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Debate House Prices
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Now house prices will really rise fast...
Comments
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It's getting the initial 10-15% thats the problem.0
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he is in corporate finance. His words to me.......
"All this stuff you hear about banks not lending is mostly nonsense. Money is available to lend, but there just isn't the appetite for it."
His work involves lending £100Ks + to businesses for things like commercial premises etc.
He's right, in a way.
There is plenty of funding available for big business, although at questionable rates. But as most of those companies are sitting on vast cash piles at the moment, there's little appetite to borrow at current rates.
The lending that has really suffered is that to SME's and households.
Where availability of funding has decreased, and cost of funding (in terms of margin above cost for the banks) has increased.
It's all very well for a banker to offer overdrafts to small businesses at 15% APR with a personal guarantee secured against the directors houses. But it'd be mad for those directors to borrow on those terms.
So the banks can say "we have plenty of funds, but there's no appetite for debt".....
But the reality is there's plenty of appetite for debt, just not on the absurd terms the banks are offering.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Any decently run business should be able to finance its own expansion.
Unfortunately, many of them are already heavily in debt due the false prosperity of the past decade. They thought they were in good shape but it was an illusion."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
HAMISH_MCTAVISH wrote: »He's right, in a way.
There is plenty of funding available for big business, although at questionable rates. But as most of those companies are sitting on vast cash piles at the moment, there's little appetite to borrow at current rates.
The lending that has really suffered is that to SME's and households.
Where availability of funding has decreased, and cost of funding (in terms of margin above cost for the banks) has increased.
It's all very well for a banker to offer overdrafts to small businesses at 15% APR with a personal guarantee secured against the directors houses. But it'd be mad for those directors to borrow on those terms.
So the banks can say "we have plenty of funds, but there's no appetite for debt".....
But the reality is there's plenty of appetite for debt, just not on the absurd terms the banks are offering.
Your conclusions get worse and worse.0 -
Yes, I do believe house prices will rise.
Please read this before you make any further comments.
http://www.express.co.uk/posts/view/268030/HOUSE-PRICES-TO-SOAR-BY-21-/
I've just added a comment you might also want to take in :rotfl:
Sibley, it's the Express, quoting a few VI's, no surprises there.
Nothing more than delusions of grandeur.0 -
Sibley, if you had to rank these newspapers in order of the most reliable news source, what would your list be? (I've put them in a rough sort of order to help you so you don't have to do too much reordering).
Times
Telegraph
Sun
Mail
Sunday Sport (rip)
Express0 -
This seems to be the 100th time this year that 90% loans have returned to the market.
90% loans never went away and I think there have been a few 95% deals that survived the 2007 cull; its not their existence which is the problem, its finding anyone who meets the underwriting criteria.0 -
wake me up when 100% + mortgages are back....0
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Euphoria1z wrote: »wake me up when 100% + mortgages are back....
Hopefully you will be sleeping for a very, very long time. Actually you may never wake up at all.
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How boring must it be working for the Express? Why don't they just print stories about what they think the lottery numbers will be in 5 years time?
I remember one of their front pages in about 2007, House Prices to Rise For Next 15 Years
I thought OK, bucking the cycle that's gone on since Neanderthal man first put a sign outside his mud hut indicating that it could be exchanged for another mud hut/a woman/some primitive tools0
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