Yibble Posted August 6, 2022 Share Posted August 6, 2022 14 hours ago, Roger Mexico said: I don't think this will be true this time, certainly much less so than with previous interest rate rises. Property price inflation has been driven in recent years by the desire to find somewhere safe to place cash, rather than shortage of supply as such. Unless alternatives appear that are likely to provide safe and reliable sources of income, property will continue to be the favoured sort of investment. Nothing else seems likely to fit the bill. Furthermore that security is sought for cash, not speculatively using borrowed money. The measures taken such as QE as well as demographic factors mean that there are a lot of companies and older people with lots of spare cash still. Interest rate rises won't worry them. It's true that some borrowers will have over-extended, but these will tend to be people desperately trying to buy a home for themselves, rather than over-optimistic investors. These people will now lose their homes which may well be snapped up by cash buyers as BTL. What is more a lot of the cash won't even be British, for various reasons property in the UK/IOM has become to be seen as a good investment, so there is a whole world of money that will continue to fuel the current system. So rate rises will just make the current situation worse. All good points, but my bet would be that the impact of rising interest rates will be greater. Property prices cannot continue to rise indefinitely and once they do start to decline, property investment will no longer seem so safe. Some folk will cash in, increasing the supply of properties. Demand will be constrained both by rising mortage rates and by fewer folk eager to put their cash reserves into property. I suppose some could arge that IoM property has historically been undervalued compared to (say) Manhattan, Knightsbridge or Monaco and therefore there's still considerable upside to be had 🤣. I wouldn't be one investing on that basis though. Quote Link to comment Share on other sites More sharing options...
Bandits Posted August 6, 2022 Share Posted August 6, 2022 20 hours ago, 2112 said: They are hated here and especially in the Channel Islands. Whilst I do see the investment and the jobs they have brought to the island, they have priced out many people off the property ladder, and the BTL carry on at the Ballasalla Estate I would say has been distasteful. Sadly I would say that it would probably happen again at other locations, unless politicos and planning do something. Lot of the disastrous PR at Ballasalla was, I believe, a result of DD dropping someone in from Jersey after the lockdown who believed the houses were substantially underpriced (they would be compared to Jersey) and then did a rather brutal campaign to try to bully people into paying more. It pissed off a lot of locals. But I don’t think a lot of the rental yields quoted were feasible as I doubt there are that many people coming here who can afford to spend £2000-£3000 PM long term renting a new 4 bedroomed house. 1 Quote Link to comment Share on other sites More sharing options...
Newsdesk Posted October 13, 2022 Share Posted October 13, 2022 A prime example of what is wrong with the IOM housing market. Completed two weeks ago and already looking for anyone mad enough to pay £1600 a month. https://plumproperties.im/property/103433000799 2 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted October 13, 2022 Share Posted October 13, 2022 7 minutes ago, Newsdesk said: A prime example of what is wrong with the IOM housing market. Completed two weeks ago and already looking for anyone mad enough to pay £1600 a month. https://plumproperties.im/property/103433000799 We need a tax on additional properties over main residence whatever structure they’re owned by plus similar on empty/derelict properties . 8 Quote Link to comment Share on other sites More sharing options...
A fool and his money..... Posted October 13, 2022 Share Posted October 13, 2022 A problem which would be extremely easy to sort out via taxation. Would require Government to grow a pair though and stand up to rich developers and property investors and so will probably never happen. 6 Quote Link to comment Share on other sites More sharing options...
Newsdesk Posted October 13, 2022 Share Posted October 13, 2022 10 minutes ago, Banker said: We need a tax on additional properties over main residence whatever structure they’re owned by plus similar on empty/derelict properties . But then you’d also be penalizing a lot of old codgers who only bought one house to rent out as their pension because they were getting 0% in the bank to live on. 1 Quote Link to comment Share on other sites More sharing options...
Mr Helmut Fromage Posted October 13, 2022 Share Posted October 13, 2022 17 minutes ago, Banker said: We need a tax on additional properties over main residence whatever structure they’re owned by plus similar on empty/derelict properties . A strange comment from someone who championed the removal of caps on City bonuses, loves everything about the Channel Islands (the housing price structure in Jersey is fucked) hates Teachers but loves curtains- if you had 3 houses you could twitch as much as you want….. 3 Quote Link to comment Share on other sites More sharing options...
HeliX Posted October 13, 2022 Share Posted October 13, 2022 29 minutes ago, Newsdesk said: But then you’d also be penalizing a lot of old codgers who only bought one house to rent out as their pension because they were getting 0% in the bank to live on. They could just sell them for tens of thousands more than they paid and stick the money into anything paying interest. Doesn't seem like a very big penalty compared to working age people having to give up the vast majority of their household income to someone who was fortunate enough to have more money than them. 6 Quote Link to comment Share on other sites More sharing options...
Newsdesk Posted October 13, 2022 Share Posted October 13, 2022 (edited) 3 minutes ago, HeliX said: They could just sell them for tens of thousands more than they paid and stick the money into anything paying interest. Doesn't seem like a very big penalty compared to working age people having to give up the vast majority of their household income to someone who was fortunate enough to have more money than them. You really are a twisted individual with your boomer hatred. How can you be that jealous and twisted about people who have simply managed to create wealth by working hard. Edited October 13, 2022 by Newsdesk 1 Quote Link to comment Share on other sites More sharing options...
A fool and his money..... Posted October 13, 2022 Share Posted October 13, 2022 1 minute ago, Newsdesk said: You really are a twisted individual with your boomer hatred. How can you be that jealous and twisted about people who have simply managed to created wealth by working hard. The point is people still work hard, but the wealth they create is often no longer adequate to house them. Older generations were more fortunate in that respect and many of them made a lot of money from housing inflation as well as hard work. They, or anybody else for that matter, should not be exploiting the existing housing crisis for financial gain. No one is suggesting taking their homes away, merely encouraging them to invest their excess in something other than making a basic human need unaffordable for many. 4 1 Quote Link to comment Share on other sites More sharing options...
0bserver Posted October 13, 2022 Share Posted October 13, 2022 1 hour ago, A fool and his money..... said: A problem which would be extremely easy to sort out via taxation. Would require Government to grow a pair though and stand up to rich developers and property investors and so will probably never happen. It's never going to happen while several MHKs and senior civil servants are landlords in their own right. The only way to fix the housing market is direct government intervention to build 3,000+ first time buyers/essential workers/social housing units. Then action on taxation to tackle the blight of second homes and BTL landlords. 5 Quote Link to comment Share on other sites More sharing options...
Newsdesk Posted October 13, 2022 Share Posted October 13, 2022 Just now, A fool and his money..... said: The point is people still work hard, but the wealth they create is often no longer adequate to house them. Older generations were more fortunate in that respect and many of them made a lot of money from housing inflation as well as hard work. They, or anybody else for that matter, should not be exploiting the existing housing crisis for financial gain. No one is suggesting taking their homes away, merely encouraging them to invest their excess in something other than making a basic human need unaffordable for many. That’s total bullshit to be honest. Let’s see how the current under 35 generation cope with the proper recession that’s now unraveling where everything could be totally fucked. They won’t be able to go crying to others to sort it out. I’m sure the ‘boomers’ didn’t feel that fortunate with their outside toilets and high post war unemployment. Just as the Generation X’ers probably didn’t feel that fortunate with their 16% mortgages and 4,000,000 UK unemployed in the middle of the 1980s. All this spewing hatred of peoples parents or grandparents is easier than getting off your ass and doing something. 1 Quote Link to comment Share on other sites More sharing options...
HiVibes Posted October 13, 2022 Share Posted October 13, 2022 11 minutes ago, Newsdesk said: managed to create wealth by working hard. Thats the boomer thing isn't it 'we worked so fucking hard', as if you did, 37.5 hours a week doing low skilled jobs whilst moaning how hard you worked, but still paid enough to raise a family with wife at home meanwhile the house prices skyrocket which creates the wealth, not the work. 1 Quote Link to comment Share on other sites More sharing options...
Newsdesk Posted October 13, 2022 Share Posted October 13, 2022 2 minutes ago, HiVibes said: Thats the boomer thing isn't it 'we worked so fucking hard', as if you did, 37.5 hours a week doing low skilled jobs whilst moaning how hard you worked, but still paid enough to raise a family with wife at home meanwhile the house prices skyrocket which creates the wealth, not the work. I’m no boomer but honestly you’re a pathetic whining broken record. Why don’t you get off your moaning ass and make a success of your life as previous generations have instead of being a sad bitter twat blaming everyone else for why you’ve not got on in life? 2 Quote Link to comment Share on other sites More sharing options...
Sheldon Posted October 13, 2022 Share Posted October 13, 2022 5 minutes ago, HiVibes said: Thats the boomer thing isn't it 'we worked so fucking hard', as if you did, 37.5 hours a week doing low skilled jobs whilst moaning how hard you worked, but still paid enough to raise a family with wife at home meanwhile the house prices skyrocket which creates the wealth, not the work. I knew this reminded me of something... 1 1 Quote Link to comment Share on other sites More sharing options...
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