In my opinion these areas are now overvalued significantly.   They would have been hot picks last year, but by the time you read about them being hot picks the horse has bolted.  Hackham West was notorious in the 80's/90's.  hw

Every buble bursts.  Every bull run ends.  The US is now looking more and more like a basket case.  I don't think we are that we should be slapping ourselves on the back in the belief that the trouble in the US and UK will pass us by.  More debt than ever, and interest rates increasing in a climate of rapid debt fueled inflation that shows no sig…[Read more]

May as well share with group.  The saga of my worst mistake. We bought a rundown property in Liverpool (UK) while living in London.  We did a flat conversion turning it into 1 three bed and one 1 bed flat.  Given we were about 400km away it was very difficult organising tradespeople.  Quotes to do the work we wanted ranged from £20,000 – £80,…[Read more]

This is a link to an interesting set of housing affordability papers.  Haven't had time to read them yet, but thought some people may be interested.http://www.demographia.com/dhi.pdf

In previous years when the share market has nose dived and created a corresponding boom in the residential property market there have been several other factors involved which are different this time.  1.  There had been significant interest rate cuts when the market crashed. (Rates are going in the other direction this time)2.  The residential pr…[Read more]

I have to say I am also thinking this way.  There is too much uncertainty around at the moment.  The sub prime crisis.  The US is now in recession, the US property market is going backwards, the british property market is starting to go backwards.  British lenders are starting to tighten their lending criteria (rejecting 7/10 credit card app…[Read more]

Daedalus,Thanks for those links.  I think Foundation is spot on with the discussion around Debt, Rent/Interest and Wages. I also think you have raised an interesting point.  Its all about finding the opportunity, but it always helps to know that the strategy you are working on is consistent with the market conditions.And just for interest sake, I…[Read more]

Thanks for your response, I am aiming to stimulate some discussion, I have no preconceived notion that I may be correct.  Certainly Auction Clearance rates and Sales prices suggest 10-12, but prices are rising rapidly suggesting around 12, yeilds are falling suggesting about 1 and interest rates are raising quite fast with plenty of data to…[Read more]