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Shamatti

Is the UK housing bubble about to Burst?

33 posts in this topic

Can't remember exact figures but his mortgage on it is £350pm & rental income is £625. The property being a new build flat comes with a 10year guarantee on certain things. 60k in the bank earns nothing so may aswel invest in property.

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Anyone who thinks that government subsidies make houses cheaper to buy needs a headcheck.

All that Help To Buy has done is massively inflate the new build sector:

http://www.housepricecrash.co.uk/forum/uploads/monthly_2017_05/Screenshot_20170525-124231.thumb.jpg.a47026f534dcc2a9af79ab232ba17f79.jpg

Newbuild train wreck coming soon:

http://www.bridgingandcommercial.co.uk/article-desc-12003_the-slow-moving-train-wreck-has-entered-the-station

arcglide likes this

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No way the housing market will correct for another 10 years Imho.

interest rates will stay pretty low to keep govt debt repayments low and they came build enough houses to keep up with demand. +25% in 10 years 

 

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It is turning.

http://www.bbc.co.uk/news/business-40117132

Doesn't matter if interest rates are zero, prices cannot go up forever, and when they stop going up then usually the start going the opposite way.

http://www.housepricecrash.co.uk/forum/uploads/monthly_2017_06/nw3m.gif.3ac2dec40cf53f9fd3ba0caf0c37dedf.gif

 

Edited by vand
RichRock likes this

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http://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price-index/2017/May_2017.pdf

It certainly is turning! This is national average prices and movements, including the bubbliest of bubbly south. Fingers crossed the insanity will end there soon.

Its all relative though; where I am buying (according to right move), prices are up a whopping 5% since 2007, where as my wage has risen far more than that. I can't speak for others living here, but in real terms for me, house prices have been falling since I moved here.

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Even Rightmove, the most bullish of Indexes, and a proxy for seller expectations has taken a haircut in the last month:

http://uk.businessinsider.com/rightmove-uk-house-prices-record-first-june-fall-since-2009-2017-6

UK -0.4%
London -2.4%

 

If you are heavily leveraged in UK property right now then god help you.

Edited by vand
RichRock likes this

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