing it under 'Another reason why I'm not paying your delusional asking price.'
    How do homes end up like this? How many bathrooms does a two bed flat or a three bed semi need? What possessed someone to extend there? Do architects get certified from Lego HQ?
    Let the despair commence.
    vebr51.png

    Well obviously Games Room and Utility room was the original entrance hall, Bedrooms 1 thru 4 and associated ablution centres were the Living Room and the Reception Room was the old breakfast/dining room. You'd sleep upstairs. But hey, just suck it up kids!

  11. Emigrate. Build up your skills, and leave whilst you are young enough. They won;t stop you coming back if things improve, but it will get harder to leave every year you wait.

    Yes. But on the other hand they won't let any retirees actually starve if they've had to rent all their lives. You'd think.

  12. Money printing is allowed in Monopoly only to the extent that new money (cash) is required for transactions. i.e. if the bank runs out of cash, you can write up new notes on paper and use those (because the players have all the money in circulation). Note in Monopoly the players keep their cash under the mattress.

    I can't think of any circumstance where money printing (to stimulate demand / to extend and pretend) would be required in the game. I guess if ALL the properties had mortgages and everyone had run out of cash, the Bank might want to inject some new funds into the game (because the Bank has all the cash) - but well before that someone would have won (or the game would have been abandoned due to general boredom).

    I'm sure this question could be asked on a Monopoly forum for more insights. But I think I've nailed it.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.