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Wurzel Of Highbridge

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Well it looks like they (UK and US government) are going for another housing bubble, Europe is desperately trying by restriction of supply.

So assuming that TBTB achieve their goal, house prices rise 5% this year, building booms creating jobs for younger people allowing them to borrow more money (See Ireland), volume returns to the market and prices rise 10% next and then say another 10% - so around 30% compounded over the next few years.

Then the music stops because:

Interest rates are at 0% and can't go any lower.
Government interference is at 100% and cant give any more.
Borrowers are genuinely maxed out and can't borrow any more.

So, what happens next? New currency? Debt forgiveness, wealth confiscation?

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Well it looks like they (UK and US government) are going for another housing bubble, Europe is desperately trying by restriction of supply.

So assuming that TBTB achieve their goal, house prices rise 5% this year, building booms creating jobs for younger people allowing them to borrow more money (See Ireland), volume returns to the market and prices rise 10% next and then say another 10% - so around 30% compounded over the next few years.

Then the music stops because:

Interest rates are at 0% and can't go any lower.
Government interference is at 100% and cant give any more.
Borrowers are genuinely maxed out and can't borrow any more.

So, what happens next? New currency? Debt forgiveness, wealth confiscation?

Just looking at citylets for Edinburgh, the previous "floor" they were trying to set for one bed properties at £450 p.m has been breached, it is now £425, and I know from personal experience that panic is setting in with BTL landlords, there is about to be massive oversupply of small flats for sale here in Edinburgh, stopping any notion of "re-inflation" in it`s tracks.

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Bills, inflation, housing costs, pretol, no pay rises, rates at all time low, inflation, job losses, lost wage jobs, global depression

just how are people going to pay more and more and more for housing ?

The alleged new "housing boom" is b**locks.

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Bills, inflation, housing costs, pretol, no pay rises, rates at all time low, inflation, job losses, lost wage jobs, global depression

just how are people going to pay more and more and more for housing ?

The alleged new "housing boom" is b**locks.

Yes, total fantasy, many VI`s just can`t/won`t/don`t want :lol: to let go of the dream yet. They will eventually though.

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I've been renting a managed 1 bed appartment in South London for nearly 2 yrs. Zone 3.

Haven't had a rent increase.

Plumber repairs twice and new washing machine.

Other Studios and 1 beds in the block are posted for rent, on the reception noticeboard, at same price or cheaper than 2yrs back.

I haven't seen any Russian oligarchs in the building. Could this be a factor ? ;)

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Just looking at citylets for Edinburgh, the previous "floor" they were trying to set for one bed properties at £450 p.m has been breached, it is now £425, and I know from personal experience that panic is setting in with BTL landlords, there is about to be massive oversupply of small flats for sale here in Edinburgh, stopping any notion of "re-inflation" in it`s tracks.

Anecdotal, but I think the same thing's happening in London.

All my renting friends are seeing stagnant or dropping rents where they are or nearby. Mine's still less than 6 years ago. Like for like, I think it's still below (in nominal, not real terms) what I was paying in '98.

Despite what people say about under supply, London seems to be flooded with new build flats. Rode out East a few weeks back. New properties everywhere. North too. Massive housing projects behind Kings Cross.

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Anecdotal, but I think the same thing's happening in London.

All my renting friends are seeing stagnant or dropping rents where they are or nearby. Mine's still less than 6 years ago. Like for like, I think it's still below (in nominal, not real terms) what I was paying in '98.

Despite what people say about under supply, London seems to be flooded with new build flats. Rode out East a few weeks back. New properties everywhere. North too. Massive housing projects behind Kings Cross.

Yep, Chinese "ghost cities" next, they will create another London, only with no people, before they let the rising rent/prices fantasy die :lol: . Could always use it to film "blockbusters" , I see Gidiot was giggling like a, well a Gidiot, at the UK film industry prospects recently.

Just to add, I was paying £350 p.m in central Edinburgh in `98, and paying £450 for this flat now. I need to be out of here in the next couple of months and judging by my rental searches today I could probably manage a tidy enough flat at £400 p,m. Without the HPI it is not worth the bother of running a BTL here IMO.

Edited by dances with sheeple

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Well it looks like they (UK and US government) are going for another housing bubble, Europe is desperately trying by restriction of supply.

So assuming that TBTB achieve their goal, house prices rise 5% this year, building booms creating jobs for younger people allowing them to borrow more money (See Ireland), volume returns to the market and prices rise 10% next and then say another 10% - so around 30% compounded over the next few years.

Then the music stops because:

Interest rates are at 0% and can't go any lower.
Government interference is at 100% and cant give any more.
Borrowers are genuinely maxed out and can't borrow any more.

So, what happens next? New currency? Debt forgiveness, wealth confiscation?

I wouldn't put it past them to invent a new savers tax to help bail out the mortgagees when they can't pay up!

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I dont see any signs of either government going for a housing bubble.

What they have tried is to maintain asset values.

As for FLS and Homebuy et al, we have had schemes since 2008, probably continuously.

today is different though, in a similar to yesterday sort of way.

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I dont see any signs of either government going for a housing bubble.

What they have tried is to maintain asset values.

As for FLS and Homebuy et al, we have had schemes since 2008, probably continuously.

today is different though, in a similar to yesterday sort of way.

I see HB cuts combined with funding schemes as trying to shake BTL`ers off the tree, forcing them to drop prices and sell to FTB`ers because they can`t make decent yields anymore. The government backing is just an attempt to slow the rate of crashing prices.

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Bills, inflation, housing costs, pretol, no pay rises, rates at all time low, inflation, job losses, lost wage jobs, global depression

just how are people going to pay more and more and more for housing ?

The alleged new "housing boom" is b**locks.

We pay you to buy a house. ;)

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Well it looks like they (UK and US government) are going for another housing bubble, Europe is desperately trying by restriction of supply.

So assuming that TBTB achieve their goal, house prices rise 5% this year, building booms creating jobs for younger people allowing them to borrow more money (See Ireland), volume returns to the market and prices rise 10% next and then say another 10% - so around 30% compounded over the next few years.

Then the music stops because:

Interest rates are at 0% and can't go any lower.
Government interference is at 100% and cant give any more.
Borrowers are genuinely maxed out and can't borrow any more.

So, what happens next? New currency? Debt forgiveness, wealth confiscation?

If there is a building boom prices will drop like concrete into a hole? There won`t be a building boom, but prices will still collapse anyway?

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I see HB cuts combined with funding schemes as trying to shake BTL`ers off the tree, forcing them to drop prices and sell to FTB`ers because they can`t make decent yields anymore. The government backing is just an attempt to slow the rate of crashing prices.

Meanwhile HUTH promoting opposite everyday on mainstream TV saying how you get a great yield buying at auction and renting it out

again.

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Meanwhile HUTH promoting opposite everyday on mainstream TV saying how you get a great yield buying at auction and renting it out

again.

Most "buyers" are not in a position to buy at auction though? HUTH is more about filling TV schedules now than promoting VI agenda, it is just piss in the wind, only those who bought at the peak still cling to the little illusion of having done the right thing it gives them? (some I used to work with had it on constantly at work, gazing at the screen trying to hold the thought that their hovel was worth 500k)

Edited by dances with sheeple

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  • 245 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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