Property Meltdown

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Re: Property Meltdown

Postby Pixel8r » Sat Sep 05, 2015 9:15 am » Safari 8.0.8 Safari 8.0.8  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

It's so sad the belief that has been ingrained in people in the UK that they aren't anything unless they own a house. It almost like they will salvage everything just to get one, their own morals being a primary one. Like being in a house that you or your partner owns somehow makes you a better person. I say it all depends on how you got there if you will be a better person or not. Through hard work fair enough, but many haven't.

Looking at the graph below of average UK house prices adjusted for inflation and considering all the actions the government and central bank have taken since the start of the crash in 2008, things are looking pretty sad. What actions have happened since 2008, zero rates, QE, help to buy and all it has managed to do is create a dead cat bounce.

Now that the CB is out of bullets and the government is targeting all that BTL money shouldn't be long before we are hurtling down again, about bloody time. Bring the noise.

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Re: Property Meltdown

Postby Pixel8r » Sat Sep 05, 2015 9:34 am » Safari 8.0.8 Safari 8.0.8  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

I guess it depends if they actually had any morals to lose in the first place. Greed and lust for power rules many but the cycle will always come back around and send them back to hell where they belong... soon come.
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Re: Property Meltdown

Postby Pixel8r » Sat Sep 26, 2015 6:26 am » Safari 8.0.8 Safari 8.0.8  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Mark Carney is preparing the UK for the coming property crash, which is being bought about by the increase in taxes on BTL investors. 40% increase in lending to BTL since the debt crisis in 2008. Leveraged gains leads to leveraged losses, not going to be pretty.

I am glad this is finally on the cards it will bring houses back to being able to be bought by families to live in, rather than investors to make money out of. I wonder if we will see the 1980's 50 Oz for average UK house.

Britain's buy-to-let boom is a growing risk to the economy and could spark a house price crash, Bank of England warns

  • Buy-to-let mortgage lending had increased by over 40% since 2008
  • Over the same period, lending for ordinary mortgages has only risen 2%
  • Bank of England said the buy-to-let boom left the economy vulnerable
  • House price fall could prompt mass sell off and 'exacerbate a downturn'

A seven-year buy-to-let boom has left the UK economy more at risk to a future recession - and could even spark a house price crash, the Bank of England warned today.

The Bank's Financial Policy Committee, led by Governor Mark Carney, warned that landlords could be 'disproportionately vulnerable' to large falls in house prices and could make any property downturn even worse.

Buy-to-let mortgage lending has risen by 40 per cent since 2008 - 20 times faster than ordinary loans. In the same period, the buy-to-let share of the whole market has risen from 12 per cent to 16 per cent...
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Re: Property Meltdown

Postby Buddy Rich » Sat Sep 26, 2015 9:45 am » Safari Mobile 9.0 Safari Mobile 9.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

Bring it ON
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Re: Property Meltdown

Postby Laura » Sun Oct 04, 2015 12:47 pm » Firefox 41.0 Firefox 41.0  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Upmarket Gibraltar is on another plane:

http://www.opp.today/ocean-spa-plaza-ap ... U51giOT.97

All 125 Ocean Spa Plaza apartments at Ocean Village sold out within 90-minutes of its launch, but the paperwork took 36 hours to complete.

The properties were sold to buyers on the 100-strong VIP Advantage List, who had already paid a refundable deposit and received plans and prices 48 hours in advance, and an oversubscribed waiting list.

Karen Houston, Sales & Marketing Manager for Ocean Village, says, “This sell out comes as little surprise. In Gibraltar there is phenomenal pent-up demand for luxury accommodation in Ocean Village with its leisure and recreational facilities. Ocean Spa Plaza perfectly meets this need.
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Re: Property Meltdown

Postby Pixel8r » Wed Dec 16, 2015 8:52 am » Safari 9.0.2 Safari 9.0.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Another nail in the coffin of UK BTL. :D

Carney promises action on buy-to-let property market

The Bank of England has again expressed concern about the UK's buy-to-let property market.

The Bank's governor, Mark Carney, said he was concerned about high levels of lending to landlords and that the Bank would take action. "There are a number of things happening ... we are watching it closely and we will take action," he told the FT.

Mr Carney said the problem was that investors might sell their properties at the same time if house prices fell.

In September, the Bank's Financial Policy Committee (FPC) made a similar warning about the buy-to-let market.

The committee, which is led by Mr Carney, said the growing market posed a threat to the UK's financial stability.

"The stock of buy-to-let lending might be disproportionately vulnerable to very large falls in house prices," the FPC said...
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Re: Property Meltdown

Postby Pixel8r » Wed Feb 03, 2016 8:34 am » Safari 9.0.2 Safari 9.0.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Article in the Times which is subscription only.

Buy-to-let landlords poised to sell 500,000 homes in a year

Collapsing confidence in the buy-to-let market will lead to half a million properties coming on to the housing market in the next year, a survey suggests.

George Osborne's crackdown on landlords has sent confidence in buy-to-let to a low point, the study found.

The proportion of landlords hoping to sell in the next 12 months has more than doubled since July from 7 per cent to 19 per cent.

The National Landlords Association, which conducted the survey, said that if landlords followed through on their intentions, there would be a dramatic sell-off of 500,000 properties in the next 12 months, followed by another 100,000 sold each year until 2021.

Half a million extra properties coming on to the market in a year would double the usual supply of homes and could force house prices down, according to economists...
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Re: Property Meltdown

Postby Laura » Sun Feb 21, 2016 2:33 pm » Google Chrome 46.0.245 Google Chrome 46.0.245  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Canadian real estate. A zh comment on crazy Vancouver values:

What isn't often mentioned, is that many of

these sales contracts in Canada have a

type of transferal clause that essentially

makes the deal a derivatives vehicle.



I mention "derivative" around here... and

I don't think I have to say much more...

now do I?



Yup, there is a game going on on both sides

of the Pacific, and the "sale price" of a Canadian

house is nothing compared to how much cash flows

on a realestate sale that can take 6 (!) months to close...

you can flip a derivatives conttract every day on the

full "price" of that house... so close to $1/2 BILLION

can move out of Asia on one deal.



http://www.zerohedge.com/news/2016-02-1 ... nt-7212016
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Re: Property Meltdown

Postby Laura » Fri Feb 26, 2016 12:32 pm » Google Chrome 46.0.245 Google Chrome 46.0.245  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Australia.
This is from a reader of 'acting man' & is quoted by PT within his article.
(my bold)

http://www.acting-man.com/?p=43441

Property developers, meanwhile, are presently building furiously in order to sell into current demand. Perhaps this is all that is propping up GDP growth right now (making the latest weak print all the more relevant).
To begin: Australia has a fairly unique approach to ensuring its citizens are provided for in retirement i.e. they have a system of mandatory saving for all workers – superannuation – which is supposed to provide the majority of contributors a healthy lump sum on which to retire. Funds are essentially deducted from each salary check and the proceeds typically invested in stocks by their friendly investment firm (think mutual fund, long-only, index-hugging types). There are a number of major issues with this system, not least declining forecast returns (in recent years), which means that future employee contributions will need to rise sharply, but that’s a discussion for another time.
Leaving aside the ideological objections to ‘forced saving’, this arrangement appears quite sensible as the State certainly doesn’t want to end up providing for those who would rather ignore retirement planning altogether. But the Superannuation system also means that Australians have one of the highest per capita equity exposures in the world (not that investment in equities is mandatory either but, culturally, equities is pretty much the only show in this town).
Again, this may not appear to be a bad thing, but here’s the problem: Australia’s banking oligopoly makes up fully 30+% of the entire main index (where the majority of Superannuation is invested) and the actual exposure to banks may be greater given that the ‘Big 4’ banking stocks have the most attractive dividend yields in the index. A quick glance at the ‘Big 4’ balance sheets reveals that the biggest single exposure they have is to is residential real estate (60+% in each case). This leaves the average Australian home-owner much more exposed to the real-estate market than most would appreciate.
But it doesn’t end there. Australia has a perverse tax subsidy called ‘negative gearing’, the origins of which I am not certain, but it effectively allows owners of investment properties to offset any losses they incur on that investment against personal income for tax purposes. This has made owning investment property de rigeur among many middle class Australians and, again, Australians have one of the highest levels of investment property ownership in the developed world (no doubt aided by this incentive). The incentive, of course, means that such property is very often acquired at what would be deemed, absent the subsidy, economically unattractive levels.
The ‘negative gearing’ subsidy is widely held by the public to be too politically sensitive to be considered for ‘review’, but talk of winding it back has started to crop up in the media for the first time in many years. In common with just about every other DM country the fiscal situation here is deteriorating and the government is under increasing pressure to address it. Negative gearing, depending on the source, costs the treasury some $8bn to $16bn per annum and the left-leaning opposition party, the ALP, is contemplating whether to make negative gearing one of the central policy planks at the next election (investment properties are largely deemed the domain of the better-off LNP supporter, after all).
And it gets worse: the government, in recent years, made Self Managed Superannuation Funds (SMSFs) more broadly accessible to its citizens so that they weren’t held hostage by the inherent limitations of mutual fund managers. In a subsequent development, SMSFs were then allowed (indeed, encouraged) to include residential property, which has led to a stampede by retirement savers into the investment property market — aided by a tsunami of positive media coverage. This change is undoubtedly partially responsible for the latest big leg up in the already substantial bubble. Apartment blocks have been going up like mushrooms all over metropolitan Australia to meet demand from investment buyers, Superannuation funds and the ubiquitous Chinese (collectively a whopping 40% of all buyers). Meanwhile, first-time buyers are reportedly, at their lowest levels (as a proportion of buyers) in history.
Glenn Stevens (the Reserve Bank of Australia governor) has been fairly open in admitting that this next leg up in the property boom is designed to build a bridge to a resource-sector recovery (whenever that may be) but that strikes me as a hell of a risk given the state of the global economy and its current trajectory. The property bubble is everything to this economy and the country’s citizens, whether they know it or not, are ‘all in’.
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Re: Property Meltdown

Postby Pixel8r » Mon Feb 29, 2016 9:59 am » Safari 9.0.2 Safari 9.0.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Dominic :lol: :clap:

Watch on youtube.com
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Re: Property Meltdown

Postby Pixel8r » Tue Mar 29, 2016 12:11 pm » Safari 9.0.3 Safari 9.0.3  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

From the Times today, more on the BTL crackdown;

The crackdown on buy-to-let borrowers predicted by George Osborne last week has come to pass. The Bank of England is gloomy about the "deteriorating" world economy and regards the buy-to-let market as one of the most vulnerable to a new downturn - about half of all privately-rented properties are owned by landlords with buy-to-let mortgages.

It believes that by preventing borrowers from taking on housing debts that it thinks they could struggle to repay, it will be able to knock about a fifth of the expected £100 billion growth in buy-to-let mortgages by the end of 2017.

So lenders now will have to tighten the rules around mortgages to people who want to buy a rental property. New affordability criteria outlined today mean banks will be forced to take into account all the costs to a would-be landlord, as well as the personal tax liabilities and existing expenses of a borrower. In addition, they will have to test all mortgages against a rise in interest rates to at least 5.5 per cent.
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Re: Property Meltdown

Postby Laura » Tue Mar 29, 2016 6:25 pm » Google Chrome 49.0.260 Google Chrome 49.0.260  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

5.5% has to be an induced knee-trembler 'put', surely?

Once more they are using 'Buy to Let':
half of all privately-rented properties are owned by landlords with buy-to-let mortgages
when 'Borrow to Let' is the only correct phrase.
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Re: Property Meltdown

Postby Laura » Wed Apr 27, 2016 3:55 pm » Google Chrome 49.0.260 Google Chrome 49.0.260  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Ignore the herd & their strivings & pathetique social climbing attempts: Get a Life
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http://myfancyhouse.com/2012/11/07/cont ... hitecture/

Though there seems to be some doubt over the pool-side service :?:
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Re: Property Meltdown

Postby Pixel8r » Wed Apr 27, 2016 5:33 pm » Safari 9.1 Safari 9.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Laura » Wed Apr 27, 2016 4:55 pm wrote:Ignore the herd & their strivings & pathetique social climbing attempts: Get a Life

Though there seems to be some doubt over the pool-side service :?:

Give it a century or so and it will be disappearing into the sea.
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Re: Property Meltdown

Postby Laura » Wed Apr 27, 2016 6:12 pm » Google Chrome 49.0.260 Google Chrome 49.0.260  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Pixel8r » Wed Apr 27, 2016 6:33 pm wrote:
Laura » Wed Apr 27, 2016 4:55 pm wrote:Ignore the herd & their strivings & pathetique social climbing attempts: Get a Life

Though there seems to be some doubt over the pool-side service :?:

Give it a century or so and it will be disappearing into the sea.


At my age there is a strong case for buying a short-life waterside luxury dwelling for not-a-lot.
.................................
I have moved on from Paddington's birth place.
Feast your eyes on this abode
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http://myfancyhouse.com/2012/07/18/the- ... rchitects/
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Re: Property Meltdown

Postby d2thdr » Thu Jul 14, 2016 7:48 pm » Firefox 47.0 Firefox 47.0  Ubuntu Linux 64 bits Ubuntu Linux 64 bits  Screen Resolution: 1366 x 768 1366 x 768

In the world today there are only three assets, gold, oil and currencies. The paper currencies, so long admired and accepted are now in a war of self destruction. They will consume each other in an end battle of "I'm the last man standing but have lost all use as a unit of value".
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Re: Property Meltdown

Postby Laura » Sat Jul 23, 2016 11:44 pm » Google Chrome 51.0.270 Google Chrome 51.0.270  Windows NT Windows NT  Screen Resolution: 1280 x 800 1280 x 800

Rightmove are proud to present: 'Farce stats':

http://www.rightmove.co.uk/house-prices ... geCriteria

Glasgow City Centre, with an overall average price of £159,330, was similar in terms of sold prices to nearby Merchant City (£161,395), but was more expensive than Glasgow Central (£149,038) and Dennistoun (£99,160).
In the past year house prices in Glasgow City Centre were 19% up on the year before and 86% down on 2006 when they averaged at £1,116,608.
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Re: Property Meltdown

Postby Laura » Tue Aug 09, 2016 1:21 pm » Google Chrome 52.0.274 Google Chrome 52.0.274  Windows NT Windows NT  Screen Resolution: 1280 x 800 1280 x 800

Half-size bargain, with an 'inie,' innit?
The land is disguised as an enormous bedside table.
Mind the bottom step.
https://www.gumtree.com/p/hobbies-colle ... 1178475232
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Re: Property Meltdown

Postby Laura » Wed Oct 12, 2016 8:45 pm » Google Chrome 51.0.270 Google Chrome 51.0.270  Windows Seven Windows Seven  Screen Resolution: 1366 x 768 1366 x 768

Conneticut or Cumbernauld - Despite the minor size & price difference, these two have much in common

http://www.zillow.com/homedetails/24-Br ... 1376_zpid/
(A careful study of all 51 pics could be a life-changing experience. A brain care specialist is advised)
Image
...............................
http://www.rightmove.co.uk/property-for ... 33.html#to post

:) I was trying to post 'pic 4' but rightmove wont cooperate
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Re: Property Meltdown

Postby Pixel8r » Wed Oct 19, 2016 9:39 am » Safari 10.0 Safari 10.0  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Do we feel sorry for them after their profiting from their government sponsored ramp in house prices.

The buy-to-let borrowers 'marooned on high rates for life'

Buy-to-let investors with mortgages from now-defunct lenders risk being trapped on uncompetitive rates for life, thanks to draconian new rules imposed by the Bank of England.

Brokers and landlords are calling on lenders to be "flexible" when interpreting the Bank's recommendations about buy-to-let borrowing, which came out last month.

When laying down strict new criteria for lending, the Bank clearly said that the new regime should not be applied to existing borrowers who wish simply to switch to a better deal, rather than borrow more.

But lenders are already indicating that they are unlikely to take on borrowers who do not meet the new criteria.

This could leave thousands stranded on high rates - just at a time when higher taxes pose an additional threat to the viability of their businesses.

Britain's second-largest buy-to-let lender, Nationwide, confirmed to Telegraph Money that it will not accept remortgagers from other lenders, unless they meet the new, tighter conditions...
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