London property falling by 72% a year!

System

julieq wrote: »

Actually even 4 quarters at 18% wouldn't make 72%. It makes about 45%

Macaque maths = FAIL.

Oh dear macaque, perhaps spend more time getting educated rather than wasting your time here.

julieq

Compounding works both ways innit

bendix

Dear oh dear.

The sad thing is that the uber-bears don't seem to realise their arguments and faux logic are as damaging and ludicrous to their cause as the uber-bulls.

julieq

Maths fail for me too, as it's about 55%, not 45%

mind you, 4 quarters of 18% *increases* makes about 94%. Not fair is it? That's what you get for putting baby boomers in charge of maths I guess

Pete111

72% off?!!?

Well call me crazy but I'm going house shopping in London rightaway!!

Oh no! It appears that everyone else piled in last week and prices are pretty much back to 2007 peak again.

How annoying....

macaque_2

julieq wrote: »

Actually even 4 quarters at 18% wouldn't make 72%. It makes about 45%

Macaque maths = FAIL.

Basis of calculation - £100k

d£/dѲ = - £18k/q

4 X £18/q = - £72K

72/100 = - 72%

Notes to 70% admin
1. If there are any places left on our basic arithmatic outreach programme, please could you send a leaflet to julieq
2. I have been greatly impressed with Dirk Rambo's thoughtful analysis. Please have the membership committee review his membership status (upgrade from member to fellow?)

Sibley

You must expect mental posts like this today.
The bears have had a hell of a beating. All the graphs and excuses won't make them better. House prices rose today. Bitter pill and all that.

tomterm8

This thread is nonsence.

Linton

macaque wrote: »

Basis of calculation - £100k

d£/dѲ = - £18k/q

4 X £18/q = - £72K

72/100 = - 72%

Notes to 70% admin
1. If there are any places left on our basic arithmatic outreach programme, please could you send a leaflet to julieq
2. I have been greatly impressed with Dirk Rambo's thoughtful analysis. Please have the membership committee review his membership status (upgrade from member to fellow?)

Bear maths is as convincing as their arguments!!!
:rotfl::rotfl::rotfl::rotfl:

Let me explain it carefully step by step so you dont get it wrong next time

1) After 1q the house is worth 100K * 0.82
(0.82 is 1-0.18)
2) After 2q the house is worth 100K * 0.82 *0.82
3) After 3q the house is worth 100K * 0.82 * 0.82 * 0.82
4) After 4q the house is worth 100k * 0.82 * 0.82 * 0.82 * 0.82

Which equals 45.2K. (addition to post to say this is a drop of 55% as julieq stated)

What you got wrong is to assume the 18% is of the initial value. Its not, its 18% of the current value.

If you were right, after 6q the house would have a negative price.

ruggedtoast

Dirk_Rambo wrote: »

peopel laffed at me when i joined the 70 per cent club. but they aint laffing now

Oh no. No one is laughing at you now Dirk.