Comments on: Sub Prime Crisis – What Does It Mean for BMV Investors? http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/ Resources For Your Property Deals Mon, 01 Nov 2010 20:56:02 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: James Dale http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/comment-page-1/#comment-40 James Dale Fri, 23 Nov 2007 19:14:29 +0000 http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/#comment-40 I run two companies, one a consulting civil/structural engineering firm inspecting properties in the SE England and the other a small properties portfolio ( I run two companies, one a consulting civil/structural engineering firm inspecting properties in the SE England and the other a small properties portfolio (

]]> By: Gerry Pridham http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/comment-page-1/#comment-37 Gerry Pridham Fri, 23 Nov 2007 16:33:06 +0000 http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/#comment-37 Pankaj, Another reason that our property prices are higher than the USA is this: When I went overseas working for an American company, Brits were paid about one half of the equivalent skill of an American (1978). Now (2007), Brits are paid almost twice as much as Americans for equivalent skills. That's a fourfold relative increase in value of a Brit compared with an American, and probably goes some way to explaining how our property prices have moved up greater than some other countries. I don't see many comparisons made with Switzerland property prices! Pankaj,
Another reason that our property prices are higher than the USA is this:
When I went overseas working for an American company, Brits were paid about one half of the equivalent skill of an American (1978). Now (2007), Brits are paid almost twice as much as Americans for equivalent skills. That’s a fourfold relative increase in value of a Brit compared with an American, and probably goes some way to explaining how our property prices have moved up greater than some other countries. I don’t see many comparisons made with Switzerland property prices!

]]> By: Gerry Pridham http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/comment-page-1/#comment-36 Gerry Pridham Fri, 23 Nov 2007 16:20:13 +0000 http://www.bmvclub.com/blog/2007/11/23/sub-prime-crisis-what-does-it-mean-for-bmv-investors/#comment-36 Dear Pankaj, I take issue with your unfounded comment: "Looking at statistics, the amount borrowers have to pay to the bank (mortgage) as a percentage of their disposal income is back to where it was at the peak of 1980s property boom." I posted a graph on PTC forum last month from Nationwide or Halifax showing that the current % of disposable income (inflation adjusted) is at the same level as 1983 to 1986, not the peak of 1988 to 1989. http://www.property-system.com/auction/vbulletin/showthread.php?t=65125 Regards, Gerry Dear Pankaj,
I take issue with your unfounded comment:
“Looking at statistics, the amount borrowers have to pay to the bank (mortgage) as a percentage of their disposal income is back to where it was at the peak of 1980s property boom.”

I posted a graph on PTC forum last month from Nationwide or Halifax showing that the current % of disposable income (inflation adjusted) is at the same level as 1983 to 1986, not the peak of 1988 to 1989.

http://www.property-system.com/auction/vbulletin/showthread.php?t=65125

Regards, Gerry

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