Jump to content
House Price Crash Forum

Is This The Last Bull?


Rock-n-Roll

Recommended Posts

0
HOLA441
1
HOLA442
2
HOLA443
3
HOLA444

"Developers have to either lock them up or rent them out. They can't sell below cost. Buyers may be slow to take them but when the public realise this (the low prices) they may buy and there could be a slight pick-up."

If I had four wheels I could be a taxi. :P

Link to comment
Share on other sites

4
HOLA445
5
HOLA446

We have to sell them at what people are both willing to pay and can get a mortgage for. If that's below cost that's our problem. The purchaser doesn't care and why should they. The only alternative is to lock them up, but that costs too. That only goes for existing stock, which most builders, who have taken this approach are slowly getting through.

As for starting new houses I would agree with Mr. O'Callaghan. You cant sell them at below cost. If you don't think you can, at least break even, why spend more money on them. You would end up in further debt than before you started. If the land is over expensive (2006/2007 prices) well that's another story.

Mr O'Callaghan appears to have opted out of land purchasing some years ago and if his land bank is acquired at sensible prices, and he can service his debt then his approach is perfectively sensible. Might have to wait a while.

Link to comment
Share on other sites

6
HOLA447
7
HOLA448
We have to sell them at what people are both willing to pay and can get a mortgage for. If that's below cost that's our problem. The purchaser doesn't care and why should they. The only alternative is to lock them up, but that costs too. That only goes for existing stock, which most builders, who have taken this approach are slowly getting through.

As for starting new houses I would agree with Mr. O'Callaghan. You cant sell them at below cost. If you don't think you can, at least break even, why spend more money on them. You would end up in further debt than before you started. If the land is over expensive (2006/2007 prices) well that's another story.

Mr O'Callaghan appears to have opted out of land purchasing some years ago and if his land bank is acquired at sensible prices, and he can service his debt then his approach is perfectively sensible. Might have to wait a while.

As you say, surely the problem is only restricted to those developments where the land was bought at peak - those developers will have to sell at a loss and take the hit. This is like any other business and happens every day to get rid of old stock - developers shouldn't expect to be any different.

With land, labour, materials etc. decreasing in price to reasonable levels, there should be no reason that these businesses shouldn't make a decent profit - as it always was.

Arguing for prices to come to reasonable levels was never about punishing the greedy or anything else - it is about getting back to a sustainable economy for us all - builders and purchasers. The developers who cannot take the hit will go down and their assets can be sold to businesses who will instantly be able to employ and build at a profit again - it's the market.

Edited by shipbuilder
Link to comment
Share on other sites

8
HOLA449
9
HOLA4410
10
HOLA4411
11
HOLA4412
12
HOLA4413
13
HOLA4414
feck these bulls must be breeding!

http://news.bbc.co.uk/1/hi/business/7831889.stm

rock on!

excerpt: ..........When the crunch came, Humbert's went to the wall.

Late in 2008 Ms Fortune lost her job, along with 70 other staff.

But unlike any of them, she has come back for more.......

Yeah, Miss Fortune alright! you couldn't make it up!

Link to comment
Share on other sites

14
HOLA4415

My landlord is an uber-bull. He's actually come out with 'you can't go wrong with bricks and mortar' and 'good houses in good areas will hold their value'. It's a bit scary that someone who is in as deep as he is has those beliefs about houses. It's not just talk either - he's building houses in BT9 at the moment.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information