Thursday, April 19, 2012

The wagons are circling around Britain

Fitch doubts Dutch AAA as property slump reaches 'coma'

Fitch Ratings warns that Holland risks losing its AAA rating. The warning comes as Dutch property tips into deeper slump, with the inventory of unsold homes nearing southern European levels. Household debt is the eurozone’s highest at 249pc of income, compared with 202pc in Ireland, 149pc in the UK, 124pc in Spain, 90pc in Germany, 78pc in France and 66pc in Italy - according to Eurostat data from 2010. Home prices have fallen 11pc from their peak in August 2008, or 15pc in real terms, leaving up to 500,000 people in negative equity. Building permits have dropped 9pc from a year ago, the lowest since 1953. "We expect prices to drop 5pc in 2012." The stock of unsold properties has doubled to 221,000, almost double the declared level in the US on a per capita basis.

Posted by drewster @ 08:25 PM (1357 views)
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6 thoughts on “The wagons are circling around Britain

  • This must be the zillioneth post about property slumps in other countries, I’ll take it seriously if HPC occurs in the UK.

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  • They pay 25% VAT, have one of the highest taxation rates in the West, and they are being called to have austerity no, they need massive tax cuts to stimulate the growth the economy needs to dig itself out of a hole. Of course, the end of bailouts, resulting in defaults would clear the deck for those who have been sensible, allowing them to take over the reigns from those who have been wasteful.

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  • Careful Libertas!

    The HPC thought police will undoubtedly see the situation in Holland as requiring a dose of LVT.

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  • general congreve says:

    @2 – But the defaults will drag the banks down and the savings of the prudent with them. Alright for me, most of my savings are in gold, so I’ll be happy as a pig in sh1t as I buy a nice house for a fistful of ounces, but prudent paper savers are in for a rude awakening. And if they don’t allow default? More QE, ZIRP and bailouts to destroy the value of paper savings sitting in banks.

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  • Frugal, prudent savers go unrewarded, chancers get let off with government support.

    What message are the young people of this country to take from this (while they are waiting for a job)?

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  • As an ex pat in Holland and through my eyes, the problem is being well covered up. The so called housing slump is nothing more than what is going on in the uk. When I 1st came here in 87, then there was a real property slump, just before the uk one happened.

    Having said that, my neighbour has been trying to sell his flat at an over-inflated price for 3 yrs now. I happily rent as the law protecting tenants is excellent and it feels like my own. Think Brown once mentioned that the plan for the uk was also to have these huge rental associations as here. The Dutch boom only happened because the gov forced associations to sell off properties and encouraged people to buy (they even air uk property porn tv).

    Sellers need to be pushed into getting real, but we all know they are the protected (up to now). A friend here bought a new house recently with a fixed mortgage of 5% for 15 yrs so don’t expect rate hikes soon.

    Unemployment here does not seem as bad as uk. I also thought they planned for their future well with long term insurance and pension schemes, unlike the uk.

    Imao after all the savers have been taken to the cleaners, there will be a huge asset slump world wide. There are not supposed to be any winners in this (except landlords?) as we are all destined to mediaeval poverty, except the elite.

    At the mo the elite are busy trashing the uk with fracking planned all over the place, so you guys be thankful that you didn’t buy!!!

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