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Builder Gleeson Rains On V I Ramping Parade

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http://uk.biz.yahoo.com/24052006/214/glees...ing-demand.html

Gleeson hit by patchy housing demand

LONDON (ShareCast) - Housebuilder MJ Gleeson has given notice that the
housing market may be slowing with a warning of patchy conditions in its homes divisions with profits "very" substantially" below forecasts.
In a statement Gleeson said, "Because of patchy market conditions, combined with a desire to achieve sales, there has been a reduction in profit margin on some sites."
In addition, the switch from traditional house building to housing for sale in urban regeneration areas has also caused disruption and the greater part of profits previously anticipated to be recognized this year to June, will now be deferred into the next financial year, the statement said.

Telling it like it is. :D

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Hi

I'm finding this VI stuff, rather confusing. A builder isn't a VI if he says "housing market may be slowing ". But when a builder says it's pcikig up, they are a VI.

A HO says the Market is picking up (One house so neutral), but they are a VI, however a STR who is short of a house says it's crashing then they are not a VI

What is a VI is it? I can only presume a VI is anyone who says that the housing market isn't crashing.

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Hi

I'm finding this VI stuff, rather confusing. A builder isn't a VI if he says "housing market may be slowing ". But when a builder says it's pcikig up, they are a VI.

A HO says the Market is picking up (One house so neutral), but they are a VI, however a STR who is short of a house says it's crashing then they are not a VI

What is a VI is it? I can only presume a VI is anyone who says that the housing market isn't crashing.

A "VI" is one who has a vested interest in house prices rising. This would always include builders and mortgage lenders.

It sometimes includes EAs who will be anxious for a HPC when HPI stops as no sales = no commissions. It is better for an EA to be selling on a falling market than going broke on a stagnant market. This group may start talking the market down if sales stagnate much further in which case they would not be a "VI" against a HPC. EAs in some US markets are talking the market down for this reason.

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Guest

EAs in some US markets are talking the market down for this reason.

They did this here for a bit last year, I recall agents telling vendors to "be realistic" = "price down you bas tards we're losing our jobs at Country Wide."

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A "VI" is one who has a vested interest in house prices rising. This would always include builders and mortgage lenders.

It sometimes includes EAs who will be anxious for a HPC when HPI stops as no sales = no commissions. It is better for an EA to be selling on a falling market than going broke on a stagnant market. This group may start talking the market down if sales stagnate much further in which case they would not be a "VI" against a HPC. EAs in some US markets are talking the market down for this reason.

Ah so "Builder Gleeson Rains On V I Ramping Parade", means that the VI gleeson is raining on its own VI ramping parade.

Also why are VI not people who are short. If I was short, say BP and then say "BP is going to crash", and send round a note putting them on underweight, the surely I have the same VI as if I wrote "BP is going to boom", and send round a note putting them on overwieght?

This board Obviously has a VI in talking about a crash and speading the House prices are going to crash POV. If it didn't no one would be here. The people here, tend to be short on housing, therefore they have a VI in a crash

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Guest The_Oldie

Ah so "Builder Gleeson Rains On V I Ramping Parade", means that the VI gleeson is raining on its own VI ramping parade.

That is how I read the original post. (VI breaks ranks).

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Guest Bart of Darkness
I'm finding this VI stuff, rather confusing. A builder isn't a VI if he says "housing market may be slowing ". But when a builder says it's pcikig up, they are a VI.

VI means vested interest.

A builder of houses has "vested interest" in the housing market doing WELL. It is BAD for them if housing is doing BADLY. They don't have a "vested interest" in doing badly.

Hope this wasn't too complicated for you. :P

Tomorrow we'll get started on your 6x tables an,d if there's time, maybe a Janet and John story.

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VI means vested interest.

A builder of houses has "vested interest" in the housing market doing WELL. It is BAD for them if housing is doing BADLY. They don't have a "vested interest" in doing badly.

Hope this wasn't too complicated for you. :P

Tomorrow we'll get started on your 6x tables an,d if there's time, maybe a Janet and John story.

kingofnowhere's point was that we are all VIs, since we all have an interest (in the pecuniary sense) in the property market. He also makes the point that we tend to believe VI bulls sources when they agree with us, and not when they don't.

He wasn't asking what VI meant.

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Guest Winners and Losers

I have a friend whose background is construction, and his fathers etc. He keeps telling me there is no way thre is going to be a crash, house prices only go up blah, blah, blah (I want to strangle him :unsure: ). So I will be printing this off and handing it to him 'read it and weep' style. ;)

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Guest Bart of Darkness
He wasn't asking what VI meant.

He was asking why a builder wasn't a VI when reporting bad news, yet was a VI when reporting good news.

A builder of houses has "vested interest" in the housing market doing WELL. It is BAD for them if housing is doing BADLY. They don't have a "vested interest" in doing badly.

I thought I'd explained this in simple enough terms. Apparently not.

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Perhaps of more interest would be the price of other builders such as Persimmon and Wimpey which seem to be down in line with the market today. Perhaps should be down further given the Gleeson news?

Edited by euroscooby

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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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