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Damik

Is Prime London Crashing? - Merged Threads

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I expect he got offered a very good price in exchange for publicity that he'll provide.

The Battersea Power Station is a project like no other - to take a greatly loved historical city landmark and transform it into a world class icon is unique.

I mean... really... :rolleyes:

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£423K for a one bed box flat.....who hypnotised the people spending good money to buy that. :lol:

Errr it's how all this debt comes into being. People approach the banks for mortgage to pay the forever HPI prices.

Promises are real. Promises to repay debt, to outbid others for resources, under contract with consequences if you default.

Have you ever met anyone in the UK? No one is dragging anyone into the banks to apply for BTL/mortgages.

Explain to the forever HPiers now queing up to by at offplan Battersea Power Station, how they are the victims -

'Generous: Julian and Veronica Brightman who have bought their daughters Anna, 21, and Bryony, 18, a flat each'

http://www.standard.co.uk/lifestyle/london-life/mines-a-power-house-meet-the-new-residents-moving-into-battersea-9740547.html

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The current plan, financed by a consortium of Malaysian developers and started last year, is to build 3,400 homes on the site over seven phases, the first of which — a building by the side of the power station called Circus West — is under way.

BTW - today we see Malayasian Gov buying shares on their stock market.

http://www.bbc.co.uk/news/business-34241774

The ringgit is one of the worst performing currencies in Asia this year, losing nearly 20% of its value against the dollar.

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The builders, which are a pretty reliable leading indicator for UK house prices, are not showing any sign of weakness. Barrett, TWimpey, Berkeley all in bull markets/uptrends.

Unless we are putting in a huge double top here and now.

why would they? help to buy is money straight in their pocket.

IMHO this is what used to be known as fraud.

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http://www.standard.co.uk/lifestyle/london-life/mines-a-power-house-meet-the-new-residents-moving-into-battersea-9740547.html

I picked out the parts about Divya and Anup.... A large studio sounds ideal to move into with a 5 year old.

Divya and Anup originally bought a flat in phase one purely as an investment, but after learning more about the project decided to get a large studio in the power station itself (phase two), which will be ready in 2019, reasoning that “phase one and the other buildings are almost generic” whereas living inside the famous building will be “unique”.

...

The couple say they paid the 10 per cent deposit from savings and are saving for the next 10 per cent, due to be paid in 2016. They are planning to get a joint mortgage that year to cover the rest, with support from their parents if needed.

...

Divya is now expecting the couple’s first baby, who will be five by the time they move into their flat (large studio). She says the thought of waiting that long is hard but they have no regrets. “We can’t believe it, to be honest — we have to pinch ourselves. We can’t believe we actually have a piece of that history.”

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http://www.standard.co.uk/lifestyle/london-life/mines-a-power-house-meet-the-new-residents-moving-into-battersea-9740547.html

I picked out the parts about Divya and Anup.... A large studio sounds ideal to move into with a 5 year old.

Divya and Anup originally bought a flat in phase one purely as an investment, but after learning more about the project decided to get a large studio in the power station itself (phase two), which will be ready in 2019, reasoning that “phase one and the other buildings are almost generic” whereas living inside the famous building will be “unique”.

...

The couple say they paid the 10 per cent deposit from savings and are saving for the next 10 per cent, due to be paid in 2016. They are planning to get a joint mortgage that year to cover the rest, with support from their parents if needed.

...

Divya is now expecting the couple’s first baby, who will be five by the time they move into their flat (large studio). She says the thought of waiting that long is hard but they have no regrets. “We can’t believe it, to be honest — we have to pinch ourselves. We can’t believe we actually have a piece of that history.”

****** me whats wrong with people. A couple with a 5 year old child (perhaps another one on the go) moving into a studio flat? WTF? And these are supposedly smart people. The guy is a doctor it appears.

Honestly, if things continue the way they do these people will lose everything. Their booking fee. Their down payment. ******ing everything. One bank after another is now coming out of the woodwork and estimates that 2016 will be the beginning of a global recession. First Daiwa now even Citibank.

Divya and Anup deserve all the hardship that is coming their way. Why? Because they are ******ing greedy: buying one flat is not enough. No, they want two. WTF!

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****** me whats wrong with people. A couple with a 5 year old child (perhaps another one on the go) moving into a studio flat? WTF? And these are supposedly smart people. The guy is a doctor it appears.

Honestly, if things continue the way they do these people will lose everything. Their booking fee. Their down payment. ******ing everything. One bank after another is now coming out of the woodwork and estimates that 2016 will be the beginning of a global recession. First Daiwa now even Citibank.

Divya and Anup deserve all the hardship that is coming their way. Why? Because they are ******ing greedy: buying one flat is not enough. No, they want two. WTF!

The standard article says Battersea has previously been a repository of broken dreams. I would query the use of past tense!

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n is retired, having met Veronica working at universities, and runs the familys property portfolio, renting out several houses in London. He says the flats theyve bought their daughters have got to be a good investment everywhere in London is a good investment. Veronica says she is relaxed about the precise timing of the move-ins. For us what works is that its phased. We can manage our budgets; we know when they want the money.

-------------------

Doubling down into a bubble

History repeating

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****** me whats wrong with people. A couple with a 5 year old child (perhaps another one on the go) moving into a studio flat? WTF? And these are supposedly smart people. The guy is a doctor it appears.

Honestly, if things continue the way they do these people will lose everything. Their booking fee. Their down payment. ******ing everything. One bank after another is now coming out of the woodwork and estimates that 2016 will be the beginning of a global recession. First Daiwa now even Citibank.

Divya and Anup deserve all the hardship that is coming their way. Why? Because they are ******ing greedy: buying one flat is not enough. No, they want two. WTF!

That part I found confusing, and I sought confirmation on a different thread.

No they initially 'bought' a one-bed flat in the standard part of the development, but were then pursauaded (conned) into swapping that and buying a studio in the part that is actually part of the cooling towers (think there is a section high up at the base of the towers) which was considered the more 'luxury' side.

No buyer has been conned anyone though. People lay claim on resources. No one is forcing people to viewings. To pay these prices. Apply for jumbo mortgages. To put down deposits. To expect to arrange mortgages for completion in 2016+.

Doctor... and same for the BTLers... this is no excuse (below). The bubble pulls in highly intelligent people. Complacent BTL double-downers too. Perhaps even those happily buying their kids properties, at these prices, may be found out in a HPC. If owner side experiences losses, you can donate directly instead of taxpayer Bailout 3.0.

The only thing they could reasonably argue they are a victim of is the British education system.

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n is retired, having met Veronica working at universities, and runs the familys property portfolio, renting out several houses in London. He says the flats theyve bought their daughters have got to be a good investment everywhere in London is a good investment. Veronica says she is relaxed about the precise timing of the move-ins. For us what works is that its phased. We can manage our budgets; we know when they want the money.

-------------------

Doubling down into a bubble

History repeating

Yes.. family property portfolio... I quick looked into that back in 2014, for this and other stories of buyers pushing and falling over one another to buy off-plan. <_<

This appeared to be a good match.

http://www.checkcompany.co.uk/company/04316937/BRIGHTMAN-PROPERTIES-LIMITED

h/t Freetrader for the excellent tip for this BETA resource for accounts.

https://beta.companieshouse.gov.uk/company/04316937/filing-history

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The standard article says Battersea has previously been a repository of broken dreams. I would query the use of past tense!

£423k for a one bedder? When pigs fly!

Pink-Floyd-album-cover-re-007.jpg

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As much as I want the London bubble to pop - and believe me, I really do, because I love the place and have been totally priced out - I have to question whether it really will pop or just gently glide downwards for a short while.

China is such a huge factor. I don't think there has ever been a country with so many new investors who are so reluctant to buy property - or anything! - in their own country. Having lived and worked in HK for a while and dealt with a lot of mainland Chinese, their contempt for their own government and their own people is off the scale. They would rather burn their money than invest it in Chinese ventures that aren't under direct or family control.

"China, with a population of nearly 1.4 billion, added 1 million new millionaires in 2014" - http://www.newsweek.com/china-adds-one-million-new-millionaires-2014-343175

Every Chinese who can get more than $50k together wants to invest in a property outside of China, because they know that it's theirs and won't be confiscated if they happen to upset the wrong people. Asian markets like Thailand attract huge amounts of low-end Chinese individual investors who buy up small apartments for less than the cost of a decent car.

I do question whether anything but an absolute ban on foreign ownership of residential property - possibly with a value cap to keep the super-rich happy - will have any effect on London prices.

If it makes you feel any better, Vancouver is in a similar situation :rolleyes:

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As much as I want the London bubble to pop - and believe me, I really do, because I love the place and have been totally priced out - I have to question whether it really will pop or just gently glide downwards for a short while.

China is such a huge factor. I don't think there has ever been a country with so many new investors who are so reluctant to buy property - or anything! - in their own country. Having lived and worked in HK for a while and dealt with a lot of mainland Chinese, their contempt for their own government and their own people is off the scale. They would rather burn their money than invest it in Chinese ventures that aren't under direct or family control.

"China, with a population of nearly 1.4 billion, added 1 million new millionaires in 2014" - http://www.newsweek.com/china-adds-one-million-new-millionaires-2014-343175

Every Chinese who can get more than $50k together wants to invest in a property outside of China, because they know that it's theirs and won't be confiscated if they happen to upset the wrong people. Asian markets like Thailand attract huge amounts of low-end Chinese individual investors who buy up small apartments for less than the cost of a decent car.

I do question whether anything but an absolute ban on foreign ownership of residential property - possibly with a value cap to keep the super-rich happy - will have any effect on London prices.

If it makes you feel any better, Vancouver is in a similar situation :rolleyes:

The Shanghai stockmarket has crashed apocalyptically since that newsweek puff piece was written. The pai gow gamblers don't have a tin cup to piss in. Same goes for the Chinese govt.

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As much as I want the London bubble to pop - and believe me, I really do, because I love the place and have been totally priced out - I have to question whether it really will pop or just gently glide downwards for a short while.

China is such a huge factor. I don't think there has ever been a country with so many new investors who are so reluctant to buy property - or anything! - in their own country. Having lived and worked in HK for a while and dealt with a lot of mainland Chinese, their contempt for their own government and their own people is off the scale. They would rather burn their money than invest it in Chinese ventures that aren't under direct or family control.

"China, with a population of nearly 1.4 billion, added 1 million new millionaires in 2014" - http://www.newsweek.com/china-adds-one-million-new-millionaires-2014-343175

Every Chinese who can get more than $50k together wants to invest in a property outside of China, because they know that it's theirs and won't be confiscated if they happen to upset the wrong people. Asian markets like Thailand attract huge amounts of low-end Chinese individual investors who buy up small apartments for less than the cost of a decent car.

I do question whether anything but an absolute ban on foreign ownership of residential property - possibly with a value cap to keep the super-rich happy - will have any effect on London prices.

If it makes you feel any better, Vancouver is in a similar situation :rolleyes:

In the long run value always prevails.

I'm just not sure how long the long run is...

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The Shanghai stockmarket has crashed apocalyptically since that newsweek puff piece was written. The pai gow gamblers don't have a tin cup to piss in. Same goes for the Chinese govt.

That is an optimistic way of looking at it but:

1. SSE has dropped a whole lot but in real terms has only retreated to February 2015 prices - although it looks to drop further. The drop has also been sustained over a period of several months and 'investors' (tbh gamblers) have had plenty of time to get out. I'm sure plenty of them were wiped out 100% due to margin calls but I'm also sure others were not.

2. The piece was written at the very peak of the Shanghai bubble but refers to 'millionaires created in 2014' during which period the SSE - aside from the last month of the year - was largely flat. Unless you assume everyone sold Jan 2015 then re-bought at the very top of the 2015 bubble you have to assume that even more millionaires were created during the bubble and those that escaped before the drop might be looking for a more stable investmment - perhaps real estate!

I understand where you are coming from but imagine the effect of one quarter of those new millionaires putting one quarter of their new assets in London property - 250k purchases of 250k dollars. With leverage, 250,000 purchases worth 750k dollars or 500k GBP? What percentage of the London 'normal owner/occupier' market would that eat up? It's insane to think about, really.

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Anyone remember pan Peninsula? That crashed a bit with many not able to get the finance by the deadline and lost their deposits so they were resold a bit cheaper. That was said by many here to be crash towers, sadly never happened.

Yeah, the QE induced london property bubble inflation, supported by HTB/FLS and state owned banks has thankfully boosted the price of those flats.

Brilliant.

People used to get s**ty council flats for next to nothing....now someone's comvinced the top 10% of earners in the UK to live in them and give up 30 years of the income to do so.

Holy **** people real are that stupid.

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"... their contempt for their own government and their own people is off the scale. They would rather burn their money than invest it in Chinese ventures that aren't under direct or family control."

Not sure this is entirely accurate judging by the Chinese stock market as well as the rather omnipotent belief in their government's ability to control socioeconomic processes. I am sure there is a relative minority fitting your description, but the masses are "somewhere else".

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Not sure this is entirely accurate judging by the Chinese stock market as well as the rather omnipotent belief in their government's ability to control socioeconomic processes. I am sure there is a relative minority fitting your description, but the masses are "somewhere else".

Speculation is not investment!

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