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Hsbc Tells Property Investors To Get Out Now

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http://www.thisislondon.co.uk/standard-business/article-23854628-market-report-housebuilders-take-a-hit-as-hsbc-warns-buyers-will-dry-up.do

Market Report: Housebuilders take a hit as HSBC warns buyers will dry up

Rosamund Urwin

09.07.10

Housebuilders took a knock today after a warning that they will suffer as wannabe homeowners struggle to get mortgages.

HSBC advised investors to “exit ahead of subsidence”, predicting that the five companies with the greatest exposure to the North of England will see their share prices fall by between 5% and 35% in the next year.

Analysts at the bank believe that house prices will fall by an average of 5% in 2010-11. They said: “We expect volumes to falter during the correction and their long-term recovery to be restrained by limited affordability and restricted mortgage availability.”

../

Although I disagree with the 5% figure, the sentiment amongst even the big players is very negative. Looks like HPC is back on folks.

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http://www.thisislondon.co.uk/standard-business/article-23854628-market-report-housebuilders-take-a-hit-as-hsbc-warns-buyers-will-dry-up.do

Market Report: Housebuilders take a hit as HSBC warns buyers will dry up

Rosamund Urwin

09.07.10

Although I disagree with the 5% figure, the sentiment amongst even the big players is very negative. Looks like HPC is back on folks.

The more interesting statement is "to falter during the correction". So HSBC are saying houses are known to be over valued! And they are saying it aloud !?! Excellent and incredible. Bit of a Ratners there it seems.

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The more interesting statement is "to falter during the correction". So HSBC are saying houses are known to be over valued! And they are saying it aloud !?! Excellent and incredible. Bit of a Ratners there it seems.

Ah yes, I remember the RATNERS SPEECH to the Institute of Directors all too well. Translated into HSBC speak it would go like this:

'How do housebuilders persuade people to buy a small box made of a bit of cement and plaster, with a couple of taps, and a postage stamp garden yard on a piece of worthless waste ground, for over £200,000?..... I'll tell you. It's purely because really stupid lenders have spent years letting them have almost any amount of money they request on a form their broker filled in for them and, in some cases without checking if they have an income or even a job!!' BIG ROUND OF APPLAUSE AS PEOPLE REALISE IT'S ALL ABSOLUTELY TRUE.

LATER IN THE DAY RATBUILDNER SHARES PLUMMET AND HE RESIGNS FROM THE BOARD OVER HIS TRUTHFUL COMMENTS.

Edited by plummet expert

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Ah yes, I remember the RATNERS SPEECH to the Institute of Directors all too well. Translated into HSBC speak it would go like this:

'How do housebuilders persuade people to buy a small box made of a bit of cement and plaster, with a couple of taps, and a postage stamp garden yard on a piece of worthless waste ground, for over £200,000?..... I'll tell you. It's purely because really stupid lenders have spent years letting them have almost any amount of money they request on a form their broker filled in for them and, in some cases without checking if they have an income or even a job!!' BIG ROUND OF APPLAUSE AS PEOPLE REALISE IT'S ALL ABSOLUTELY TRUE.

LATER IN THE DAY RATBUILDNER SHARES PLUMMET AND HE RESIGNS FROM THE BOARD OVER HIS TRUTHFUL COMMENTS.

LOL

That should be archived permanently for posterity.

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'...fall by between 5% and 35% in the next year'.

That's a pretty big range. Doesn't exactly add much credence to their statement. Basically 'we're guessing' is what they actually meant.

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'...fall by between 5% and 35% in the next year'.

That's a pretty big range. Doesn't exactly add much credence to their statement. Basically 'we're guessing' is what they actually meant.

Give them credit. They are in the right direction now. Accuracy will get there once they are off driving the right way.

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If you read the quote they are highlighting the north of England.

So it may be that the North crashes 35% and the South still rises to make the net 5% reduction overall.

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They hit PEEK in 07........now the falls are gaining BIG time...............Come Winter expect this to be a daliy MSM story.

Mike

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Its more welcome news from the 'experts'

It's funny how just 6 months ago all these 'experts' were predicting 5% rises in 2010, then as the evidence mounted and the evidence came more to the foreground the same experts began 'predict' flat prices over 2010. Now that we've had four months of drops it's down to 5% fall.

As the crash builds speed I'm sure the predictions will get worse again.

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http://www.thisislondon.co.uk/standard-business/article-23854628-market-report-housebuilders-take-a-hit-as-hsbc-warns-buyers-will-dry-up.do

Market Report: Housebuilders take a hit as HSBC warns buyers will dry up

Rosamund Urwin

09.07.10

Although I disagree with the 5% figure, the sentiment amongst even the big players is very negative. Looks like HPC is back on folks.

Glad to hear that..must to be very bad to get the bank admitting it.. :)

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Glad to hear that..must to be very bad to get the bank admitting it.. :)

I don't think HSBC are very heavily invested in UK housing. I think they more waited towards the far east. It's RBS I would be worried about.

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'...fall by between 5% and 35% in the next year'.

That's a pretty big range. Doesn't exactly add much credence to their statement. Basically 'we're guessing' is what they actually meant.

Wide range?

Look at the social housing folks. Connaught just dropped 65% while Mears dropped a mere 12%. Now that's a (somewhat) wide range!

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I don't think HSBC are very heavily invested in UK housing. I think they more waited towards the far east. It's RBS I would be worried about.

absolutely - HSBC (and also Barclays) are global giants who could afford to miss the house price party as they were diversified and not likely to get strong-armed by shareholders as they had p[rofits elsewhere and cast iron leadership, like domestic UK banks did

IIRC HSBC and Barclays were heavily criticised during the boom years for not joining the cheap overleveraged mortgage party

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If you read the quote they are highlighting the north of England.

So it may be that the North crashes 35% and the South still rises to make the net 5% reduction overall.

The report refers to falls in builder share prices not house prices.

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Its more welcome news from the 'experts'

It's funny how just 6 months ago all these 'experts' were predicting 5% rises in 2010, then as the evidence mounted and the evidence came more to the foreground the same experts began 'predict' flat prices over 2010. Now that we've had four months of drops it's down to 5% fall.

As the crash builds speed I'm sure the predictions will get worse again.

they all use the patented, internationally renouned, highly accurate, sensitive, precision Bloo Loo trend predictor ruler.

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they all use the patented, internationally renouned, highly accurate, sensitive, precision Bloo Loo trend predictor ruler.

How did you get a patent on 'Stick-the-tail-on-the-donkey'? I thought that was in the public domain.

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How did you get a patent on 'Stick-the-tail-on-the-donkey'? I thought that was in the public domain.

It has extra precision...and contacts count.

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absolutely - HSBC (and also Barclays) are global giants who could afford to miss the house price party as they were diversified and not likely to get strong-armed by shareholders as they had p[rofits elsewhere and cast iron leadership, like domestic UK banks did

IIRC HSBC and Barclays were heavily criticised during the boom years for not joining the cheap overleveraged mortgage party

Indeed. Years ago as a mortgage advised i can hardly remember any deals i did with these 2 banks. Did a few with woolwich but not many.

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  • 140 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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