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About MrCheese

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  1. I live in the NW and commute regularly to London. I think the "average earnings" numbers don't have to reflect the reality of pricing in a lot of NW towns just as they don't in London. In both areas the average earnings are fairly low but there are lots of people making serious money. I think this explains the high prices in the good areas of the NW - there are a lot of people running businesses, professionals, joint earners etc that are able to compete for the best areas and good houses. We can agree about prices being out of whack in the country as a whole, but in the NW you do have 3 decen
  2. this totally sums up how I feel http://uk.youtube.com/watch?v=0u6lCBnRoHQ
  3. New York volumes in FX trading were higher than London 3-5 years ago - only in the last couple of years have they flipped. Everything you have said about the "Tooting effect" I personally agree with but the fact is that this is becoming less important. The amount of exceptionally large scale fund management and trading that is potentially permanently based in London means that the long term demand for prime London is high. As each year goes by I keep saying that London is due for a fall but the blunt fact is that I have been completely wrong - there are structural changes.
  4. i think the whole thing is a pack of cards but there are some compelling arguments why London really should be different from teh rest of the UK. There is a long term global shift away from the US and New York as the main financial centre - a lot of the money managed in London is there because the of the overbearing anti-terrorism checks now in place in the US. Asian/middle eastern countries/companies are just as happy to trade in UK hours than US hours. For example, New York is not now the global hub for FX trading - London is. Add to this the exceptionally good tax environment for the rich
  5. but this is intentionally misunderstanding what I say. the guy running the corner shop could get a job in the city - people have joined firms as manual data entry assistants and progressed to be rich traders. just like some people with small shops eventually run chains. the point is he chose not to join the City.
  6. why not be happy about this? go back a few hundred years and you would have very little chance of getting a slice of the pie. today, most people have the chance (IF THEY WANT TO TAKE IT) of making a huge amount of money. it has very little to do with "opportunity" either, I know many people in the City making huge amounts of money who come from disadvantaged backgrounds - but they made a choice and went for it. life in the the City, even for those on very large salaries, is tough. you have to make real life changing decisions to do with family and quality of life. some of the money compensate
  7. you need to be careful as the optimal choice is very dependent on a wide range of factors such as your age, expected earnings etc. for example, if you are young i think it would be utterly insane to move to 100% cash, fixed income, gold or anything not directly tied to long term economic growth. why not do a bit of reading as well. this guy has some pointers on what is likely to be a sensible equity portfolio for the long run. http://www.amazon.com/How-Retire-Rich-Time...s/dp/0767900731 i actually agree with the bearish sentiment but going to cash, just like STR, is a major step.
  8. Is this thread serious? I glanced thru thinking ha ha they are having a laugh at how bad it could get but some posts seem REALLY serious. If it gets to the stage where you are guarding your haul of rice and 5 gold coins while only having water purification tablets to give u something to drink I reckon you may as well be dead - I don't think anyone wants to be around when civilisation really breaks down. And they wonder why this forum is regarded as the land of crackpots... 'Don't Panic Mr Mainwaring, don't panic'
  9. i have to say I am really surprised at the aggression of some of the replies in this thread. Unfortunately, the OP is probably generally correct for most people in the country, esp in the SE - price rises have been very strong since 2002 and at this point in time net/net you are down on the deal by renting over this time period. Please not that I am talking about 2002 to today AT THIS POINT IN TIME. yes, in the future prices may fall but not buying in 2002 (assuming you could genuinely afford to buy then) leaves you with a losing trade today. BTW, i personally think that at this point in
  10. My wife is from Lisbon & I've been dabbling in property there for many years. Some things to consider. Portuguese generally like new build flats over renovations - there are many stunning houses in Lisbon that no-one wants. The economy is quite weird - the country is not exactly booming and the general population has a fairly low income. However, there is a sizable middle class of professionals who have money and will pay up for genuine quality. Be aware of the implications of the new airport at Ota - its way outside the centre and its not clear that decent train links to the centre wil
  11. It is a bit scary that this article was actually posted on fool.co.uk, one of the better internet boards. http://www.fool.co.uk/news/property-home/2...ioowftxt0010011 my particular favourite is : "The authoritative Council for Mortgage Lenders says the number of buy-to-let mortgages rose by a staggering 48 per cent last year taking the total number to about 850,000. While figures for the first half of this year aren't available yet I feel sure they will show continued growth. And why not? High interest rates are actually good news for landlords. It means more potential first-time buyers ar
  12. that's all well & good 10 years ago but any "financially prudent" 22 year old CANNOT do what you did i.e. be sensible with the cash and buy a house without taking on financially imprudent levels of debt. are you seriously suggesting a 22 year old buys in this market - even a 1/2 bed flat would be a massive multiple of income....
  13. to get back to the original poster - i live in C London and see exactly what he sees - lots of people with a positive outlook with reasonable disposable incomes - but the thing that worries me is that any flat that is half decent (compared to the living standards of the rest of the country) costs £1m+ and anything that is really nice costs £2m - bear in mind i'm talking about Westminster, Notting Hill etc. now here is my problem with that situation - very few of the foreign workers actually want to stay in London long term (why would you?) so you are relying on a flow of dodgy Russian money &
  14. interesting and slightly depressing.... up to July 2005 I rented a central london flat for £1385 p/m. I bought an identical flat below for £290k.. According to the calculation its "fair value" is £311k. The same day I left a new tenant moved into the rental. this is why C London isn't falling....even though I am generally a property bear many of the back of the envelope calcs give current prices="fair value". For much of C London none of the back of the envelope calcs give any like 30% overvalued..
  15. What is it with people on this site? Sure the Wilsons have probably overdone it and i do question the business sense of anyone BTLing now but why do we have to attack anyone who has got off their **** and built up a business? I read an article on them a few years back - they were leveraging up over many years and had a policy of never increasing rents for sitting tenants. Some of the comments in this thread are really vindictive and are the sure sign of a loser in life....
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