Jump to content
House Price Crash Forum
Sign in to follow this  
LuckyOne

I Am Confused By These Green Shoots ...... Who Is The

Recommended Posts

We keep hearing about these green shoots. I am a firm believer in the fact that house prices everywhere in this country are driven by the prices of expensive homes in London.

Looking on RightMove, it seems that a shitty semi in Hampstead (compared to its global peers) is offered at around £5m. For these green shoots to really take hold, there has to be a marginal buyer for these homes in Hampstead which will ramp up prices across the country.

For the life of me, I cannot see who this marginal buyer is going to be. City money is finished. Debt is no longer easily accessible. I cannot see that there are enough people out there who have £5m to spend on a house in additon to another £10m in assets to fund for their lifestyle for 20 to 30 years who have not already bought something.

The other support for the market were the ex-pat crowd who had their employers pay the rent. Based on my observations with respect to the international removals lorries, these people are leaving rather than arriving.

I am talking my own book here as lower prices suit me better than higher prices. At the moment, I see my position as being as close to a one way bet as I have ever seen and would welcome some opposing views.

Share this post


Link to post
Share on other sites
I cannot see that there are enough people out there who have £5m to spend on a house in additon to another £10m in assets to fund for their lifestyle for 20 to 30 years who have not already bought something.

Unfortunately most people don't take such a conservative view of how much of their wealth to tie up in their home. And most of the owners of these 'shitty' semis don't have lifestyles that cost £10m to maintain.

Share this post


Link to post
Share on other sites

I think its a bit short sighted to think that there wont be some people absolutely raking in cash in the future. If there are loosers from this, there are sure to be massive winners. The banks shareholders have suffered, but the "talent" will still get amazing bonuses going forward. Expect to see the first single earning billion £ or $ bonus in the next five years.

Minimum wage of course will only go up a few quid in the same period, the rich poor divide will gap wider and wider.

Share this post


Link to post
Share on other sites
I think its a bit short sighted to think that there wont be some people absolutely raking in cash in the future. If there are loosers from this, there are sure to be massive winners. The banks shareholders have suffered, but the "talent" will still get amazing bonuses going forward. Expect to see the first single earning billion £ or $ bonus in the next five years.

Minimum wage of course will only go up a few quid in the same period, the rich poor divide will gap wider and wider.

I had a very wise taxi driver years ago who was a PhD student studying Kropotkin (sp?) and anarchy (in its pure, intellectual meaning rather than the modern interpretation).

He always told me that rich people need to give enough to poor people that social order was not threatened. He thought that it was an implict tax on wealth.

I fear that his lessons are going to be proven in the world in the next decade as the rich / poor divide widens ......

Share this post


Link to post
Share on other sites
Unfortunately most people don't take such a conservative view of how much of their wealth to tie up in their home. And most of the owners of these 'shitty' semis don't have lifestyles that cost £10m to maintain.

Too true.

We have the concept of sustainable lifestyle in our family which means that capital belongs to future generations while income belongs to current generations. I know that our approach is a minority view.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.