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French Red letter day

But don't worry this will never happen here

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/03/28/cnfrance28.xml

It says " French property construction plummeted 15.1pc in February and home prices have begun to slip in the first sign that America's housing woes are spreading to Europe.
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This is the best quote of the year ""The market has turned in France, and this is the trailer for the movie we're are going to see across Europe this year," said Jean-Paul Six, chief Europe economist for Standard & Poor's"

Comments

  • Mmmmm, but the french have never really been that property obsessed have they? I think it's a case of the boom of all the Brits buying in France has slowed down a bit - or all those British people who went without really thinking about it are all trying to sell at the same time.

    It's a completely different market to Britain
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    So the boom is over in the US, France & Ireland. Fingers crossed it'll be here too soon.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • lypsey
    lypsey Posts: 201 Forumite
    Nifferwilko
    You say "It's a completely different market to Britain."


    It says "The ratio of household debt to disposable income in France is a modest 65pc, compared with 115pc in Spain, 146pc in Britain, 171pc in Holland, and 190pc in Ireland"
    Therefore Britain is far worse than France

    It says "French banks usually restrict lending to 75pc of the home's value."
    Our muppet banks lend 125% and 7 x salary , again far worse than France

    Our interest rates are higher than France

    The average UK person earns 23k , the average home is now 200K plus , therefore 8.7 times salary . Do you really think France is worse than that.

    Sorry but the UK is in a far , far worse position. We will have a far worse crash

    When the banks start seeing house prices falling , do you really expect them to lend the multiples they are lending today... no .It is great when prices are climbing but if they see people handing keys back like they did in the 90's they will go back to the more sensible 4 times salary loans which in turns also has a big effect on the market.

    My last point is that we have MORE money on credit cards than the rest of Europe ADDED together

    How are you remotley serious when you say we in the UK are better off??
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    You missed out that French employees in permanent jobs are better protected than their English counterparts against losing them.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • spurs_nut
    spurs_nut Posts: 329 Forumite
    YAWWWWWWWWWWWN!

    For all you conspiracy theorists.

    http://www.google.co.uk/search?hl=en&q=the+truth+is+out+there&meta=

    Might be more your sort of thing rather than lurking about on a money saving board
  • martyn4764
    martyn4764 Posts: 840 Forumite
    Part of the Furniture Combo Breaker
    lypsey wrote: »
    It says "French banks usually restrict lending to 75pc of the home's value."

    Far be it from me to suggest that the esteemed Telegraph might be talking ^%%$£, but French mortgages are invariably based on your ability to repay the loan, rather than any perceived 'value' of the property.

    From memory, the figure is that your monthly repayments of debt (mortgage, loans et al) can't exceed 33% of your net income.
  • lypsey
    lypsey Posts: 201 Forumite
    Thanks Martyn
    Just done a quick claculation , if they did that in the UK a lot of people would never be able to afford todays mortgages???
    We would still have a crash
  • lypsey wrote: »
    Nifferwilko
    You say "It's a completely different market to Britain."


    It says "The ratio of household debt to disposable income in France is a modest 65pc, compared with 115pc in Spain, 146pc in Britain, 171pc in Holland, and 190pc in Ireland"
    Therefore Britain is far worse than France

    It says "French banks usually restrict lending to 75pc of the home's value."
    Our muppet banks lend 125% and 7 x salary , again far worse than France

    Our interest rates are higher than France

    The average UK person earns 23k , the average home is now 200K plus , therefore 8.7 times salary . Do you really think France is worse than that.

    Sorry but the UK is in a far , far worse position. We will have a far worse crash

    When the banks start seeing house prices falling , do you really expect them to lend the multiples they are lending today... no .It is great when prices are climbing but if they see people handing keys back like they did in the 90's they will go back to the more sensible 4 times salary loans which in turns also has a big effect on the market.

    My last point is that we have MORE money on credit cards than the rest of Europe ADDED together

    How are you remotley serious when you say we in the UK are better off??

    If you actually read what I wrote, I didn't say whether one was better than the other, or that one was worse than the other, I merely pointed out that it is a different market - as the figures you quote above show. I was just pointing out that you should compare like for like as it gives a more realistic comparison.

    I never said that anyone in the UK is better off or worse off or that anyone in France is better off or worse off. I was just mentioning that one cause could be the slowdown in British people buying property in France. Please don't misquote me
This discussion has been closed.
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