House Price Rant

lemonjelly

Really2 wrote: »

Wolves sure up their defence with a thermo-nuclear land mines.

That's what chucky's house is gonna look like when I catch holda him!:D

dopester

I had an old press-cutting about Steve Morgan from 1996-7 (maybe earlier) but been in my file and can't find it. Pic of him outside a newbuild house in his yellow site jacket and hard-hat.

He became a young millionaire (in his 20s)... the article really bigged up that bit of success. It went into how he started the business with money borrowed from his Dad (confirmed on Wikipedia).

Anyway he's been around and should understand that things change. Sure he wants to see a situation where banks lend ever more credit year after year and house prices never stop trebling... that would suit him fine. Yet if a business which hadn't been hit in a previous change of market circumstance long ago - positioning itself badly to ride out circumstances or the banks wouldn't extend it more credit - Steve Morgan would have have been less likely to acquire his business cheap, and bring his young new ideas to the table and enjoy the success he had had over the decades.

Training as a site engineer, in 1974 Morgan borrowed £5,000 from his father to buy his then employers, Wellington Civil Engineering, which was on the verge of going out of business.[1] He developed this company into the builder Redrow plc. Under his chairmanship, Redrow was floated on the London Stock Exchange in 1994, ultimately becoming a FTSE 250 Company.

JP45

treliac wrote: »

Are the banks hanging on to their money because they have an idea of how many mortgage defaults they'll be having to deal with?

Precisely.

I doubt that he's going to win over many people with this blatantly self-serving rant - certainly not the government / financial regulators at whom it appears to be aimed.
.

chucky

lemonjelly wrote: »

That's what chucky's house is gonna look like when I catch holda him!:D

there's no need to be nasty now Lemonbelly, no need to be nasty.

i feel like i'm being bullied

StevieJ

treliac wrote: »

Are the banks hanging on to their money because they have an idea of how many mortgage defaults they'll be having to deal with?

A bit of a chicken and egg, that one is

Really2

lemonjelly wrote: »

That's what chucky's house is gonna look like when I catch holda him!:D

Are you going to send him some fireworks from Hootys.

tomterm8

treliac wrote: »

Are the banks hanging on to their money because they have an idea of how many mortgage defaults they'll be having to deal with?

The banks are holding onto their money because half of europe is heading for a soverign debt crises. It's a bit like being on the deck of titanic: you can see the iceberg ahead of you, you don't know when it will hit. But the annoying theme tune has started up.

I hate the theme tune... the theme tune of DOOM:D

blueboy43

dopester wrote: »

I had an old press-cutting about Steve Morgan from 1996-7 (maybe earlier) but been in my file and can't find it. Pic of him outside a newbuild house in his yellow site jacket and hard-hat.

He became a young millionaire (in his 20s)... the article really bigged up that bit of success. It went into how he started the business with money borrowed from his Dad (confirmed on Wikipedia).

Anyway he's been around and should understand that things change. Sure he wants to see a situation where banks lend ever more credit year after year and house prices never stop trebling... that would suit him fine. Yet if a business which hadn't been hit in a previous change of market circumstance long ago - positioning itself badly to ride out circumstances or the banks wouldn't extend it more credit - Steve Morgan would have have been less likely to acquire his business cheap, and bring his young new ideas to the table and enjoy the success he had had over the decades.

Deposit requirements will fall, just as house price multiples (to earnings) will fall - it will just take a matter of time. It won't be doing 1st time buyers much of a favour for the first thing to happen much before the second.

Incidentally, Redrows sucess was built on good buying & selling of land, in particular, selling land in the South East before the last property crash. The mistake they made this time was stopping buying in 2005 as they believed prices were over valued, only to start buying at higher prices in 2007.

Steve Morgan seems like a good egg though. Does plenty for charidee...

> insert joke about Wolves here <

lemonjelly

blueboy43 wrote: »

> insert joke about Wolves here <

Don't you dare....:mad: (;))

Sir_Humphrey

lemonjelly wrote: »

Don't you dare....:mad: (;))

Well, he'll soon have some Champion's League winner's money, so he'll be okay.
:beer: