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dryrot

Gloomberg: London's long housing boom is over is a bust coming?

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Hi

Don't think this has been posted - This is "the first in a series of stories on the outlook for London's housing market as it runs out of steam after almost a decade of growth." apparently

https://www.bloomberg.com/news/articles/2018-05-23/london-s-long-housing-boom-is-over-is-a-bust-coming

"Lance Paul put his home in West London on the market last May with a 1.5 million-pound ($2 million) price tag. A year on, the retired animator is asking 1.1 million pounds and still hasn’t found a buyer. Now, after dozens of viewings that came to nothing and a few low-ball bids, the 71-year-old has an offer that’s agonizingly close to the floor he promised himself he would never go below. He just might accept it."

[...]

"All of these “what ifs” complicate matters for owners like Lance Paul, who’s considering the offer for his Shepherd’s Bush home. He wants to raise money for medical bills, to top up his modest pension and to move closer to his son, who was forced out of London by sky-high home prices. 
 

Wonder what Mr Paul paid for it? (2nd para my emphasis. My irony-meter exploded after reading that :) )

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One popular initiative that’s helped support the property market, the government’s “Help to Buy” loan plan, is slated to end in 2021, unless it’s extended again.

Spreadsheet ?!

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Its either flatline or a soft drop. The government will keep help to buy, to continue its flat building saga, to have a nice gdp ranking. The central bank continue to pray that a low interest rate economic crash is minimal and everyones wealth has increased, yet does everyone feel wealthy?

It the props are removed, and the central banks deems savers are the way forward... then a crash is on the cards...

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6 hours ago, maverick73 said:

yet does everyone feel wealthy?

Certainly. The middle earning paper shuffler turned property tycoon because he never sold his two bedroom starter flat in Balham and now sits in a £1.5m house and a mortgage with 5 years left of about £200 pm based on his 0% tracker rate.

Never again will a generation have the ability to accrue so much wealth at the expense of subsequent generations, by doing nothing at all.

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18 hours ago, dryrot said:

Hi

Don't think this has been posted - This is "the first in a series of stories on the outlook for London's housing market as it runs out of steam after almost a decade of growth." apparently

https://www.bloomberg.com/news/articles/2018-05-23/london-s-long-housing-boom-is-over-is-a-bust-coming

"Lance Paul put his home in West London on the market last May with a 1.5 million-pound ($2 million) price tag. A year on, the retired animator is asking 1.1 million pounds and still hasn’t found a buyer. Now, after dozens of viewings that came to nothing and a few low-ball bids, the 71-year-old has an offer that’s agonizingly close to the floor he promised himself he would never go below. He just might accept it."

[...]

"All of these “what ifs” complicate matters for owners like Lance Paul, who’s considering the offer for his Shepherd’s Bush home. He wants to raise money for medical bills, to top up his modest pension and to move closer to his son, who was forced out of London by sky-high home prices. 
 

Wonder what Mr Paul paid for it? (2nd para my emphasis. My irony-meter exploded after reading that :) )

People see unearned housing equity as "their hard earned cash". Suck it up buster. You left it to late. 

Wonder if he moans to his son about falling house prices!

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19 hours ago, dryrot said:

He wants to raise money for medical bills, to top up his modest pension and to move closer to his son, who was forced out of London by sky-high home prices. 

You can see how the shopping list grew over the years as the valuations kept going up. All the victims presented so far have been completely beyond pity.

1 hour ago, The Crow said:

People see unearned housing equity as "their hard earned cash".

It's effectively turned him into a forced seller, forced by having mentally spent his unrealised gains.

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20 hours ago, dryrot said:

Hi

Don't think this has been posted - This is "the first in a series of stories on the outlook for London's housing market as it runs out of steam after almost a decade of growth." apparently

https://www.bloomberg.com/news/articles/2018-05-23/london-s-long-housing-boom-is-over-is-a-bust-coming

"Lance Paul put his home in West London on the market last May with a 1.5 million-pound ($2 million) price tag. A year on, the retired animator is asking 1.1 million pounds and still hasn’t found a buyer. Now, after dozens of viewings that came to nothing and a few low-ball bids, the 71-year-old has an offer that’s agonizingly close to the floor he promised himself he would never go below. He just might accept it."

[...]

"All of these “what ifs” complicate matters for owners like Lance Paul, who’s considering the offer for his Shepherd’s Bush home. He wants to raise money for medical bills, to top up his modest pension and to move closer to his son, who was forced out of London by sky-high home prices. 
 

Wonder what Mr Paul paid for it? (2nd para my emphasis. My irony-meter exploded after reading that :) )

NO. He needs every 1.5m of the price. He has 'medical bills' to pay remember.

This is probably his address:

https://beta.companieshouse.gov.uk/officers/6KCUJC4z-Zr3nOLOVTMe75_-n5U/appointments

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34 minutes ago, spyguy said:

NO. He needs every 1.5m of the price. He has 'medical bills' to pay remember.

This is probably his address:

https://beta.companieshouse.gov.uk/officers/6KCUJC4z-Zr3nOLOVTMe75_-n5U/appointments

I just love the way these people justify the reasons why they "Must get close to the asking price" when they in most cases paid a fraction of the cost for the property. Was in South Cambridgeshire a few days ago to meet an old customer who is now getting on a bit who has his home on the market so he can sell and get a little closer to his family. House has been on the market for a few months and I nearly spat my tea out when he told me what he was after price wise, even though the village lovely.

I always thought of him as a gentle polite man that never had a unhealthy and greedy nature towards money and so was shocked to here him talking about his few "cheeky offers" and why he needed closer to the full asking price, which I might add was the home he was going to buy in the other area.

I know he must have paid £10,00's all those years ago for his home which is now closer to £1/2 million, what is it about property that grows horns on peoples heads.

 

PS ...Yet again another good article find on the pressures of keeping the housing market ramped up at the moment, but as usual I am still not convinced we are in crash mode yet, though I do believe we are at a point where a high percentage of people think they are clever enough to get out at the very top of the market. These people believe their property is being watched by 60 million people who are just aching to see it on the market so they can snap it up, I am really hoping they have a nasty generational life lesson ahead of them.

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5 hours ago, The Crow said:

People see unearned housing equity as "their hard earned cash". Suck it up buster. You left it to late. 

Wonder if he moans to his son about falling house prices!

TOO late!!!😎

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Just to be devils advocate here; if you saw Frizzers' article recently showing HPI in pounds sterling then it is a massive upward line on the graph as you would expect. Bought for 10K, sold for 500K. However his other graph showing HPI in gold, is sort of flattish. I'm not that good at maffs but I imagine this is to do with interest rates i.e. the mortgage during that transition from 10K to 500K was not at an 0.5% interest rate as now.

tl;dr; sellers aren't as greedy as you think.

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21 hours ago, maverick73 said:

Its either flatline or a soft drop. The government will keep help to buy, to continue its flat building saga, to have a nice gdp ranking. The central bank continue to pray that a low interest rate economic crash is minimal and everyones wealth has increased, yet does everyone feel wealthy?

It the props are removed, and the central banks deems savers are the way forward... then a crash is on the cards...

Its not ethical but as i have said previously if I where them (and keeping my gravy train my number 1 priority) I would keep the credit taps turned on whilst trying to grind prices lower via killing BTL and second home owners.

Rises and they are out - big falls and they are out.

Sub 10% annual falls + inflation will be a result for them.....IF they can manage that.

Fo that to work they need people to act like lemmings and throw themselves into debt as the knife falls.... so far so good

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1 hour ago, Funn3r said:

Just to be devils advocate here; if you saw Frizzers' article recently showing HPI in pounds sterling then it is a massive upward line on the graph as you would expect. Bought for 10K, sold for 500K. However his other graph showing HPI in gold, is sort of flattish. I'm not that good at maffs but I imagine this is to do with interest rates i.e. the mortgage during that transition from 10K to 500K was not at an 0.5% interest rate as now.

tl;dr; sellers aren't as greedy as you think.

You need to plot HPI against WPI

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16 hours ago, dugsbody said:

Certainly. The middle earning paper shuffler turned property tycoon because he never sold his two bedroom starter flat in Balham and now sits in a £1.5m house and a mortgage with 5 years left of about £200 pm based on his 0% tracker rate.

Never again will a generation have the ability to accrue so much wealth at the expense of subsequent generations, by doing nothing at all.

Wow.   Sobering thought.

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On 24/05/2018 at 21:32, dugsbody said:

Certainly. The middle earning paper shuffler turned property tycoon because he never sold his two bedroom starter flat in Balham and now sits in a £1.5m house and a mortgage with 5 years left of about £200 pm based on his 0% tracker rate.

Never again will a generation have the ability to accrue so much wealth at the expense of subsequent generations, by doing nothing at all.

SO, SO, SO true.   So shocking that it should ever have got to that.  Just MADNESS. MADNESS.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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