Thursday, March 22, 2007
The irrationality of property buyers
NY Times Property section
broadly, US market is almost as overblown as UK market. It is argued ( reasonably well in my opinion) that this is due to the irrationality of investors who are able to speculate using the leverage provided by mortgage companies. The reasons for doing this are: greed, mass psychology, funding and fear of stock market crashes. It does seem applicable to UK market. Buy2letters are happy to accept minimal yields often less than 4 % gross because they are simply convinced that property prices are a one way bet. we'll see.
Posted by jpb radlett, herts @ 09:07 AM (574 views)
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