London Has Peaked

Bubble_and_Squeak

these are the causes for the recent london bubble:
1, funding for lending
2, quantitave easing
3, foreign money
4, low interest rates
5, fractional ownership

does anyone actually dispute this?

Jack_Johnson_the_acorn

Bubble_and_Squeak wrote: »

these are the causes for the recent london bubble:
1, funding for lending
2, quantitave easing
3, foreign money
4, low interest rates
5, fractional ownership

does anyone actually dispute this?

I think you may have missed out the main cause...............

1, demand outstripping supply

Bubble_and_Squeak

Jack_Johnson_the_acorn wrote: »

I think you may have missed out the main cause...............

1, demand outstripping supply

effective demand, my dear acorn
everyone wants a house in london but few can actually buy one
this may be a revelation to you but in order to buy a house you need money. this is where point 1, funding for lending comes in

lisyloo

does anyone actually dispute this?

I don't dispute your list, but you left out a few important ones.
Increasing population, smaller households, lack of building.

everyone wants a house in london but few can actually buy one

So we've just had the biggest bubble in history but no-one can buy?
That's totally contradictory.
People have been buying and still are.

this may be a revelation to you but in order to buy a house you need money.

plenty of foreigners and banking bonuses.
Some people in finance just buy the £400K flat in Fulham with their bonus.
You only need a few to be actully able to buy one to take up all the available stock before demand (real demand) outstrips supply.

Jack_Johnson_the_acorn

Bubble_and_Squeak wrote: »

effective demand, my dear acorn
everyone wants a house in london but few can actually buy one
this may be a revelation to you but in order to buy a house you need money. this is where point 1, funding for lending comes in

My dear squeaky friend.

You can't afford to buy, doesn't mean nobody else can.

chucknorris

cells wrote: »

I don't know you but I know you aren't half as smart as you think you are

Look at this recent exchange that crashy and I had, you couldn't make it up:

Crashy_Time wrote: »

You sound like a half educated chav to me.

chucknorris wrote: »

I sound like a half educated chav to you? I have a first class honours degree in quantity surveying , I am a chartered quantity surveyor, I'm a senior lecturer at a university and teach quantity surveying, what do you do, and what are your qualifications?

Crashy_Time wrote: »

Do you think that being a University lecturer (cough cough) is impressing anyone?

chucknorris wrote: »

The details I give were in direct response to you calling me a half educated chav.
I ask again:

chucknorris wrote: »

What do you do, and what are your qualifications? Is it really that embarrassing that you can't say?

Crashy_Time wrote: »

My qualifications are none of your business, but if you still use measures such as qualifications and job to gauge people you have much learning to do my friend.

chucknorris wrote: »

I actually agree with you, qualifications are only proof of an education (rather than intelligence), yet it was you that brought qualifications up and therefore you attached the significance to it!

Bubble_and_Squeak

lisyloo wrote: »

I don't dispute your list, but you left out a few important ones.
Increasing population, smaller households, lack of building.



So we've just had the biggest bubble in history but no-one can buy?
That's totally contradictory.
People have been buying and still are.



plenty of foreigners and banking bonuses.
Some people in finance just buy the £400K flat in Fulham with their bonus.
You only need a few to be actully able to buy one to take up all the available stock before demand (real demand) outstrips supply.

increasing population needs money to buy
why is this concept so difficult for you to grasp?

biggest bubble in history while funding for lending cash was flowing and foreign money was pouring in

foreign money declining
probably will decline further with falling oil price

Bubble_and_Squeak

Jack_Johnson_the_acorn wrote: »

My dear squeaky friend.

You can't afford to buy, doesn't mean nobody else can.

mortgage lending declining

Bubble_and_Squeak

chucks, dow jones looks a bit toppy
why not buy some shares to complement your toppy ftse investments

chucknorris

Bubble_and_Squeak wrote: »

chucks, dow jones looks a bit toppy
why not buy some shares to complement your toppy ftse investments

Errr because it looks a bit toppy, doh! But my ftse investments are showing good profit and giving about a 4.8% yield, based on the average price that I invested at. When you gross that up (because dividend income is only taxed at 25%) that is a 6% equivalent gross rate, how are your savings rates doing, lol?

Edit: I don't primarily invest for capital growth (although obviously I'll gladly have some) I invest for dividend income.