Britain’s number one mortgage lender, the Halifax is predicting that the property market will stagnate in 2008 even if the Bank of England cuts the base rate to 5%. This is good news for home owners in comparison to other predictions of falls of 10 to 15 percent next year. But not so good for people still struggling to get on the property ladder. A report for the global finance monitor said that house prices in the UK have soared in relation to incomes and now stands at about 9x annual average earnings. Up from about 5x in 2001.
Archive for the ‘House prices’ Category
House prices to stagnate in 2008
Saturday, December 8th, 2007Make money from falling house prices
Saturday, December 8th, 2007The UK Residential Index fund will be launched in January 2008. What is this and how does it work? Its a complex investment fund that uses derivatives to bet on the extent to which the property market will fall over various time periods. One of the predictions at the moment is that house prices could fall by 10% next year and would carry on into the next year. So two years of house price falls or as they say, “correct” may be on the cards because it is believed that British property is overvalued by an astonishing 40%.
How to make millions from property!
Friday, December 7th, 2007I recently read an article on how two brothers built their £9bn property empire with a £6,000 loan from their grandmother in 1995. They have definitely accomplished a tremendous amount in a space of 12 years. But why is it that most of these multi-million pound property fortune I read about are from people who started out in the 1990s? Maybe I’m just jealous but surely a monkey could do almost the same thing since property prices have tripled in the last 10 years? We need more articles on newer successful property developers that we can aspire to.
Hope for US property market
Thursday, December 6th, 2007Reports on the US mortgage applications for last week showed a surge of 22.5% on the back of plunging interest rates. Let hope that the US economy may not go into recession after all. I’m a possitive thinker. As the say, when America sneeze, the UK catches a cold. Let hope that does happen.
