Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

Final Post-Election Price Spike For Upmarket London Houses As Massive Oversupply Looms

Recommended Posts

Estate agents reported a rush to buy high-end property in London on Friday after the election result removed the threat of higher real estate taxes, in particular a so-called mansion tax. But with global interest rates poised to rise imminently this will be the final spike in deals that usually marks the top of any bull market.

http://www.arabianmoney.net/business-travel/2015/05/10/final-post-election-price-spike-for-upmarket-uk-housing/

Share this post


Link to post
Share on other sites

The timing of the slowdown in the London market has nothing to do with the announcement of Mansion Tax.

Last Decembers Stamp Duty changes plus the charging of CGT of foreign nationals sales earlier in the year are the real cause of the slow down.

Imaging sit abroad and seeing an asset class demand that you pay 18/28% CGT on any withdrawals. Would you continue to invest?

The effect of stamp duty can be seen in light of the way that many vested interests try to have it reduced. Wealthy people won't like the idea that they've now got to find nearly fifty four thousand pounds more when moving if their homes cost over two million than they did prior to December last year. They are the most fiscally alert in the market.

Share this post


Link to post
Share on other sites

From today's Times property section: 'Not everyone is c*ck-a hoop. Savills estate agency (high end only, my brackets) reports that some deals are now in danger of falling through because sellers are asking for more money...'

Edited by Mrs Bear

Share this post


Link to post
Share on other sites

Today's rightmove in my area (commutable London but Hampshire) is, as I predicted - page after page of over-priced homes. I have never seen so much for sale by a factor of 10.

Market peaked in Jan 2014.

Share this post


Link to post
Share on other sites

What a load of bollax.

Try rushing to buy a property...it takes about 3 months.

That's what I told my daughter when she and her bf were buying their house, and shelling out for an expensive short term rental.

In fact from acceptance of offer to completion, it was all wrapped up in 6 weeks. I was staggered.

Share this post


Link to post
Share on other sites

That's what I told my daughter when she and her bf were buying their house, and shelling out for an expensive short term rental.

In fact from acceptance of offer to completion, it was all wrapped up in 6 weeks. I was staggered.

What's the rental got to do with anything?

Switching from an expensive rental to a 50% over priced plaster home is good?

Share this post


Link to post
Share on other sites

From today's Times property section: 'Not everyone is c*ck-a hoop. Savills estate agency (high end only, my brackets) reports that some deals are now in danger of falling through because sellers are asking for more money...'

k40sz.jpg

And, as I too have a subscription to the Times/Sunday Times...

just read this piece (behind the paywall on the net)

n15b9v.jpg

https://twitter.com/iancowie/status/597351639348051968

I would get into trouble if I quoted any of the main article part... think it's reasonably fair to post where he has a go at us... again (how many times over the years)... but he was correct (as was RK).... whilst hpcers crying for victim buyers (w@nkers being exploited by bankers as they sign up for massive mortgages... now 30%-80% up in many areas, in equity wealth.... up... well more up than my renter-saver position.

We make our own buying/renting decisions.. he may be right or wrong here.. can do without more of hpcers more concerned with those paying high/higher prices today, as victims.. and more toward younger generations.. renter-savers who would gain in a hpc.

I thought he'd finished when his gig was up at the Telegraph.... landed big gig at the Times soon after. That's another issue I have... too many old-worlders of HPI still in position.

Sunday Times

Personal Account: Beware the pension fault in our stars

Celebrities say property is the best investment, but the rest of us need the back-up of other assets — and an income — for our retirement

Ian Cowie Published: 10 May 2015

[..]Perhaps I should make it clear that I am not one of those wiseacres who has been calling the top of the housing market all the way up. Quite the opposite. Several years ago, at another newspaper, I got used to being attacked by pessimists for saying house prices would continue on their upward trend as long as demand continued to increase and supply remained restricted.

There was even a website for those wishing for a house price crash, although I don’t hear much from its devotees these days. Back then, many readers regularly posted vulgar abuse online, accusing me of “ramping”, or puffing, property prices. However, while the notion that a mere comment column could move a multitrillion-pound market may have been intended as an insult, it was actually so inadvertently flattering as to be almost funny.

Here and now, I find the silence of the housing bears — or pessimists — and the almost universal triumphalism of the bulls — or optimists — unsettling. Markets are moved by the emotions of millions of people who participate in them as buyers or sellers, so prices do tend to fluctuate in a cyclical fashion as greed replaces fear and vice versa.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   93 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.