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undersupply

Crashhhhhhhhhhhhhhhh

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Great news, see it can happen, and it does happen. Oh and part of my 5 year plan is to move the family to China since my Mrs. is from Sheng Yeng, and my father is from Shanghai... think i might move there now, build up some equity and then come back to the UK once this UK time bomb explodes!!! good find.. and good news :)

That's what foreign speculators get for investing their money in homes!! Homes aren't assets or investment vehicles, they're homes for your children to bring their family up in.

Lewis

"Greed will consume us all..."

Edited by lewissheridan

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There must be strong DEMAND in China with 1.6billion people needing somewhere to live, but fundamentals have shown that what goes up must come down (yet again)

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"Beijing also levied a 5 per cent tax on the sale price of homes sold before two years of ownership."

Should we have this in the UK?

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"
Homeowners and investors wondering what follows a housing bubble can look to China's largest city. While Shanghai was once one of the hottest markets in the world, sales of homes have virtually halted in some areas of the city, prompting developers to slash prices and real estate brokerages to shutter thousands of offices
."

Coming to a town near you! Yes, it makes a nonsense out of the VIs mantra that demand keeps prices up. demand, like prices, is all a matter of opinion and opinions shift like the wind that is why we have crashes and booms very few years.

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"For Wang Suxian, the tale of two lines illustrates how the bubble has burst. When home prices were at the tail-end of the boom in March 2005, Wang hired two migrant workers to queue up in a line for a chance to buy units in a development described as being modelled after an apartment community on New York's Park Avenue."

The above sounds like Ireland in March 2006...

and then the fall out

"But today, prices at the complex have fallen by one-third, and the lines of frenzied buyers are gone. Wang is among dozens who are fighting the developer to take the apartments back.

On a recent morning, she stood in a line herself with about 40 other buyers, outside the builder's headquarters, demanding that they negotiate a deal to return their money."

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Great news, see it can happen, and it does happen. Oh and part of my 5 year plan is to move the family to China since my Mrs. is from Sheng Yeng, and my father is from Shanghai... think i might move there now, build up some equity and then come back to the UK once this UK time bomb explodes!!! good find.. and good news :)

That's what foreign speculators get for investing their money in homes!! Homes aren't assets or investment vehicles, they're homes for your children to bring their family up in.

Lewis

"Greed will consume us all..."

Anyone any data on whether there were interest rate rises preceding the crash?

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"Agents will always inflate the amount of rent you'll get. We were told €550 a month but we're getting €400. Just now it won't cover the mortgage but our view is not short-term.

"The apartment is worth €140,000 now and it will go up when Hungarians can take out EU mortgages.

"We're looking at Cracow and Shanghai, they're definitely good places to buy," adds Cliona.

Oh the Humanity

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He already owns a second house in Dunshaughlin and couldn't find tenants, because of the oversupply of property to let in the area.

sounds like very weak market fundamentals to me

and these mugs are still "investing"

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Nice one Duplex - one for the file.

In fact, that has to rank as the most stupid article I have ever read on the whole issue...And, as you can probably imagine, that is up against some very serious competition. The muppetry all the way through is truly something to behold. I could pick through it, but I really don't know where to start. It's just ridiculous. It should definitely go into the blog.

Most young Irish property entrepreneurs release equity in their existing Irish house to fund an investment abroad.

...and most of that money will never be seen again.

Sean put €10,000 down on a one-bedroom unit in an apartment complex in the best location in central Warsaw.

The full price was €120,000, which doesn't include fittings like kitchens, wardrobes or flooring.

A car-park space cost another €15,000 to €20,000.

...and the average wage in warsaw is what? On that basis, it might even be more expensive than Dublin you muppet.

He bought sight unseen which is not recommended, but "knew people who knew" the agent, Irishman Conall McGuire of Warsaw Properties.

...I give up.

Edited by Flash

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There must be strong DEMAND in China with 1.6billion people needing somewhere to live, but fundamentals have shown that what goes up must come down (yet again)

Bit controvertial but I will say it anyway, I always do :)

Your example shows that people NEED somewhere to live so BUY at any cost. I can counter that arguement.

We all have a DEMAND for sex but it does not mean you rape someone!

I just hate this so called EMOTIONAL BLACKMAIL. You HAVE to get on the property ladder. You HAVE to borrow more, thats just the way it is. You HAVE to buy now in-case you miss the boat.

What a load of b0ll0x. I have a lot of needs but you dont satisfy them at ANY COST!

TB

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In Shanghai, people blame the popping of the housing bubble on the central government, which has applied one measure after another in the last year to quash excessive speculation and price increases.

Banks were ordered to raise their best rate on home loans to 5.5 per cent from 5 per cent. Home buyers were required to make down-payments of at least 30 per cent, up from 20 per cent. A 5.5 per cent capital gains tax on home sellers' profits was imposed.

Beijing also levied a 5 per cent tax on the sale price of homes sold before two years of ownership. "It's killed the speculators," said David Pitcher, a Shanghai developer and former head of CB Richard Ellis's office.

If only Nulabor tosspots had done something to stop our bubble before it got so out of control.

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Spoke with somone living in Shang Hai, there opinion was house prices are still quite high, and only pockets of areas have been affected. I assume she's not really keeping that closer eye on the market, or it could be, the prices rocketed up so much, that it's crashed to a low price to westerners, but still a higher price to what property is worth in China. A mansion will cost you £40k max out there with acres of land.

The UK situation is farcical, the British mentality of that we're above anything like inflation, house crashes etc is just the blind leading the blind.

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Music Man's U.K. edition.

U.K. version

Homes sold were bought by speculators, says music man, a real estate nobody in Norfolk and member of the highly acclaimed House Price Crash think tank.

"Ordinary people had no option but to follow the trend," he said. "Worrying that prices would be even more unaffordable tomorrow, many of them borrowed from relatives and banks to buy as soon as possible."

The U.K. government only pushed the market higher, he added.

"Many of the officials said the U.K. property market was healthy and wouldn't drop before the 2012 Olympics."

Music man was also heard to comment that similar is happening in Shanghai.

Edited by music man

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China will not let housing and speculators undermine their economic success.

Unlike here, and many other places of course.

Edited by OnlyMe

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China will not let housing and speculators undermine their economic success.

Unlike here, and many other places of course.

Spot bloody on, mate! :angry:

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Nice one Duplex - one for the file.

...and the average wage in warsaw is what? On that basis, it might even be more expensive than Dublin you muppet.

The average gross (monthly) wage in October 2005 totalled 2,538 zlotys (748 USD)

http://www.e-warsaw.pl/new/index.php?dzial...ak_id=533&kat=1

Scary when Sean has just speculated EUR165,000 on a one-bed flat + fit out + parking.

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Ian McSweeney borrowed €160,000 to buy an apartment in Budapest and a house in Florida - because he couldn't afford to buy a home at home. Kate McMorrow reports.

Why limit yourself to Ireland when looking for a first-time buy, when under €100,000 will buy a decent apartment in many European countries?

Cash-strapped and unable to afford a starter home in Dublin, 30-year-old pub manager Ian McSweeney borrowed €160,000 from the Bank of Scotland with his parents as guarantors, and set off to Budapest in search of an affordable first property.

After three visits and a few false starts with "pushy" local agents, Young's helped him find a renovated apartment on Andrassy Boulevard for €85,000.

It was owned by an architect and had an established tenant, which was a great selling point. With €60,000 left over, Ian flew to Florida to see what he could buy with the small change.

He found a new gated community under construction in Orlando (CHECK) 10 minutes from Disneyworld (CHECK), owned by a travel company and with a ready supply of holiday tenants.

"A US bank lent me $240,000 on the basis of my €60,000 and I bought a four-bedroom townhouse for $292,000 last February. The same houses are now selling for $469,000.

So let's get this straight: he borrowed E160k from RBS. Spent E85k on an apartment in Budapest. He then said to a US bank "I have E60k cash" - neglecting to mention that this was borrowed from RBS. On the basis of his E60k, he borrows a further $240k......

And he advertises this in a newspaper?? :blink:

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So let's get this straight: he borrowed E160k from RBS. Spent E85k on an apartment in Budapest. He then said to a US bank "I have E60k cash" - neglecting to mention that this was borrowed from RBS. On the basis of his E60k, he borrows a further $240k......

And he advertises this in a newspaper?? :blink:

Yep, I wonder how much of that money the RBS is going to see again.

The US$ is gone as the US lender will have the mortgage.

It won't be easy for RBS to try to the sell the Budapest flat. They won't even know the address. But they won't bother going down that route.

Their redress will be to squeeze Sean's parents till they squeek. What Sean may have discovered is a way of getting his inheritance while his parents are alive (they guaranteed the loan), and then handing it straight over to RBS.

Edited by newbie

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Brilliant quotes here:

housing bust comes after a doubling of prices in the previous three years, a run-up fuelled by massive speculation

That's not even looking like HPI by UK and Irish standards...

At least 30 per cent to 40 per cent of homes sold were bought by speculators

Sound familiar???

The typical home being built is in a high-rise complex, with two bedrooms and about 79sq m (850sq ft) of living space.

At least it's better than the 300 sq ft dross being peddled as a 'home' here. :angry:

Jeez.

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This f***wit has borrowings (debts) of E377k plus and he thinks he's rich!!!!

He doesnt even own his own place!!!!!

Man, when the market tanks in Ireland I'm gonna be doing the schadenfreude all over the shop.

Huh! Yeah!

Get on up!

...I mean down!

Uh!

Eq-ui-teeeeee

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I am steven not stephen.

Such as Babui said.In CHINA investment and export is GDP 70+%.USA consume is GDP 70+%.If american consumers reduce their buying than CHINA export will fall,and investment will fall.Since CRB 2003,04,05 increase greatly .i think who used it so many material ? US people .CHINA investment.How can he do it ? debt.When it over? concern US FED and RE.

BUFFETT taked USD short position lang time.and SOROS said 2007 US RE will crash.I think it is time to short USD.and short CRB.all thing is decide by FED 3/28 .If rate arrived 4.75 spring RE market can resuscitate? BEN BENNAKER really believe it .I don't think so.

Man have you seen that chinese guy on that thread. he knows man... he knows so much. If anything I have ever seen captures the zeitgeist of the world now in 2006. it is that post.

Chineese guy telling a load of Americans they both fecked. If I had a diary or a blog I would write it down to show my grandkids if I ever have any.

Edited by jonpo

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  • 301 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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