Amazing Tory policy on housing
I found this link on another blog yesterday and it is absolutely staggering and just shows how far the Conservatives and New Labour have moved away from mainstream policies. Conservative policies of yesteryear would be described as extreme Corbynomics by many of our deluded politicians.
US 1 & 3 month bonds go negative
With 1 month US bonds confidently negative, 3 month bonds a yo-yo ing from negative to positive, pivoting around zero and the yield on 6-month treasuries actually declined 19 basis point in past month. "None of this "should be happening" in a rising rate environment with an allegedly strengthening economy" with this indicative of coming recessionary conditions states Mike Shedlock: http://www.marketoracle.co.uk/Article52509.html : Though Mike ignores that there is a global economy at stake, and this represents capital flowing into the US market, possibly from China and Europe, but also places like Brazil, combined with the US experiencing a global deflationary shock on commodities from the Chinese collapse that outweighs strong economic growth on the FOREX market right now.
Double top for US house prices or new boom?
One for the bears
The peak in real estate may have arrived. At the same time, this reflects the shift away from government bonds. Blackstone Group LP, the largest real estate fund to assemble, has come right on point. Blackstone raised $15.8 billion, creating the largest real estate fund in history. As we have warned, this reflects investment capital shifting into real estate. We may see a major high in real estate in many areas due to taxes and regulations. They are even looking at introducing property taxes in places within Europe where they did not exist before.
A trend continues
This Is Money: One in five 20 to 34-year-olds has moved back in with their parents in the last year because they cannot afford to rent Read more: http://www.dailymail.co.uk/news/article-3256900/One-five-20-34-year-olds-moved-parents-year-afford-rent.html#ixzz3nRoi4oD0
There are many family homes with spare rooms. One factor of the housing "crisis" is that we will revert closer to third world countries where three or more generations live in the same house, plus folk renting out spare rooms, spare lofts, spare spaces under stairs, spare garages, sheds, green houses, tree houses, land for tents, and on, and on. This is how London will hit 12 million residents by 2030. Welcome to the new normal.
When enough is far too much..
He bought his first investment property in Yorkshire in 2000 and by 2003 had a portfolio of 84 buy-to-let properties across the county, generating £250,000 a year.....a doomed attempt to join a Romanian property scheme in 2007 left the family "virtually penniless".
London rent a bed scheme
A young graduate with hopes of moving to London has expressed her disgust after a single room costing £500 a month turned out to be a cupboard "under the stairs". Alex Lomax visited the flat share in Clapham after seeing an advert online but was left shocked after its description of a "furnished room" seemed a little too generous. Her pictures show a single mattress wedged in between the walls, with a little bit of room left for a couple of boxes at the back.
Some small relief for tenants?
The minimum debt required for Bankruptcy proceedings is going up from £750 to £5000 - "a good six months rent for many of the UKs landlords" Below this and they have to use County Court proceedings instead, which is much more expensive and takes longer. I wonder how many rogue landlords would pursue arrears if it would mean an opportunity for the tenant to point out some breach of contracts to a judge? I certainly wish that I'd stiffed our landlord when we moved - we ended up getting £75 from the Ombudsman but I reckon they would have probably written off a month's rent rather than have to explain themselves to a proper court...
Nordic experimentation with sub-zero interest rates has changed the way central bankers think about
It has long been believed that when it comes to interest rates, zero is as low as you can go. Who would choose to keep their money in the bank if they had to pay for the privilege? But for the people who control the worlds money, this idea has recently been thrown out of the window. Many central banks have pushed their rates into negative territory and yet the financial system HAS YET TO COME TO AN ABRUPT END.
Equivalent to margin in stocks
It's the elephant in the room...BTL at these levels is a pure play on rising prices..leveraged loans speculating on Rising prices.Problem is it goes pear shaped if prices fall...1929 stock crash was fuelled by margin trading As was 2007 crash and recent Chinese stock crash...trouble is you can't short physical property!BTL makes no Sense at these levels unless prices rise