Sunday, September 30, 2007

Are there still doubts we are heading for a HPC?

Does anyone live in the buy-to-let flats?

"Manchester is the most extreme example of a decade of massive residential city-centre development. Others include Leeds, Newcastle, Nottingham, Swindon, Basingstoke, Southampton and Bristol. Now it is feared that some of the more grandiose schemes - fuelled by borrowers whose access to cheap money has vanished in the wake of the credit crisis - could stand for years as empty symbols of property obsession and greed." But I thougth... immigration, divorces, students, single households... where is David Smith? Where is Fionnuaualaa Nationwide?

Posted by confused76 @ 10:47 AM (1479 views)
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5 thoughts on “Are there still doubts we are heading for a HPC?

  • Cheekie Charlie says:

    “70 to 90 per cent have been bought by investors, rather than owner-occupiers. It seems that investors come primarily from London and the South-East. They are not seasoned landlords, but are looking for an easy profit.”

    There is a God!!!
    I can see when these lemmings go bankrupt the service charge on these buildings will resemble a mortgage! ( If they don’t already) These places will be shifted for next to nothing or nationalised and given to migrants.

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  • I disagree. I think loads of them were empty before as well. I had read news about Liverpool almost a year ago.
    But at that time the investors were making money by capital apppreciation which was offseting the mortgage payments.

    Now with the fall of prices ( because Mark to Market value) they are paying for the loss out of their own pockets.
    Which is what is hurting.

    Glossary:
    Mark To Market: Is a term used where the assets of big companies is valued at what is they can get for any asset in the market.

    As these house prices are coming down they will have to be reflected in company’s balance sheets.
    What you hear now that the companies balance sheets look good. The reason for that is in UK and Europe these big companies audit there books every 6 months to a year unlike US where it is every 3 months.
    So the UK shaky time will be in december when these UK House market speculators and the effect of US subprime will come out in the open

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  • Actually I live in a BTL flat in Manchester, where my neighbours and I enjoy our landlord-subsidised rents. Occupancy rates depend on the particular building’s quality and location – the flats that are too small to swing a cat generally go unoccupied, as do those in secondary non-central locations. For me as a tenant it’s great – I enjoy cheap housing, great location, and 24-hour security (paid for by the landlord’s service charge). Given the crime levels in Manchester, that’s very reassuring!

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