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The Wealthy Are Accumulating

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It is quite clear that wealthy people are desperate to get their cash into any assets at the moment.

I know london upmarket property doesn't speak for the rest of the UK but I am seeing the "future" wealthy starting to accumulate too.

By future wealthy I mean people who are currently not wealthy but possibly will be in the future. These people have taken a paper hit to the value of their homes/stocks and shares etc. however the hit has not actually had any affect on them. They are often young and starting to get married. When they get married neither sell their properties and instead rent them out and buy another one together.

Of course, a simple increase in interest rates would bring a sudden stop to this behaviour and I believe that this is the major fly in the ointment of house price crash now.

If interest rates stay low for 10 years we could have a very slow real drop in property in prices. We could always go the way of Japan but that would require british people to start living like japanese people which seems highly unlikely.

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It is quite clear that wealthy people are desperate to get their cash into any assets at the moment.

Can't deny that. One recent example from the South East Brighton sub forum quoted below. Not every wealthy person has been making a desperate dash for assets. We'll see who remains wealthy in a few years, who becomes poor, and if others not prepared to pay current prices ever get opportunity to buy at homes at value for money prices.

We've now had a few years where people have fear for the safety of their savings held in bank deposits. A fear that overnight they could lose all their savings. People hearing what Alastair Darling, or was it Brown, saying they were hours from all the cash machines running out of money. Partly I think that's been a catalyst for people still freely spending their income and savings, which might suit BoE's purpose. And resentment at low interest rates for savers on deposits, with many savers thinking they are smart and can better it in other investments.

With recent stories the BoE would allow banks to fail, it's possible we might see a final flurry of people buying houses at big big prices, which I think has been manifest anyway during the few years. What you describe as accumulation, I see as wealth destruction.

What happens when the wealth money trickles to nothing with no buyers at old asking prices. We're not far off that time now now are we. There are very few buyers out there. Only the few buying at prices are preventing a massive house price crash.

Markets are not reasonable RB. A reasonable fall in value? It doesn't matter what most people think about house prices being stable or going up, and not falling by much. Markets don't always follow what is expected by the majority. They also do not function in ways Gordon Brown thinks, to serve society.

Place up the road from me was bought in 2006 for £650k and went on the market last year for £1.25m. I met the couple who bought it a few weeks back. Nice retired couple in their 80's from London who wanted a place for a weekend once a month. They managed to knock the vendor down to £1m by paying cash. After all, they told me, the money wasnt earning anything in the bank.

What two 80 year olds need with a 4 bedroom detached house I'm not quite sure. They haven't visited much since they bought the place as the old boy can't even get down the stairs to the front door bless him.

http://www.housepric...c=50475&st=2960

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Can't deny that. One recent example from the South East Brighton sub forum quoted below. Not every wealthy person has been making a desperate dash for assets. We'll see who remains wealthy in a few years, who becomes poor, and if others not prepared to pay current prices ever get opportunity to buy at homes at value for money prices.

We've now had a few years where people have fear for the safety of their savings held in bank deposits. A fear that overnight they could lose all their savings. People hearing what Alastair Darling, or was it Brown, saying they were hours from all the cash machines running out of money. Partly I think that's been a catalyst for people still freely spending their income and savings, which might suit BoE's purpose. And resentment at low interest rates for savers on deposits, with many savers thinking they are smart and can better it in other investments.

With recent stories the BoE would allow banks to fail, it's possible we might see a final flurry of people buying houses at big big prices, which I think has been manifest anyway during the few years. What you describe as accumulation, I see as wealth destruction.

What happens when the wealth money trickles to nothing with no buyers at old asking prices. We're not far off that time now now are we. There are very few buyers out there. Only the few buying at prices are preventing a massive house price crash.

Markets are not reasonable RB. A reasonable fall in value? It doesn't matter what most people think about house prices being stable or going up, and not falling by much. Markets don't always follow what is expected by the majority. They also do not function in ways Gordon Brown thinks, to serve society.

http://www.housepric...c=50475&st=2960

Here is one: http://www.bankofengland.co.uk/publications/news/2011/060.htm

"Following a decision by the Financial Services Authority (FSA) to initiate the special resolution regime (SRR), and a subsequent application to court by the Bank of England, Southsea Mortgage and Investment Company Limited (Southsea) has been placed into the Bank Insolvency Procedure and BDO LLP (BDO) has been appointed bank liquidator. As of today, Southsea has therefore ceased trading.

The failure of Southsea, a small bank with just over 250 depositors, follows a deterioration in its financial position as a result of management decisions and the firm’s specific business model. At failure, the firm had retail deposits of £7.4 million."

Not a big one mind.

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Here is one: http://www.bankofengland.co.uk/publications/news/2011/060.htm

"Following a decision by the Financial Services Authority (FSA) to initiate the special resolution regime (SRR), and a subsequent application to court by the Bank of England, Southsea Mortgage and Investment Company Limited (Southsea) has been placed into the Bank Insolvency Procedure and BDO LLP (BDO) has been appointed bank liquidator. As of today, Southsea has therefore ceased trading.

The failure of Southsea, a small bank with just over 250 depositors, follows a deterioration in its financial position as a result of management decisions and the firm’s specific business model. At failure, the firm had retail deposits of £7.4 million."

Not a big one mind.

I think you deserve everything you get investing in a bank called Southsea :lol:

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I think you deserve everything you get investing in a bank called Southsea :lol:

I originally thought it was a p1sstake.....

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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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