Jump to content
House Price Crash Forum
ralphmalph

1 In 3 House Purchasers In Us Is Cash Buyer

Recommended Posts

http://www.marketwatch.com/story/one-in-three-existing-home-sales-are-cash-deals-2011-04-20

If you could buy a house in the UK for 50K then no mortgage, means no interest payments to the banks, means no bonuses.

Makes you think.

Yes, it does make you think.....if we all could pay in cash, why would we need the banks?....ok in theory but the greedy would always want more than their fair share and the land would be full of concrete blocks...or would it? ;)

Share this post


Link to post
Share on other sites

Yes, it does make you think.....if we all could pay in cash, why would we need the banks?....ok in theory but the greedy would always want more than their fair share and the land would be full of concrete blocks...or would it? ;)

We could never all pay in cash because the number of people being able to pay in cash is a sign of the wealth inequality in a country.

Lots of people paying in cash will be buying more than one property.

Share this post


Link to post
Share on other sites

It's 40% in the UK.

That really surprises me.

Is it a demographically driven proportion where a lot of boomers are downsizing and those behind them are taking on debt to satisfy the boomers' demands when it comes to house prices?

Share this post


Link to post
Share on other sites

We could never all pay in cash because the number of people being able to pay in cash is a sign of the wealth inequality in a country.

Lots of people paying in cash will be buying more than one property.

We have a higher proportion of cash buyers in the UK than in the US according to your data yet we have a lower Gini co-efficient.

Share this post


Link to post
Share on other sites

We have a higher proportion of cash buyers in the UK than in the US according to your data yet we have a lower Gini co-efficient.

It's not my data it's just something that has been mentioned on here. Had a quick google and it threw up this

Cash buyer share of market at all time high

09 March 2011

Savills research estimates that cash buyers reached a peak of 40% of the UK market last quarter. This compares to 25% of buyers at the peak of the market in the third quarter of 2007.

Lucian Cook, director of residential research says, "There is a significant and growing divergence between equity rich and mortgage constrained buyers both in terms of their willingness and ability to operate in the market. Cash buyers are increasingly driving the market and supporting prices, whilst the mortgage reliant are increasingly becoming confined to the rental sector.

"Whilst sentiment amongst the mortgaged buyers should improve gradually, it is unlikely that the gap in purchasing power between the mortgage reliant and equity rich buyer groups will narrow significantly in the short to medium term. As a result equity rich markets are performing much more strongly, both in terms of transaction levels and price movements, and the lack of equity and associated mortgage finance constraints will determine the depth of the 'second slip' in house prices that a given market will experience.

http://www.savills.co.uk/_news/newsitem.aspx?intSitePageId=72418&intNewsSitePageId=112468-0&intNewsMonth=03&intNewsYear=2011

Is our Gini growing or reducing?

Share this post


Link to post
Share on other sites

It's not my data it's just something that has been mentioned on here. Had a quick google and it threw up this

Is our Gini growing or reducing?

Thanks.

I think that US volumes have corrected because of their lower prices while ours haven't so the comparison could be a bit misleading. 25% of 100% is roughly double 40% of 30%.

I don't know what is happening to our Gini co-efficient in absolute terms or relative to America.

I would expect that the rich are getting richer at a slower pace here than in America but I could be wildly wrong. The data is not produced that often.

Share this post


Link to post
Share on other sites

Yes, it does make you think.....if we all could pay in cash, why would we need the banks?....ok in theory but the greedy would always want more than their fair share and the land would be full of concrete blocks...or would it? ;)

Somewhere to keep your cash? Beats burying it on Hampstead Heath alongside the goldbugs' stashes :P.

Share this post


Link to post
Share on other sites
<br />It's not my data it's just something that has been mentioned on here. Had a quick google and it threw up this<br /><br /><br /><br />Is our Gini growing or reducing?<br />

That was the banks 'shell' companies buying up the repos to support housing market from collapse.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.