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Shameless Ramping In City Am

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I picked up City AM this morning and I really thought I was reading the Daily Express by the time I got to the property section.

This particular article showed a table of London boroughs comparing the asking prices in April to May. This showed an increase of 7% in the month. The article bascially said that this did not matter if you are looking to buy because interest rates were so low!

I'd expect the redership of City AM to at least have a little better understanding of how things work. The 7% rise highlighted in Camden was on a base of just under £1m, so they article is suggesting that it is sensible to borrow an extra £70k because you forgot to buy last month.

I realise that £70k is pocket-change to some of the more highly paid bankers out there, but for most of City AM's sub-£100k-earning readership surely that is a lot of money? Even with interest rates this low, that is an extra £200 to find and would be much more if rates go up.

Of course, there is no need to worry about paying back the capital because the 7% increase in house prices in the coming months will see to that....

http://www.cityam.com/article/it-s-good-time-buy-despite-house-price-high

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I picked up City AM this morning and I really thought I was reading the Daily Express by the time I got to the property section.

This particular article showed a table of London boroughs comparing the asking prices in April to May. This showed an increase of 7% in the month. The article bascially said that this did not matter if you are looking to buy because interest rates were so low!

I'd expect the redership of City AM to at least have a little better understanding of how things work. The 7% rise highlighted in Camden was on a base of just under £1m, so they article is suggesting that it is sensible to borrow an extra £70k because you forgot to buy last month.

I realise that £70k is pocket-change to some of the more highly paid bankers out there, but for most of City AM's sub-£100k-earning readership surely that is a lot of money? Even with interest rates this low, that is an extra £200 to find and would be much more if rates go up.

Of course, there is no need to worry about paying back the capital because the 7% increase in house prices in the coming months will see to that....

http://www.cityam.com/article/it-s-good-time-buy-despite-house-price-high

I can't believe Allister Heath would sanction such a piece of blatant ramping, it's the absence of this sort of guff that allowed City A.M. to gain credibility in the past. People can always go to the Telegraph's personal finance section if the want to read someone telling them to buy a house.

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I can't believe Allister Heath would sanction such a piece of blatant ramping, it's the absence of this sort of guff that allowed City A.M. to gain credibility in the past. People can always go to the Telegraph's personal finance section if the want to read someone telling them to buy a house.

Its the ramping season....they cannot help themselves

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Recent Halifax research has found that buying a home is more affordable than renting. In London, typical homebuyers will pay £193 less per year than the average renter. And while a lack of new properties in London has pushed up house prices, the country is a long way from another bubble. “House prices continue to pick up gradually, but we are not seeing evidence of a UK property bubble,” says Craig McKinlay, mortgages director at Halifax.

Going all around the houses to avoid saying that London is in a bubble.

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I can't believe Allister Heath would sanction such a piece of blatant ramping, it's the absence of this sort of guff that allowed City A.M. to gain credibility in the past. People can always go to the Telegraph's personal finance section if the want to read someone telling them to buy a house.

It did say in the paper today that Allistair Heath is 'away', so perhaps they sneaked it in because of that.

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It did say in the paper today that Allistair Heath is 'away', so perhaps they sneaked it in because of that.

Perhaps the Twitterati ought to mention to him nicely that this ain't the sort of thing that will encourage people to continue to pick up City a.m.:

@allisterheath

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Going all around the houses to avoid saying that London is in a bubble.

Yep, that is a terrible quote. This mythical 'average' Londoner is supposed to take on many thousands in extra debt to save £193 a year! over renting.

The fees and taxes alone on an average London house will be at least £25k to buy an average London house in terms of fees and taxes, so that alone has blown your your annual saving for the next 130 years, and more if you had to borrow the funds to pay those fees and taxes.

If interest rates even click up by 0.5% on the £350k mortgage the buyer has taken out to buy the house an extra £1,750 interest becomes payable each year so they are now £1,557 per month worse off than the renter with the threat of more to come if rates ever got back to their normal levels.

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allowed City A.M. to gain credibility in the past.

Disappointing when I've been hoping younger journalists would come through and give an alternative view to older journalists, one of whom is taking early retirement.

She looks young. If she began her degree (LinkedIn) at 18 in 2004, would make her 26-27? How much does a young journo earn for her to buy now and really take advantage of incredible demand to support super high values? Nothing particularly impressive about her career on Linkedin. Parliamentary Researcher start. Unless Daddy has bought her a place?

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But it is still a good time to be buying. “In London, there remains an incredible demand for housing, which supports prices, and I don’t see that changing anytime soon.
News Corp plans 'relentless' cuts at newspapers

Telegraph.co.uk ‎- 11 hours ago

News Corporation is planning a programme of “relentless” cuts at its newspaper division, as it is separated from the rest of Rupert Murdoch's

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http://

www.cityam.com/counterpoint

Previous Episodes

Micro-businesses are booming

Since 1971, when there were just 820,000 small firms in Britain, the economy has been transformed. Today, Britain has 4.8m firms, nearly all of them small businesses. But Allister Heath, City A.M.'s editor, argues that we need to help those start-ups keep growing – with lower taxes and less red tape.

Entrepreneurs to the rescue

Britain's economy is stuck in a rut. But Allister Heath, the editor of City A.M., argues that we shouldn't despair for the long-term, as Britain's growing culture of entrepreneurship will ultimately drive a return to growth.

There seems a fair bit of wishful thinking on the "entrepreneur" front as a lot of those categorized as entrepreneurs would have been employees but have gone into self employment for one reason or another or for tax reasons etc - but still working for some company/companies. Reasons other than any special motivation to be entrepreneurial. Directors of their own one person companies.

"Micro" indeed.

Entrepreneurship might indeed return Britain to growth but it won't be for "some time". Some time used in the early 90s way when politicos talked about the time needed for things like recovery when in fact they meant it was going to take a very very very long time - and for Britain to return to real growth it's going to take longer than that considering the way the current lots continue to do things.

Edited by billybong

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There seems a fair bit of wishful thinking on the "entrepreneur" front as a lot of those categorized as entrepreneurs would have been employees but have gone into self employment for one reason or another or for tax reasons etc - but still working for some company/companies. Reasons other than any special motivation to be entrepreneurial. Directors of their own one person companies.

"Micro" indeed.

Entrepreneurship might indeed return Britain to growth but it won't be for "some time". Some time used in the early 90s way when politicos talked about the time needed for things like recovery when in fact they meant it was going to take a very very very long time - and for Britain to return to real growth it's going to take longer than that considering the way the current lots continue to do things.

Not so sure about entrepreneurs. You can either run a business or you can't. Some so called entrepreneurs can, but many can't.

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But it is still a good time to be buying. “In London, there remains an incredible demand for housing, which supports prices, and I don’t see that changing anytime soon. If you have the finances available and have found the right property, then go for it,” says Mark Harris of SPF Private Clients.

Money and willingness to take on credit, and to extend it, gives support to prices. Not demand alone by itself. And market-prices for anything is set daily by market participants; sellers and buyers agreeing a price for something.

There's a lot of world demand for gold but gold-prices still fell back, when sellers and buyers agreed to transact at lower prices, and that gold slide is a surely a warning of other things playing out.

28 May 2013: In April, mortgage lending fell for the fourth month in a row.

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There seems a fair bit of wishful thinking on the "entrepreneur" front as a lot of those categorized as entrepreneurs would have been employees but have gone into self employment for one reason or another or for tax reasons etc - but still working for some company/companies. Reasons other than any special motivation to be entrepreneurial. Directors of their own one person companies.

"Micro" indeed.

Entrepreneurship might indeed return Britain to growth but it won't be for "some time". Some time used in the early 90s way when politicos talked about the time needed for things like recovery when in fact they meant it was going to take a very very very long time - and for Britain to return to real growth it's going to take longer than that considering the way the current lots continue to do things.

Meh. Mom 'n' Pop shops. Me-too franchises. Cupcake entrepreneurs. Moonlighting by day with the additional disincentive that the schlubs are paying full tax as well. Hopeless.

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  • 242 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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