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

Graham_Devon

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

Conrad

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

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.

jacko74

Erm, Mr Brazier... it's the BoE that is causing the current bubble thanks to QE and enforcing emergency ZIRP.

lisyloo

Some would say the lesser of two evils.

chucknorris

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.