U.K. to beat U.S. ?
As we all know, the U.S. real estate market is facing a big crisis …
Prices are going down, the consumer is hurt and the economy starts to roll over.
But … at least the U.S. has a falling currency, which helps, and Helicopter Ben, doing until the impossible to float the boat 
Even if it does not work … at least he tried …
Now let’s have a look at the U.K. …
The BoE still keeps interest rates high, the currency still not falling …
but … house prices are still climbing … at a 12 year low, but still climbing …
so the Northern Rock failure happened in a RISING(!) market … what will happen, if as expected, home prices start to fall???
CSFB values the U.K. residential housing market as “most overvalued market” … GLOBALLY …
And this coincides with the first signs of real consumer weakness and … due to the credit crunch … RISING mortgage rates.
So maybe we should tip off our Korean friends, who yesterday moaned about the low yields in the U.S. and sparked a rallye in European equitiy markets as they were said to put more money into “riskier” assets 
In other asset classes they might face “some” downside 
There are times, even low yields are attractive …
Tags: asset allocation, housing, U.K.
März 28th, 2008 at 16:53
This really is the time to get proper advice and think very carefully about what you can truly afford and to look at a long game plan if possible. Check through any new mortgage proposal with a fine tooth comb.
März 28th, 2008 at 20:36
You hopefully gave proper advice at all times
März 29th, 2008 at 00:04
I’m passionate about helping people get the best deal for them. An FSA approved independent mortgage broker will source the whole market unlike some brokers who can be tied to certain lenders and therefore certain incentives.