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Moneyweek Editor Buys House

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Merryn Somerset Webb, Editor of Moneyweek, has bought a house.

Says it all really IMPO.

Best of luck to her. Don't know whether it is just me but I have noticed a turn in MW's feelings about houses in recent months.

In celebration of her I am now changing my status from bear to neither... if I can figure out how to do it.

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Merryn Somerset Webb, Editor of Moneyweek, has bought a house.

In celebration of her I am now changing my status from bear to neither... if I can figure out how to do it.

When the last bear turns bull?? :unsure:

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Merryn Somerset Webb, Editor of Moneyweek, has bought a house.

Says it all really IMPO.

Best of luck to her. Don't know whether it is just me but I have noticed a turn in MW's feelings about houses in recent months.

In celebration of her I am now changing my status from bear to neither... if I can figure out how to do it.

It is an ominous sign but why she did not wait for this latest deleveraging phase to pan out I do not know, even if all the tax changes, stock market volatility and genuine need for prices to correct did not pull prices down she only needed to wait until autumn of this year to make a clearer decision. Very little to loose by waiting another 6 months but an awful lot to gain.

Finally, some news for regular readers. I've bought a house. Yes, nearly four years on from the sale of our Paddington flat my husband and I are the proud owners of a slightly grubby Georgian townhouse. Given everything I say above and my long-standing views on UK property, I suspect it'll turn out to be one of the worst financial decisions we've ever made.

But, thanks to Matthew Sinclair of Saint Property, our long-suffering search agent (can there be any-thing worse than helping a determined property bear buy a house?), we've bought a great house that will suit our family at a price well below bubble levels. As we hope to live in it for a good decade, we've decided not to worry about the fact that the only obvious way for its market price to go is down.

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I'm turning bullish on real estate outside of the greater London area which I think is already bid sky high. There are a lot of areas of the UK that have been beat down over the last 20 years as the industry shut down, and house prices really are not that bad.

For a lot of people putting their money in property and maybe a local business is a lot better idea than risky stocks and bonds.

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It is an ominous sign but why she did not wait for this latest deleveraging phase to pan out I do not know, even if all the tax changes, stock market volatility and genuine need for prices to correct did not pull prices down she only needed to wait until autumn of this year to make a clearer decision. Very little to loose by waiting another 6 months but an awful lot to gain.

She sold a bit too early and she's bought a bit too early ;).

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Very little to loose by waiting another 6 months but an awful lot to gain.

Maybe she just wants to get on with her life and doesn't care about any small price drops she may incur. A few people on this forum could benefit from doing the same.

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She sold a bit too early and she's bought a bit too early ;).

I would like to nominate you for the understatement of the year award, she has bought in London that is in a mega bubble and she has bought at the double top having missed the primary trough a year earlier.

London has effectively got to crash from scratch, it is not going to be pretty.

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What a fraud. Moneyweek have sold us all down the river with their constant bearishness - which has turned out to be complete hogwash as it goes.

What a bunch of muppets - they couldn't pick a winner in a one horse race!

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Merryn Somerset Webb, Editor of Moneyweek, has bought a house.

Says it all really IMPO.

Best of luck to her. Don't know whether it is just me but I have noticed a turn in MW's feelings about houses in recent months.

In celebration of her I am now changing my status from bear to neither... if I can figure out how to do it.

You should change to a bull to reflect your posting.

You sound like you have started a new job at an EA tbh.

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Maybe she just wants to get on with her life and doesn't care about any small price drops she may incur. A few people on this forum could benefit from doing the same.

:rolleyes:

I'm getting on with my life.

We're chilling out on the Cote d'Azure for a month, then off to Brittany for the summer, then back to our (rented) house for the winter ;).

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Maybe she just wants to get on with her life and doesn't care about any small price drops she may incur. A few people on this forum could benefit from doing the same.

It's been a while since someone wrote this chestnut of a line.

:D:D

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I thought she bought last year. She was on some BBC program a year or so ago with that property wideboy douche with the greek name when she mentioned it. Because she was preggers or something IIRC and wanted the stability of not renting.

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Maybe she just wants to get on with her life and doesn't care about any small price drops she may incur. A few people on this forum could benefit from doing the same.

Please elaborate on why buying a house three years into a global depression at near peak prices either committing a vast amount of capital or taking on an equally vast debt burden means you are getting on with your life?

Your user name would elude to you being a renter and is another very sound reason why not to buy in this environment. I was an OO in the Midlands but sold up at peak. Since then I spent a year doing a well paid dream job I would not have taken had I had to travel for it from my owned house. I have then moved on to a lower paid but equally enjoyable job that allows me to work from home in Devon while renting a lovely house that would cost a lot more to buy than rent. I have no illusion that my current job, which is linked to a University, will be there forever so by renting it is allowing me to get on with my life (with my young family) in a way that I am very comfortable with.

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House prices ‘to fall’ 18%

By Niamh Hennessy

Friday, May 21, 2010

HOUSE prices are set to plunge by a further 18% according to one of the world’s top ratings agency as shares nosedive. This news comes as banks fell sharply on a day the ISEQ lost 3.3% following yet another turbulent day on the markets.

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AIB fell almost 9% to €1.04 while Bank of Ireland plunged 14% to 76c. Irish Life and Permanent was down 4% to €2.18.

The airlines were mixed with Ryanair up slightly less than 1% to €3.20 and Aer Lingus falling 1% to 70c. CRH was down 3% to €17.60.

Moody’s does not expect the demand for credit in Ireland to increase until the labour market starts to recover in the second half of the year.

The ratings agency also said the first loss in a prime Irish residential mortgage backed security materialised in March.

It said 3.8% of the outstanding RMBS portfolios were more than 90 days "delinquent" in March, against 2.1% a year earlier.

Also, Standard & Poor’s Ratings Services maintained a negative outlook on Ireland’s debt, citing the potential for further rises in the country’s borrowing.

Across Europe, stocks retreated for the fourth time in five days, led by a selloff in basic-resource companies, as unco-ordinated attempts by policymakers to resolve the region’s debt crisis unnerved investors.

Stocks extended losses as the euro weakened against the dollar and US jobless claims unexpectedly rose, pushing the Standard & Poor’s 500 Index below its 200-day moving average.

National benchmark indices dropped in all 18 western European markets today, except in Iceland.

Britain’s FTSE 100 declined 1.7% and Germany’s DAX slid 2%. France’s CAC 40 fell 2.3%.

A top Federal Reserve official said Europe’s debt crisis poses a potentially serious risk to the US economic recovery.

Read more: http://www.examiner.ie/business/house-prices-to-fall-18-120355.html#ixzz0oYhjb6aG

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I would like to nominate you for the understatement of the year award, she has bought in London that is in a mega bubble and she has bought at the double top having missed the primary trough a year earlier.

London has effectively got to crash from scratch, it is not going to be pretty.

That shows a misunderstanding of the way the London economy works: there is a real floor under London property

prices in that there are so many wealthy people in this city that any price drop simply sees them piling into buying

even more property, ensuring that drop is short-lived. Bubble or not, London property prices are not going to drop

by a great deal for a long period of time.

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That shows a misunderstanding of the way the London economy works: there is a real floor under London property

prices in that there are so many wealthy people in this city that any price drop simply sees them piling into buying

even more property, ensuring that drop is short-lived. Bubble or not, London property prices are not going to drop

by a great deal for a long period of time.

It will be interesting to see how attached the wealth is to London if the non-dom tax regime is changed.

There have already been two blows to the high end in London :

1. The rental budget for high end expats has been reduced from 3.5k per week to 2.5k per week.

2. Changes in the tax laws surrounding premium leases means that employer provided housing is generally now a taxable benefit.

If non-doms become taxable in the same way as residents, that would be the final nail in the coffin for high end London property.

The "floor" under London property prices is shaky at best.

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It will be interesting to see how attached the wealth is to London if the non-dom tax regime is changed.

There have already been two blows to the high end in London :

1. The rental budget for high end expats has been reduced from 3.5k per week to 2.5k per week.

2. Changes in the tax laws surrounding premium leases means that employer provided housing is generally now a taxable benefit.

If non-doms become taxable in the same way as residents, that would be the final nail in the coffin for high end London property.

The "floor" under London property prices is shaky at best.

I wish you were right, but I think you forget the massive size of the City's annual bonus pot..the London property market

does not neccesarily need non-doms...

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Please elaborate on why buying a house three years into a global depression at near peak prices either committing a vast amount of capital or taking on an equally vast debt burden means you are getting on with your life?

lol +1

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That shows a misunderstanding of the way the London economy works: there is a real floor under London property

prices in that there are so many wealthy people in this city that any price drop simply sees them piling into buying

even more property, ensuring that drop is short-lived. Bubble or not, London property prices are not going to drop

by a great deal for a long period of time.

Have a look at what happened to London house prices in the late 80s early 90s boom/bust. They went up more than the rest of the country and came back down further. What's been different so far, IMO, is that the QE money printing has mostly inflated the London economy but not the rest of the UK, since all the new cash has been sloshing around the financial sector propping up bonuses and employment. If that stops then London house prices will sink quicker than the rest of the country.

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I wish you were right, but I think you forget the massive size of the City's annual bonus pot..the London property market

does not neccesarily need non-doms...

You could be right although I think that the proportion of non-doms in the City is much higher than in any other business.

With the way that the world is unfolding, the City might well shrink because the public abhors the business and because the participants abhor the taxes.

There are friendlier climes for them to move to. I can actually see places like Toronto becoming important financial centres rather than backwaters.

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It will be interesting to see how attached the wealth is to London if the non-dom tax regime is changed.

There have already been two blows to the high end in London :

1. The rental budget for high end expats has been reduced from 3.5k per week to 2.5k per week.

2. Changes in the tax laws surrounding premium leases means that employer provided housing is generally now a taxable benefit.

If non-doms become taxable in the same way as residents, that would be the final nail in the coffin for high end London property.

The "floor" under London property prices is shaky at best.

The floor under London property only exists by extrapolating forward the same conditions and rules as now which have created hold the current price, which is what some people strangely seem to do when considering future prices. Personally i couldnt give a fig what current conditions are when considering future price moves because they are irrelevant as you highlight

Edited by Tamara De Lempicka

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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