Sunday, Oct 08, 2006

Big Bonuses Boost House Buying Figures

Times - Property: Keep on bankrolling

Londons estate agents are already salivating at the prospect of another wall of money. Bonuses are definitely the hot topic of this autumn, says Lindsay Cuthill, head of Savillss Fulham office and regional director for southwest London, who estimates that more than 45% of sales in the past 12 months in his area were bonus-related.

Posted by nearly30 @ 09:52 PM (533 views)
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1. nearly30 said...

According to Phil off of Location etc... Traditionally, the best deals are done in November,

Area | City buyers as a percentage of all buyers in 2005-6

Prime central London 52.5%
Prime Docklands 51.9%
Prime southwest London 44.7%
Prime home counties 30.5%
Prime north London 28.0%
Ubertowns (Oxford, Cambridge, Winchester) 20.6%
Rest of prime UK market 16.7%
All prime markets 28.5%

Yeah who cares!!! I know the areas I want to burst first - looks a bit like the list above.

Before you ask - I am a bit jealous - only earning average wage and getting no annual bonuses!

But I certainly wouldn't be investing bonuses in any buy to launder schemes right now.

Better take advice from Jimmy Saville and invest in gold than Savills Residential Research and invest in property!!!!

Sunday, October 8, 2006 10:03PM Report Comment

2. Tyrellcorporation said...

I have to say that I'm getting very depressed about the whole thing now.

Some friends of mine in London agreed a sale on their house and agreed to buy someone elses in Oxfordshire. This situation was in limbo for about 3 months as the Oxon owners said they were looking for somewhere to rent. They have just announced that they are now taking the house off the market and are going to put it back on in the Spring. This is presumably because they reckon it is now worth significantly more that what they marketed it at in the summer.

This to me shows how confident sellers now are and is really another nail in our collective coffins... maybe we are in fact in a new paradigm...oh well, off to bed...

Sunday, October 8, 2006 10:26PM Report Comment

3. paul said...

Well Tyrell, take heart in the fact that as every (sensible) economist says, what can't continue indefinitely doesn't.

London is still the international finance centre of the world. It is. I despise it, but it is. I work in the city, and yes there are plenty of wankers working there. But they do not an economy make. They will not sustain the housing market on their own - there will be a small number of EA winners and a large number of losers because that's how the market works (whatever you're trading).

If the bonuses this time round are enough to propel the market further then I will eat my hat.

I sense a lot of uncertainty now in the city though. No-one would be surprised if they lost their job or got a bonus tomorrow, and if this is capitalism then the surer bet is them losing their job.

A lot of uncertainty. This is not a bullish time.

Monday, October 9, 2006 12:13AM Report Comment

4. tyrellcorporation said...

I hope you're right, my faith in an imminent crash event is severely being tested at the moment...

Still at least we've got North Korea keeping the markets sweating and OPEC being enthusiastic about keeping oil above $60 a barrel...

Monday, October 9, 2006 08:57AM Report Comment

5. the bald man said...

I was at a party on Saturday where an estate agent admitted that he thought the bubble will soon burst (this was before drinking)!!!

Monday, October 9, 2006 09:00AM Report Comment

6. Renting Happily said...

I have a lot of friends in the city who have over the last few years taken out eye-watering mortgages (yes, even with their bonuses) that they will be hard pushed to keep up if there are any reasonable economic shocks (interest rates, fall in bonuses etc) . I know the estate agents are rubbing their hands together,but a lot of the people who are plowing their cash in are just doing it because their peers are. This is creating pure 'froth'.I also viewed (for fun) a some barn conversions yesterday towards Cambridge - 2 beds, not very exciting, overlooked by other properties...450,000 ! Insane. Even my partner who is a housing price optimist is starting to wobble in her viewpoint after looking at some of the house prices recently. I now believe we are reaching total mania where peoples 'desire' (eg just BUY bricks and mortar) is moving further and further away from any concept of 'value' . It's become a mentality/trend, but i feel it's beginning to change.

Monday, October 9, 2006 09:41AM Report Comment

7. Such_short_memories said...

I draw some hope out of the fact that some city types have already banked their bonuses some months before they have even been awarded/paid. By taking out these enormous bridging loans to try and beat the inevitable surge, is counting ones chickens before they hatch on a remarkable scale. As RH mentions, it only takes a sizable shock, ie negative developments in the Iranian stand off, or rapid US plunge into recession (on the back of US HPC), and these guys (along the 'mini boom') will be screwed.
Bankers/governments/private individuals somehow fail to take heed of the past and will be punished accordingly.

Monday, October 9, 2006 11:02AM Report Comment

8. the bald man said...

The only way to judge value is firstly to look at the notional rental yield and growth potential and judge this against investing your cash (or borrowed money) into other assets. Logic would appear to suggest that buying at this stage of the housing market cycle does not make much sense.

(Of course there are other factors such as potential to gear up, interest rates etc to consider)

Monday, October 9, 2006 11:02AM Report Comment

9. kpjcomp said...

Well l hope they do spend there bonuses on houses, would'nt want them to have that money when the bubble bursts would we.?

tyrellcorporation said...> I hope you're right, my faith in an imminent crash event is severely being tested at the moment...

Why?, all the signs are there tyrell.
For example, Australia, US , Ireland & Spain are all seeing house prices fall, it will only be time before it hits our shores.

On another subject, my bank sent a letter today increasing my Credit limit on my card to 6500, I usually only have about 200 on my Visa, and that's only because I use it to buy things of the internet because of added protection & then pay it off straight away. So it looks like the banks are still pushing for people to get more into dept. They have also given me 0% for 6 months on balance transfers. Mmm, maybe I could get another Credit card draw out 6500 and put into savings at 5.15% for 6 months, and transfer the 6500 to my 0% Visa. And I thought this trick was fading out ->

Monday, October 9, 2006 11:45AM Report Comment

10. markd said...

"This to me shows how confident sellers now are and is really another nail in our collective coffins... maybe we are in fact in a new paradigm...oh well, off to bed..."

Perhaps this is the attitude we should all take...don't they say when the last bears turn bullish that is when the market perhaps if everyone on HPC starts posting positve comments this would push things over the edge?! I have to agree though, there seems no end to this at all. Anyway here goes...I'm with Phil and Kirsty-a 50 % rise at least over the next 6 years.

Monday, October 9, 2006 11:49AM Report Comment

11. tyrellcorporation said...

This bear has spent two years looking over his shoulder at the raging bulls who are now but a speck on the horizon... I can still hear them partying hard too which is bloody annoying!

KPJ, true, all the signs are there but the UK seems to be amazingly resilient to any negative sentiment... explain why all these other developed markets you mentioned are now stagnant or falling and ours is racing away at a projected 10% growth per annum?

Monday, October 9, 2006 12:21PM Report Comment

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