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" Bricks And Slaughter " Special Report On Property By The Economist

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A 16 pages special report on property by The Economist magazine.

____________________________________________________________________________________

"Bricks and slaughter"

"Property is widely seen as a safe asset. It is arguably the most dangerous of all, says Andrew Palmer"

http://www.economist.com/node/18250385

20110305_src223.gif

Other articles in the report:

* Own goal (About renting) http://www.economist.com/node/18254291

* When the roof fell in (USA - Housing will be a drag on recovery) http://www.economist.com/node/18250439

20110305_src138.gif

* A world apart (International buyers of residential property) http://www.economist.com/node/18250421

* Prime numbers (On commercial property) http://www.economist.com/node/18250397

* The old and the new (Innovation in commercial property) http://www.economist.com/node/18250411

* Building excitement (Can China avoid a bubble?) http://www.economist.com/node/18250463

20110305_src141.gif

* Between a rock and a living space (The lessons from the property boom) http://www.economist.com/node/18250431

20110305_SRC142.gif

* Sources and acknowledgments http://www.economist.com/node/18254832

Edited by Tired of Waiting

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A 16 pages special report on property by The Economist magazine.

____________________________________________________________________________________

"Bricks and slaughter"

"Property is widely seen as a safe asset. It is arguably the most dangerous of all, says Andrew Palmer"

http://www.economist.com/node/18250385

20110305_src223.gif

Other articles in the report:

* Own goal (About renting) http://www.economist.com/node/18254291

* When the roof fell in (USA - Housing will be a drag on recovery) http://www.economist.com/node/18250439

20110305_src138.gif

* A world apart (International buyers of residential property) http://www.economist.com/node/18250421

* Prime numbers (On commercial property) http://www.economist.com/node/18250397

* The old and the new (Innovation in commercial property) http://www.economist.com/node/18250411

* Building excitement (Can China avoid a bubble?) http://www.economist.com/node/18250463

20110305_src141.gif

* Between a rock and a living space (The lessons from the property boom) http://www.economist.com/node/18250431

20110305_SRC142.gif

* Sources and acknowledgments http://www.economist.com/node/18254832

Their use of PE to value is a willfully blunt approach.

Australian property investing is tax driven, rental agent fees are much lower cf the UK, etc etc and I don't think that's taken into account here.

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Their use of PE to value is a willfully blunt approach.

Australian property investing is tax driven, rental agent fees are much lower cf the UK, etc etc and I don't think that's taken into account here.

In which one of those articles?

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All of them, I think.

Specifically, any data which relates to price / rent.

I think it is a useful indicator, for investors, no?

And if tax regimes don't change, in a specific country, then it should indicate if prices are diverging from average? Coz I think the logic behind it is that rents are much more directly linked to the real economy - wages and the supply of rental housing. It reacts faster?

Though here in Britain housing benefits pay for 40% of the country's rents.

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I think it is a useful indicator, for investors, no?

And if tax regimes don't change, in a specific country, then it should indicate if prices are diverging from average? Coz I think the logic behind it is that rents are much more directly linked to the real economy - wages and the supply of rental housing. It reacts faster?

Though here in Britain housing benefits pay for 40% of the country's rents.

No, it's a useless indicator.

For the reasons I've already given.

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Their use of PE to value is a willfully blunt approach.

Australian property investing is tax driven, rental agent fees are much lower cf the UK, etc etc and I don't think that's taken into account here.

Take into account Australian net yeids of around 2.5% after all costs and combine that with double UK/US/Eu Interest rates, eg 7.5% being typical then thats something esle to be taken into account. However as you say tax advantages are taken into account but to be honest the sums havent added up for many years now on that front. Capital gains is the overriding factor now and thats fading fast for most 'Investors' with flat to falling prices. If the 'Investors' panic, that would be a huge supply dumped on the market, much more than if 'investors' in the UK crapped their britches.

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Take into account Australian net yeids of around 2.5% after all costs and combine that with double UK/US/Eu Interest rates, eg 7.5% being typical then thats something esle to be taken into account. However as you say tax advantages are taken into account but to be honest the sums havent added up for many years now on that front. Capital gains is the overriding factor now and thats fading fast for most 'Investors' with flat to falling prices. If the 'Investors' panic, that would be a huge supply dumped on the market, much more than if 'investors' in the UK crapped their britches.

+ 1

And it always is, in bubbles. There is always an euphoric phase, when whole countries get into a collective frenzied mania, with everybody talking and investing in property, "Homes Under The Hammer" on the UK telly, + dozens of other property shows, 120% mortgages, coz it's different this time, coz "no more boom and bust", "you can't go wrong with bricks and mortar", etc.

We know the story.

On another angle, interesting to see, in this chart below, how Britain's dead cat bounced the most. Why?

20110305_src138.gif

Edited by Tired of Waiting

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  • 311 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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