Anyone not agree that these are the signs of the hype coming to an end?
“Buyers camp out to secure a home”
Please use common sense!!! Please!!! price in Cambridge (only one example) the picture looks dodgy (scruffy horrible house)
Cherry Hinton (near Cambridge) - 3 Bed Terrace House offers around £235,000
Rent in Cherry Hinton for a 3 Bed House (near Cambridge): £ 10,800 per year
So lets do the maths, shall we? The return on the £235,000 is an astonishing 4.6 %!!! BUT: What about things breaking or repairs? Did you know you receive about 5% on a savings account from ING (as an example).
Picture from Metro article: 17 day queue for MOD home
The following terminology is taken from the stock market but can be applied to the housing market:
Characteristics of crashes (Source Wikipedia)
A prolonged period of rising stock prices and economic optimism, a market where P/E (price earnings can be related to Price / Rent) ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants.
THE NEXT BIG HOUSE PRICE CRASH – IT WILL COME – THE QUESTION IS NOT IF BUT WHEN – WE ARE PREPARED AND WE ARE WAITING
http://n0comment.wordpress.com with a zeeero instead of the O
I think your right there will be a property price crash. prehaps not as big as the crash in the last 8o’s early 90’s.
[...] 16, 2008 by André Today I looked back at an old post of mine from April 2007. Here is the link and an excerpt: [...]