Modigliani1

they are hiring too, tho.

Estimates put the size of the black economy in the UK as 6 to 8%. Italy's black economy is estimated to be around 30%. Having lived and done business in both countries, I can confirm that it feels pretty accurate. This is a country where tax advisors and lawyers encourage tax evasion, go figure.

I agree, screw stats, riding a bike in central London is like playing Russian roulette.

- Stay away from Dalston, in my opinion. Still a rough area despite all the redevelopment projects by Barrat etc. - I currently live in the Bermondsey/Canada Water and I find it extremely pleasant. Everyone who comes visting me points how how peaceful it is compared to other areas. Rather central, good transport links (although the current engineering works in the weekends can be annoying, but they won't last forever obviously). - E14: not *too* bad but a bit too far from the city and overpriced. - Stratford: there is a topic about it, go have a read. - Southwark SE1: I personally like the area, but some parts are rather grim. So be careful. - Camden: full of punks, noisy, a mess.

No chains.

Stuckmojo you can marry me. Anytime.

I see your points about security, pension and freedom to do whatever you want with your house. They are all absolutely reasonable. But they hold true in many other countries, yet I have been in the UK for quite a few years and I keep getting bad looks from people (even friends with a decent amount of financial knowledge) whenever I say I could theoretically buy a property but I don't. It's hard to explain, but at times my brain cannot help but brand their arguments as obsession or even borderline fanatism. It's gotten to a point where I'd rather avoid the subject altogether if I can. You can have a better idea of what I am saying by paying attention to all the property porn programmes on tv. It's like being a tenant is a crime :|

Someday someone will have to explain to me why people in the UK are so obsessed with owning property. I realize all the advantages of not being a tenant, but why is it that everyone who doesn't own his own place is looked at as a lesser being? Please realize I am not really looking for a financially sound rational explanation, but surely something must have happened in British history to justify this

If the buyers are stupid and willing to over pay a house it's their own fault and the lender's. You could blame the education system for failing to provide its citizens with the adequate skills to evaluate assets, if you really really want to stretch it. But surely it's not Rightmove's fault, they are just doing their job.

I recognize that signature from somwhere else

Sounds like a plan!

I am Italian. The whole story has been given, quite surprisingly, exactly zero coverage on the media. Just to give you an idea, it was only briefly mentioned on page 19 of the printed edition of the second biggest national newspaper and I haven't heard anything about it on television. However, the youtube video seems genuine to me (the person who said it looks like a high school prank has no clue). And the article from the Financial Police website confirms the story, so it's a safe bet to say that it did happen.

I just googled "house prices Japan" or something like that

For those claiming that house prices do not follow cycles and can't be subject to booms and crashes: this is, quite franly, empirically wrong. There have been huge fluctuations in property markets throughout the world over in recent decades. The reasons and context may have been slightly different, but you can't just turn a blind eye on stuff like this: I am well aware that DrBubb has already pointed this out in a much and elaborate better way, but I felt I had to give my two cents.

Have a look at this short clip: http://www.southparkstudios.com/clips/222638 If you like, here is the full episode (it's great, I promise!): http://www.southparkstudios.com/episodes/2...?autoplay=false Enjoy

Never trust anyone who claims to be 100% sure.

Have cash and renting. I would like to buy in late 2009 or early 2010, but will not rush it. Looking for -35/40% from peak. As for those worried about hyperinflation, very low chances of that happening - but we could see rates around 7-8% which is enough to erode savings significantly. If I see inflation going at 5% (which is roughly what you can get for your savings atm) then I'll buy. Also, PTM PGM

So bank employees think it's a good time to buy. I am so relieved the financial sector is in such good hands.

I have looked and will be looking at Wapping and maybe the Isle of Dogs as well, yes. Canada Water's crime rate is not so horrible. I actually feel pretty safe at night, I know some other people living in the area too (including girls) and they all tell me it's ok. Although perhaps it's just because we have all lived in much rougher parts of London so our level of tolerance is rather high.

Hey so property is the same as cash! Doesn't matter if there's rampant inflation or horrible deflation. It only becomes relevant if you are actually buying or selling! Brb, letting my financial advisor know that even though my shares lost 70% of their value over the last two years, it's totally irrelevant as I don't intend to buy or sell! Ah! And please don't forget to let banks know that the crisis is over! All they need to do is not to put their repossessed properties on the market. Because, after all, unless your house is on the market, you haven't lost a penny.

Hi all, I figured you deserved an update. I ended up renting. I just could not find a place I liked enough for a fair price. I somehow came to my senses and realized how new builds are overpriced. I'll keep monitoring the market as I firmly intend to buy and I have funds in place, but I don't think it will be before the end of 2009. I'll bump the thread when there are new developments. Posting here has been a good idea and I know I'll be looking forward to your advice.

Yet being able to tell "there will be a recession" or "at some point there will be a house price crash" serves a very important purpose as well.

Economics is a very peculiar discipline indeed. It attempts to translate human behavior into rules and formulas, in a way. It is no easy task and mistakes are often made. It certainly isn't physics (although some physics concepts are applied with mixed results) nor it is a pure social science. It has to do with philosophy too. One thing is certain: once you have a good grasp of economics, you look at the world around you in a different way. As for The Economist, it has been ringing alarm bells for years. I find it a fairly balanced publication and it is very often spot on.

Ahah that reminds me of an EA recently telling me that I shouldn't believe what the Economist publishes because "they are not property experts".

You elected the party that chose him. So, when you come down to it, you actually elected him. Face the horrible truth!