Hi Jonnycrash, You bring up some interesting points. I shall try to answer some of these points as I am currently living in UK.
I have recently invested in UK property (hopefully nailing the bottom?). The prices that I paid are lower than the cost of the buildings excluding the land (you can’t build it for the prices that I paid). The reason that I was able to buy these properties at these prices is that I paid CASH. There are plenty of buyers out there but without a substantial deposit and employment prospects, the banks won’t lend, in spite of BOE arm twisting, stamp duty holidays etc.
Inflation in UK appears to be limited to fuel, energy and taxation. Grocery prices have remained relatively the same or lower due to COMPETITION between the supermarket chains.
Unemployment has risen and is seen rising further making spenders/borrowers scarce.
Overall, the climate of Austerity combined with high unemployment and taxation has tightened the screws to the point of economic stagnation. Therefore, doesn’t it stand to reason that property prices are stagnant in UK? I can’t see why Australia should be different given the ADDED fact that Australian house prices are at stratospheric levels.
