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I  posted this yesterday as well. No one was interested but I think it is quite interesting. We have monitored Carney''s bubble in Canada for sone years and now see it unraveling. 

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From the article:

“You have houses that are worth C$4 million renting for C$4,500,” 

It's not 'worth' C$4 million if the rental income is only C$4,500.  It is basic economics.  

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34 minutes ago, pizza said:

From the article:

“You have houses that are worth C$4 million renting for C$4,500,” 

It's not 'worth' C$4 million if the rental income is only C$4,500.  It is basic economics.  

Actually you can. That is economics. 

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1 hour ago, pizza said:

From the article:

“You have houses that are worth C$4 million renting for C$4,500,” 

It's not 'worth' C$4 million if the rental income is only C$4,500.  It is basic economics.  

4.5k per month rent and if selling for 4m...? That is 1.4% yield. Seems buyers anticipate capital grow despite evidence . It is odd.

 

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7 hours ago, Ah-so said:

I  posted this yesterday as well. No one was interested but I think it is quite interesting. We have monitored Carney''s bubble in Canada for sone years and now see it unraveling. 

Yes after I posted I saw it in another thread. I think it's very interesting that the various housing bubbles all deflate eventually. And as you say ironic that Carney has been involved in two!

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1.35% yield?

We have some bad BTL investments here in Norwich an in houses that I would have been interested in (but would not have paid so much for).

I just do not know how the tax works for properties like this as they must now be subsidising them.  The changes look targeted to prevent family homes being hoarded. 

Two examples

https://www.rightmove.co.uk/property-to-rent/property-60172899.html  £995 per month (was listed for a while so maybe less)

Was bought July last year only for £425,000  which is 2.x% yield assuming no discount on rent.

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=58912742&sale=7233271&country=england

And this one...

Lovely road I would have pushed the boat out for this one (to buy)....but not this far

Was for rent at £2500 per month (forgot they where in Norwich) reduced and then reduced again to sub 2000£ and then removed.

Norwich tops out at 1600 unless your very lucky and logically they do not want the hassle of huge gardens etc (its normally to house a rich large family so paying for the rooms).

So another sub 3% yeild.

https://www.rightmove.co.uk/property-to-rent/property-72906971.html  (since removed)

Sold for 700,000 + full renovation

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=45219516&sale=4877710&country=england

 

On a lighter note if your completely deluded you can do what this savvy investor has done in Norwich.

Just buy a building in a bog standard location behind the nightclub zone next to a kebab and noodle shop......and list the rent like its inside the M25.

https://www.edp24.co.uk/business/norwich-rental-market-is-booming-see-the-high-end-flats-1-5954626

The local newspaper article writer must have felt violated having to take coin writing that advertorial.

 

 

 

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15 hours ago, Wayward said:

4.5k per month rent and if selling for 4m...? That is 1.4% yield. Seems buyers anticipate capital grow despite evidence . It is odd.

 

Quick google on Canada mortgage rates and the best seems to be a 2.89% fix for 5 years.

So that's C$9,633 on interest alone each month.

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26 minutes ago, Captain Kirk said:

Quick google on Canada mortgage rates and the best seems to be a 2.89% fix for 5 years.

So that's C$9,633 on interest alone each month.

just nuts.

A symptom of letting normal cash compete with must get it out of the country cash.

 

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4 hours ago, Fromage Frais said:

just nuts.

A symptom of letting normal cash compete with must get it out of the country cash.

 

Yep, it walks and quacks like a money laundering duck.

Edited by Captain Kirk

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  • 294 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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