Fairyland Posted July 21, 2016 Share Posted July 21, 2016 I have been looking at property prices in quite a few countries apart from UK and it showed similar rises. Roughly from 2001 prices kept rising and rising and rising... Brief pause during financial crisis and then upwards again. Now that the tide has turned and economies have become more and more global is it unreasonable to think an HPC in the UK should drag down prices elsewhere? Please discuss. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 21, 2016 Share Posted July 21, 2016 Possibly. Contagion is a real risk in a deeply interconnected financial system. Our banks needed bailing on the issues of 2008 when a major crash was delayed. We still have the risk and it appears the loans aren't self liquidating. 1929 possibly will look like a minor recession. Quote Link to comment Share on other sites More sharing options...
Sandwiches33 Posted July 21, 2016 Share Posted July 21, 2016 The levels of affordability are insane through the world. Montreal San fransisco Sydney Auckland. I think the average price in Vancouver is 1 million dollars. It stupid on a global scale, when it goes tits nothing will keep these prices up. Where is the actual economy going to have to go to sustain this? We will enter a race to the bottom. Quote Link to comment Share on other sites More sharing options...
spunko2010 Posted July 21, 2016 Share Posted July 21, 2016 The levels of affordability are insane through the world. Montreal San fransisco Sydney Auckland. I think the average price in Vancouver is 1 million dollars. Well CAD$1M is about £580k. so, very similar to London. Just doesn't sound quite as 'crazy'. Quote Link to comment Share on other sites More sharing options...
North London Rent Girl Posted July 21, 2016 Share Posted July 21, 2016 1929 possibly will look like a minor recession. Anyone else out there feeling so nihilistic that just for a second this sounded like a good thing?!! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 21, 2016 Share Posted July 21, 2016 House pric es across the globe crashed already. We've got a new boom on our hands..well we did till BrExit scuppered the Homes in teh sun brigade Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted July 21, 2016 Share Posted July 21, 2016 Well CAD$1M is about £580k. so, very similar to London. Just doesn't sound quite as 'crazy'. When you look at affordability, ie local incomes, which are nothing like London, then it is crazy. All driven by Chinese investment in Vancouver. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted July 21, 2016 Share Posted July 21, 2016 The levels of affordability are insane through the world. Montreal San fransisco Sydney Auckland. I think the average price in Vancouver is 1 million dollars. It stupid on a global scale, when it goes tits nothing will keep these prices up. Where is the actual economy going to have to go to sustain this? We will enter a race to the bottom. Montreal? Really? Pretty reasonable there. Toronto is growing at about 20% a year at the moment. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted July 21, 2016 Share Posted July 21, 2016 (edited) I have been looking at property prices in quite a few countries apart from UK and it showed similar rises. Roughly from 2001 prices kept rising and rising and rising... Brief pause during financial crisis and then upwards again. Now that the tide has turned and economies have become more and more global is it unreasonable to think an HPC in the UK should drag down prices elsewhere? Please discuss.I don't think a UK HPC would drag down prices elsewhere. If anything if Brexit causes an HPC, it could cause an increase in safe haven countries.China is the one that will drag everyhwere down. In many countries Chinese investment in residential property has added fuel to fire. When China finally goes bye-bye, which it will, and suddenly chinese buyers disappear, some of their compratriots may need to sell at the same time, combined with tapped out economies and consumers across the world, and then yes, you may well have a ***. The UK may well lead in it being the first, but it won't cause it, and may well be the first to recover if we purge ourselves of bad debt before everyone else. Edited July 21, 2016 by HovelinHove Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted July 21, 2016 Share Posted July 21, 2016 British banks hold a lot of Greek debt, so when that big default happens there will be a big hole in some balance sheets. OTOH brexit has handed them a 10% bonus on that foreign debt, if it does somehow get paid back. Quote Link to comment Share on other sites More sharing options...
Foreverblowingbubbles Posted July 21, 2016 Share Posted July 21, 2016 http://wolfstreet.com/2016/07/07/foreign-investors-chinese-pull-back-from-housing-in-san-francisco-manhattan-miami/ Great article on new York, San Francisco, miami and vancouver. Sydney Melbourne and Auckland could all be thrown in there too Quote Link to comment Share on other sites More sharing options...
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