tag:blogger.com,1999:blog-2948538160252327076.post6716162449408620254..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: Rents down, banks crashingAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2948538160252327076.post-23479096464091367072008-08-05T01:39:00.000+01:002008-08-05T01:39:00.000+01:00The Economist reported on some high rise flats in ...The Economist reported on some high rise flats in the Woolwich as going down in value. It even reported that one went to auction at L115,000- down from a high of L330,000 just a couple of years ago.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-68404104422567800972008-08-03T10:36:00.000+01:002008-08-03T10:36:00.000+01:00Correction to mine above - apologies, 0.9/1.5 sug...Correction to mine above - apologies, 0.9/1.5 suggests a real drop of speculatively purchased rentals of about 60%, not 80%. Mmm, there it is, that figure of a real drop of 60% by the bottom. Keep saving all!<BR/><BR/>B. in C.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-17704894217847237932008-08-02T19:31:00.000+01:002008-08-02T19:31:00.000+01:00Recession is 50:50 in the sense that there are two...Recession is 50:50 in the sense that there are two answers to:<BR/><BR/>"Are we in a recession?"<BR/><BR/>:)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-82080700358062600902008-08-02T16:43:00.000+01:002008-08-02T16:43:00.000+01:00I saw that FT article and thought you would post o...I saw that FT article and thought you would post on it.<BR/><BR/>Inflation:-<BR/>to paraphrase Christopher Fildes..<BR/>Bubble bubble, toil and trouble...our inflation up but theirs is double!peterthepainterhttps://www.blogger.com/profile/05878467321753671134noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-75570514131181254392008-08-02T16:36:00.000+01:002008-08-02T16:36:00.000+01:00London's calling!Mmm, the rental figures you cite ...London's calling!<BR/><BR/>Mmm, the rental figures you cite are fascinating; if one assumes a £1500 per week rental was being asked by a speculative investor prepared to accept an annual return as low as 5%, the capital value of such a riverside flat will have neared £1.5 million. <BR/><BR/>If one calculates the value of such a property on the traditional rule of thumb for rentals which applied before the bubble of a 10% annual return, 5% for income and 5% to cover maintenance and other overheads, that riverside apartment ought to be worth only £600,000 or its inflated equivalent in a few years time.<BR/><BR/>That's a real drop of 80% on the cards for speculative buy-to-let investors.<BR/><BR/>What good news for those London calls to 'live by the river', as the song had it.<BR/><BR/>B. in C.Anonymousnoreply@blogger.com