Saturday, April 09, 2005

Scotland Prices Crawl Slower Than Inflation

The Scotsman.com reports that price increases have slowed abruptly in some markets and even turned down in one. "The current "headline" rate of inflation, the retail price index - which includes housing costs - is currently 3.2%, meaning that house prices in those areas are falling in real terms."

"In the Scottish Borders, which have seen annual price rises of as much as 39% in a year, and which have become popular with commuters to Edinburgh, prices in February were 7.7% lower than the same time last year."

11 Comments:

At 7:35 PM, Anonymous Anonymous said...

But I thought housing always beat inflation and the stock market as an investment ! (wink, wink)

Do you mean I would be better to have my money in the bank ? But I can't sell it because I owe more on it than its worth. Now what ? And I have to keep paying the mortgage on it every month ! Uggghhhh

 
At 8:02 PM, Anonymous Anonymous said...

The coming real estate wreck:

http://www.corante.com/mooreslore/archives/2005/04/08/the_coming_real_estate_wreck.php

"What assets naturally rise in value? Those assets which produce valuable products, and can continue producing them, rise naturally in value. (Not all do, of course. You have to account for the Fiorina Effect, for Barbarians at the Gate, and Cluelessness.) Those assets which are naturally limited in quantity, like land itself, will rise in value over time.


But not homes. And the myth that homes always rise in value needs to die. It will die, sooner than you think."

 
At 8:03 PM, Anonymous Anonymous said...

I refinanced my home and now I owe more than I can resell it for !

http://biz.yahoo.com/brn/050408/15945.html

 
At 8:04 PM, Anonymous Anonymous said...

South Florida real estate is a bust !

https://registration.miami.com/reg/login.do?url=http://www.miami.com%2Fmld%2Fmiamiherald%2F11331805.htm

 
At 8:21 PM, Blogger John Law said...

I can't tell you how I know this, but my sources tell me that scotland is part of an island, so I'd buy using as much leverage as possible.

ahahahahahha!

 
At 8:24 PM, Anonymous Anonymous said...

Just like they did on that other island, Japan ! Maybe there is a thing about real estate on islands, that it is destined to get over priced and then deflate.

 
At 8:25 PM, Anonymous Anonymous said...

Could you tell us what made John Law famous ?

 
At 8:29 PM, Blogger John Law said...

he ruined france. well, that and the Miss. company is pretty funny.

 
At 8:33 PM, Anonymous Anonymous said...

Tell us more. What is the Miss company ?

The emporer (Al Greenspan) has no clothes !

http://www.corante.com/mooreslore/archives/2005/04/07/crack_of_doom.php

 
At 8:45 PM, Blogger John Law said...

http://en.wikipedia.org/wiki/John_Law_%28economist%29

galbraith's "short history of financial euphoria" gives a good account.

 
At 12:19 AM, Anonymous Anonymous said...

check this eye-popping news from australia:

http://www.jenman.com.au/NewsArticles1.php?id=136

 

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