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I Was Asked If Prices Were Going To Crash.

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I looked at the guy and asked him exactly how much he thought it would cost to build a two bed flat.

I pointed out that they make a great deal of profit now, less then a year ago.. but that they are still in profit at 50%

They prefered it at full price, but I when I pointed out that all they would do was sell at the best price they could he did look a little concerned..

Does this make sense..?

the guy who put it together for £35,000 does not care as much as the person who buys it for £170,000 what price it fetches.

and I am not lying when I say that flats down my way did sell for £170,000 for a while at peak.

they sell now for £130,000

it's already amongst us this crash.

I won't understand ever what the BBC is up to.. empty bull tails on the day the IMF trashes the market are now so predictable I almost forget to be angry...

The VI's will try.. and to listen to some on here they will even win a few over..

but if I am to be told about a market I will damn my self as a fool before I believe those who profit most from it.

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They don't have a choice, they have to ride it out as they did in the early 90's, they can't just shut up shop and stop building, so they carry on but take the hit on the margins and further down the line take advantage of more sane land prices.

If you look at the reports from listed builders they already admit they're under margin pressure.

edit: I must add that lots of smaller builders do get clobbered and go to the wall!

Edited by BuyingBear

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Develpments can take 2 to 3 years from concept to fruition.

Its likely that the sites going up at the moment have been in the pipe line since

before HPI ground to a halt in 2004.

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  • 331 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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