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Realistbear

Repossessions R O C K E T In Wales

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http://icwales.icnetwork.co.uk/0300busines...-name_page.html

Repossessions rocket in Wales

Aug 5 2006

Western Mail
Orders for properties to be repossessed in Wales have rocketed by 37%, new figures show.
The biggest rise in court orders for repossession came in the rural west of Wales, where house prices have increased dramatically in the most picturesque areas.
They rose by 150% in the former county of Gwynedd and 106% in the former Dyfed.
The figures, published by the Department for Constitutional Affairs, coincided with news of a record number of people becoming insolvent after their debts became unbearable.

HPC anyone? I have a sneaking suspicion its starting to get moving.

Edited by Realistbear

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http://icwales.icnetwork.co.uk/0300busines...-name_page.html

Repossessions rocket in Wales

Aug 5 2006

Western Mail
Orders for properties to be repossessed in Wales have rocketed by 37%, new figures show.
The biggest rise in court orders for repossession came in the rural west of Wales, where house prices have increased dramatically in the most picturesque areas.
They rose by 150% in the former county of Gwynedd and 106% in the former Dyfed.
The figures, published by the Department for Constitutional Affairs, coincided with news of a record number of people becoming insolvent after their debts became unbearable.

HPC anyone? I have a sneaking suspicion its starting to get moving.

Absolutely.

I have just returned to Wales after 18 months overseas. The mood has changed, at least amongst business people. Friends that were bullish about property when I left now acknowledge that I had correctly called the top of the market in Cardiff back then, and are now sweating over the viability of the BTL's they purchased at the top. They are currently attempting to offload and are likely to succeed, but only because other investments have done much better over the same period so they can afford to take the real loss required to sell into this market. They admit that the rental income never matched the interest, even before the rate rise. At the moment, they are leaking properties one or two at a time, but if push comes to shove, they will dump the lot -either if they see the market take a sharp downturn or if they see their other businesses struggling - both seem likely.

Once there is wide acknowledgement that the market has turned, I simply don't see the usual rules that applied to property momentum applying this time around. Things really are different this time - property was traded up like a commodity - it was pure speculation, and so they are now subject to the some of the downward volitility we usually associate with metals and tulips.

Something that the amatuer BTL brigade fail to appreciate is that they have mixed it with businesses who speculated on residential property as part of a diverse strategy of short-medium term tax avoidance, primarily as an attempt to hedge against real inflation eating cash during a period of big profits (that can usually be traced to loose government spending) and wildly supressed interest rates. As costs rise in the wider economy, small to medium businesses will happily liquidate their loss-making property assets in order to trade through an inevitable downturn and this will exert rapid downward pressure on prices. When my business friends told me how many properties they "owned", I nearly collapsed.

GM

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Too right, the economy here in Wales is too weak to support the rises we have seen. Totally insane and totally divorced from economic fundamentals.

The European funding will be running out soon and I haven't seen any economic improvement stimulated by the millions and millions spent so far, other than the plushing up of places like Cardigan. Take a look at the jobs in the local paper - same old £5-6 an hour retail, office and care-home jobs. Even saw an ad the other week for an experienced brick-layer for £8 an hour. A solicitor friend, with 8 years of experience earns £10 an hour..........

Bumped into a Swiss woman looking to invest in a really ghastly 1960s property yesterday - very dodgy structurally - ghastly location - go on, buy - it'll be an excellent investment :lol: She'd flown over especially just to view one property :lol::lol::lol: Property twit of the year and TOTALLY clueless (she hadn't even been to Wales before but spotted the house 'on a Web site')

G

Edited by gruffydd

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  • 302 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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