London property bubble 'about to burst'

rizla01

The times I have wondered about a large conglomerate of people with an odd 20-30k spare, getting together and cashing in on what only the super-rich can afford.

Small individual risks (By comparison) but potentially huge gains.

A conglomerate without some company creaming off the top, of course.

The-Joker

Sounds good and we can certainly live in hope. Although I have learnt not to underestimate how willing the government and banks are kick the can down the road and defer any pain so long as it keeps bonuses flowing.

The big crash is coming but the question is how long can they postpone? Every time they do they make it worse.

Conrad

London is booming and I agree some folk are wanting to access capital, TO BUY MORE PROPERTIES NOW.

B2L activity is higher for me now than at any time since 2006.
The world reported in some press articles bares no resmblence to what I see with my own eyes where a big proportion of people are sitting on cash ready to buy. I'm not talking statistically rich folk here, just London cabbies, Essex ducker divers, those types. Saw one yesterday - classed as a low earner on £13k pa (without his rental income). Owns £2m worth of real estate with only £220k borrowing.

Bigdeflationfirst

Looks like overseas investors are wanting to pull out of London the way the global financial crisis is heading.

Lots are buying property in Germany now instead of London, its not so overvalued.

The worldwide race to debase currencies is hotting up. So much depends which currency is winning the race to the bottom. If the pound sterling is not doing so well in getting abused then overseas investors who had been propping up London prices may look elsewhere. The Euro is looking like getting abused even more than other currencies, so thats why Germany looks so appealing.

Come on Merv King, you lot at the BOE can abuse our currency some more. Why not start typing in more billions of units into your bank accounts and spending those units with all your friends some more.

They know the game is up, but how long can they keep pretending.

sabretoothtigger

So much depends which currency is winning the race to the bottom

Decided years ago, Zimbabwe won the grand prize. They use dollars now

Its more a game of hide and seek then a race, you dont want people to notice too much where your hiding their wealth and stop using sterling altogether

Bigdeflationfirst

sabretoothtigger wrote: »

Decided years ago, Zimbabwe won the grand prize. They use dollars now

Its more a game of hide and seek then a race, you dont want people to notice too much where your hiding their wealth and stop using sterling altogether

What's the difference Zimbabwe dollar and the US $?

Only a matter of time.

Darthvader

The-Smoker wrote: »

Sounds good and we can certainly live in hope. Although I have learnt not to underestimate how willing the government and banks are to kick the can down the road and defer any pain so long as it keeps bonuses flowing.

The big crash is coming but the question is how long can they postpone? Every time they do they make it worse.

The big crash will not come until interest rates are back to normal and then all the repossessions can be cleared out.

The other main thing that will affect London property market is when the huge rents and mortgage payments will be capped.

There is no doubt that these huge rents and mortage interest payments that are still getting paid out for families to live in London is propping up the market along with cheap easy credit that is still available for a short time left.

The £480 per week benefit cap coming in next year will mean either average rents in London come down a long way or thousands of families will move outside the nice areas, which will have the same effect. Most properties will remain empty until the landlords reduce their rents inline with the cap.

With only £480 total benefits no more than half this can go twards rent. So £240 for rent the other half for council tax food and bills, which will be more in London so another reason to move to cheaper areas when the handouts start to be reduced.

If this all kicks off at around the same time as interest rates going back to normal then the crash will make those in charge of propping up the property market all these years will look very silly indeed. :rotfl:

Thrugelmir

Darthvader wrote: »

The £480 per week benefit cap coming in next year will mean either average rents in London come down a long way or thousands of families will move outside the nice areas,

Dagenham ?