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uncle_monty

A Hpc Will Be Uniform Across All Types Of Property

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Conventional wisdom holds that a HPC will affect flats more than houses i.e. 30% HPC in flats = 20% fall in home counties houses = 10% fall in country mansions. With the exception of new build, city-centre flats, I disagree.

Just look at the experience of John Devaney, head of US hedge fund United Capital Asset Management. August's financial market crisis has required that he sell a $5.5m helicopter, 142ft yacht and a multi-million house (in Aspen) to cover losses. One can speculate on his equity in these assets, but the liquidity crisis of a so-called "high-flyer" demonstrates that if/when UK HPI turns, the pain will be distributed evenly. This debt-fueled excess has taken place at all income levels.

Best,

UM

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I think that there will be some rich people who will be caught short. But this will be dwarfed by the number of poor people and BTLers who have over-extended themselves with credit.

Perhaps the safest property haven will be amongst the sorts of property that are already owned out right, such as retirement places.

It won't be evenly spread even though it will happen in all types and locations.

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I agree, I have just come back from my summer holiday, nothing that grand but 2 weeks in a family orientated apartment in Menorca.

The complex was nowhere near full, there was plenty of space on the beach and round the pool and the airport was oddly quiet.

We hardly queued for anything, normally in mid August its heaving.

I would say it was more like April-May.

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