HPC thread of the week

lisyloo

Don't agree with either of them, but my point is that a bank engineered bubble and rents not increasing and mutually exclusive.

There's only a bubble in certain towns, other places are not experiencing it. So big bubble in London/Manchester and rents not increasing in certain places that aren't hotspots for the Chinese money is not mutually exclusive. Looking at one housing anecdote is not terribly revealing.

ukcarper

lisyloo wrote: »

There's only a bubble in certain towns, other places are not experiencing it. So big bubble in London/Manchester and rents not increasing in certain places that aren't hotspots for the Chinese money is not mutually exclusive. Looking at one housing anecdote is not terribly revealing.

I agree prices have increased very large amounts in some areas but that's not the same thing as a bank engineered bubble.

ukcarper

Crashy_Time wrote: »

Only if you confuse rents with house prices.

But house prices and rents are interlinked.

Crashy_Time

ukcarper wrote: »

But house prices and rents are interlinked.

Not really, rents are based on what people can pay, prices are based on what they can borrow.

ukcarper

ukcarper wrote: »

Someone who bought interest only in London would now find they have a large amount of equity.

Looking at nationwide someone buying an average house in London at previous peak would have seen the price of their property increase by £140k.

ukcarper

Crashy_Time wrote: »

Not really, rents are based on what people can pay, prices are based on what they can borrow.

That shows how little you know.

Crashy_Time

ukcarper wrote: »

I agree prices have increased very large amounts in some areas but that's not the same thing as a bank engineered bubble.

Well it became a government engineered bubble after the banks went t*its up trying to engineer it, hence the growth spurts popping up mainly in places like London, they can`t replace the wall of global money that was flowing into property pre- 2007. Before subprime hit the buffers prices were soaring all over the country and volumes were high.

Crashy_Time

ukcarper wrote: »

That shows how little you know.

Well I know how much my rent is, which seems to be more than you know...:rotfl:

Crashy_Time

lisyloo wrote: »

They will have experienced high HPI in London even if they weren't making repayments so depending on when they bought they would have equity and possibly significant.

So they can use this "wealth" to get out of debt and own their own little piece of heaven?

ukcarper

Crashy_Time wrote: »

So they can use this "wealth" to get out of debt and own their own little piece of heaven?

Yes they could move to a cheaper part of country and buy for cash