Doomed

[sasguru]

No, the Germans and Dutch are just as bad.



But you still need a sucession of willing buyers to sustain a price level. The local's don't earn enough to buy at these levels, so as soon as the foreigners stop investing in an area the price tanks.

tim

Well that's true of quite a few areas. But there are certain global hotspots which have rich buyers of ALL nationalities including local nationals who would invest in second homes there.
London is exactly such a place.
In a global recession of course prices would fall, but if you're paying cash, you can sit it out till the next boom.

[tim123]

Well that's true of quite a few areas. But there are certain global hotspots which have rich buyers of ALL nationalities including local nationals who would invest in second homes there.
London is exactly such a place.
.

I agree, but cute places in East Europe usually aren't in this category

[sasguru]

Well that's true of quite a few areas. But there are certain global hotspots which have rich buyers of ALL nationalities including local nationals who would invest in second homes there.
London is exactly such a place.
In a global recession of course prices would fall, but if you're paying cash, you can sit it out till the next boom.

Hah. He doesn't half post a pile of tulipe

[tim123]

Hah. He doesn't half post a pile of tulipe

Actually he has a point.

It's because people don't do that that we get boom and bust. When they see a falling market they all start to sell so that they don't get stuck with a valueless item, this itself creates an even faster fall. If everyone sat tight and only the forced sellers sold then the market wouldn't fall so far.

OTHO the opposite is what created the boom in the first place. Even in the current market, there are still people who think "I have to buy a house at whatever cost" for no other reason than "because it will be more expensive to buy next year" even though, (a) they can't actually afford to buy a house but more importantly (b) the total cost of renting over a liftime is (currently) lower than buying.

The lemmings will never learn, so when prices do start to drop a little, we are bound to have a crash (whatever that nice Kirsty woman says).

tim

[BlasterBates]

Well that's true of quite a few areas. But there are certain global hotspots which have rich buyers of ALL nationalities including local nationals who would invest in second homes there.
London is exactly such a place.
In a global recession of course prices would fall, but if you're paying cash, you can sit it out till the next boom.

aha, but prices have already dropped in London.