Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

'ghost' Buyers Fuelled Us Crash

Recommended Posts

Taylor Wimpey has said the trend of people buying homes they never intended to live in helped cause the housing crash in the US.

The firm's US operations made a pre-tax loss of £254 million as the bottom dropped out of the market last year.

Operating margins at the business collapsed by 70 per cent to 5.1 per cent while completions tumbled by a quarter to 6,740 for the year ending December 2007.

Its US woes helped the group nosedive into the red, recording a pre-tax loss of £19.5 million from a £405.6 million profit last time.

The firm's chief executive of its UK housing division said the US was now reeling from the affects of buyers not being able to pay back mortgages they never really intended to hang onto. Ian Sutcliffe said: "Market conditions in the US remain extremely difficult and I can't see it improving."

"Unfortunately a lot of people got sucked in which was all well and good when they thought it was a one-way track. But they were borrowing money when they really shouldn't have and they never really thought they would have to pay the loan back in full because they thought they could easily sell it."

Full article here:

http://www.cnplus.co.uk/News/2008/03/ghost...d_us_crash.html

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 297 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.