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Everything posted by chandellina

  1. yeah - i also didn't understand the £16.5k salary with a £83k mortgage - huh? this program was very disappointing (not like i expected anything different) and gave me absolutely zero useful information. For sure, the number one reason should have been: Wait for prices to correct. It has a great opening scene though of the shittiest falling apart boarded up flats in the shadow of a big chemicals factory - bringing home the message that FTBs are truly f---ed if that is what is affordable.
  2. The asset bubble cycle: Money is offered at cheap rates to keep the economy growing. There is overborrowing and increased buying of assets, driving up prices. Subsequent rate rises (or exchange rate collapse) slow the economy. Tighter credit dispels hopes of asset prices continuing to increase. Asset prices start falling, asset holders need cash to cover obligations so must sell assets, causing asset prices to fall further. Liquidity evaporates. Financial institutions flail as depositors/investors flee. Banks' assets become illiquid. Dumping illiquid assets lead to insolvency. The actions of t
  3. This is a Locationx3 classic: buy property in a cheaper area, and make enough off it so that you will be able to afford buying where you want to live in a matter of...months/years/decades/never. (take your pick.)
  4. The latest ILO data: the claimant count unemployment rate remained at 2.7% with a slightly smaller than expected drop in those claiming unemployment benefit. The more widely watched ILO measure showed the unemployment rate dropping to 4.7% from 4.8%, leaving it at its lowest level since the series started in 1984.
  5. UK average earnings growth has slowed sharply in July, falling to 3.8% YoY from 4.3% in June. The market had expected it to remain at 4.3%. The drop leaves earnings growth at its slowest rate since December 2003 when it was 3.4%. The data have been quite bad. Recession, anyone?
  6. "Worked in a press office for a while, and from grim first hand experience, all any journo is interested in is getting into print, at any cost. " sorry but that is ridiculous. All a journalist has is his/her reputation and the majority actually do give a damn about keeping it. (ok, maybe not at the Daily Mail - but the guy was just writing up a survey - hardly adding any analysis.) and aren't press officers just failed journalists?
  7. well, it's shoddy journalism to not source your story until the seventh paragraph. You'd think you were reading predictions down from heaven.
  8. sounds to me like they're just promoting what many advisors would say is the most sensible type of mortgage to get at the moment. i'm more concerned about the wacky schemes, like Britannia's "Share to Buy" mortgage...
  9. excess liquidity from loose monetary policy (globally) has boosted asset prices. the latest play for fast money (hedge funds) is oil.
  10. I don't see why people living in their primary residence would sell up as prices fall, unless they had the intention of buying a larger property sometime fairly soon and wanted to crystallise gains-to-date now.
  11. aren't banks writing off endowment mortgages though and basically planning on letting people get off without paying all of their balances? not to be naive - but i was surprised to hear this was happening.
  12. more on RICS implications from Breaking Views (www.breakingviews.com) U.K. House Prices It is thin evidence, really. The Royal Institution of Chartered Surveyors reports that U.K. house prices have "frozen." This might be the beginning of the end of the very long U.K. housing boom, but then again it might not. Last year's false slowdown showed that the fervor for house inflation isn't easily tamed. Will it be different this year? Housing-price pessimists have some good evidence. The RICS survey is in line with a few other recent indicators. And in London prices seem to be slipping. But the
  13. I don't have the data in front of me but I believe rents are actually falling, not rising. Anecdotally I can confirm that rents appear to be trending down in London. I went from a 1-bed flat rented Feb 2002-2003 to a much nicer, larger and more centrally located 2-bed flat this year for the exact same price. Buy to let landlords are keen to get tenants in, even at a reduced rent...
  14. A 2-bed flat I know of in London SE1 - South Bank has been taken off the market due to lack of interest. The owner is going to rent it out instead. The price was £300,000, dropped to £283,000 but very few viewers. Rents on comparable flats in the building are around £1000/month. do the maths and it's obvious it makes more sense for a prospective buyer to rent. The example given above of price vs. rent is even more poignant.
  15. i think it's outrageous that she was so up in arms over this - when on her programme she has spouted such patently false nonsense about how it is imperative to get on the housing ladder at any cost. On this season's series, they have advised people to buy properties in another city so that eventually they may realize enough rental income to buy in their own city - so pay both rent and a mortgage in the meantime, or to team up with a friend when each has the intention to sell out in three or four years with a profit to then buy on their own - not likely the way things are going -- that is irres
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