Mike Hoffa says “Sell your tractor and go buy a house”
Sell your tractor and go buy a house
That was the week in property, by Mike Hoffa
20th February 2012 There’s a very liberal type of outrage being expressed in many households at the moment.
Shock, horror, the price of diesel has hit a record high at 143.05 pence per litre, meaning it’s risen at twice the Consumer Price Index rate and it now costs you £114 to fill up the 80 litre tank on your commercial van, according to the BBC.
It’s apparently due to a perfect storm of rising crude oil prices, restricted supply and some refineries closing, although I have to say the term ‘perfect storm’ is overused these days and it seems to be rolled out as an excuse for just about everything. Struggling to lose weight? Ah – that’ll be the perfect storm of the gym being too far away, the corner shop having a special offer on crisps and that dodgy knee flaring up again.
“Nor are all the doomsayers who maintain that the UK property market has yet to crash even further and that you’re better off renting…”
However, the point is that those diesel-loving ecowarriors in their cardigans are finding it’s now quite pricey to fill up their people carrier and are not feeling quite so smug anymore (Ed – have you been speaking to Jeremy Clarkson again Mike?).
Nor are all the doomsayers who maintain that the UK property market has yet to crash even further and that you’re better off renting, because rents continue to go the same way as diesel. In fact, the Guardian reports that rents saw a rise in January for the first time since LSL Property Services started compiling its survey back in 2008. That’s not saying they haven’t risen for four years, but more specifically that they have never gone up in January before.
So what’s behind it all? Well, the Guardian puts it down to a number of factors, which can be succinctly described as a perfect storm of too many tenants looking over the Christmas period, not enough houses to go around and landlords needing more beer money. Okay, so I made that last one up but we all know you need three things for a perfect storm, otherwise it’s just a difficult breeze.
“…a perfect storm of too many tenants looking over the Christmas period, not enough houses to go around and landlords needing more beer money.”
But don’t expect it to change anytime soon. Supply and demand means rents are not going to drop in a hurry and the general consensus on the economy is that growth is going to be “sluggish”, suggesting low interest rates for some time to come and little sign of another big drop in house prices.
So if you’re sat there waiting for the price of houses and diesel to come down, I really wouldn’t hold your breath. If you don’t take action now you might be hit by a perfect storm of not being able to fill up your tractor, never owning a home and having to put up with me saying I told you so – and I wouldn’t wish that on anyone.
About the author:
Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.
Mike’s question of the week: Time to call it a day on waiting for another crash?
This entry was posted
on Monday, February 20th, 2012 at 1:32 am and is filed under Mike Hoffa.
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Mike Hoffa says “Sell your tractor and go buy a house”
Sell your tractor and go buy a house
That was the week in property, by Mike Hoffa
20th February 2012
There’s a very liberal type of outrage being expressed in many households at the moment.
Shock, horror, the price of diesel has hit a record high at 143.05 pence per litre, meaning it’s risen at twice the Consumer Price Index rate and it now costs you £114 to fill up the 80 litre tank on your commercial van, according to the BBC.
It’s apparently due to a perfect storm of rising crude oil prices, restricted supply and some refineries closing, although I have to say the term ‘perfect storm’ is overused these days and it seems to be rolled out as an excuse for just about everything. Struggling to lose weight? Ah – that’ll be the perfect storm of the gym being too far away, the corner shop having a special offer on crisps and that dodgy knee flaring up again.
“Nor are all the doomsayers who maintain that the UK property market has yet to crash even further and that you’re better off renting…”
However, the point is that those diesel-loving ecowarriors in their cardigans are finding it’s now quite pricey to fill up their people carrier and are not feeling quite so smug anymore (Ed – have you been speaking to Jeremy Clarkson again Mike?).
Nor are all the doomsayers who maintain that the UK property market has yet to crash even further and that you’re better off renting, because rents continue to go the same way as diesel. In fact, the Guardian reports that rents saw a rise in January for the first time since LSL Property Services started compiling its survey back in 2008. That’s not saying they haven’t risen for four years, but more specifically that they have never gone up in January before.
So what’s behind it all? Well, the Guardian puts it down to a number of factors, which can be succinctly described as a perfect storm of too many tenants looking over the Christmas period, not enough houses to go around and landlords needing more beer money. Okay, so I made that last one up but we all know you need three things for a perfect storm, otherwise it’s just a difficult breeze.
“…a perfect storm of too many tenants looking over the Christmas period, not enough houses to go around and landlords needing more beer money.”
But don’t expect it to change anytime soon. Supply and demand means rents are not going to drop in a hurry and the general consensus on the economy is that growth is going to be “sluggish”, suggesting low interest rates for some time to come and little sign of another big drop in house prices.
So if you’re sat there waiting for the price of houses and diesel to come down, I really wouldn’t hold your breath. If you don’t take action now you might be hit by a perfect storm of not being able to fill up your tractor, never owning a home and having to put up with me saying I told you so – and I wouldn’t wish that on anyone.
About the author:
Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.
Mike’s question of the week: Time to call it a day on waiting for another crash?
Tags: makeoffer.co.uk, Mike Hoffa, Property, Property Auctions, Property Market Comment, UK Property Market
This entry was posted on Monday, February 20th, 2012 at 1:32 am and is filed under Mike Hoffa. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.