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Bingley Bloke

Where Is It All Coming From?

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Looking at Leeds city centre on Right Move I see many pages of one and two bed apartments in the region of £200K. Not only that, but there are more being built there all the time. Can someone explain where all the money will come from to pay for all these apartments? I'm as sure as anyone that the property market is overpriced but this doesn't seem to be putting developers off. Surely there simply aren't enough people to occupy all these new builds... and if there are, surely they can't all afford these prices... and if the apartments are being bought up by BTL investors, surely they still have to rent them out for it to be worthwhile... and if folk can't afford to buy these apartments then surely that can no sooner afford to pay a level of rent that makes it a worthwehile venture for the BTL investors? I'm getting really confused by all of this. Is there a bottomless pit of free money somewhere that everyone else knows about and I don't?

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Is there a bottomless pit of free money somewhere that everyone else knows about and I don't?

Yes - it's called Japan, but they've now decided that the party's over, and the booze has run out.

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Looking at Leeds city centre on Right Move I see many pages of one and two bed apartments in the region of £200K. Not only that, but there are more being built there all the time. Can someone explain where all the money will come from to pay for all these apartments? I'm as sure as anyone that the property market is overpriced but this doesn't seem to be putting developers off. Surely there simply aren't enough people to occupy all these new builds... and if there are, surely they can't all afford these prices... and if the apartments are being bought up by BTL investors, surely they still have to rent them out for it to be worthwhile... and if folk can't afford to buy these apartments then surely that can no sooner afford to pay a level of rent that makes it a worthwehile venture for the BTL investors? I'm getting really confused by all of this. Is there a bottomless pit of free money somewhere that everyone else knows about and I don't?

one mustn't forget that "big" businesses are not necessarily clever or somehow more insightful than you or I. That is a dangerous assumption to make - just like 95% of people are unimaginative and subject to the whims of the herd, the same applies to corporate entities

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Looking at Leeds city centre on Right Move I see many pages of one and two bed apartments in the region of £200K. Not only that, but there are more being built there all the time. Can someone explain where all the money will come from to pay for all these apartments? I'm as sure as anyone that the property market is overpriced but this doesn't seem to be putting developers off. I'm getting really confused by all of this. Is there a bottomless pit of free money somewhere that everyone else knows about and I don't?

Does anybody really know the impact of drugs money on this ? It must be a factor at least. The journalist in the Whistleblower programme buying fake wage slips was not genuine, but the seller was, and successful drug criminals would presumably need these for their own mortgages. (At today's prices maybe even career criminals need mortgages, and you can't just steal a house without drawing some unwelcome attention !). There have been some scary press reports about just how big the trade in hard drugs actually is, but nobody really knows for obvious reasons. They don't pay tax either, of course...

Nestor

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There is a massive (and high profile) IT project going on in Leeds at the moment.

It is staffed almost entirely by managment consultants from outside the area and due to the length of the engagement (>4yrs), it is not economically viable to house these consultants in hotels.

It is therefore common practice for management consultancies to house thier consultants in rented accomodation for the duration of the project.

Of course, the project is of finite length, and unless another takes it's place, these properties will be vacant in the not too distant future. The agencies who have been renting the properties to the corporations know this and clearly factor this into their rental price. The private "investor" clearly does not.

= Regional Bubble.

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  • 337 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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