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jasonpistol

Iconic Moment Of The 2014 Bubble?

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I'm willing to bet some money and influence will see planning permission granted and the buyer will make a tidy profit.

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I'm willing to bet some money and influence will see planning permission granted and the buyer will make a tidy profit.

i think the mug who bought them has completely miscalculated the market and is going to end up losing a tidy amount of the money that s/he inherited

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when looking back at the 2014 bubble in years to come i think this may be the stand out transaction for me...

http://www.dailymail.co.uk/news/article-2711773/Three-garages-without-planning-permission-Wandsworth-sell-500-000.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490

Mwhah.

I noticed that before the auction began.

Actually Lot 75 at Bernard Marcus looks interesting, but will probably go for way more than guide.

e938ee70-3e6c-42e9-b280-8ba09c4067f7.jpg

One house on road up for sale in that postcode at £3.5m. Sold prices for houses in that postcode: http://www.rightmove.co.uk/house-prices/SW11-6HZ.html

And just before opening this thread, on another thread I congratulated the council for selling it off, at big money. Too many land plot owners are not selling, holding on for more HPI.

And those holding small plot which could be built on, not selling for less than it's worth (crazy high prices). Although that set of 3 garages in London the other day made the council a nice sum... selling for way over guide of £130,000ish at £500,000. At least that council is selling into it.

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I'm willing to bet some money and influence will see planning permission granted and the buyer will make a tidy profit.

If the global money holds out, stimulus tapering doesn't have an affect, lending doesn't tighten/demand for borrowing stays up, other global markets don't weaken, and powerful sentiment doesn't turn.

Values have gone up, investors chasing high prices/yield, worrried about the banks..... but even with QE, liquid savings haven't particularly gone anywhere. Could be millions of people paying musical chairs, back to cash, with not many chairs.

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Guest Jemmy Button

I really really hope this mug loses all his/her money. I really hope this does not get planning permission. Ok, let's go further, what I'm trying to say is I really, really hope that London crashes. Nothing would give me more pleasure.

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I really really hope this mug loses all his/her money. I really hope this does not get planning permission. Ok, let's go further, what I'm trying to say is I really, really hope that London crashes. Nothing would give me more pleasure.

A story from a 1990s business book (v-good business book imo), about an overextended guy at the tail of the 80s bubble. That's PCL offices, but today there's got to be plenty of individuals over-extended to a similar extent on personal level, and so many complacent VI owers thinking their HPI is all locked in. That's why I don't cry over Serpico and his mansion, 4 francishes (BMW, Honda, and 2 others)... live-in staff, replacement Bentley every 3 years, horses, private plane in hangar gobbling up fees.... where others said he was a victim of Thatcher lol. Brilliant a younger neurosurgeon bought it as a repo in the 90s, as complacent Serpico himself had also bought it as a repo in the late 70s. Has to happen again, and allow younger people to break things up and get a share.

This should have been the happy ending, but now the trouble started. Our hero had already found a buyer for the firm, its equipment and stock, and an impressive head office in London with a large plot of land. As it was at the height of the property boom, the price would have financed the whole deal and made some extra. But no, the bank said he was wrong to sell on the existing market. If he developed the site himself, he would make money beyond the dreams of avarice. The figures worked something like, if he borrowed £10 million - yep, that's right, £10 million - to develop the site he could sell for a minimum of £25 million.

Things didn't work out quite as quickly as they should. A year had passed while planning consent was obtained, and as no income was received, the bank account rose by £2 million. Of course, it is eay to bandy figures about like that in a book, but bear in mind that £2 million is enough money for you to live in comfort for the rest of your life and some, and he just had that added to his overdraft. The rest is predictable. The property market collapsed, the bank took all the assets to cover the loan, plus his original company which continued to be successful. It was sold to one of my friend's most hated competitors. In the final year, our friend had to die the death of a thousand cuts as the bank bounced cheques, put the company into administration and ran the accounts at punitive interest rates.

PDF (Google Book excerpts)

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As a regular Evening Standard reader over 30 years as I commute this story has a massive sense of déjà vu about it.

Edited by TwoWolves

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As a regular Evening Standard reader over 30 years as I commute this story has a massive sense of déjà vu about it.

What do you mean? It's only been hpi, apart from a quick hiccup they quickly printed out of in 2007/08, since 1997. I hope it's triggering your deja vu from articles you were reading into runup of hpc 89-91.

Can't see any planning application on the relevant local council website for below, when I checked yesterday.

£700K For 6 Garages Getting £65 A Month Rent In London
Started by interestrateripoff, Apr 30 2014 04:18 PM
Would you spend £700,000 on these garages? Storage space which was being rented out for £65 a month and on the market for £75,000 fetches nearly TEN TIMES its asking price
30 April 2014
Six garages in Parson's Green, Fulham sell for £700,000
Each had a rental value of £65 a month and the row was valued at £75,000
Developer has bought the properties without planning permission

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Exactly then, you could copy-paste them.

The downturn lasted some-time as well, that's why I delayed buying a flat myself until 1998 as up til then prices had been going down ... in London. Shows what can happen when the government doesn't intervene in the market.

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Devon house money pit, 3 Porsches that depreciate, or a speculative London plot.

What would you chose if you had to?

It would be the London plot !

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