Happy price news?
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Discussion

groan

Original Poster:

3,254 posts

209 months

Wednesday 23rd March 2011
quotequote all
Went to the auction last night. The room was full to bursting, and plenty of proxy and phonebid activity as well. Not a vast amount of room activity, but certainly healthy enough for most stuff to get close to or on and even slightly above guide prices. Very very few serious bargains, and the one (small shop) I went to buy failed to reach reserve.

It'll be interesting to see if Tory interest rate mismanagement creates a chaotic pricecrash disaster, but the level of achievable rents makes me kind of doubt it. If I wasn't 'saving up' I'd have bought a couple without caring where prices went as the rental income would easily justify the price. That itself could keep a lot of prices firm.



ringram

14,702 posts

278 months

Wednesday 23rd March 2011
quotequote all
Yeah rentals at some point will support house prices.
It just depends how inflation and wage stagnation affects rentals over time.
Ultimately people also need to be able to afford rent, they have an easier choice about moving than owners.