Rents hit record high

dktreesea

HAMISH_MCTAVISH wrote: »

Or alternatively......


Rents Rise.

Increasing yields draw in investment capital which chases the current scarce housing stock.

House prices inevitably rise as a result.

The "wealth effect" kicks in and consumer confidence returns.

The economic recovery picks up as a result.

Strengthening economy and prices attract funding to the lending markets, still operating at record high margins.

An increase in funding enables the end of mortgage rationing and competition between lenders.

Rising asset prices, rising GDP, rising employment, shrinking lending margins, all meet the BOE's stated criteria for raising base rates, which they then do, slowly and surely so as not to derail the virtuous circle of recovery.

And the 20 year cycle starts all over again......;)

There's one more thing though that has to happen for that cycle to proceed - wages rise. I don't think that's going to happen. Wages are dropping and will continue to drop, no matter how much the pound keeps falling in an effort to lure corporations to Britain.

Every year we add on another 400k-500k of people. They're not all new-borns. Too many people chasing too little work. Look at bricklayers and carpenters. I can remember a time when you'ld be lucky to get anyone in the building trade putting their muddy boot on your land for less that £20 an hour. Not so nowadays. There's builders here working on zero hour contracts, £6 a hour, just feeling lucky to have some work coming in. And if they don't want the work, there are plenty of suitably qualified people from the EU over here who will do it instead.

Even if house prices and rents do indeed go up, who is going to be buying the houses?

Graham_Devon

HAMISH_MCTAVISH wrote: »

Or alternatively......


Rents Rise.

Increasing yields draw in investment capital which chases the current scarce housing stock.

House prices inevitably rise as a result.

The "wealth effect" kicks in and consumer confidence returns.

The economic recovery picks up as a result.

Strengthening economy and prices attract funding to the lending markets, still operating at record high margins.

An increase in funding enables the end of mortgage rationing and competition between lenders.

Rising asset prices, rising GDP, rising employment, shrinking lending margins, all meet the BOE's stated criteria for raising base rates, which they then do, slowly and surely so as not to derail the virtuous circle of recovery.

And the 20 year cycle starts all over again......;)

You sound like a share ramper on the III boards.

The best advice I got from those share boards was to ignore people like yourself. If I hadn't, I would have bought into XEL at around 380p, and inevitably lost around 70% of my money, in this "can't fail" stock.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Or alternatively......


Rents Rise.

Those I know with sizable property portfolios currently take the view that once a good tenant is in situ. Then the policy is to hold the rent at the same level. As good long term private sector tenants are worth the loss of increasing the rent. A bad one can cost you thousands......... So just not worth the hassle.

HAMISH_MCTAVISH

Sibley wrote: »

I would love to hear from some of the people who were quoting 70% falls and telling everyone how they would be living in a 4 bed detatched by Xmas 2009.

Oh they're still here and still posting.....

Just under different user-names, after being humiliated so very badly when they were proved so comprehensively wrong about getting their 70% crash.*





















*Except for macaque of course. Just as wrong and just as mental, but at least he has the balls to still post under the same username. For which one can't help but to have a grudging respect.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Those I know with sizable property portfolios currently take the view that once a good tenant is in situ. Then the policy is to hold the rent at the same level. As good long term private sector tenants are worth the loss of increasing the rent. A bad one can cost you thousands......... So just not worth the hassle.

Those I know are pushing up rent at renewal with existing tenants in line with market rates.

It's not like the tenants are likely to find anywhere cheaper..... Particularly when you factor in the tenants costs of moving.

geneer

HAMISH_MCTAVISH wrote: »

Oh they're still here and still posting.....

Just under different user-names, after being humiliated so very badly when they were proved so comprehensively wrong about getting their 70% crash.*

It is rather convenient that your imaginary 70% crew have gone underground eh Hamish. Its all a big consipracy innit. :rotfl:

I suppose when your rewriting history on this noddy kind of scale, its small potatoes to start caterwauling "no bull ever predicted a soft landing".

HAMISH_MCTAVISH

With prices now just 10% or so below peak, and with renting having proven to be the wrong choice for most, that is indeed a pretty soft landing for house buyers.

But regardless, arguing with your endless tedious trolling is like masturbating with a cheese grater. Not even a masochist finds it fun for more than a split second

It's why I ignore you most of the time, and why so many people have you on ignore.

geneer

HAMISH_MCTAVISH wrote: »

With prices now just 10% or so below peak... that is indeed a pretty soft landing for house buyers.

As you yourself have admitted Spamish, last time they called this a "housing crash".

So you can call it a teapot or elfhat if you want.
If it looks like a duck, talks like a duck, squalks like a duck....its a crash.

HAMISH_MCTAVISH wrote: »

But regardless, arguing with your endless tedious trolling is like masturbating with a cheese grater. Not even a masochist finds it fun for more than a split second

It's why I ignore you most of the time, and why so many people have you on ignore.

Oh dear. Someones a grumpy hypocrite.
One thing is true though, you do like to try and ignore me, when its convenient. "wooooooooo wooooooooo wooooooooooooo" wheres he gone? :eek:

Sibley

With prices now just 10% or so below peak, and with renting having proven to be the wrong choice for most, that is indeed a pretty soft landing for house buyers.

But regardless, arguing with your endless tedious trolling is like masturbating with a cheese grater. Not even a masochist finds it fun for more than a split second

It's why I ignore you most of the time, and why so many people have you on ignore

I cant understand how Geneer keeps motivated. It's just desperate.
Houses prices have or are not going to CRASH!!!

How much evidance does he need?
I posted a house that way yes 'round my way'

3 bed detatched. It made full £750,000 asking price. On his beloved HPC website the average house price has not gone down. What else can bulls do?

Prices rise and the idiot still keeps on about the crash. :rotfl:

geneer

Sibley wrote: »

I cant understand how Geneer keeps motivated. It's just desperate.
Houses prices have or are not going to CRASH!!!

How much evidance does he need?
I posted a house that way yes 'round my way'

3 bed detatched. It made full £750,000 asking price. On his beloved HPC website the average house price has not gone down. What else can bulls do?

Prices rise and the idiot still keeps on about the crash. :rotfl:

Been raining quite heavily today.
Shame. It was quite nice Friday morning.