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Mike Slade Says It's Time For Property Investors To 'buy Like Hell'


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HOLA441

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8189258/Mike-Slade-says-its-time-for-property-investors-to-buy-like-hell-as-Helical-Bar-raises-29m.html

Mike Slade says it's time for property investors to 'buy like hell' as Helical Bar raises £29m
MIke Slade's Helical Bar has raised £29m from shareholders after the veteran property chief executive said market conditions presented an "ideal backdrop" for investment.
By Graham Ruddick, Property & Industry Correspondent 6:00AM GMT 09 Dec 2010
In a vote of confidence in the UK property market, Mr Slade urged investors to "get on the train before it leaves the station".

A fool or a smart fellow?

What with Osborne's billions to boost the economy (HPI) and Halifax's pathetic drop of 0.1% it may be time to buy overseas.

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As far as I can see he's talking about commercial property. Given that he may have a point.

Maybe.

£29m isn't that much is it though?

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He is also talking about a 5% spread between yields and funding costs.

If he is talking about net yields after allowances for voids and operating costs, he has a good point if and only if the funding costs that he is talking about are fixed for at least 20 years which is enough time to repay the debt.

In my view, the 3% funding cost that he is talking about is not attainable as a 20 year fixed rate of funding.

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buy with what ?

no one has a 35k deposit that i know of. most people i know are sunk in debt and the others too wise to lose it in this cheesy old property trap. the mortgage lenders have factored in a -30% drop. thats why they want you to lose your 30% first. i recently had a look. the mortgage deals are insane. doesnt matter is joe swash wanted to buy. he cant get the deposit.

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Commercial property is different. It is not comparable with residential property.

UK commercial property prices did experience an enormous crash.

In nominal terms prices fell by around 45-50%, and to oversears buyers it was more like 60%.

A price recovery makes a bit of sense, but given that even the voids in the supposedly buoyant CIty are pretty massive (I wouldn't believe the press reports - go and look or yourself), and that we'll most likely hear about another load of shops going bust after Christmas (traditional time for creditors to pull the plug after Chrimbo spending boom), I wouldn't throw too much into UK commercial property, unless you can be very focussed in what yuor money is being spent on.

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buy with what ?

no one has a 35k deposit that i know of. most people i know are sunk in debt and the others too wise to lose it in this cheesy old property trap. the mortgage lenders have factored in a -30% drop. thats why they want you to lose your 30% first. i recently had a look. the mortgage deals are insane. doesnt matter is joe swash wanted to buy. he cant get the deposit.

1 I think he was referring to the commercial sector.

2 Notice he says he is referring to the "SE"-he more or less implies the rest of the country is fecked.

He also mentions about "picking up droppings"-whatever that is. Hope it's crumbs rather than sh!te.

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Commercial property is different. It is not comparable with residential property.

UK commercial property prices did experience an enormous crash.

In nominal terms prices fell by around 45-50%, and to oversears buyers it was more like 60%.

A price recovery makes a bit of sense, but given that even the voids in the supposedly buoyant CIty are pretty massive (I wouldn't believe the press reports - go and look or yourself), and that we'll most likely hear about another load of shops going bust after Christmas (traditional time for creditors to pull the plug after Chrimbo spending boom), I wouldn't throw too much into UK commercial property, unless you can be very focussed in what yuor money is being spent on.

Jobs are created when commerical property is going up--its a sign business is doing well. A wise old buzzrard a REALTOR in the US once told me that the commercial market is the lead indicator for the residential. I think he is right as emplyment is a lagging indicator when their is a crash.

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Commercial property is different. It is not comparable with residential property.

UK commercial property prices did experience an enormous crash.

In nominal terms prices fell by around 45-50%, and to oversears buyers it was more like 60%.

A price recovery makes a bit of sense, but given that even the voids in the supposedly buoyant CIty are pretty massive (I wouldn't believe the press reports - go and look or yourself), and that we'll most likely hear about another load of shops going bust after Christmas (traditional time for creditors to pull the plug after Chrimbo spending boom), I wouldn't throw too much into UK commercial property, unless you can be very focussed in what yuor money is being spent on.

I agree. I am in Manchester at the moment and surprised that he never mentioned this area. I would have thought that with the BBC move the city would at least hold its own. That and the massive devastation in Weatherfield caused by that viaduct thing and the crashing tram. It all needs rebuilding you know.

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Business is going online.

Yep. I recently worked with a company of IT consultants. There were about 50 employees. Address given as London, but in fact they had a rented office for 3 people. Everybody else worked at client sites and when they weren't there, could easily work from home. 10-15yrs ago they would have had a desk/space in the office. With the usual costs.

The price of commercial property is still prohibitive to many start-ups. I've seen tv programs recently showing all types of new, small businesses all trading online and using their homes as offices and storage. Only the big-guns can afford to setup anywhere near the main shopping areas. Unfortunately.

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Jobs are created when commerical property is going up--its a sign business is doing well. A wise old buzzrard a REALTOR in the US once told me that the commercial market is the lead indicator for the residential. I think he is right as emplyment is a lagging indicator when their is a crash.

This is true. The commercial sector responds much more rapidly to the decrease in land values. Residential property has a lot further to fall. A lot of the adjustment is happening right now. This doesn't seem to be reflected on the board which makes me wonder how many posters on here are just that rather than experts in the field. The crash was always going to take a good 4 years even without negative mortgage rates ( - that's right, I am facing an average interest rate of 2.25% on my borrowing at present.)

Prices will be down by a good 10% by the middle of next year.

If that is not obvious to you, look at all the leading indicators and walk around your locality eyeing EA windows. We are in the middle of steep declines, yet in a forum "dedicated" to the crash, the most prolific posters don't seem to know that. Very strange. I'm not paranoid, so I must conclude that these posters like the sound of their own voices rather than having some agenda. Surely that should be an obversation that should lead to some self- reflection on their part. If you can't see the wood for the trees, take a step back and let other people post! Being on a forum for a long time and making lots of posts doesn't turn anyone into an expert. An expert is someone who has been through at least a couple of cycles as an active investor and learnt all the lessons.

If you are not absolutely certain, that is beyond any question of a doubt, that property prices are in the midst of steep declines, unplug your keyboard.

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HOLA4417

http://www.telegraph...raises-29m.html

Mike Slade says it's time for property investors to 'buy like hell' as Helical Bar raises £29m
MIke Slade's Helical Bar has raised £29m from shareholders after the veteran property chief executive said market conditions presented an "ideal backdrop" for investment.
By Graham Ruddick, Property & Industry Correspondent 6:00AM GMT 09 Dec 2010
In a vote of confidence in the UK property market,
Mr Slade urged investors to "get on the train before it leaves the station".

A fool or a smart fellow?

What with Osborne's billions to boost the economy (HPI) and Halifax's pathetic drop of 0.1% it may be time to buy overseas.

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HOLA4422

http://www.telegraph...raises-29m.html

Mike Slade says it's time for property investors to 'buy like hell' as Helical Bar raises £29m
MIke Slade's Helical Bar has raised £29m from shareholders after the veteran property chief executive said market conditions presented an "ideal backdrop" for investment.
By Graham Ruddick, Property & Industry Correspondent 6:00AM GMT 09 Dec 2010
In a vote of confidence in the UK property market, Mr Slade urged investors to "get on the train before it leaves the station".

A fool or a smart fellow?

What with Osborne's billions to boost the economy (HPI) and Halifax's pathetic drop of 0.1% it may be time to buy overseas.

I remember Helical Bar. I remember having a meeting with their Financial Director (the first UK FD with a salary over £1m at the time, says it all about the company) in the late eighties. I could see the property market showing signs of falling apart at the time and someone arranged a meeting with him to discuss it. The poor chap vehemently assured me that the market was healthy, and that the office market which they were mainly dealing with would never fall...

They went nearly bankrupt a few years later IIRC.

Conclusion: probably not a fool but definitely a VI. Whether he lies to himself or just to others I can't tell.

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