The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
In any case hyper-inflation in the property market means that inevitably you get a lot more speculative buying.
I have a friend in Kensington with a neighbour who bought a two bed garden flat for around £370k and is trying to sell it for £500k six months later.
You also get a lot of builder types who get in at the start of the bubble by buying cheap old properties, spending a minimum on doing them up, and then selling for a comparatively huge cash profit, which can be used as a deposit to repeat the scheme in a different cheaper area.
A few rounds of climbing up the ladder like that and you can do very nicely for yourself.
So as soon as you get a bubble, you get significant market distortions because the proportion of people buying to live, as opposed to buying for profit, starts to decrease significantly.
Bottom fell out and he was left holding the bag renting at roughly 1/2 the cash flow necessary to buy the flats. Was happening all over. Saw another in Ealing that was on offer at L200K. Finally sold at about L140. Ugly for the spec builders. I hope that bastard lost a bundle after the way he jacked us around.
by Frank Schnittger - May 27
by Frank Schnittger - May 5 22 comments
by Frank Schnittger - May 23 1 comment
by Oui - May 13 64 comments
by Carrie - Apr 30 7 comments
by Oui - May 27
by Oui - May 24
by Frank Schnittger - May 231 comment
by Oui - May 1364 comments
by Oui - May 910 comments
by Frank Schnittger - May 522 comments
by Oui - May 448 comments
by Oui - May 312 comments
by Oui - May 29 comments
by gmoke - May 1
by Oui - Apr 30242 comments
by Carrie - Apr 307 comments
by Oui - Apr 2830 comments
by Oui - Apr 2644 comments
by Oui - Apr 876 comments
by Oui - Mar 19143 comments