Friday, 10 October 2008

Estate agents will say anything to get you to buy a house

I saw this headline in today's times "Frightened investors ‘pile into property’. It seems that the only thing that could save the property market was the fear of a systemic banking crisis.

Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust.

The trend is emerging in all corners of the property market, according to one nationwide agent, from high-end mews houses in Knightsbridge to dilapidated two-up two-downs in the East Midlands. Lindsay Cuthill, head of the southwest London office of Savills estate agents, said: “Ten days ago a wealthy, well-known businessman seeking to buy a mews in Chelsea told me, ‘I feel my money is safer here than in the banks’.”

Robert Billson, head of Savills in Nottingham, said: “There are people with £50,000 who would rather buy a derelict house and board it up for a while than put their money in an Icelandic bank right now.”

So the safest thing you can do right now is put money into a a boarded up derelict house in Nottingham and just wait.

If this is the most profitable investment opportunity in the UK right now, then we are in deep trouble.


Mark Wadsworth said...

The safest investment is National Savings. The best investment is potentially, if you are brave/reckless is foreign government bonds. Buying into a falling property market is madness.

AC said...

Well, houses are as good as gold.

A house is always worth an equivalent house !

And unlike gold it pays a yield - even after expenses.

Anonymous said...

If nobody wants to live in a house it becomes a liability...

Nick von Mises said...

How could buying a derelict house in Nottingham sight unseen possibly go wrong?

Anonymous said...

There are still armies of idiots in the UK. A house only has value if the neighbourhood where it is located is worth living in, and the people their can afford a house. Just tour around the UK's urban blight, or the US's growing urban and suburban blight, to see how quickly houses lose value - permanently! There are only a handful of neighbourhoods in the UK that can afford to be arrogant about property value: Hampstead, Chelsea etc.

Anonymous said...

Oh, the irony!

Pretty soon somebody will click the fiat value of money as a medium of exchange, then we'll all be in trouble. Luckily I live next door to an oil refinery, own many guns, have a large and aggressive family, and have no moral sense whatsoever. Bring it on, as they say.


electro-kevin said...

The following is from Ahujagroup property investment which specialises in low end rental portfolios serving the DHSS market.

"Property investment is going to be BIG again!

Rate cuts, further rate cuts expected and increased liquidity (to the tune of £500bn which is nearly 50% of the total mortgages outstanding in the UK) will mean there is a temporary position where:

property prices are low
monthly mortgage costs will be low
availability of finance will be high
This means massive opportunities will exist. I reckon this situation can last for up to 6 months before normality is restored. So when you can get a double digit yielding property, no money down with a buy to let mortgage at a rate below 6% offered to you, you have to ask yourself what more signals do you need to buy!

We are in a very unique situation where errors are going to be made because government is mixing with commerce. We could see the government forcing banks to lend or face harsh penalties. If the banks start throwing money at you - TAKE IT!

To see my new services have a look at my services home page. If you are interested in any of them request a call back and they will contact you at your convenience.

Do not let this 6 month window of opportunity pass you by."

electro-kevin said...

AC - remember ... location, location, location.

Britain of today is no longer the location it was yesterday.

Note that the Ahujagroup is optimistic about the DHSS market.

Nick von Mises said...


Wouldn't you be if your bread and butter is bilking the taxpayer and the socialists are lining up every more desperate vote-buying spending splurges on their benefit brigade?

electro-kevin said...

I think we're going bankrupt, Nick.

Jez said...

Now that we have nationalized the banks, could we now move onto the utilities. Then, lets really start to roll the clock back; railways, mines, steel, and teh car industry.

Nick von Mises said...

I'm hoping this crisis is going to produce a boom in anti-Brown memorabilia and novelties.

Remember those small rubber "bash-your-boss" figures you have on your desk that squeak when you hammer-fist them?

If I could get one each for Brown, Darling and Balls I'd be making music all day