Monday, January 29, 2007

Mad London House Prices? We've Seen Nothing Yet

i really don´t know where to start. i think you should read the disclamer from bloomberg .

bei diesem bericht weiß man kaum wo man anfangen soll. denke zuerst ein hinweis auf den disclamer.

" Matthew Lynn is a Bloomberg News columnist. The opinions expressed are his own"

the full piece from this guy sounds more like from someone who is joking or writes "satire" columns. i can´t belive that this guy works for bloomberg. lets hope that he puts his money where his mouth is ....... buy london properties hand over fist........none of his arguments makes any sense. none! when you read his opinion it looks like london is still a bargain.... maybe this was written for the "fools day" and was released early due to a glitch......

der komplette bericht kann normalerweise nicht von einem bloomberg mitarbeiter kommen. hört sich eher nach einem satirischen komentar oder einem bericht der bildzeitung an. ich wünsche ihm das er sein ganzes geld im londoner immobiliensektor investiert (versenkt...). keines seiner argumente hält betrachtung statt. keines. ghet es nach ihm ist london immer noch auf schnäppchenniveau. die einzige erklärung für diesen bericht ist das er ursprünglich für den 1. april gedacht war und irrtümlich zu früh veröffentlicht worden ist.

Jan. 29 (Bloomberg) -- After a year of huge price increases for London homes, you would think the market had gone crazy. ( yes, indeed.....)

You haven't seen anything yet. (the ratio doesn´t look like it is stretched....)

London is just following the rest of U.K. real estate. Don't be surprised if the capital's fevered property market doubles in value before this boom runs out of steam. (double from this level......../ne weitere verdopplung.....)

``London and the South East have a lot of catching up to do over the next few years,.....``They have underperformed the rest of the country.'' ( oh boy.......)

It can't have escaped many people's attention that for the last year, the prices of London properties have been rattling ahead like a freight train.

London-based real-estate broker Knight Frank LLC said in January that prime-property prices in the capital were rising at the fastest rate in 27 years. Their values jumped 2.6 percent in December, bringing the increase for the year to 28.6 percent. .... it was the biggest annual increase recorded by the survey since 1979,...( good that the salaries have kept pace.........../ dumm nur das die gehälter nicht mal im ansatz mitgezogen haben)

Indeed, London is the world's most expensive city for prime property,(but it has still lagged the rest of uk?) ...... Prices in areas such as Chelsea and Hampstead averaged $2,244 per square foot in the second quarter of 2006. The same space for Manhattan homes -- on Fifth Avenue, Park Avenue and Madison Avenue near Central Park -- cost about $1,870. (but still room to double.......)

Broom Closets
It doesn't make much difference whether you are at the top or the bottom of the property ladder. HBOS Plc, the U.K.'s largest mortgage lender, said this month that the average price of a London home rose 12 percent last year to 287,176 pounds ($563,000).

Indeed, even the broom closets are pricey -- quite literally. This month, a former cleaner's cupboard measuring just 11 feet 3 inches by 7 feet 3 inches in West London's Chelsea district was valued at 170,000 pounds, according to a report in the Guardian newspaper. You will need to spend an additional 30,000 pounds on renovation as well. (could be this "bargain" thanks to tim )

At more than $4,340 a square foot....."It is an investment," he said, as he stretched his arms the width of the room, laying his palms flat on opposite sides of the wall.

So that is a bubble, right? Surely prices can't keep escalating at that kind of rate. The world will run out of money.

Well, think again. The latest round of London property inflation has probably only just begun. ( this guy is drunk or on drugs....../ der typ mus betrunken oder auf droge sein)

London as Laggard
The London property market has become like the stock market (which isn't that surprising, since many of the people buying the properties make their money from the trading of equities). It doesn't move in straight lines. Like a share price, it does nothing for a long time, then suddenly shoots up. (or breaks....oder bricht ein)

London real estate has lagged behind most of the U.K. for the best part of this decade. And right now it is being revalued.

According to HBOS's property calculator, a home in London that was worth 100,000 pounds at the start of 2000 would have cost 196,246 pounds at the end of last month. That may sound pretty good. But you would have done better elsewhere. The same 100,000 pounds invested in a property in Wales would have been valued at 257,173 pounds. Or in Northern Ireland, the figure was 304,064 pounds. (that argument makes´s like comparing one stock with a pe of 100 to another one with a pe of 90 and label the with 90 as a bargain. rent yields in london are less than risk free uk bonds. looks like a once in a lifetime opportunity........ein tolles argument. ist als wenn man ne aktie mit nem kgv von 100 mit einer vergleicht die nur ein kgv von 90 hat und das als kaufargument anführt. wenn man bei risikolosen uk staatsanleihen mehr an rendite erzielen kann als im londoner immobilienmarkt muß das ne ganz tolle kaufgelegenheit sein......)

Measured against those sorts of gains, the escalation in London house prices looks relatively calm. .....(speechless / sprachlos)

Population Needs Housing
London will catch up. ...... The mayor of London, Ken Livingstone, said in a 2002 report that the population of London would add 700,000 people by 2016, taking the total to 8.1 million.

That will keep property prices moving ahead. All those people surely need to live somewhere.

A broom closet valued at 170,000 pounds may seem like crazy money -- and it probably is.
There is still no reason that it shouldn't cost you 300,000 pounds in three years' time. (this quote is probably one for the hall of fame.../ diese zitat könnte einer für die geschichtsbücher werden...)

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