House Price Crash 5

talksalot81

lisyloo wrote:

I think it is OTT to suggest that ALL IT people will be left with no income at all. I don't think that will happen. Some will stay in IT, some would retrain.
In the company I work for we are as offshored as we think we can manage.

Quite right. This has long been the case with the upper levels of the sciences. Admitted the situation has a different driver (i.e. science jobs dont really pay), but it results in alot of PhD educated individuals delving into other worlds.

Guy_Montag

lypsey wrote:

I am sorry but anyone in there right mind who deliberately leaves their property empty needs stringing up from a tree

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/12/18/nlets18.xml


Or more likely they cannot get tennants?
If this article is true the crash that I think id coming is going to be much much harder than I thought

Can councils not now seize empty property & force the owner to sell/let it? Or is that only when the property is run down?

roswell

only if its in a dangerouse state of repair as far as i know eg it poses a risk to the public walking past etc. oddly a lot of concil owned property could fall into this its not unknown for councils to hold lagre houses that they had posessed and not sold on or made good.

lisyloo

The house next door to me is being developed.
I had a chat with the developer who said it was in the initial stages of being turned into a day nursery.
So now I'm pretty sure there is gonna be a creche.

dougk_2

roswell wrote:

only if its in a dangerouse state of repair as far as i know eg it poses a risk to the public walking past etc. oddly a lot of concil owned property could fall into this its not unknown for councils to hold lagre houses that they had posessed and not sold on or made good.

This is not exactly true see here:
http://www.communities.gov.uk/index.asp?id=1153431#P20_394

"An Empty Dwelling Management Order (EDMO) allows a Local Housing Authority (LHA) to effectively 'step into the shoes' of the owner of an unoccupied dwelling. There are two types of order - interim EDMO and final EDMO. They allow a LHA to secure occupation and proper management of privately owned houses and flats that have been unoccupied for a specified period of time and where certain other conditions are met."

earner

If a hamlet consists of four 2-bed houses worth £100k each - and they each sell once every 4 years, the average price there is £100k.

If a builder comes along and builds 4 executive houses across the road at £250k then sells all 4. Then the average house price that year is £220k.

The next year with those sold, one of the original old houses sells at £100k.

HAS the average price of houses risen there or not?
Was there a price crash the following year?

Neither. somebody simply built and sold a bunch of new houses.

New builds are swamping the market where I live and so will really distort the figures. I suspect this may be the case in other places.

lypsey

Dec. 20 (Bloomberg) -- European Central Bank President Jean-Claude Trichet said the economy of the dozen euro nations remains at risk of higher inflation, signaling he may endorse interest rate increases next year.

``Inflation rates are likely to increase again in early 2007,'' Trichet told the European Parliament's economic committee in Brussels today. ``This outlook for price developments remains subject to upside risks.''

The ECB is forecasting inflation will remain above its target of just below 2 percent for an eighth straight year in 2007 even after it raised borrowing costs six times to 3.5 percent in the past 13 months.

Trichet today cited the cost of oil, tax increases and wage demands as potential price pressures and said the central bank would be on guard. ``Acting in a firm and timely manner to ensure price stability in the medium term is warranted,'' he said. ``The governing council very closely monitors all developments.''

The Frankfurt-based ECB expects euro-area inflation to average about 2.2 percent this year and around 2 percent in 2007, it said Dec. 7."

And also oil is on the rise again

http://news.bbc.co.uk/1/hi/business/6195457.stm

We have to be prepared for much much higher interest rates , the strength of inflation figures GLOBALLY is going to mean massive pressure in the UK

lynzpower

lypsey wrote:

I am sorry but anyone in there right mind who deliberately leaves their property empty needs stringing up from a tree

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/12/18/nlets18.xml


Or more likely they cannot get tennants?
If this article is true the crash that I think id coming is going to be much much harder than I thought

from the inside housing article.

‘It is my feeling that in a sense some of these problem areas, like the block of flats in Leeds standing empty, are a result of investment clubs,’ he added.

Are investment clubs things like "inside track" ?

How many are we talking about here? Surely this is an absolute travesty if indeed it is true.

PLus if the property sells 18 months - 2 years later allowing for those rich capital gains ( in hull ) which poor FTB is going to get lumbered with shed loads of snags that they cannot resolve?

meanmachine_2

So let me get this straight:

Before the US election, we had falling inflation and falling oil prices.

AFTER the election we have a sudden leap in inflation and oil prices are back on the climb.

Hmm.

Meanwhile, news today of "record" mortgage lending. Not quite sure how we avoid breaking such a dubious "record" each month given sky high house prices, unless the unthinkable happens and house prices start falling.

So, rapidly rising debt levels, IR rises next year - tell me how this isn't going to end messily at some point?

Ah, for the soft, gentle landing of 2005. So soft and gentle, like an Andrex puppy. Boom and bust avoided. Soft and gentle...

bahaha. Don't make me laugh.

Oh, I just did...

lypsey

Meanmachine

If you log on to CML website you would be amazed at how much of that "record" is on RE-mortgaging . Very small amount of NEW mortgages

Typical BBC not giving a true picture