tomandlu Posted April 3, 2014 Share Posted April 3, 2014 Suzanne Moore in the Grauniad. Not a lot of insight but welcome all the same. http://www.theguardian.com/commentisfree/2014/apr/02/london-housing-bubble-property-market-madness International finance moves into the centre of London as families cling to its edges. Money is spent on commuting. It's still worth it to get on that ladder. You can't fall. Or look down. Keep the faith and the bubble will not burst. Wages will not rise much but huge personal debt is being encouraged. Off-plan schemes sell shares in flats before they are built. Old council estates are spruced up. The dread basement dig-outs clog the pavements with skips of earth. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted April 3, 2014 Share Posted April 3, 2014 There are plenty of rich foreigners who want the glamour of living in London. It will be better for our MP's then they won't be bothered by bumping into the electorate. Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted April 3, 2014 Share Posted April 3, 2014 It is madness. All you have to do is stand watching with your arms folded and wait for it all to collapse. No looking for dips or buying opportunities; the slump will be massive and last for years. Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted April 3, 2014 Share Posted April 3, 2014 There are plenty of rich foreigners who want the glamour of living owning in London. Corrected for you Quote Link to comment Share on other sites More sharing options...
@contradevian Posted April 3, 2014 Share Posted April 3, 2014 One hopes that some of this 'global rich' are leveraging up. If London manages to bankrupt some of them, then I would say 'job well done!' Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted April 3, 2014 Share Posted April 3, 2014 The mathematics are sacked well in HPC's favour. Le't say pwoperdee starts off at 250k and then gains 10% per year. 2008 = 250k 2009 = 250k + 25k = 275k 2010 = 275k + 28k = 303k 2011 = 303k + 30k = 333k 2012 = 333k + 33k = 366k 2013 = 366k + 36k = 402k 2014 = 402k + 40k = 442k 2015 = 442k + 44k = 486k 2016 = 486k + 49k = 535k 2017 = 535k + 53k = 588k As demonstrated above, for property to increase 10% year on year it takes larger and larger amounts of money to be added year on year thus you would require exponential growth against a backdrop of static rents and wages which underpin property valuations. -- pOnZi -- Quote Link to comment Share on other sites More sharing options...
lastlaugh Posted April 3, 2014 Share Posted April 3, 2014 One hopes that some of this 'global rich' are leveraging up. If London manages to bankrupt some of them, then I would say 'job well done!' I would suggest it is mostly leverage. If you are bullish on London property leverage is rational. Why buy one flat when you can buy five? A deposit on an off-plan new build is just leverage. Most of the money is coming from the Far East. In the Far East in general, and in China in particular, property developers are using collateral from other property to buy and build new property. It's a giant Ponzi scheme. It's impossible to say how much of that money is leaching to Western cities. Ghost cities in China? Ghost streets and ghost tower blocks in London! Get your popcorn my HPC friends, this will be spectacular! Quote Link to comment Share on other sites More sharing options...
billybong Posted April 3, 2014 Share Posted April 3, 2014 It's effectively been a slump for lots of people for a long time but it's being presented as a boom. Quote Link to comment Share on other sites More sharing options...
bambam Posted April 3, 2014 Share Posted April 3, 2014 Didn't she write much the same article last week? Quote Link to comment Share on other sites More sharing options...
bambam Posted April 3, 2014 Share Posted April 3, 2014 (edited) <dupe> Edited April 3, 2014 by bambam Quote Link to comment Share on other sites More sharing options...
tomandlu Posted April 3, 2014 Author Share Posted April 3, 2014 <dupe> That's the meta-iast 'dupe' I've ever seen. Not the other week, but I think you're right that she's written a similar themed piece. Ah, here it is (from last may): I am the beneficiary of the house-price boom. My children are its victims Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 3, 2014 Share Posted April 3, 2014 Didn't she write much the same article last week? The editor is too busy with his property portfolio to notice. Quote Link to comment Share on other sites More sharing options...
tomandlu Posted April 3, 2014 Author Share Posted April 3, 2014 The editor is too busy with his property portfolio to notice. Now we're complaining because there are too many bearish/critical articles in the MSM? Oh, HPC, never change... Quote Link to comment Share on other sites More sharing options...
@contradevian Posted April 3, 2014 Share Posted April 3, 2014 Now we're complaining because there are too many bearish/critical articles in the MSM? Oh, HPC, never change... Bit like me gorging on chocolate and saying "how terrible, this isn't going to end well, I'll be fat!" then bite off another chunk. Quote Link to comment Share on other sites More sharing options...
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