Eddie_George Posted August 15, 2014 Share Posted August 15, 2014 There’s a dearth of cheap living space in the US: the supply of homes costing less than $198,000 fell 17% in June compared to 2013, leaving first-time buyers hung out to dry. It’s not that inventory for sale isn’t growing—it is, but only on the high-end side. Cheaper homes are being snapped up by deep-pocketed investors to rent, or their current owners are still owe more on their mortgages than their homes are worth, and don’t want to take a loss on a sale. Meanwhile, home prices are still increasing—which isn’t an accident, thanks to subsidies to homeowners and restrictive building regulations.... http://qz.com/249000/will-wildly-expensive-housing-devour-the-economies-of-wealthy-countries/ No doubt about it. The UK economy is being crushed by high house prices just because some homeowners aren't willing to lose their paper profit. Quote Link to comment Share on other sites More sharing options...
NewBrit Posted August 15, 2014 Share Posted August 15, 2014 Ah, restrictive building regulations... Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted August 15, 2014 Author Share Posted August 15, 2014 Ah, restrictive building regulations... That old chestnut! Nothing to do with lending any amount of money to anyone with a pulse. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted August 15, 2014 Share Posted August 15, 2014 Or is it war by one country on another? In the past if one country wanted to seize some assets in another it had to invade it. Now such as China inflates a huge property bubble that enables it's citizens to then have money from their realised equity to use to buy up assets abroad. There is a lot of talk of a savings glut looking for yield. It's not money people have saved from earnings is it? Just equity realised from loose credit induced asset bubbles. Shadow banks = tanks? Quote Link to comment Share on other sites More sharing options...
Venger Posted August 15, 2014 Share Posted August 15, 2014 They've voted for hpi a lot of the time. When they've set higher prices along the way, as buyers, they did increase market prices. Having to hear home-owners and hpi VIs, say how 67 year olds Charles and Ann put it on the market at £850,000 as that's what the Estate Agent said he could get, but only got a derisory offer of £800,000 which they refused ("doesn't need to sell") winds me up chronic - when same VI is campaigning for FTBs to have their savings/deposits taken by the system to prop it up. The housing VI want us to live in a world where they have everything and we have nothing, including gobbling up FTB style homes to rent or flip, and their upper end homes too. Watching HUTH this morning, because featured a home in my area. 1) Guy sold his pizza shop business, going into property. Flipped it £100,000 profit. 2) London guy given up telesales, going into property full time and already "got a few under his belt". He said he'd "Always dreamed of being an architect" but actually wasn't one at all. EAs come in after and award him £300,000 profit on his refurb after costs (iirc). 3) Late 40s couple refurb a bungalow, EAs come along, it's not quite finished, but also award them quite a few 10Ks profit. 4) Couldn't watch the 4th. Speculators and chancers, and Gov and banksters still enabling this. Quote Link to comment Share on other sites More sharing options...
BLOW FLY Posted August 15, 2014 Share Posted August 15, 2014 Ya ya my house I so valuable not even I could afford to buy it.... Lol I here this quite a bit. So funny. BF Quote Link to comment Share on other sites More sharing options...
oracle Posted August 16, 2014 Share Posted August 16, 2014 (edited) Or is it war by one country on another? In the past if one country wanted to seize some assets in another it had to invade it. Now such as China inflates a huge property bubble that enables it's citizens to then have money from their realised equity to use to buy up assets abroad. There is a lot of talk of a savings glut looking for yield. It's not money people have saved from earnings is it? Just equity realised from loose credit induced asset bubbles. Shadow banks = tanks? indeed it is. you sort of fail to mention that the likes of china etc had "our" businesses handed to them on a plate about 50 years ago. china is not really the guilty party here, for them this is straightforward mercantilism... ,our treacherous politicians are, some of which sold off our assets out of sheer spite. Edited August 16, 2014 by oracle Quote Link to comment Share on other sites More sharing options...
steve99 Posted August 16, 2014 Share Posted August 16, 2014 Dito in Australia, apparently we are running out of 'land'. I kid you not. Aus imports 250k people per year and all the cities and state governments are rubbing their hands for a bigger population, why? to put pressure on prices, prices of property that just about any politician of any flavour has a swag full of. They are also restricting the release of new land (infinite land that is) to land bankers who themselves are rationing it, divi'ing it up into smaller and smaller plots in order to fill their pockets. The banks have the biggest %percentage of their money tied up in real estate in the world and are raking it in. By market cap, Aus banks are some of the biggest in the world now on account of this. Meantime the average joe/josephine blow has to a)have a partner move to the boondocks (drive everywhere for everything, and I mean everything) and c) take out a mega mortgage for life, requiring 2 wages forever (unless you are one of the few with one of those 'career' things that few people have now). Add to this the casualisation of the workforce and often low hours, ie you only need to work 1 hour per fortnight to be considered employed and even with that statistical nonsense in place we still have 7% unemployment in Melbourne which by other more realistic measurements translates to around 15% real unemployment. Off-shoring of jobs is rampant, importing unneeded workers in just about every field is over the top obscene right now. Chinese buyers and speculators are the mainstay of the market now, the unfettered access to the market from Chinese off-shoring dodgy money is pushing prices beyond the moon in many suburbs and the whole population is clapping their hands over this, even younger people who are now even more inspired to get into the market at any cost on account that they will make a fortune. Many Gen Y's are fully up to their necks in property fever. All the property shows are about young people doing up houses and flats that sell for a min of $1mill each. If you are thinking of emigrating, then think carefully as to where you go, the western English speaking world is all up to the same scams, monkey see, monkey do and no one with a big voice is complaining, not the papers, the news, the ABC/BBC's nor the commercial networks, no one. Quote Link to comment Share on other sites More sharing options...
steve99 Posted August 16, 2014 Share Posted August 16, 2014 I actualy put paragraphs in the last post, not showing though. Quote Link to comment Share on other sites More sharing options...
billybong Posted August 16, 2014 Share Posted August 16, 2014 (edited) I actualy put paragraphs in the last post, not showing though. Try double spacing between the paragraphs? Works for me - if you don't mind the double spaces in the post. Edited August 16, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
zugzwang Posted August 16, 2014 Share Posted August 16, 2014 Or is it war by one country on another? In the past if one country wanted to seize some assets in another it had to invade it. Now such as China inflates a huge property bubble that enables it's citizens to then have money from their realised equity to use to buy up assets abroad. There is a lot of talk of a savings glut looking for yield. It's not money people have saved from earnings is it? Just equity realised from loose credit induced asset bubbles. Shadow banks = tanks? They'll be tanking soon, alright. Quote Link to comment Share on other sites More sharing options...
campervanman Posted August 17, 2014 Share Posted August 17, 2014 (edited) They've voted for hpi a lot of the time. When they've set higher prices along the way, as buyers, they did increase market prices. Having to hear home-owners and hpi VIs, say how 67 year olds Charles and Ann put it on the market at £850,000 as that's what the Estate Agent said he could get, but only got a derisory offer of £800,000 which they refused ("doesn't need to sell") winds me up chronic - when same VI is campaigning for FTBs to have their savings/deposits taken by the system to prop it up. The housing VI want us to live in a world where they have everything and we have nothing, including gobbling up FTB style homes to rent or flip, and their upper end homes too. Watching HUTH this morning, because featured a home in my area. 1) Guy sold his pizza shop business, going into property. Flipped it £100,000 profit. 2) London guy given up telesales, going into property full time and already "got a few under his belt". He said he'd "Always dreamed of being an architect" but actually wasn't one at all. EAs come in after and award him £300,000 profit on his refurb after costs (iirc). 3) Late 40s couple refurb a bungalow, EAs come along, it's not quite finished, but also award them quite a few 10Ks profit. 4) Couldn't watch the 4th. Speculators and chancers, and Gov and banksters still enabling this. I do not think people vote consciously for hpi but what they have done for many years in the UK is vote for short termism that gives the illusion of wealth today rather than long termism that could bring real wealth tomorrow. I see no sign that current generations have learned anything from the past though. Edited August 17, 2014 by campervanman Quote Link to comment Share on other sites More sharing options...
ccc Posted August 17, 2014 Share Posted August 17, 2014 (edited) They've voted for hpi a lot of the time. When they've set higher prices along the way, as buyers, they did increase market prices. Having to hear home-owners and hpi VIs, say how 67 year olds Charles and Ann put it on the market at £850,000 as that's what the Estate Agent said he could get, but only got a derisory offer of £800,000 which they refused ("doesn't need to sell") winds me up chronic - when same VI is campaigning for FTBs to have their savings/deposits taken by the system to prop it up. The housing VI want us to live in a world where they have everything and we have nothing, including gobbling up FTB style homes to rent or flip, and their upper end homes too. Watching HUTH this morning, because featured a home in my area. 1) Guy sold his pizza shop business, going into property. Flipped it £100,000 profit. 2) London guy given up telesales, going into property full time and already "got a few under his belt". He said he'd "Always dreamed of being an architect" but actually wasn't one at all. EAs come in after and award him £300,000 profit on his refurb after costs (iirc). 3) Late 40s couple refurb a bungalow, EAs come along, it's not quite finished, but also award them quite a few 10Ks profit. 4) Couldn't watch the 4th. Speculators and chancers, and Gov and banksters still enabling this. You do realise most of the numbers in HUTH are simply made up ? For proof just watch another morning show on the same channel - wanted down under. These families get their houses valued to see how much they could have available for a place 'down under'. In this programme the vast majority are valued less than they expected leaving them looking a bit dejected. In HUTH the vast majority are valued more than they expected leaving them looking like they are about to spunk in their pants. Same theory - same channel - same houses - same country - same period - same 'expert' valuations. So why the massive discrepancy....... . . Edited August 17, 2014 by ccc Quote Link to comment Share on other sites More sharing options...
winkie Posted August 17, 2014 Share Posted August 17, 2014 Dito in Australia, apparently we are running out of 'land'. I kid you not. Aus imports 250k people per year and all the cities and state governments are rubbing their hands for a bigger population, why? to put pressure on prices, prices of property that just about any politician of any flavour has a swag full of. They are also restricting the release of new land (infinite land that is) to land bankers who themselves are rationing it, divi'ing it up into smaller and smaller plots in order to fill their pockets. The banks have the biggest %percentage of their money tied up in real estate in the world and are raking it in. By market cap, Aus banks are some of the biggest in the world now on account of this. Meantime the average joe/josephine blow has to a)have a partner move to the boondocks (drive everywhere for everything, and I mean everything) and c) take out a mega mortgage for life, requiring 2 wages forever (unless you are one of the few with one of those 'career' things that few people have now). Add to this the casualisation of the workforce and often low hours, ie you only need to work 1 hour per fortnight to be considered employed and even with that statistical nonsense in place we still have 7% unemployment in Melbourne which by other more realistic measurements translates to around 15% real unemployment. Off-shoring of jobs is rampant, importing unneeded workers in just about every field is over the top obscene right now. Chinese buyers and speculators are the mainstay of the market now, the unfettered access to the market from Chinese off-shoring dodgy money is pushing prices beyond the moon in many suburbs and the whole population is clapping their hands over this, even younger people who are now even more inspired to get into the market at any cost on account that they will make a fortune. Many Gen Y's are fully up to their necks in property fever. All the property shows are about young people doing up houses and flats that sell for a min of $1mill each. If you are thinking of emigrating, then think carefully as to where you go, the western English speaking world is all up to the same scams, monkey see, monkey do and no one with a big voice is complaining, not the papers, the news, the ABC/BBC's nor the commercial networks, no one. Very good and true to life post.....happening in a place near you. Quote Link to comment Share on other sites More sharing options...
billybong Posted August 17, 2014 Share Posted August 17, 2014 (edited) Many Gen Y's are fully up to their necks in property fever. All the property shows are about young people doing up houses and flats that sell for a min of $1mill each "Doing up houses and flats that sell for a min of $1mill each". Newly bonused banker young people? Edited August 17, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
winkie Posted August 17, 2014 Share Posted August 17, 2014 "Doing up houses and flats that sell for a min of $1mill each". Newly bonused banker young people? Newly inherited property invester?.....got to be in it to win it, beats working for a living. Quote Link to comment Share on other sites More sharing options...
bearwithasorehead Posted August 17, 2014 Share Posted August 17, 2014 About Gen Y. I have a relative who bought two years ago in the SE. However, he is getting divorced and had to buy out partner now - at top the market with higher valuation crucifying him. Is looking to sell up and move too the States where he thinks he can earn more (to be fair based on previous experience he can) There must be a lot of stretched gen Ys who bought in last 5 years with Bomad, etc. What happens when they can't service the debt any more? Quote Link to comment Share on other sites More sharing options...
steve99 Posted August 19, 2014 Share Posted August 19, 2014 About Gen Y. I have a relative who bought two years ago in the SE. However, he is getting divorced and had to buy out partner now - at top the market with higher valuation crucifying him. Is looking to sell up and move too the States where he thinks he can earn more (to be fair based on previous experience he can) There must be a lot of stretched gen Ys who bought in last 5 years with Bomad, etc. What happens when they can't service the debt any more? Then its 2 houses for sale by my calculations. Perhaps lots of them at 'bank wants its money back' firesale prices. Quote Link to comment Share on other sites More sharing options...
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