RE Speculation Is Global And Connected
The Telegraph reports on a new scam that already may be in a neighborhood near you. "Some suggest that their members can buy new flats for discounts of up to 30 per cent. Supposedly they can negotiate these cheap deals by taking a number of flats in a new development at an early stage, and so get a 'wholesale' price. The members only stump up 5 per cent as a deposit."
"The number of buy-to-let mortgages in the UK has soared from 28,700 in 1998 to 526,200 last year."
It isn't confined to England. "As a last gasp, a number of the off-plan agents are pushing overseas property in places such as Spain and Florida. Gambling on new schemes in faraway markets is the stuff of madness. The room for error is huge."
We are seeing the idea that RE is local completely discredited, as in this MSNBC story. "There's a good chance you or someone you know owns a second home abroad. You may even unwittingly own a stake in a Guangzhou office block, via your pension fund."
This concept is Alan Greenspans' chief arguement against a housing bubble. What else is he wrong about?