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H P I Disease Grips Sweden

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http://www.bloomberg.com/news/2011-04-06/sweden-must-solve-housing-supply-shortage-to-avoid-bubble-attefall-warns.html

Swedish House Market Needs Supply, Not More Caps, Attefall Says
By Johan Carlstrom - Apr 6, 2011 11:01 PM GMT+0100
Sweden’s real-estate market needs a bigger property supply instead of tougher mortgage lending rules if the largest Nordic economy is to avoid a bubble, Housing Minister Stefan Attefall said.
“If we don’t solve the supply side then we will have a problem,” Attefall said yesterday in an interview in Stockholm. “We will have to wait for a while to see if” existing mortgage caps are “enough. Unless we kick-start an increase in the building of homes, we will have a continued upward price pressure, so it’s important that we work with that side of things too and that’s often forgotten in the debate.”

The corrosive economic impact of HPI seen in the right light. Unlike the attitude in this country where pricing out and debt slavery is good news.

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according to the economists latest house prices:rents comparisons, Sweden is one of the most overpriced housing markets currently:

http://www.economist.com/node/18285595

20110305_fnc278.gif

I agree that the solution is to sate the excess demand by a fat response of building more, however, something the UK laggard planning system failed to enable in the early 2000s, so it all came on tap too late, and was the wrong stuff

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according to the economists latest house prices:rents comparisons, Sweden is one of the most overpriced housing markets currently:

http://www.economist.com/node/18285595

20110305_fnc278.gif

I agree that the solution is to sate the excess demand by a fat response of building more, however, something the UK laggard planning system failed to enable in the early 2000s, so it all came on tap too late, and was the wrong stuff

Yes, exactly, Sweden has had (and is in) an incredible bubble for the past 8 years.

"If we don't solve the supply side then we will have a problem," Attefall said.

Sorry mate, too late, you already have a problem.

Edited by SHERWICK

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Yes, exactly, Sweden has had (and is in) an incredible bubble for the past 8 years.

"If we don't solve the supply side then we will have a problem," Attefall said.

Sorry mate, too late, you already have a problem.

funnily enough, just when I thought my family had done all it could to p*ss most of its wealth away on property - a cousin of mine has just bought a large house, using his parents' (UK) life savings, in Sweden

good f*cking sh*tting b*ll-crushing f*nny-flapping grief

I give up. I really do.

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funnily enough, just when I thought my family had done all it could to p*ss most of its wealth away on property - a cousin of mine has just bought a large house, using his parents' (UK) life savings, in Sweden

good f*cking sh*tting b*ll-crushing f*nny-flapping griefI give up. I really do.

That's one of the worst sorts of grief..

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Sweden has insane houseprices as already mentioned.

Most swedes i know earn f-all, pay huge amounts in tax and hav to pay through their nose for everything, yet houseprices are ridicilous...

The main reason i can think of is that the mortgages are over a very long term, and they're split into several sections depending on how much equity you have. Usually people only pay off the one with the highest interest rate and then they think they're done paying, i.e its a big IO mortgage, really.

I know of only one person who is truly mortgage free, and he owns a flat with a ground rent of 250 pounds per month (this is completely normal, or maybe even on the low side).

Houseprices at 10x earnings seems the norm.

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Flipping houses (well flats at least) is big in Stockholm. "Oh if I just buy this now, and then in 6 months I can sell it at a profit woop woop". I have friends doing that now. The same friend is also discussing buying a flat with a friend, to then later flip it. It will quite possibly end in tears. Saying that, F all is being built in Stockholm - there truly is not enough housing.

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Sweden has insane houseprices as already mentioned.

Most swedes i know earn f-all, pay huge amounts in tax and hav to pay through their nose for everything, yet houseprices are ridicilous...

The main reason i can think of is that the mortgages are over a very long term, and they're split into several sections depending on how much equity you have. Usually people only pay off the one with the highest interest rate and then they think they're done paying, i.e its a big IO mortgage, really.

I know of only one person who is truly mortgage free, and he owns a flat with a ground rent of 250 pounds per month (this is completely normal, or maybe even on the low side).

Houseprices at 10x earnings seems the norm.

Yes, exactly.

Regarding the ground rent of £250 a month, this is on the low side (for anything remotely good in Goteborg or Stockholm in any case) - one therefore wonders why on earth anyone would bother 'owning' a flat in those cities in Sweden to be honest.... :blink:

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Flipping houses (well flats at least) is big in Stockholm. "Oh if I just buy this now, and then in 6 months I can sell it at a profit woop woop". I have friends doing that now. The same friend is also discussing buying a flat with a friend, to then later flip it. It will quite possibly end in tears. Saying that, F all is being built in Stockholm - there truly is not enough housing.

There may not be enough housing, but there certainly is enough space!

*also the quality of their housing is superb.

Edited by SHERWICK

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  • 284 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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