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erat_forte

Shopjacket

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This could be taken further. Instead of just a fake shopfront you could kit out entire fake shops selling plastic food, paper clothes, blank books, empty DVD cases etc. Then Merv could print up a few billion to hire some unemployed on apprentice wages to be fake shoppers (their benefits will be stopped if they refuse), gaily wandering from fake shop to fake shop filling their bags with fake goods. Soon the animal spirits of the rest of the population would be sparked back into life, they would MEW all the equity in their houses to fund a heroic shopping spree and the nation would march gloriously forth into a new golden age.

-Idea copyright 2013 D. Blanchflower

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This could be taken further. Instead of just a fake shopfront you could kit out entire fake shops selling plastic food, paper clothes, blank books, empty DVD cases etc. Then Merv could print up a few billion to hire some unemployed on apprentice wages to be fake shoppers (their benefits will be stopped if they refuse), gaily wandering from fake shop to fake shop filling their bags with fake goods. Soon the animal spirits of the rest of the population would be sparked back into life, they would MEW all the equity in their houses to fund a heroic shopping spree and the nation would march gloriously forth into a new golden age.

-Idea copyright 2013 D. Blanchflower

CountryJacketTM

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Guest eight

We need a shopajacket for cheap mortgages!

The real reason our high streets are empty is due to a lack of disposable income resulting from a high cost of living. Basically, the rent is too damn high.

Was talking to a guy with a market stall in Durham a few days ago. Said he had inquired about a modestly sized "proper" shop that was empty but the landlord wanted £50000pa. with upward only rent reviews. Said he was baffled as to their tactics given that they were now having to wear the business rates on an empty unit, but there you go.

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I suppose it is innovative but I can't see it really working. And it is certainly a way to desperately paper over the ever increasing numbers of empty units!

someone seems to think it'll work for the G8 in Ireland

http://www.irishtimes.com/news/recession-out-of-the-picture-as-fermanagh-puts-on-a-brave-face-for-g8-leaders-1.1409112

Hundreds of thousands of pounds have been spent on a Fermanagh facelift as the county prepares for the G8 summit in just under three weeks’ time, but locals complain the work paid for by the local council and the Stormont Executive is little more than skin deep.

More than 100 properties within range of the sumptuous Lough Erne resort which hosts the world’s wealthiest leaders, have been tidied up, painted or power-hosed.

However, locals say the makeover only serves to hide a deeper malaise which US president Barack Obama, German chancellor Angela Merkel, French president François Hollande and others will not get to see.

Two shops in Belcoo, right on the border with Blacklion, Co Cavan, have been painted over to appear as thriving businesses. The reality, as in other parts of the county, is rather more stark.

Just a few weeks ago, Flanagan’s – a former butcher’s and vegetable shop in the neat village – was cleaned and repainted with bespoke images of a thriving business placed in the windows. Any G8 delegate passing on the way to discuss global capitalism would easily be fooled into thinking that all is well with the free-market system in Fermanagh. But, the facts are different.

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yadda yadda yadda... nothing to see here....

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This is so funny really. It is a good idea in an opportunistic way, but really sums up a nation that prefers to pretend that everything is alright instead of asking why it isn't and what to do about it. Papering over the cracks.

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Was talking to a guy with a market stall in Durham a few days ago. Said he had inquired about a modestly sized "proper" shop that was empty but the landlord wanted £50000pa. with upward only rent reviews. Said he was baffled as to their tactics given that they were now having to wear the business rates on an empty unit, but there you go.

If the landlord owns multiple units they wont want to drop the rent as it would effect the rents of their other units.

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.. landlord wanted £50000pa. with upward only rent reviews. Said he was baffled as to their tactics..

By no means an expert on commercial property but I think it's because the value of the commercial asset is directly related to the rental value. Hence if he drops the rent, he drops the value of his asset + portfolio. Better to keep it empty with a high rental value.

(stupid system like everything else related to property)

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Guest eight

By no means an expert on commercial property but I think it's because the value of the commercial asset is directly related to the rental value. Hence if he drops the rent, he drops the value of his asset + portfolio. Better to keep it empty with a high rental value.

(stupid system like everything else related to property)

Yeah, that's my understanding too. But then he receives no rent..... must have deep pockets is all I can say.

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Yeah, that's my understanding too. But then he receives no rent..... must have deep pockets is all I can say.

Deep pockets can only go so far. I have a friend who used to have a small shop and the rents were going through the roof, plus the rates. Result he shut up shop, sacked his two employees and shop now stands empty.

I do wonder what big national chain stores pay in rent, do they also pay massive rents or does their size give them enough leverage to force down rents in the high street.

EDIT : Just looked up some of the rents for my local city centre, how is it ever profitable for a shop to open, mid size store rent - £330 000, rates £130 000. So basically shop has to make £2000 profit a day for just the shop.

Edited by Ulfar

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EDIT : Just looked up some of the rents for my local city centre, how is it ever profitable for a shop to open, mid size store rent - £330 000, rates £130 000. So basically shop has to make £2000 profit a day for just the shop.

How do you find that figure?

Of course, that £2000 a day means that either the public must be stiffed or volume is exceedingly high. It's a road to oblivion. Driven by greed and blind arrogance.

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Deep pockets can only go so far. I have a friend who used to have a small shop and the rents were going through the roof, plus the rates. Result he shut up shop, sacked his two employees and shop now stands empty.

I do wonder what big national chain stores pay in rent, do they also pay massive rents or does their size give them enough leverage to force down rents in the high street.

EDIT : Just looked up some of the rents for my local city centre, how is it ever profitable for a shop to open, mid size store rent - £330 000, rates £130 000. So basically shop has to make £2000 profit a day for just the shop.

I have seen unused shops in shopping centres with nice pictures pasted over them to make it look as if the shop has a purpose and to disguise the fact that there is no business or trading going on.....simple reason is when people have too many fixed outgoings rents and taxes they have less to spend shopping......dying shops is not that much different to dying first time buyers or empty homes becoming available at a price the people that would buy or rent simply can't because the figures do not add up........cut off your nose to spite your face. ;)

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Just been reading that the Labour council in Oxford is slapping 50% rent rises on the Covered Market traders... citing central funding shortfall as their excuse, and saying that high street rents are much higher.

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By no means an expert on commercial property but I think it's because the value of the commercial asset is directly related to the rental value. Hence if he drops the rent, he drops the value of his asset + portfolio. Better to keep it empty with a high rental value.

(stupid system like everything else related to property)

That's exactly right. A lot of the commercial properties are owned by pension funds, so they are mroe than happy to keep a certain % empty if it props up the value of their whole portfolio.

This one has got to fall over before residential property, in my opinion. Even with a recovery in retail spending, the internet is taking a massive % away from the High Street each year so the current values are increasingly based on nothing at all.

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Deep pockets can only go so far. I have a friend who used to have a small shop and the rents were going through the roof, plus the rates. Result he shut up shop, sacked his two employees and shop now stands empty.

I do wonder what big national chain stores pay in rent, do they also pay massive rents or does their size give them enough leverage to force down rents in the high street.

EDIT : Just looked up some of the rents for my local city centre, how is it ever profitable for a shop to open, mid size store rent - £330 000, rates £130 000. So basically shop has to make £2000 profit a day for just the shop.

The chains backed by private equity funny money are probably most responsible for the silly pushing up of rents in the past. Can't be arsed to do a huge explanation as I'm sure have done one before but being big does enable you to access soft deals, there are plenty of units I could get rent-free that wouldn't be available to a small independent. However, this would be under licence typically and they would not grant a new lease which would have ramifications for rent reviews for other nearby tenants and more importantly, as already mentioned, the asset value which is critical often when landlords need to refinance.

The most ridiculous forbearance by lenders is the only explanation to how the whole house of cards has not collapsed yet.

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  • 238 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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