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Dorkins

London property owners use their homes as piggy banks

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Interesting article about the fact that the total mortgage balance in London/SE is rising even though transactions are falling - essentially arguing that MEW is back.

http%3A%2F%2Fcom.ft.imagepublish.upp-prod-eu.s3.amazonaws.com%2Fcd7c4762-cd72-11e8-b276-b9069bde0956?source=next&fit=scale-down&quality=highest&width=700

https://www.ft.com/content/5826dd1c-cd2f-11e8-b276-b9069bde0956

(if the link is paywalled just Google the title of the thread and follow the link from Google)

From the comments section:

Quote

justanothercomment


Oooh, leveraging up just before your underlying asset significantly devalues - perhaps London's professional classes aren't so smart after all

 

Edited by Dorkins

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What coud possibly go wrong?

Let a lof things, Im viewing this thru the GE-is-a-fuxup par of glasses.

When I started work, ~20 odd years ago,  I remember a American co-worker telling me that GE stock was 'as good as the dollar in your pocket'. Better in fact.

That was pretty much receivned wison back i nthe 90s, when jack Welsh was getting into the swing of his Gordon Brownesce mode.

https://www.google.com/search?q=ge+stock+price&ie=utf-8&oe=utf-8&client=firefox-b

Taking on real debt to take a position on an asset price ..

 

 

 

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13 minutes ago, spyguy said:

What coud possibly go wrong?

Let a lof things, Im viewing this thru the GE-is-a-fuxup par of glasses.

When I started work, ~20 odd years ago,  I remember a American co-worker telling me that GE stock was 'as good as the dollar in your pocket'. Better in fact.

That was pretty much receivned wison back i nthe 90s, when jack Welsh was getting into the swing of his Gordon Brownesce mode.

https://www.google.com/search?q=ge+stock+price&ie=utf-8&oe=utf-8&client=firefox-b

Taking on real debt to take a position on an asset price ..

 

 

 

Received wisdom is now that you can't go wrong with London property. 

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Just now, Si1 said:

Received wisdom is now that you can't go wrong with London property. 

 

Just now, Si1 said:

Received wisdom is now that you can't go wrong with London property. 

I think its 'was' now.

 

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It seems very risky, unless you need cash for a short term emergency (e.g need a new car for work, lots of things going wrong in the house), why would you do it?  Getting rid of the mortgage should be a priority needing making it bigger.

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2 hours ago, iamnumerate said:

It seems very risky, unless you need cash for a short term emergency (e.g need a new car for work, lots of things going wrong in the house), why would you do it?  Getting rid of the mortgage should be a priority needing making it bigger.

Fully mortgage out your £3million flat now, enjoy 2 million quids' worth of hookers and blow for the next couple of years, when the crash hits, default on the mortgage, hand the keys back, go back to the poverty line where these people belong.

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4 hours ago, spyguy said:

I remember a American co-worker telling me that GE stock was 'as good as the dollar in your pocket'. Better in fact.

Correct, for the wrong reasons.

New-Study-Finds-Wimpy-Guys-Are-More-Like

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7 hours ago, Dorkins said:

Interesting article about the fact that the total mortgage balance in London/SE is rising even though transactions are falling - essentially arguing that MEW is back.

http%3A%2F%2Fcom.ft.imagepublish.upp-prod-eu.s3.amazonaws.com%2Fcd7c4762-cd72-11e8-b276-b9069bde0956?source=next&fit=scale-down&quality=highest&width=700

https://www.ft.com/content/5826dd1c-cd2f-11e8-b276-b9069bde0956

(if the link is paywalled just Google the title of the thread and follow the link from Google)

From the comments section:

 

#MewTwo

e6383fe6-dae5-4b66-824c-c7074bbb47fe_1.d

Edited by Tapori

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  • 152 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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