Jump to content
House Price Crash Forum
campervanman

House Price Crash In Holland

Recommended Posts

http://www.bbc.co.uk/news/business-23681604

"The price drop began in 2008 and it won't stop. In my opinion prices will keep coming down 2 or 3% a year until they end up around half of what they were," says Mr Stellio.

"They could fall even more as and when the European Central Bank raises interest rates."

Obviously the Dutch need to emulate the UK and revert to the Guilder.

Share this post


Link to post
Share on other sites

'For Maureen Wachtels, it is a surprising turn of events because she thought she was being frugal.

When she was in the market to buy, she borrowed some 200,000 euros, but was told she could borrow almost 500,000 euros - and many did just that.

"We were all forced to buy because at the time there didn't seem to be any property to rent. Now we are stuck with houses we can't sell," she says.

"I never expected that in just two years my asking price would come down from over 200,000 euros to 179,000.

"All I have is an offer for 153,000 euros which I have sent to the bank - but they have not responded."

She has advised her children to decline their inheritance on her death - because otherwise they could be stuck with her unexpected debts which will total some 35,000 euros. '

To quote Denninger

'He's hungry'.

It's really wrong to laugh isn't it?'Forced to buy.'I hadn't realised they put a gun to her head.

220px-Medved_mzoo.jpg

post-37037-0-69620700-1376636510_thumb.jpg

Edited by Sancho Panza

Share this post


Link to post
Share on other sites

Naughty Dutch government not making property a guaranteed bet for home owners. tut tut.

Edited by aSecureTenant

Share this post


Link to post
Share on other sites

Begs the question, in which countries are prices actually rising on a sustainable basis?

UK (prime)

US (prime)

Australia ?

New Zealand ?

Have I missed any?

None of the above.

Share this post


Link to post
Share on other sites

Around 1999 a friend purchased a lovely farmhouse and a bit of land for about 100,000 just outside Amsterdam.I clearly remember thinking how cheap it was compared to then UK prices. I think he even got some kind of govt grant towards the purchase also.

There must have been a massive bubble since then.

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-23681604

"The price drop began in 2008 and it won't stop. In my opinion prices will keep coming down 2 or 3% a year until they end up around half of what they were," says Mr Stellio.

"They could fall even more as and when the European Central Bank raises interest rates."

Obviously the Dutch need to emulate the UK and revert to the Guilder.

Now their free money tree of tax deducted leverage on land for mortgagees is faltering one wonders how long they will be prepared to remain by far the biggest Capita EU subsidisers outside of Luxembourg

Edited by Maria Gorski

Share this post


Link to post
Share on other sites

Around 1999 a friend purchased a lovely farmhouse and a bit of land for about 100,000 just outside Amsterdam.I clearly remember thinking how cheap it was compared to then UK prices. I think he even got some kind of govt grant towards the purchase also.

There must have been a massive bubble since then.

I have Dutch relatives and it's been painful for a bear such as myself,watching them lever up over the last decade.There was a persistent 'Wasp'ish disdain for the politics and economics of the peripheral nations.Dutch people,on the whole,have no sense of irony.

Share this post


Link to post
Share on other sites

It looks like the US housing recovery is faultering and Oz and NZ appear to have just stopped at the top of a very high cliff. That leaves us alone amongst the house bubble economies doesn't amongst the Western nations?

Share this post


Link to post
Share on other sites

House prices are under real pressure in the Netherlands and the question must be how low can they go?

The central problem facing the Netherlands is how to safely defuse a house price bubble without it exploding. I discussed the issues surrounding this back on July 18th but since then the situation has developed further.

Prices of existing owner-occupied dwellings were on average 9.6 percent lower in June 2013 than in June 2012.

Prices of existing owner-occupied dwellings were at the same level in June 2013 as at the end of 2002. They were 21.0 percent lower than in August 2008, when house prices reached a record high.

This is plainly a depressing influence on the Dutch economy and a cause of why domestic demand is so weak at this time. In April (H/T Daniel Mugge) the European Central Bank reported that the Dutch debt to income ratio was 194% which was three times the Euro area average.

http://www.mindfulmoney.co.uk/wp/shaun-richards/the-house-price-bubble-of-the-netherlands-is-bursting-all-over-its-economy/

Perhaps they need the Bank of England and George Osborne to get the bubble going again....

Share this post


Link to post
Share on other sites

It looks like the US housing recovery is faultering and Oz and NZ appear to have just stopped at the top of a very high cliff. That leaves us alone amongst the house bubble economies doesn't amongst the Western nations?

Strange things happening are happening with the US market. Half the houses are bought with cash, and large funds are buying them up despite a "soft" lettings market. It appears to be a long term hold though.

So, a good friend of min "in the know" in Arizona real estate says Blackrock bought about 10K AZ Single Family Housing Units last 12 months
@PipCzar

I don't fully understand the nuances of the US market though, there is an exodus from the rust belts (not unsurprisingly) with immigration coming up from the South.

Share this post


Link to post
Share on other sites

Why have Dutch HPs suddenly begun to collapse? Anything happen?

they reduced the tax break on mortgage interest

The reason why in history books this centurial debt cycle will be seen as mortgage driven is because ultimately everywhere in the world land has tax advantage encouraging leverage of it.

people accuse others obsessing over house prices as being myopic, ultimately they have for generations simply been following the behavioural influences of taxation

Edited by Maria Gorski

Share this post


Link to post
Share on other sites

they reduced the tax break on mortgage interest

The reason why in history books this centurial debt cycle will be seen as mortgage driven is because ultimately everywhere in the world land has tax advantage encouraging leverage of it.

people accuse others obsessing over house prices as being myopic, ultimately they have for generations simply been following the behavioural influences of taxation

So we are more or less alone now in property price ramping.

Share this post


Link to post
Share on other sites

So we are more or less alone now in property price ramping.

Nope , pretty much every country in the world is still property/land ramping from a neutral taxation point of view

as an example to remove the tax distortion the private rents coolectable on a 2 bed in cleethorpes would be identical to those acheivable in the same 2 bed in Knightsbridge. Of course such tax equality would remove nimbyism overnight as there would be no private tax advantage to bemoan being lost from deterioration

Edited by Maria Gorski

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk...siness-23681604

"The price drop began in 2008 and it won't stop. In my opinion prices will keep coming down 2 or 3% a year until they end up around half of what they were," says Mr Stellio.

"They could fall even more as and when the European Central Bank raises interest rates."

Obviously the Dutch need to emulate the UK and revert to the Guilder.

do I get a Nobel prize in economics and BoE job if I say:

- house prices (and not mortgages) must be part of CPI basket (at least like 5/10%)

- it is an inflationary bubble if prices grow faster than wages so increase the IRs to calm it down

but perhaps I would loose next elections ???

Share this post


Link to post
Share on other sites

'For Maureen Wachtels, it is a surprising turn of events because she thought she was being frugal.

When she was in the market to buy, she borrowed some 200,000 euros, but was told she could borrow almost 500,000 euros - and many did just that.

"We were all forced to buy because at the time there didn't seem to be any property to rent. Now we are stuck with houses we can't sell," she says.

"I never expected that in just two years my asking price would come down from over 200,000 euros to 179,000.

"All I have is an offer for 153,000 euros which I have sent to the bank - but they have not responded."

She has advised her children to decline their inheritance on her death - because otherwise they could be stuck with her unexpected debts which will total some 35,000 euros. '

To quote Denninger

'He's hungry'.

It's really wrong to laugh isn't it?'Forced to buy.'I hadn't realised they put a gun to her head.

If she bought it to live in why would it matter what its 'worth' now? We're not getting the full story here as usual. She got burned and now she wants action, tough!

Share this post


Link to post
Share on other sites

The BBC article reads like spin for the UK market - if we don't have massive UK house price increases you too will be stuck in your house like the dutch?

Not such a problem for someone like me, all I want is a house for me and my family to live in. Price goes up/down, doesn't matter, it's a home to live in so the 'value' is irrelevant. It shouldn't be too much to ask should it!

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   222 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

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.