Latest desperate EA "news" story

Sir_Humphrey

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article4916890.ece

From The Times

October 10, 2008

Frightened investors ‘pile into property’

Rebecca O’Connor and Grainne Gilmore

Investors who have lost faith in the banking system are turning to property as a safe haven for their cash.

Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust.

The trend is emerging in all corners of the property market, according to one nationwide agent, from high-end mews houses in Knightsbridge to dilapidated two-up two-downs in the East Midlands.

Lindsay Cuthill, head of the southwest London office of Savills estate agents, said: “Ten days ago a wealthy, well-known businessman seeking to buy a mews in Chelsea told me, ‘I feel my money is safer here than in the banks’.”

The words "yeah" and "right" spring to mind.

ad9898_3

If I had a £1 or a £1 million, property would be the absolute last place i would put it. mmm, well on second thoughts I might pick up a couple of 'luxury apartments' for a £1 a piece if someone twisted my arm.;)

Heyman_2

I can actually fully understand that putting your money into something tangible is far far more attractive at the moment than having it in nose-diving shares or failing banks. :rolleyes:

And of course I keep reading here that those 50% drops that are being trumpeted are here NOW so maybe it's a good time to buy after all, hmmm?

Kez100

I do think it could be true - but certainly not until prices have fallen far enough (and a bit more as they often do after a correction).

hethmar

I think it may be true too - someone was saying to me recently that they didnt know what to do with their savings any more. They didnt trust the banks or building societies and they didnt know if the value of their money would be wiped out if the country went to the dogs. Basically they said if they spent their savings on a property at least they would have something rather than a pile of paper notes which may be worth next to nothing.

I thought it was madness at the time, but as events unfold I am beginning to change my mind .....................

Sir_Humphrey

Even if it were true (which I sincerely doubt), except for a few very rich people, the price fall that would be required for a cash purchase would be so large that the market would not be rescued.

If it were just a few rich people it would not make much difference anyway.

If you had a huge mountain of cash, why not just pop down to a repo auction?

No, this story sounds like a load of balls.

Kez100

Oh, I agree the EA report is balls but I can see where is imagination was going to enable him to come up with the story.

smartn

I'm sure there will be an element of truth in this, but the only things people would be buying would have to be massively discounted and lets face it, it wont be many people. If you have just lost a shed load of cash on the stockmarket, I would imagine you would be looking at safe havens rather gambling on property at the moment.

adr0ck

smartn wrote: »

I would imagine you would be looking at safe havens rather gambling on property at the moment.

wheres that then?

hethmar

exactly.

Re people going to auctions - this is unknown territory for the vast majority of people, they would more likely go through the channels they are familiar with - i.e. agents.

Penelopa.Pitstop

When you spend days watching stock markets it doesn't sound as stupid idea. I believe that some people prefer to own something material than just virtual shares which are decreasing in value. It's really scary to watch it every day for the last few weeks. And you don't have to be a millionaire to buy properties.

I personally started to think about buying. I'm looking at discounted properties right now: repos and executors wills.