The house price crash guarantee – The bubble is about to burst

Anyone not agree that these are the signs of the hype coming to an end?

Buyers camp out to secure a home”

“Share to buy a joint mortgage for young professionals”

17 day queue for MOD 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

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2 thoughts on “The house price crash guarantee – The bubble is about to burst

  1. Pingback: The worst is still to come / House prices « anyone need my comment?

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