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The Global Housing Bubble Is Biggest In These Six Cities

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http://www.zerohedge.com/news/2016-09-27/global-housing-bubble-biggest-these-six-cities

 

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One year ago, when UBS last looked at the world's most expensive housing markets, it found that London and Hong Kong were the only two areas exposed to bubble risk.

BubbleTrouble3_0.png

What a difference a year makes, because in the latest report by UBS wealth Management, which compiles the bank's Global Real Estate Bubble Index, it found a new champion for the title of "world's biggest housing bubble", namely a familiar name, Vancouver, but also that as many as six cities had made the "bubble" category, up from last year's two. Of last year's two "winners", London has been knocked into second place this year, and Hong Kong sixth, but both are still in bubble-risk territory.

ubs%20house%20bubbles%202016_0.jpg

Looking at soaring home prices across the globe, UBS has concluded that low interest rates have now created a new global housing bubble in major cities around the world, with Vancouver and London most at risk. Not surprisingly, the Swiss bank notes that ultralow interest rates at global central banks have contributed to overheating in the housing market in recent years.

Woohoo!

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So being a person of contrarian thinking, Chicago caught my eye in that graphic as undervalued.  According to realtor.com, you can buy a good sized house there for just $1 (OK, that is not a real price, just an auction reserve for a foreclosed property).  But there are plenty of 3-bedroom properties of 2000 sq ft available for no more than $60,000.  Yes, they are boarded up, suffered a bit of fire damage in the past, missing the copper piping necessary for the water supply and heating system, and are in the middle of a district full of crack dens.  But you can't argue with $60,000 for a big family home.  Definitely undervalued.  Full of potential.

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4 minutes ago, Dyson Fury said:

So being a person of contrarian thinking, Chicago caught my eye in that graphic as undervalued.  According to realtor.com, you can buy a good sized house there for just $1 (OK, that is not a real price, just an auction reserve for a foreclosed property).  But there are plenty of 3-bedroom properties of 2000 sq ft available for no more than $60,000.  Yes, they are boarded up, suffered a bit of fire damage in the past, missing the copper piping necessary for the water supply and heating system, and are in the middle of a district full of crack dens.  But you can't argue with $60,000 for a big family home.  Definitely undervalued.  Full of potential.

 The trouble is the US is very big, and when industry moves away, it moves away away comprehensively and won't be back for a very long time, if ever.

Todays price reflects this reality, and chances are tomorrows price will also reflect that unless there is some major catalyst for change.

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11 hours ago, Dyson Fury said:

So being a person of contrarian thinking, Chicago caught my eye in that graphic as undervalued.  According to realtor.com, you can buy a good sized house there for just $1 (OK, that is not a real price, just an auction reserve for a foreclosed property).  But there are plenty of 3-bedroom properties of 2000 sq ft available for no more than $60,000.  Yes, they are boarded up, suffered a bit of fire damage in the past, missing the copper piping necessary for the water supply and heating system, and are in the middle of a district full of crack dens.  But you can't argue with $60,000 for a big family home.  Definitely undervalued.  Full of potential.

Be sure to buy a family-sized lot of bullet-proof vests before you move in.

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CHICAGO — In a city wrestling with a rise in gun violence and turmoil in its police department, August seemed like the longest month. By midnight on Wednesday, 90 murders had occurred in August alone, making it the deadliest month in Chicago in about 20 years.

Chicago, the nation’s third-largest city, has experienced more homicides this year than the bigger cities of Los Angeles and New York combined.

The number of deaths here this year, 471, is about 50 percent higher than the same period a year earlier. Nonfatal shootings have risen at a similar rate. More than 2,300 shootings have taken place so far this year, mostly on the South and West Sides and most of them involving African-Americans.

The daily counts of the dead and wounded have grown dizzying. Among this summer’s victims were a 6-year-old girl who was wounded near her house; a 10-year-old whose twin held his hand as he waited for help; and Nykea Aldridge, a young mother and the cousin of the N.B.A. star Dwyane Wade, who was killed while pushing a baby stroller.

http://www.nytimes.com/2016/09/02/us/chicago-august-homicides.html?_r=0

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There is a reason a 3 bed in certain parts of Chicago can be had for $60k !!

Then again compared to what people pay for a flat in a dangerous shitehole part of London - it does look slightly better 'value'.

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