Got to look after the rich

This is Money: Second home owners who registered properties as businesses set to land £85m windfall from Government's small business grant scheme

Whilst the chancellor is looking to make cuts & tax rises a so-called "loophole" entitles some wealthy second home owners to around £1300 of free taxpayer cash.

Posted by landofconfusion @ 02:57 PM 0 Comments

Wednesday, Nov 25, 2020

Sure sign prices will rise, as they have done so far this year

Bbc: Unemployed predicted to rise to 2.6 million

The latest figures show 1.62 million people are unemployed, a number which has risen by more than 300,000 since last year. Expected to go up to 2.6 million. Surely house prices are on the rise.

Posted by deepak @ 06:33 PM 1 Comments

Risks of home ownership at any cost?

BBC: No guarantees for leaseholders over cladding removal costs

First you buy an apartment at highest price and then get others to pay to make it safe, is it fair? If the price would have gone up would you share the gains? Would the people who already sold at profit before not be asked to return the gains?

Posted by deepak @ 06:31 PM 1 Comments

Greed or FOMO?

BBC: 'My dream flat left me with a £20,000 repair bill'

Govt policy of "Shared ownership" gives you a small percentage of ownership and 100% of the bills. No wonder housing companies are loving this as they do not need to keep up with the repair. This is extremely important when people only compare mortgage and rents only. Home ownership also comes with repair bills

Posted by deepak @ 06:28 PM 2 Comments

Monday, Nov 23, 2020

What happens when you turn interest rates to zero

Yahoo Finance: Savers who put £47m into minibond firm Blackmore will lose all of their money, say administrators

This is what happens when you push interest rates to zero. Savers start looking for any return then they risk the capital as well. They would never go for loss of capital if they knew what they were getting into.

Posted by deepak @ 09:51 PM 0 Comments

Thursday, Nov 5, 2020

Here we go again

BBC News: Bank of England "injects" extra £150bn into economy

Bank of England can create new money electronically and the Bank spends most of this money buying government bonds through a process known as quantitative easing (QE). QE is sometimes described as "printing money" but in fact, no new physical banknotes are created. Government bonds are a type of investment where you lend money to the government. In return, it promises to pay back a certain sum of money in the future, as well as interest in the meantime.

Posted by khards @ 11:26 AM 4 Comments

Monday, Nov 2, 2020

Best time to own a house, Its free

BBC: Mortgage holidays extended for up to six months

Anything for home price inflation. There is no chance of a forced seller, there is no chance of a price fall. So that creates a shortage in the market as sellers are stopped from coming in. So when you have few buyers with restricted supply prices could go up artificially. Not sure what will happen when in six months, the additional payments would need to be made and all the sellers are forced at one time. .

Posted by deepak @ 10:45 PM 1 Comments

Saturday, Oct 31, 2020

The worse economy gets, the higher the prices go

BBC: House prices climb to record high, says Nationwide

Oxymoronomics. With the NEW economy, a new word needs to be defined to explain what is happening. Oxymoronomics is the best I can come up with Oxymoron and Economics. Nothing adds up.

Posted by deepak @ 01:44 PM 2 Comments

Friday, Oct 16, 2020

And here comes the avalanche

Wolf Street: Highly Leveraged Commercial Real Estate Bets that UK Local Authorities Took to Meet Budget Shortfalls Begin to Unravel

For the last two years, KPMG has refused to sign off the accounts of Spelthorne borough council, a tiny local authority on the outskirts of London that has taken on huge amounts of debt to buy more than £1 billion of commercial and residential property, it has been revealed. The council has an annual budget of just £22 million, yet it has amassed more commercial property than just about any other local authority in the UK, all of it debt financed.

Posted by khards @ 08:58 AM 3 Comments

Wednesday, Oct 7, 2020

Despite Covid, at the macro level house prices still are rising pretty much everywhere.

Moneyweek: House prices are rising across the globe, not just in the UK

John Stepek points out that even though we are in the midst of a pandemic, low interest rates and a general lack of material shocks (cushioned in no small part due to government action) has meant that first world house prices have remained surprisingly resilient.

Posted by landofconfusion @ 01:14 PM 4 Comments

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