Rightmove October +2.8%, London records biggest ever indice rise at 6.5%

Wookster

Just to balance out Mctittish's myopia:

http://www.telegraph.co.uk/finance/personalfinance/6347260/Half-of-all-home-buyers-have-mortgage-requests-rejected.html

Half of all home buyers have mortgage requests rejected
Half of all home buyers are having their mortgage requests rejected despite banks receiving billions of pounds of taxpayers’ money to boost lending.

The exclusive research for The Daily Telegraph revealed how banks are restricting mortgage deals and holding onto Government cash to improve their balance sheets instead.
The survey by credit checking agency Equifax revealed that 46 per cent of home buyers had their first mortgage application refused, compared to 23 per cent last year.

Pretty far from recovery!

PaulW1965

Cleaver wrote: »

Apologies in advance if this post comes across as a bit irritable Dopester. If it does then it's because I respect your opinion a lot, so take it as a compliment. That said...

I don't deal in sucker's money. Or bull-trap rushes. Or liar loans. And whilst I get what you're inferring by a your phrase "a Cleaver style 'buy towards the peak of the bull-trap rush'", let me give my perspective. I would describe it as a Cleaver style 'buy a house because we're sick of living in an increasingly noisy flat, I will be working from home on a more regular basis soon and need a proper office, we can afford a house, rush'.

Put yourself in our shoes. We live in a flat that's now fully paid for and we have a chunk of money in savings. We're not as keen on living here as we used to be - it can be noisy and over the past year or so the lack of space has got to us. We want a home to live in. At this stage in life the thought of having to deal with landlords and letting agencies makes me want to eat my own face. I want a vegetable patch in the garden, we want bright stripy wallpaper in the lounge, I want to put up shelves whenever I damn please and I don't want someone calling in every 6 months to check we're behaving with the possibility of being chucked out. So renting, for us, isn't a very attractive prospect.

As a point of order, we wouldn't be taking on a bigger mortgage to upsize. We'd take on the house with about 75% equity and would probably pay off our new mortgage in 3 to 4 years. I don't want to spend the next two or three years of my life looking at graphs, debating back and forth whether houses will be a certain percentage more or less this time next year, we just want an affordable house that we really like. And one has presented itself. If we buy this place and house prices drop 15% in two years I imagine that I'd shrug my shoulders, look at my vegetable patch and smile. And maybe that makes me a 'sucker' in a 'sucker's rally', but frankly I couldn't care less. Our mortgage will nearly be paid off then and I'll have fresh herbs in my dinner.

"Buy towards the peak of the bull-trap rush". That's such a cold, harsh, unemotional phrase. People don't think along these lines, they just want a home. And, as I've mentioned before on here, most people in the real world do not have the sheer sense of self-belief and unquestioning certainty in their own judgement that the raging bulls and bears have on here. You may be completely and utterly certain that we're heading for a crash and Hamish is just as convinced that house prices are only heading one way. So congratulations to you two being so sure of your convictions. I'm sitting between the two of you, completely clueless as to whether house prices will boom, bust or stagnate over the next few years. And I'm a bit past caring really. Roll on the stripy wallpaper.

:T:T:T:T:T:T:T:T:T:T:T:T:T:T

Good Post

Don't know any of the posters involved but still think that is a great, honest post:beer: Good Luck in your new house.

carefullycautious

Here here :beer::beer::beer:

Heyman_2

Cleaver wrote: »

And, as I've mentioned before on here, most people in the real world do not have the sheer sense of self-belief and unquestioning certainty in their own judgement that the raging bulls and bears have on here. You may be completely and utterly certain that we're heading for a crash and Hamish is just as convinced that house prices are only heading one way. So congratulations to you two being so sure of your convictions. I'm sitting between the two of you, completely clueless as to whether house prices will boom, bust or stagnate over the next few years. And I'm a bit past caring really. Roll on the stripy wallpaper.

ess0two

Wookster wrote: »

Just to balance out Mctittish's myopia:

http://www.telegraph.co.uk/finance/personalfinance/6347260/Half-of-all-home-buyers-have-mortgage-requests-rejected.html



Pretty far from recovery!

You're right but its a slow recovery to say the least,which ever way you try to dismiss it.

Gorgeous_George

Boing, boing [strike]miaow[/strike].

GG

themanbearpig

6.5% in a month for any part of the world is astounding. To me, this is a clear indicator of the "dash for global assets" stage of this recession, before future inflationary pressures due to so much stimuli.
All the wealthy people around the world are converting their cash into assets which will hedge against inflation, and property in London seems to be attractive to them, especially with the exchange rates.

HAMISH_MCTAVISH

themanbearpig wrote: »

6.5% in a month for any part of the world is astounding. To me, this is a clear indicator of the "dash for global assets" stage of this recession, before future inflationary pressures due to so much stimuli.

I would broadly tend to agree. Although I suspect that fears of hyperinflation are somewhat "inflated", there is little doubt that there is going to be a flood of money into assets and quite possibly general inflation of 5% or so for a few years.... I also suspect that the authorities will not be too aggressive in fighting it, leaving rates low enough to ensure that much of the debt is inflated away, and that enough wealthy people realise this as to be causing a flight to property, amongst other things.

All the wealthy people around the world are converting their cash into assets which will hedge against inflation, and property in London seems to be attractive to them, especially with the exchange rates.

Quite.

And as this plays out many of the less wealthy, but still comfortable, will be getting the same idea and buying property in the better parts of every City and Town in the UK.

Perhaps not so much in the ex council estates, that only boom at the end of a cycle..... It is unlikely the "great unwashed" will realise what is going on until it is too late, and mortgage restrictions/rationing will continue to unfairly penalise the poor and young..... but most decent areas could be in for big gains over the next few years.

fc123

Cleaver wrote: »

And that, in one simple sentence, sums up our rather mental property market. Forget your 'economic fundementals, the public are convinced house prices are going one way and are buying before they think they get even more expensive.

Part of me thinks this is all rather stupid. But then I also think we're going to put in an offer on a property tomorrow, so it would just be slightly hypocritical of me to criticise too heavily.

Good luck with the purchase.......:D

The Doom and Gloom...I am not seeing it myself really. Of course, I know people who are having a toughy time but no more than during the boom years.
BIL has just been done for 11k by client going into administration...but that happened to him during boom years too.


Retail sales Central London..I have real figures....from big store....it's been around for years.

They estimated they would be down a lot more. Not just from crunch, but renovations meaning sq ftage on sales floor was reduced for much of the year by approx 20%.

7% Down only. Which isn't great but it's not tumbleweeds either.

A 75% deposit in the bank and wanting to move, then doesn't seem a bad financial decision at all.
Thinking ....Cleaver..you sound loaded for a young bloke.:cool:

lostinrates

fc123 wrote: »

Good luck with the purchase.......:D

The Doom and Gloom...I am not seeing it myself really.:cool:

Good! BTW i saw one of your products on a banner somewhere else entirely, and I thought ''Good for FC123''.