Words: Ashley Rigg
Published: 29th July 2010
*UK consumers give property market kiss of death
The overwhelming majority of people in the UK are now positive about the outlook for property prices. They are wrong.
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Source: Global edge
User Comments
While I put my bets on looking further a field and this is why investors are looking towards markets such as Brazil for investment, with a growing economy, no national debt, increased wealth, strong local demand and all the resources in the world this is a sure winner, especially with a double win on the football world cup 2014 and Olympic Games 2016! Have bought beach land lots there myself which have already appreciated by 30% in only a few months..
Dale Anderson,
Experience International
The housing boom was built on easy credit with little research into credit worthiness by the banks. This has now tightened up considerably.
The situation we have in Southern Spain is that bankrupted builders pass over their equity to the banks, and the banks are offering houses at around half their original value with 100% mortgages available. Take up is mainly from the Spanish needing seaside accommodation in the summer.
Malcolm Maxwell,
life on the luz
JBoden from Oakridge Consultants needs to get his facts right we do not just sell cave houses !!! Our local area is hot this year or it is for us anyway. 20% increase YTD is on sales and 27% increase in prospects.... Maybe someone isnt doing there job right...
Mike McGee,
Pichiclan Group
I think the goldrush mentality that unsophistated investors had will not be seen again for the next ten years or so.
People realising the notional profits in their own homes to buy speculative investments in unchartered Eastern Block countries have had a pretty rough ride over the last couples of years.
I feel UK buyers wanting to invest overseas will be far better researched and more risk adverse than their predecessors, hopefully learning that no commodity, equity or property will keep rising in value indefinitely.
Mark,
First Property Choice
Our experience in Egypt is very different; our market does not rely on credit and many of our investors are buying here with cash. Freehold properties from £230 per m2, finished, no capital gains, no inheritance tax and growth rates of 20% plus even during the current world crisis; not to mention rental return of 15% ROI at rock bottom long term rental rates. It really is time the world woke up to Egypt and the Red Sea Riviera in particular.
Peter Mitry,
Egypt Real
Pichiclan Group deals in cave homes. Prices of cave homes have dropped by over 30%. I don't know where Mike McGee is coming from.
As to a 20% increase in clients, can he be more specific, are they viewing or buying.
JBoden,
Oakridge Consultants
There are clients in the market for overseas property. Dispite the Crisis we have had an increase of over 20% in 2010 YTD in private and investor clients alike. Maybe because we offer inland property we are avoiding the madness that reaches round the whole of the Spanish coast were prices are only just about settling down, inland property over the whole crisis in our area only took a 7% hit and prices have been stable for around 6 months now. Crisis Crisis Crisis "What Crisis"
Mike McGee,
Pichiclan Group
It is very similar to the French market, French journalists say that the French countryside is on its way to recovery while Paris is actually booming with a seller market. i.e. several French agents in Paris have only 20 properties in their books. You can read it in the Figaro newspaper: http://tiny.cc/oh2ql
Matthieu Cany,
Sextant French Property