Can you imagine the destruction in the UK if the property market crashed

lisyloo

qwert_yuiop wrote: »

Their gamble may of course be based on the belief that brexit may never happen.
Or they’re being royally ripped off by persuasive salesmen. I once met a bloke whod bought two apartments off plan in a new resort on one of the Cape Verde islands. The scheme failed and he lost all his investment. Turned out the island had no airport. Not every investor is clever.

Absolutely, not all of it will be good investment but it’s happening right now and will continue to happen, more so if sterling falls.
The fact that some of the Asians will be sucked into bad schemes doesn’t negate the fact that they’ll help prop up our housing market.

Our property market is now global which makes it more resilient.

Anyone who’s plan is based on a crash during their fertile years may be disappointed.
Those who have plans based on saving each month will probably end up with a house and a pension. Yes there will be ups and downs but it really doesn’t seem complicated to me.

Malthusian

qwert_yuiop wrote: »

I once met a bloke whod bought two apartments off plan in a new resort on one of the Cape Verde islands. The scheme failed and he lost all his investment. Turned out the island had no airport. Not every investor is clever.

There are loads of beautiful and highly profitable resorts on islands which have no airport all over Greece, Thailand, etc. The boat ride is part of the fun. That reason for the scheme's failure is as unconvincing as the reasons it was supposed to be a success.

westernpromise

Malthusian wrote: »

This is a big "might" as rents are highly recession-resistant. When you are completely skint and have the choice between paying your rent or buying food, you pay your rent and go to a food bank.

The BoE used to publish stats on renter versus mortgagor distress in paying for shelter which showed that they move together. When rates do up so do rents, but when rates come down rents come down more slowly.

What's happening is that if you want to avoid negative equity badly enough, your only option is rent. So the rent people are prepared to pay rises not least because if they don't want to pay they'll pay a much more expensive mortgage instead.

The fact that mortgage rates can more than double in 18 months shows that rents can do so too. The oft-touted idea that rents are maxed out and can't rise is for the birds. If mortgage costs and rents doubled people would downsize and pay more.

qwert_yuiop

Malthusian wrote: »

There are loads of beautiful and highly profitable resorts on islands which have no airport all over Greece, Thailand, etc. The boat ride is part of the fun. That reason for the scheme's failure is as unconvincing as the reasons it was supposed to be a success.

I’d imagine a flight from Europe for a one week package holiday would be a better seller if an international airport were available. How many Canary Islands holidays involve la gomera and hierro compared to lanzarote? The Cape Verde islands are a fair distance apart as well. Whatever happened, it collapsed.

lisyloo

qwert_yuiop wrote: »

I’d imagine a flight from Europe for a one week package holiday would be a better seller if an international airport were available. How many Canary Islands holidays involve la gomera and hierro compared to lanzarote? The Cape Verde islands are a fair distance apart as well. Whatever happened, it collapsed.

Not sure what your point is.
Before it collapsed people were attracted and invested for whatever reason. Perhaps it was a scam all along and the person that sold them had a great patter.
The fact that there will be some scams and some bad investments does not negate the fact that our property market will continue to be invested in by rising numbers of middle class Asian investors.

westernpromise

I quite fancied the Cape Verde islands for winter holidays not so long ago; nice weather, flights not too long, August Mallorca weather in February. But rumour has it they're very windy, and the hotels aren't all that. It would certainly have sounded like a plausible investment, but you have to do your due diligence on these things, especially when unregulated.

AG47

westernpromise wrote: »

I quite fancied the Cape Verde islands for winter holidays not so long ago; nice weather, flights not too long, August Mallorca weather in February. But rumour has it they're very windy, and the hotels aren't all that. It would certainly have sounded like a plausible investment, but you have to do your due diligence on these things, especially when unregulated.

Too near to the equator for me

Going to be far too hot most of the year

Just look at ran e in the 40s

Even England late 30s

We may even see migration from south uk upto Scotland to get away from the heat going forward

westernpromise

AG47 wrote: »

Too near to the equator for me

Going to be far too hot most of the year

Just look at ran e in the 40s

Even England late 30s

We may even see migration from south uk upto Scotland to get away from the heat going forward

I really don't think so.

Cape Verde in February is about 25 degrees. Actually a bit chilly by my standards.