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undersupply

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  1. This is not deflation, it is inflation. The slowdown was artificially brought on by interest rate hikes, not by increasing supply, which is the normal way of price control in free economies. So interest rate cuts would start the party again. R so I believe
  2. Huge confidence in housing in Ireland due to no previous crashes, 2% interest rates. wage inflation, and peoples distrust of shares after the eircom fiasco. The bubble is so big and has gone on 4 so long, people have stopped saying it is going to burst.
  3. Deposit £23,500 (A gift from me) What a hero. Any chance I could just have the money, rather than the noose around my neck. £235,000 for a 2 bed on the 2nd floor, what a joker You would have to spend a lot of time in the bar before that offer made any sense.
  4. Any ideas who is, Neilrich? Neil Foster, of Foster Maddison Estate Agents, said: "This is yet another indication that the market in the North is robust. While there appears to be oversupply in some sectors of the urban market, rural property remains in short supply. "Upward pressure on rural prices is unlikely to abate, with some local planning authorities exercising a moratorium on new-house building. "We envisage a situation where the falling rate of new building will fuel domestic house price inflation over the next few years. "The market relies on balance between supply and demand, and while demand had been extraordinarily high in recent years, during a period of unprecedented house price inflation, we are now experiencing the impact of excessive restriction on the supply of new homes in many areas. "We predicted that house price inflation in the North-East would run to around 5% for 2005, and these latest findings continue to support that."
  5. Thought some of you would like to read this from saturdays homemaker. Prices climb as market recovers Oct 8 2005 By Karen Wilson, The Journal The North-East has bucked the national trend as house prices rose by 6.6% in the third quarter of this year, compared to a drop of 0.6% in the previous quarter. The annual rate of inflation in the region is up to 5.6% (from 4.9%) - almost 100% higher than the national average of 3%, according to the latest Halifax survey. Neil Foster, of Foster Maddison Estate Agents, said: "This is yet another indication that the market in the North is robust. While there appears to be oversupply in some sectors of the urban market, rural property remains in short supply. "Upward pressure on rural prices is unlikely to abate, with some local planning authorities exercising a moratorium on new-house building. "We envisage a situation where the falling rate of new building will fuel domestic house price inflation over the next few years. "The market relies on balance between supply and demand, and while demand had been extraordinarily high in recent years, during a period of unprecedented house price inflation, we are now experiencing the impact of excessive restriction on the supply of new homes in many areas. "We predicted that house price inflation in the North-East would run to around 5% for 2005, and these latest findings continue to support that." Chris Stonock, regional manager of Halifax Estate Agency, said the North had seen the biggest house price rises of all 12 UK regions over the past three years, with prices almost doubling. He said: "The slowdown in prices has brought renewed interest from first-time buyers who have started to creep back as properties have become more affordable." The strongest performer in the North in the past year was Barrow-in-Furness, with 28% growth, which ranked it among the best performing in the UK. Property prices have risen by 23% in Bishop Auckland, Redcar saw strong growth of 24%, prices in Sunderland increased by 13% while Newcastle has seen a 5% rise. The most expensive town in the North is Morpeth (£187,730). Another survey, from Propertyfinder.com, suggests that the gulf is closing between unrealistic, stubborn sellers and bargain-hunting buyers. The website's research shows that the gap was almost completely closed in September, as buyers were offering an average of 4.5% below asking price, while sellers said they would accept 4.3% below. Sales had hit their lowest point in January when the gap between buyer and seller expectations was widest - but now it would seem that buyers and sellers are more prepared to negotiate on price.
  6. Just through property news on the ic chronicle website, they have a search function, put in lime square & all is revealed. No conspiracy.
  7. Metier are Manchester based, and its director Aidan Murphy is a geordie, although with a name like his, he would certainly get plastic paddy status. Dig away NR , BTW, I was walking down along the Quayside on tuesday and saw a huge development, around the Tyne Tees TV area which I hadn't noticed before, overlooking the river. It was one of the biggest apartment complexes I have ever seen and I hadn't noticed it before. Was I hallucinating in the september sun? or did you spot it in the helicopter?A redbrick job.
  8. The first phase block d looking on the council flats will complete in october. Here is the article from the journal just 4 u neilrich, the eye in the sky . I havent been up in my helicopter to look at them yet, waiting 4 the fuel price crash Cool plans for an ice factory Sep 7 2005 By Nigel Stirling, The Journal Trendy Ouseburn Valley's development is poised to receive a major kick-start with two multi-million pound mixed-use developments. Developer Metier, which is shortly due to complete a £20m mixed residential and office development with Irish property company Howard Holdings at nearby Lime Square, has received planning permission to develop 112 apartments as well as 6,000sq ft of leisure and 2,500sq ft of retail on the site of a former ice factory bound by Hume and Maling Streets. Building work on the £22m development, close to the Ouseburn's outlet on to the River Tyne currently occupied by a number of vacant 1970s industrial units, will start in the second half of next year. In the meantime, Metier will submit plans for a second multi-million pound development next to the ice factory site for 35 flats and a five-storey office block which will provide 35,000sq ft of office space. Metier's schemes are just a selection of 80 development schemes which Newcastle City Council sources say are either at pre-planning stages or nearing practical completion along the banks of the Ouseburn. The former industrial area in recent years has become a focal point for creative industry in Newcastle, with up to 90 businesses, including media, information technology and other creative business at the head of the queue, according to council sources. The area will also get a boost with the construction of a £1.5m tidal barrier - a lock at the southern end of the Ouseburn - which will regulate the tributary's water flows and mitigate odour from exposed mud at low tide. The Department for Transport is currently considering submissions on the European and Government-funded scheme and is due to decide next month if it will be allowed to proceed or go to public inquiry. Metier director Aidan Murphy said: "We feel that we are at a point where we hope the Ouseburn Valley will continue to evolve and we are able to offer a development which will not be matched by anything else in Newcastle in terms of cultural activities and high quality buildings." Mr Murphy said the new developments followed on from the successful completion of Lime Square where 75% of the development's 110 residential units, which range in price from £99,000 to £450,000 each, have been fully let. Around 5,500sq ft of offices at the development adjacent to City Road are still to be sold, which is being marketed at £185 to £200 per sq ft. Mr Murphy said: "We have decided to push on with the third phase of our development of sites in the area."
  9. 2 for sale here http://www.daft.ie/united_kingdom/property_for_sale/ The 2 bedroom one is quite good value at 250 per sq foot compared to Sanderson Youngs prices. An irish speculator unable to get a mortgage maybe? These will complete in october 25% are still unsold according to an article in the journal.
  10. There is one already, a fanny tax, collected locally and spent on shoes
  11. lime square newcastle Hurry to pay off your car over 25 years-buy 2 depreceating assets at once, 199.950 for cheapest 2 bed and a complimentary car parking space roll up roll up! Offer closes 31st july,don't say I did'nt warn ya!!
  12. It is an axiom and perhaps you should be called the axiom. If axiomatic is the adjective, is axiomatically the adverb or axiomaticly Like magicly or magically? Pedanticly or Pedantically
  13. Moderator, please remove these TOUTS from the HPC forum. Everyone else PM these losers to let them know what you think of their CLEVER free advertising!!! :angry: :angry: :angry:
  14. My tag refers to the inadequate supply of housing in the UK which leads to a cycle of booms corrected by an increase in interest rates. House completions 2003: 183,000 virtually identical to the figure 10 years earlier. You get my drift?
  15. Male 29 single one repayment mortgage in ireland one interest only 34 years in uk. looking at eastern europe for the third. Property bull but a nervous one. Quip "as safe as houses" Millionaire euro by 2010 Millionaire sterling by 2011. Thats the plan
  16. Most people who earn euro and buy property in uk are advised to get sterling mortgages, to guard against currency fluctuations the other way, this despite lower interest rates in euroland. So,it would only benefit people with large euro deposits saved up, I think or high risk gamblers.
  17. untitled.bmp Have a look at this NE3 semi d's, apparently a lot are "daft enough" untitled.bmp
  18. JAPAN IS A CAPITALIST COUNTRY, JUST LIKE THE UK.THIS MEANS THE RICH GET RICHER, RELEASE EQUITY ON THEIR INVESTMENTS TO REINVEST IN FURTHER PROPERTY OR SHARES TO BECOME RICHER. THIS IS THE LADDER OR THE PYRAMID SCHEME. THIS IS WHY WE HAVE A SCENARIO OF LANDLORDS AND TENANTS, WHERE FTB'S CAN'T GET ON THE LADDER YOU NEED TO TAKE RISKS TO GET ON THE LADDER, BUT ONCE YOU ARE ON, YOU WILL WIN AS LONG AS YOU CAN PAY YOUR MORTGAGE. NEGATIVE EQUITY ONLY AFFECTS THOSE WHO HAVE TO SELL. WAITING FOR PRICES TO FALL IS LIKE WAITING FOR MOBILE PHONES TO DISAPPEAR OR PEOPLE TO STOP DRINKING BOTTLED WATER. REMEMBER THE ONLY REASON THE BANK OF ENGLAND RAISED INTEREST RATES WAS TO STOP THE PROPERTY BOOM, THIS IS AN ARTIFICIAL STOPPER ON THE FREE PROPERTY MARKET, AND THE NEGATIVE EFFECT ON THE ECONOMY MEANS THEY CAN NOT PERSIST WITH THIS EXTERNAL DAMPNER. ALL THE OUTLOOK IS GOOD FOR THE NORTH EAST, PEOPLE HAVE JOBS HERE NOW AND A LOT HAVE HUGE EQUITY IN THEIR HOMES. UNDERSUPPLY HAD TIPPED AUGUST AS THE MONTH THAT INTEREST RATES WOULD GO DOWN AGAIN, AND AFTER THURSDAY HE IS EVEN MORE CONFIDENT THAT THIS WILL BE THE CASE. THE FED DROPPED INTEREST RATES AFTER NINE ELEVEN TO SHOW THAT TERROR COULDNT DAMPEN THE US ECONOMY, AND I WOULD NOT BE SURPRISED IF MERVYN GOES THE SAME WAY. HOUSE COMPLETIONS IN 2003 WERE 183000 VIRTUALLY THE SAME FIGURE AS 1993. ONLY INCREASED SUPPLY WILL RESTORE EQUILIBRIUM TO THE MARKET, UNTIL THEN BORROWERS ARE CONDEMNED TO A CYCLE OF HOUSING BOOMS FOLLOWED BY POLICY INDUCED CORRECTIONS. AS FOR JAPAN, THE ARTICLE BELOW FROM THE INDEPENDENT 2002 WILL GIVE SOME INSIGHT INTO THE LEVEL OF RISK THE JAPANESE ARE/WERE PREPARED TO ENDURE TO GET ON THE LADDER. Katherine Klinger has a 30-year mortgage, and is looking forward to the day when she might stretch that to 40 or even 50 years. Rising house prices this week prompted a leading mortgage broker to predict that Britain could move towards Japanese-style mortgages, which can last 100 years, handed down from parents to children. Ray Boulger, senior technical manager at Charcol, part of the Bradford and Bingley financial group, says: "UK house prices are continuing to rise in excess of earnings, so people are looking for larger loans to buy these properties. If this continues, the only way repayments can remain affordable is by increasing the term of the loan." As interest rates have fallen to 40-year lows, so lenders have been willing to offer mortgages equal to five or more times borrowers' incomes, compared with the old-style multiple of three. That has enabled borrowers to bid higher prices for houses, but lenders are conscious that interest rates might soon rise, forcing higher mortgage interest payments. Mr Boulger adds: "An extreme example of this shift has already been seen in Japan, where despite zero per cent interest rates, sky-high property prices have made housing unaffordable to the majority on a 25-year repayment term. This in turn has led to the development of mortgages with longer repayment terms, some as long as 100 years. "With these products borrowers pay only interest on the mortgage, and never own the property outright. The consequence is that the children inherit the mortgage as well as the property."
  19. Have a look at this below from the london evening standard Houses are affordable in the north east. The only people in trouble are FTB with no deposit and poor wages. Newcastle has plenty of students to rent to, large medical and dental schools, lots of hospitals etc Why do you think Pattison is recruiting, because they can't sell houses at these"inflated" prices? Dream on!!! There is nearly full employment in the region for the first time ever. There has been huge investment in newcastle property from parents of students, speculators from the soft south and ireland. Local job losses are the bottom of the market jobs and these people can find work relatively easy. 16.2% of income spent on mortgages says it all really-the lowest in England. 6% of workers who live in Jesmond earn over 60K, that was in the journal last year. If ure on 15K u can borrow 70k on a 34 year interest only mortgage.it will cost 300 a month, which is less than a third of your after tax income. Affordability is not a problem in the north east relatively speaking. FROM STANDARD But during the month the amount of income people in the South East are spending on their mortgage rose to 18.9% from 18.7% the previous month. The group attributed this to a relatively high number of people remortgaging after coming off very low fixed rate deals. It added that people were also remortgaging to unlock money from their home to fund improvements rather than move, which was also leading to higher mortgage repayments. Across the rest of the country homeowners in Yorkshire and the North East saw their repayments rise to new highs for the current housing market cycle of 16.5% and 16.2% respectively. In the South West the cost of servicing a mortgage fell by 0.3% to 18.2% of take-home pay, while in the West Midlands the amount spent on a home loan was also 0.2% less at 17.7%. Mr Gray said: "With the exception of the blip in the South East all the other regional figures seem to be moving as is expected. "There is still some house price growth in the North hence the rise in mortgage costs in the North East and Yorkshire, but we still expect a general reduction in the mortgage burden to happen in the coming months."
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