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SarahBell

Bubbles Everywhere

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Fortunately out sensible government is allowing in more than enough South Asian software developers to prevent any wage bubble.

You can barely live on a software engineer's wage here.

Hurrah!

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Have no fear. The FPC is being 'vigilant' for any signs of a bubble that could destabilise the UK economy.

As regards the housing market, Mark Carney sees no cause for concern at present as prices are rising "from a low base".

And of course there is no evidence of the speculative element that is often indicative of a bubble.

Huge surge in investors looking to build property portfolios

Homes finder Garrington says it is experiencing hugely increased interest from investors looking to buy residential property. They look for returns, but care less about rent than they do about capital appreciation.

Garrington says it has had a 54% rise in investment inquiries compared with a year ago, with the rise particularly notable in, but not restricted to, London. Some buyers have never been in the property market before, despite being experienced investors and traders.

Garrington also says that there is increasing interest from these wealthy, cash-rich buyers to use mortgages in order to maximise their purchasing power.

It says one overseas buyer with £650,000 to invest used buy-to-let mortgage finance to gear his investment so that instead of purchasing one apartment in cash, he has now managed to purchase three properties priced at around £500,000 each.

Instead of achieving a 9% return on a £650,000 cash investment, by using mortgage finance and allowing for the mortgage repayments he is expecting to achieve over 20% on £1.5m-worth of property.

Nicholas Finn, London director of Garrington, said: "There is undeniably a surge in the number of investors looking to start, or add to, their London property investment portfolio. They have become disillusioned by other asset classes and have been biding their time before coming back into purchasing London property again.

"Typically they are sophisticated investors who already have a high net worth and income. From a tax liability perspective, their primary focus is the capital gains available in the London market rather than yield.

"However, as long as that yield is sufficient to service the debt, investors are able to leverage, therefore achieving higher gains from a higher value portfolio. Rightly, they see property as a true asset class."

http://www.estateagenttoday.co.uk/news_features/Huge-surge-in-investors-looking-to-build-property-portfolios

Foreign investors 'snap up 30%' of new-build housing in Cambridge

Up to 30 per cent of new-build housing in Cambridge is now sold to foreign investors, an estate agent said, as prices in the city soar even higher.

New figures show the average property value in the city rose by £29,800 in the six months to June, smashing past the £350,000 mark for the first time, and buyers from the Far East have been blamed for fuelling the boom.

Savills, based in Hills Road, has offices across Asia and said up to 30 per cent of new housing it sold in the city centre was snapped up by purchasers from overseas.

The company has even taken on an agent who speaks Mandarin and Cantonese at its Cambridge office to help cope with demand.

http://www.cambridge-news.co.uk/Cambridge/Foreign-investors-snap-up-30-of-new-build-housing-in-Cambridge-but-are-they-pushing-up-prices-20131104060100.htm

Edit: typo

Edited by FreeTrader

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Fortunately out sensible government is allowing in more than enough South Asian software developers to prevent any wage bubble.

You can barely live on a software engineer's wage here.

Hurrah!

Yes, the raw numbers are not on those studying in such areas - their numbers are down, they are being actively undercut if they do enter these fields and their universities too are hawking themselves as overseas tution centres so if you fancy a foreign course with the benefit of paying through the nose to have it here you really can have it all. It doesn;t end there though, rather than rising to management the scrap heap at an early age is a good prospect.

http://www.telegraph.co.uk/news/uknews/immigration/10424148/Immigrants-fill-one-in-five-skilled-British-jobs.html

Immigrants fill one in five skilled British jobs

Migrants are filling a fifth of jobs in key industries because of a lack of skilled British graduates, according to a Government-backed report.

.....

Companies are forced to rely on foreign-born workers in a range of “strategically important” areas as children continue to shun maths and science subjects at school.

In all, migrants account for 20 per cent of workers in fields such as oil and gas extraction, aerospace manufacturing and computer, electronic and optical engineering.

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Fortunately out sensible government is allowing in more than enough South Asian software developers to prevent any wage bubble.

You can barely live on a software engineer's wage here.

Hurrah!

IMO you are better off migrating to Ireland where your living costs (housing) are less than half of the UK.

Cheap labor is only good news for landlords who can charge more.

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Have no fear. The FPC is being 'vigilant' for any signs of a bubble that could destabilise the UK economy.

As regards the housing market, Mark Carney sees no cause for concern at present as prices are rising "from a low base".

And of course there is no evidence of the speculative element that is often indicative of a bubble.

http://www.estateage...erty-portfolios

http://www.cambridge...31104060100.htm

Edit: typo

It's hopeless to expect these liars, traitors and quislings to stop. They never will. We just have to try to protect ourselves from the next murderous bust as best we can. We're all Communists now.

http://finance.yahoo.com/blogs/daily-ticker/america-state-run-economy-just-china-economist-easton-143743553.html

America’s “State-Run” Economy Just Like China’s: The Economist’s Easton

By Aaron Task | Daily Ticker – Fri, Nov 1, 2013 10:37 AM EDT

The Economist’s annual Buttonwood Gathering was this week and, as always, the agenda was packed with financial luminaries past and present, including Alan Greenspan, Robert Rubin, Roger Ferguson, Carmen and Vincent Reinhart, Mohamed El-Erian, Robert Shilller and many more. (Full disclosure: Yahoo Finance was a media partner at this year's event.)

But The Economist’s American Finance editor Tom Easton stole the show Wednesday afternoon when he declared that he had recently moved to the U.S. from China, but “didn’t leave a state-run economy.”

Easton discusses this provocative claim in the accompanying video and provides a list below of issues – beyond “obvious” areas such as interest rates and health care – where the influence of the U.S. government cannot be avoided.

“Everyone talks about how all-pervasive the Chinese economy and government is inside of it,” he says. The Chinese government “directs capital, controls the banking system and the ‘highlands’ of important industries. I’m still in China when I came back to America.”

In the cover story of The Economist this week, Easton examines the growth of corporate structures such as MLPs (master limited partnerships), REITs (real estate investment trusts), and BDCs (business development companies), which he says are a direct response to the government’s heavy hand. As in China, he says, this “grey market” in America is more dynamic than the state-sponsored arena.

“China and America really are on the same page now,” he says. “In both cases, to stay free you have to lobby too. It’s not a rule of law, really, it’s a rule of trying to influence influential people to get preferential terms so you can make an economy work.”

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Why are foreign landlords allowed to buy up half the country?

Cambridge is overrun with them paying way over what locals can afford. How is that good for UK citizens?

I went to look at the massive new development in Cambridge (Trumpington) this weekend.

Tiny houses with no gardens on a bleak fenny plot of land.

2 bedroom flats that (space wise) were no different to my student accomodation for £309k.

Want a family home - that is £500k and this is what you get http://www.rightmove.co.uk/new-homes-for-sale/property-41177482.html

Look at the garden FFS.

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Why are foreign landlords allowed to buy up half the country?

Cambridge is overrun with them paying way over what locals can afford. How is that good for UK citizens?

I went to look at the massive new development in Cambridge (Trumpington) this weekend.

Tiny houses with no gardens on a bleak fenny plot of land.

2 bedroom flats that (space wise) were no different to my student accomodation for £309k.

Want a family home - that is £500k and this is what you get http://www.rightmove.co.uk/new-homes-for-sale/property-41177482.html

Look at the garden FFS.

The UK is a Fire economy - Finance, Insurance and Real Estate. Feck everyone else is the mentality.

If 'they' can have an immigrant doing a job for the fraction of the cost of a Brit whilst Brits are on the door then so what - as long as there is profit in it!

The country is fecked.

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Want a family home - that is £500k and this is what you get http://www.rightmove.co.uk/new-homes-for-sale/property-41177482.html

Look at the garden FFS.

JFC. The outside looks like a 70's throwback. The insides, half way to a tarts boudoir. Not dissimilar to the OTT offerings in Asian prroperty blurb - is this an indication that even the internal show furtniture and decoration is targeting a specific audience.

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Why are foreign landlords allowed to buy up half the country?

Cambridge is overrun with them paying way over what locals can afford. How is that good for UK citizens?

I went to look at the massive new development in Cambridge (Trumpington) this weekend.

Tiny houses with no gardens on a bleak fenny plot of land.

2 bedroom flats that (space wise) were no different to my student accomodation for £309k.

Want a family home - that is £500k and this is what you get http://www.rightmove...y-41177482.html

Look at the garden FFS.

A truly, utterly, mind-bogglingly stupid price. It's not as big as my 3 bedroom semi in the NW of England, which would cost a quarter of that.

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A truly, utterly, mind-bogglingly stupid price. It's not as big as my 3 bedroom semi in the NW of England, which would cost a quarter of that.

It it only marginally larger than my 3 bedder in Cambridge and whilst they have managed to fit 4 toilets into it I only have 1 in my house. However I do have an actual garden, decent storage space and am in a more central location.

My house would cost half what they are asking for that.

However it will sell and nobody I speak to can quite understand why.

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JFC. The outside looks like a 70's throwback. The insides, half way to a tarts boudoir. Not dissimilar to the OTT offerings in Asian prroperty blurb - is this an indication that even the internal show furtniture and decoration is targeting a specific audience.

Now, now, don't be cynical.

I'm pretty sure Cambridge properties are only being marketed with the domestic buyer in mind.

TheMarque1.jpg

TheMarque2.jpg

http://www.rightmove.co.uk/new-homes-for-sale/property-40963516.html

http://search.savills.com/content/assets/properties/gbcardcad120422/CAD120422_CAD13000043.PDF

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And to think some on here have been claiming that my message of Asians pumping money into the Uk residential property marked was paranoia.

30% of new builds in Cambridge, eh. well, well, I am unflabbergasted.

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Was going to post a several thread about, but find these discussions involving Howard Lindzen (Stocktwits founder) chatting on line Friday evenings. Kinda see things from a trader perspective.

http://finansakrobat.com/blog2/2013/8/16/stocks-scotch-the-first-beta#comments-520e6f73e4b0fc6d215d299a

Made me look at bubbles in a kind of different way. We are going to see a lot more 'pop up' bubbles not so much due to Fed or any Central Bank policy but because market access is not so exclusive now (don't need to buy a seat in the Chicago exchange for example) but just need an account and a trading platform. So we will get more bubbles because we are all more connected.

You don't need to watch them, just use a Youtube downloader and listen as a podcast on phone if you want.

Learn to love the bubbles.

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I love the contrast between the show home pics and then the reality of picture 4 - cheap kitchen and exposed concrete floor.

I think the way they decorate the show homes is horrible......you are not buying the furniture and terrible décor therefore they should advertise it empty only incorporating what you actually pay for so picture 4 is the true picture the rest is fantasy. ;)

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Now, now, don't be cynical.

I'm pretty sure Cambridge properties are only being marketed with the domestic buyer in mind.

TheMarque1.jpg

http://www.rightmove...y-40963516.html

http://search.savill...CAD13000043.PDF

I like the bedside telescope. Is that to spy on the neighbours?

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Why are foreign landlords allowed to buy up half the country?

Cambridge is overrun with them paying way over what locals can afford. How is that good for UK citizens?

I went to look at the massive new development in Cambridge (Trumpington) this weekend.

Tiny houses with no gardens on a bleak fenny plot of land.

2 bedroom flats that (space wise) were no different to my student accomodation for £309k.

Want a family home - that is £500k and this is what you get http://www.rightmove.co.uk/new-homes-for-sale/property-41177482.html

Look at the garden FFS.

Half. A. Million. Pounds. And then you notice the location on the map. they are *ahem* redefining Cambridge somewhat.

So, if I hired a person on the average wage, and they worked for 20 years, full time, and that was the sum of their efforts.. (OK; 19 years plus materials).. would I be happy?

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Can someone tell me when the revolution is going to start?

I need some new trainers, running jacket, cycle, flat screen TV. Oh, one of those new xboxes would be nice. Cuddly toy. Fondue set.

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Half. A. Million. Pounds. And then you notice the location on the map. they are *ahem* redefining Cambridge somewhat.

So, if I hired a person on the average wage, and they worked for 20 years, full time, and that was the sum of their efforts.. (OK; 19 years plus materials).. would I be happy?

You might as well say they are on the market for 1 million pounds +....totally out of reach of normal working people....unobtainable, so they may as well not exist. ;)

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You might as well say they are on the market for 1 million pounds +....totally out of reach of normal working people....unobtainable, so they may as well not exist. ;)

Still it's good to see how the other half live. I hope my kids will be rich enough to live in something like that when they're 50. Luxury doesn't begin to describe it.

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You might as well say they are on the market for 1 million pounds +....totally out of reach of normal working people....unobtainable, so they may as well not exist. ;)

Hmmm.

HTB - find £25k (cash out a few credit cards), government chips in £100k, mortgage for £375k @ 3% IO.

£940 per month.

As long as you don't mind being more exposed than a Naturist at the top of Everest in the middle of winter, what's the problem?

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