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Act now to avoid another boom and bust property catastrophe - BOE

Graham_Devon
Graham_Devon Posts: 58,560 Forumite
Part of the Furniture 10,000 Posts Combo Breaker
edited 20 October 2015 at 8:25AM in Debate House Prices & the Economy
Bit of a bubble spoiler alert.

This one is more about commercial property, but covers BTL investing too.

It appears the BOE are gearing themselves to warn the market not to get carried away, once again, with a boom......(probably under the illusion of "it's different this time" - my thoughts)
Mr Brazier urged the industry to take action now so that “we’re not doomed to repeat the past”, and instead can build resilience ahead of any future downturn.

“The time to start it is when people most feel like celebrating: when your market is on the up. We have to start now,” he said.

“So in a matter of months, the Bank of England will start reporting market-wide indicators of valuations and gearing based on cashflows capitalised at cycle-neutral rates. It will help you to measure the risks. And risk that gets measured can get managed, by you and by us.”
http://www.telegraph.co.uk/finance/bank-of-england/11941452/Act-now-to-dodge-another-boom-and-bust-property-catastrophe-Bank-of-England-warns.html

Comments

  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    I'm selling my commercial premises, hoping to benefit from resurgent interest on the back of investors being deterred by the resi B2L tax rules coming in.
  • michaels
    michaels Posts: 28,689 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 22 October 2015 at 12:43PM
    You have to have a huge pair to invest in commerical property, those who have made a fortune from it just haven't got unlucky yet.
    I think....
  • jacko74
    jacko74 Posts: 388 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Erm, Mr Brazier... it's the BoE that is causing the current bubble thanks to QE and enforcing emergency ZIRP.
  • lisyloo
    lisyloo Posts: 29,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Some would say the lesser of two evils.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    lisyloo wrote: »
    Some would say the lesser of two evils.

    Yes its is a very tough call, whether to believe Carney or Crashy, they both give such convincing arguments.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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