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skomer

Londons Property Flippers forced to sell at a loss

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32 minutes ago, skomer said:

Story in todays FT....(behind their pay wall)...

https://www.ft.com/content/a8e529e4-307a-11e9-8744-e7016697f225

Gist is a lot of unsophisticated investors in SE Asia have no protection against falling prices....even the developers are being hit...

B)

The headline is : "London's property 'flippers' forced to sell at a loss"

Note the operative word.

This is merely a story following on from " Benny the beluga: Whale still thriving in River Thames" , which, rather than being cause for concern, should serve to bolster confidence, as it demonstrates that London is now so popular, even aquatic mammals have been taking up residence in the capital. Okay, so some may have paid over the odds, but can you really expect dolphins to master the intricacies of the property market overnight? The rest of us need not worry.

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25 minutes ago, Sledgehead said:

The headline is : "London's property 'flippers' forced to sell at a loss"

Note the operative word.

This is merely a story following on from " Benny the beluga: Whale still thriving in River Thames" , which, rather than being cause for concern, should serve to bolster confidence, as it demonstrates that London is now so popular, even aquatic mammals have been taking up residence in the capital. Okay, so some may have paid over the odds, but can you really expect dolphins to master the intricacies of the property market overnight? The rest of us need not worry.

Has it bought a string of IO BTL flats?

Sure, the Asian might be going, but the belugas are taking their place.

 

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14 minutes ago, Voice of Doom said:

Dinner party conversations in Singapore will be interesting. A starter of fear, followed by large plate of panic ending with a slice of despair.

and followed by a mournful breaking of wind. 

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8 minutes ago, Orb said:

and followed by a mournful breaking of wind. 

surely, a nervous breaking of wind a la 'squeaky-bum time' , no?

Do people you know fart when in mourning? Remind me not to attend wakes chez famile Orb, esp if the custmary scotch eggs are on the menu!

Edited by Sledgehead

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10 minutes ago, Sledgehead said:

surely, a nervous breaking of wind a la 'squeaky-bum time' , no?

Do people you know fart when in mourning? Remind me not to attend wakes chez famile Orb, esp if the custmary scotch eggs are on the menu!

I think we should change it to "regretful" breaking of wind. 

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3 minutes ago, Orb said:

I think we should change it to "regretful" breaking of wind. 

 

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2 hours ago, Orb said:

I think we should change it to "regretful" breaking of wind. 

I'm not convinced that's any more normal or desirable. Saying "Darling, I really regret saying your bum looked big in those jeggings," is one thing. To accompany it with a fugitive emission of bum-gas? Well, I perish the thought!

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We need people to buy these expensive, high maintenance homes that require people to clean, care for gardens, employ staff to look after, keep secure, keep aired and refreshed, decorated, insured......taking on a high maintenance home is a labour of love, a huge liability, a tie and a growing cost.....a sacrifice, a huge responsibility......respect for them.;)

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Overseas investors would have lost a pretty penny just on currency conversion in the 5 years.

Pound against the Dollar down 23%; Korean Won down 19%; Chinese Yuan down 15%

A £700k flat in London will have been losing an average of £2600 a month for a dollar buyer even before factoring in falling London house prices. They should have invested in an economy with a future!

 

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1 hour ago, Orsino said:

Overseas investors would have lost a pretty penny just on currency conversion in the 5 years.

Pound against the Dollar down 23%; Korean Won down 19%; Chinese Yuan down 15%

A £700k flat in London will have been losing an average of £2600 a month for a dollar buyer even before factoring in falling London house prices. They should have invested in an economy with a future!

 

The problem is they are not going to recover, they will easily lose another 40%

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Thx, good article. I noted: "Faced with selling at a loss, a growing number are opting to take the “for sale” signs down and are falling back on the rental market or taking up residence,"

(My emph). But what an indictment of todays property market, where buyers are forced to live in the properties they purchase!

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I know a major real estate backer who would have nothing to do with the Earls Court development or Nine Elms. Judged it to be way too high risk. 

If the apartments don’t complete they will suffer a major shortage. 

Those bought and have just moved in an realised that West Brompton tube is not kind in the morning rush hour if you wish to board. Better off walking to Earls Court -  it’s like trying to find a seat on a Titanic lifeboat. 

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Someone in the mortgage industry told me that  banks have been selling essentially mortgage frauds in Asian markets for years.

Below is a rather simplified version, but basically the way it works is like this: 

1. UK banks cannot grant mortgage directly to Asian property speculators, because that attracts too much attention from regulators.

2. Asian banks cannot issue liar loans to speculators using local properties as collateral, because that attracts too much attention from regulators

3. But UK banks can lend to Asian banks

4. Then Asian banks issue liar loans to speculators with UK properties as collateral, because that type of transaction is NOT locally regulated

5. Asian property speculators use the money to buy UK properties.  

6. UK house price up.

7. Banks and speculators make money.

Repeat from 1 

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11 minutes ago, peter_2008 said:

Someone in the mortgage industry told me that  banks have been selling essentially mortgage frauds in Asian markets for years.

Below is a rather simplified version, but basically the way it works is like this: 

1. UK banks cannot grant mortgage directly to Asian property speculators, because that attracts too much attention from regulators.

2. Asian banks cannot issue liar loans to speculators using local properties as collateral, because that attracts too much attention from regulators

3. But UK banks can lend to Asian banks

4. Then Asian banks issue liar loans to speculators with UK properties as collateral, because that type of transaction is NOT locally regulated

5. Asian property speculators use the money to buy UK properties.  

6. UK house price up.

7. Banks and speculators make money.

Repeat from 1 

You missed the taxpayer funded bailout step.

Besides, I'm so glad Mark Carney's so vigilant. Vigilant I tell ye.

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This FT story gives me a warm fluffy glow :)

Who knew an "investment" could go down as well as up!? (And I use the term investment very loosely)

Tempted to get the popcorn ready so I can watch these greedy, selfish *expletives* burn nice and slowly.

Although, the FT headline seems to suggest they deserve some sympathy!??? Really???

P.S. If any "investor" in these million pound flats is reading this...lolz!

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9 minutes ago, highcontrast said:

This FT story gives me a warm fluffy glow :)

Who knew an "investment" could go down as well as up!? (And I use the term investment very loosely)

Tempted to get the popcorn ready so I can watch these greedy, selfish *expletives* burn nice and slowly.

Although, the FT headline seems to suggest they deserve some sympathy!??? Really???

P.S. If any "investor" in these million pound flats is reading this...lolz!

Be careful what you wish for. Lolz.

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  • 297 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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