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City Bonuses Boost House Sales

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From yesterday's news blog:

http://business.timesonline.co.uk/article/...1881957,00.html

"The prospect of fat City bonuses this winter is electrifying the upmarket London property market, a report suggests today. Luxury homes that have been languishing on estate agents’ books for months are being snapped up for well above their asking prices, estate agents say. "

Sounds likely doesn't it? You can imagine the conversation...

City Buyer: "You know that property that you've had on your books for months at half a million quid, that no-one's interested in?"

EA: "Yep, can't shift the bleedin' things."

City Buyer: "Well can I buy it for more than the asking price please?"

EA: "Ok mate, sure, you can 'av it for £600,000"

City Buyer: "Great, got a real bargain there!"

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From yesterday's news blog:

http://business.timesonline.co.uk/article/...1881957,00.html

"The prospect of fat City bonuses this winter is electrifying the upmarket London property market, a report suggests today. Luxury homes that have been languishing on estate agents’ books for months are being snapped up for well above their asking prices, estate agents say. "

Sounds likely doesn't it? You can imagine the conversation...

City Buyer: "You know that property that you've had on your books for months at half a million quid, that no-one's interested in?"

EA: "Yep, can't shift the bleedin' things."

City Buyer: "Well can I buy it for more than the asking price please?"

EA: "Ok mate, sure, you can 'av it for £600,000"

City Buyer: "Great, got a real bargain there!"

Classic! They wouldn't be the world's most sucessful traders would they, with that line of bargaining!

"Want to buy a million ICI shares at £1 each?"

"No, but I'll give you £1.50 for them"

:lol::lol:

Edited by Casual Observer

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We have this city bonus ******** every year. At one time it was true 4-5 years ago when the market was technically cheap I knew traders who were hoovering up flats.

Thing is that love them or hate them, city traders generally aren't thick, at least not the ones that get a decent bonus. And they're bonuses will likely being going into gold, oil, gas co, and Japanese equities this year. Property is no longer a good investment....so most will avoid it.

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As usual the bears get the arguments ars3 about face.

It is quite likely that a scramble for upscale property has begun on the back of City prosperity. End of. Simple. Straigtforward. No need to complicate. Get it?

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i've posted this comment before so apologies if you have already seen it - but round here I watched 2 new build properties sold within 2 weeks of going on the market. They were priced at 2.4 and 2.75.

if that's not city bonuses - I don't know what is!

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My sales director freind is a far more reliable source than some numptie journo that knows a little about lots of things.

As I keep saying he runs a v large E/A with branches accross London and he tells me sales are 20% up on last year. When it was quiet last year he was the first to say so. I therefore have no reason to doubt his accuracy now.

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My sales director freind is a far more reliable source than some numptie journo that knows a little about lots of things.

As I keep saying he runs a v large E/A with branches accross London and he tells me sales are 20% up on last year. When it was quiet last year he was the first to say so. I therefore have no reason to doubt his accuracy now.

You can't post that - you must be lying, you must be an estate agent, you must be a troll, you must be wrong. Who do you think you are? My friend is more important than your friend. My friend knows more than your friend. My friend earns more...........................

Apologies DB - I just couldn't resist it - very much joking & getting in before one of the Fears does.

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i've posted this comment before so apologies if you have already seen it - but round here I watched 2 new build properties sold within 2 weeks of going on the market. They were priced at 2.4 and 2.75.

if that's not city bonuses - I don't know what is!

There will always be a price category of house that's insulated from movements in the property market, since they are bought by very wealthy people who are themselves insulated!

I just don't think it's any kind of indicator for prices generally. My brother still can't get the 2003 purchase price for his BTL flat in NW London!

Apologies DB - I just couldn't resist it - very much joking & getting in before one of the Fears does.

There you go again, giving your true colours away! Bears have no fear of prices falling - they want them to. <_<

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yikes -

thats both peak-ish prices and in the most expensive town.

he might be licking his wounds there for a long time to come.

he was probably influenced by the many easy buck property programs.

shame. but i cant offer too much sympathy for a btl as he took a gamble trying to fleece someone else and got fleeced himself. though its clear the developers are having the biggest laughs.

if hes struggling to sell now what he paid for it i dont know what the answer will be.

im not sure what options he has here to get out. probably non. hes in a worse situation than an ftb.

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As usual the bears get the arguments ars3 about face.

It is quite likely that a scramble for upscale property has begun on the back of City prosperity. End of. Simple. Straigtforward. No need to complicate. Get it?

Yes, obviously city traders have been living hand to mouth up until now but with this sudden change the market will obviously go through the roof again!

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yikes -

thats both peak-ish prices and in the most expensive town.

he might be licking his wounds there for a long time to come.

he was probably influenced by the many easy buck property programs.

shame. but i cant offer too much sympathy for a btl as he took a gamble trying to fleece someone else and got fleeced himself. though its clear the developers are having the biggest laughs.

if hes struggling to sell now what he paid for it i dont know what the answer will be.

im not sure what options he has here to get out. probably non. hes in a worse situation than an ftb.

I have no real sympathy for him either, although I feel a liitle sorry for the mess he's got himself in - I did warn him against it at the time.

BTW it's quite an old flat - no developer involved

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Even if City bonuses are good, how many people do you really think are going to benefit from them. Yes there may always be demand for some unique properties, but the real volume of properties will not be affected by the small %age of those who are lucky enough to receive these bonuses.

The market will be influenced by the volume of those who are employed in normal jobs with no prospect of huge bonuses, and the market will be driven by greed and fear.

At the moment I think fear is becoming a more and more dominant feature.

We will only know the reality of where we are in hindsight, but IMO the tide has turned and confidence in property as an asset class is on the decline.

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Even if City bonuses are good, how many people do you really think are going to benefit from them. Yes there may always be demand for some unique properties, but the real volume of properties will not be affected by the small %age of those who are lucky enough to receive these bonuses.

The market will be influenced by the volume of those who are employed in normal jobs with no prospect of huge bonuses, and the market will be driven by greed and fear.

At the moment I think fear is becoming a more and more dominant feature.

We will only know the reality of where we are in hindsight, but IMO the tide has turned and confidence in property as an asset class is on the decline.

It's called a 'change in sentiment'. Every avalanch begins with a tiny movement.

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It's called a 'change in sentiment'. Every avalanch begins with a tiny movement.

Sentiment is a very subjective and fickle friend.

I still maintain that city bonuses affect very few and for that reason is very unlikely to affect the fundementals of the market which are largely driven by normal people.

When a precious painting comes up for sale the rich will always fight and pay through the nose to own it. It has rarity value.

Art for the masses however gets sold at much cheaper prices.

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Apparently prices in Kensington & Chelsea are up 11% in one month - I doubt the same trend is being repeated in Croydon or Dagenham!

These City bonuses will only distort the market for the most expensive areas in central London and Docklands but will push up the supposed 'London averages' substantially. Prices in outer east London appear to be falling despite the Olympics effect.

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Whoever said these people are not stupid was right. Some of them maybe but most are shrewd and switched on. The two traders I know of sold their massive c£1.5m and c£1m houses in Essex (!) in early 2004 - how was that for foresight. Both bought with bonuses in the 1997-2000 boom years for far, far less and effectively used as a place to store cash. They sold and one at least bought a property abroad and uses the rest of the profits to trade his own proprietary P&L off duty.

I doubt he will be splashing out on property now.

Bottom line is that the number of housing chain "exits" which city bonus purchases allow is too small to affect the overall market. It may affect sentiment when someone hears neighbour x got £y for his house because he sold to someone selling to a wealthy buyer but they in no way support the market as you would find out if your try to market a house in June at an excess price looking for city bonus buyers.

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All said before:

Correct me if I'm wrong but City bonuses won't be announced until end November.

There's an awful lot of talk through the grapevine about a misalignment between expectations and what is actually going to get paid.

Oh, and sales of £1m+ properties would not have any impact on the rest of the market. It's not going to help FTBs, nor upgraders.

Chains will remain difficult to complete because there's nobody at the bottom. Simple really.

http://www.housepricecrash.co.uk/forum/ind...ndpost&p=229760

Hopeful bankers will be putting offers now, but expect many of these "sales" to fall through once they find out their bonuses are not as large as expected.

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gonewest it's their employers who took the benefits of that sort of NIC planning [if any as HMRC are investigating them all so far as I can see...] Employers' NI at those levels is 12.8%, whereas your City Boy would be paying only 1% on his bonus.

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gonewest it's their employers who took the benefits of that sort of NIC planning [if any as HMRC are investigating them all so far as I can see...] Employers' NI at those levels is 12.8%, whereas your City Boy would be paying only 1% on his bonus.

Whoops! Stand corrected. Thanks for that. :rolleyes:

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  • 301 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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