Some Sellers May Rush To Get Out
AFK Insider reports on South Africa. “Housing prices in South Africa’s leisure property market are still increasing, but they’re slowing as a result of slower economic growth and the prospect of rising interest rates, MoneyWeb reports. There’s a glut of leisure properties on the market, especially in coastal areas, said Herschel Jawitz, CEO of Jawitz Properties, in an interview with MoneyWeb. Times are difficult, and to make matters worse, banks are getting pickier about approving loans. ‘Bank lending on secondary properties is still very tight as they are taking a conservative view on borrowing on these properties,’ Jawitz said.”
Bloomberg on the UK. “Asking prices for London homes fell the most in nine months in May as concern about potential property-tax changes before the election cooled demand. Prices dropped 2.3 percent from April — led by top-priced Kensington and Chelsea Rightmove said. Nationally, prices slipped 0.1 percent, the first decline in a May since the last general election in 2010. Rightmove said there was a 17 percent jump in new properties coming to market in the U.K. after the May 2010 election and this could be replicated after the May 7 vote delivered a conclusive result.”
“In London’s most expensive districts, prices plunged 6.3 percent this month to 1.44 million pounds, according to the report. That’s a 7.4 percent drop from a year ago.”
The Daily Times on South Korea. “‘Long-term low growth’ is sometimes used by local news organizations to explain the South Korean economy. The three Bank of Korea rate cuts in the past 10 months were made to prop up the ‘eroded’ confidence of consumers and firms. Another factor was a rapid growth of household debts, which may drive the economy into the danger of housing bubble collapse. ‘Household debts are manageable now, but the recent pace of growth is very fast,’ said BOK Governor Lee Ju-yeol.”
“The rate of Jeonse deposit to home value surpassed 70 percent in February this year, which raised residence costs, as potential home buyers refrained from purchasing home on concerns over housing price falls. South Korea has the world’s highest percentage of interest-only mortgages, which requires interest payment alone. The rate of these loans was 74 percent in 2014, lower than 92 percent in 2011 but much higher than 14 percent in the United States, 33 percent in Australia and 55 percent in Netherlands.”
Business World on the Philippines. “Oversupply worries in the condominium market led developers to delay completion of some projects, property consultancy Colliers said in its first quarter research and forecast report. A total of 31,000 residential units are expected to be delivered in the next three years with nearly 40% of the figure expected by 2016, Colliers data showed. In the first quarter, the pre-selling residential market in Metro Manila suffered a 46% year-on-year drop in launches.”
“‘2012 was a special year — there were a lot of interesting projects and given the low interest rate environment, investors were looking at alternative assets to invest in. It’s a buyer’s market and they are waiting for the new developments to be finished before they make their next purchase,’ said Julius M. Guevara, Colliers head of advisory services. ‘For the rental market, we have seen unprecedented levels of construction and completion in the main CBDs (central business districts). It will be more challenging for an investor [to lease out their units] just because of the number of units that will be completed.’”
The New Zealand Herald. “The Government has surprised the market with a stronger than expected move on property tax. Coming just days after the Reserve Bank moves to restrict bank lending to property investors, it sends a strong signal that the risks of an Auckland property bubble are now universally accepted at an executive level. Ensuring all foreign investors must have a local bank account in order to get an IRD number also brings transparency around money laundering and deals with accusations that some of the Chinese money coming into the local market is from ‘corrupt sources’ not sanctioned by the Chinese Government.”
“Overall, yesterday’s announcement marks a major shift in government thinking. Where previously there has been a sole focus on a supply-side solution to Auckland’s housing issues, this move, along with a warm response to the latest Reserve Bank efforts, shows the Government is now more closely attuned to the risk of a property market bubble.”
Interest in New Zealand. “ANZ’s economists believe there may be a rush of new property listings in the next four months, as vendors and investors try to beat the October 1 introduction of new tax and mortgage lending rules on residential property investments. In a research report, ANZ said although uncertainty surrounded the precise impact of the proposed changes, it suspected it could be significant. ‘We suspect the impact could be stark given the extent of house price movement of late. We believe sentiment could turn on a dime. Some sellers may rush to get out while the going is good. Ultimately, we suspect this marks a turning point for the Auckland housing market.’”
From Perth Now in Australia. “House prices in Sydney and Melbourne are reaching worrying territory, says the head of Australia’s corporate watchdog. Australian Securities and Investments Commission chairman Greg Medcraft told The Australian Financial Review the self-managed super industry is especially exposed to a correction in property prices. ‘History shows that people don’t know when they are in a bubble until it’s over,’ Mr Medcraft told AFR. ‘I am quite worried about the Sydney and Melbourne property markets. In housing, the long-term average income to average price ratio is four to five times but at the moment it is at historic highs,’ he said.”
“Some policymakers and market observants have been concerned that the steady increase in property prices, particularly in Sydney and Melbourne, has more to do with speculators taking advantage of record low interest rates rather than a fundamental endorsement of the market’s long-term prospects.”
The Australian Financial Review. “The housing market took a breather this week, with values dipping in most capital cities, giving policy makers hope that the recent mad market may be slowing. Median home values were flat in Sydney and fell 0.4 per cent in Melbourne in the week to Saturday. Clearance rates also dipped in both cities, figures from CoreLogic RP Data show.”
“But coming in the same week that official figures showed investment lending on housing rose nearly 21 per cent in March, nearly twice the rate at which banking regulator APRA regards as sustainable, any sign of moderation will be a relief for the rate-setting Reserve Bank, which earlier this month cut the benchmark cash rate to a new record low of 2 per cent. ”
“Investors remain active, but falling yields on residential property - and in some cases, growing vacancy rates - suggest activity may slow in months to come. In Melbourne, clearances also slipped to 74.3 per cent of the 849 auctions reported - also down from 79 per cent last week - out of a total 973 scheduled. In Melbourne, a converted former postcard factory in Armadale was passed in at $3,525,000 on Saturday after it failed to meet the reserve price of $3.95 million.”
“Housing prices in South Africa’s leisure property market are still increasing, but they’re slowing as a result of slower economic growth and the prospect of rising interest rates, MoneyWeb reports.”
Hmmm, maybe it’s because their third world gov’t can’t keep the electricity flowing:
http://www.bloomberg.com/news/articles/2015-04-07/south-africa-s-power-crisis-paralyzes-investment-risks-rating
As an Anglo, I cannot think of a better place to buy a big house than in a country where 90% of the population are extremely poor angry blacks.
Perhaps a name change from Cracker Bob would be in order…
‘Investors are scrutinizing Chinese developers’ books after Kaisa Group Holdings Ltd.’s default, as rating companies highlight accounting red flags.’
‘A doubling of Kaisa’s debt only came to light after a potential buyer reviewed its accounts and customers sought refunds on deposits for buying properties without presale clearance. Advance payments, bookkeeping for joint ventures and perpetual bonds are among areas needing attention to assess risks, Standard & Poor’s and Moody’s Investors Service said.’
‘Current liabilities at China’s 100 biggest listed developers have ballooned to the equivalent of $497 billion from $107 billion at the end of 2009, Bloomberg-compiled data show. Debt jumped to 169 percent of equity from 96 percent.’
“Chinese property developers might have been short-sighted and tried to increase their valuation by using some creative accounting methods,” said Emir Hrnjic, director of education at the National University of Singapore Business School’s Centre for Asset Management Research and Investments. “In the long-run, the debt problem will surface.”
“Investors are taking a closer look at the small print because they have begun to think Kaisa may not be the only one,” said Ben Sy, head of fixed income, foreign exchange and commodities for Asia at JPMorgan Chase & Co.’s private banking division. “The accounting issues surrounding Chinese developers have always been there, but the Kaisa default has increased worries about the contingent and unreported debt.”
“… the accounting issues surrounding Chinese developers have always been there …”
The fact that Chinese businesses use “creative accounting methods” actually surprises someone? People try to be polite and say that China’s economic numbers “may not be accurate.” Just say it - they’re pretty much all lies. Only now are the true numbers starting to trickle out. Wait until the avalanche of corrections start to reveal just how much of a bubble China’s economy is.
“The fact that Chinese businesses use ‘creative accounting methods’ actually surprises someone?”
If you are a direct investor in China then maybe not, but if you are an indirect investor in China then probably so.
The handlers of huge piles of OPM (from which they get to extract some hefty fees) may know that the numbers are rigged but nevertheless they will plunk the money down because this is what they do - and besides, it’s not their money.
The actual owners of the piles of OPM - the indirect investors - put their trust into the handlers of the money in hopes that the handlers will “do the right thing”.
And likely the handlers WILL “do the right” thing which, to them, is often defined as collecting some hefty fees.
We had a poster here not too long ago who told of his looking over American Homes 4 Rent along with the rest of us and marveled how anyone, as a direct investor, would want to invest is such a company.
Then he looked at some of the holdings of a REIT that he was involved with - involved with as an indirect investor - and there it was, there was American Homes 4 Rent.
Yep, and it’s the foreign money that will be the last to be paid, meaning never.
That would include American investors in China.
But then I’m guessing lots of Chinese investors in U.S. RE might have reciprocal difficulty getting their money out…
“Only now are the true numbers starting to trickle out.”
I have to wonder if AlbqDan will keep on posting denials of the situation once the trickle turns into a torrent?
It’ll continue, and look something like this:
http://www.welovetheiraqiinformationminister.com/images/07-minister.jpg
Shanghai Dan
‘Current liabilities at China’s 100 biggest listed developers have ballooned to the equivalent of $497 billion from $107 billion at the end of 2009, Bloomberg-compiled data show. Debt jumped to 169 percent of equity from 96 percent.’
It’s amazing that this could happen in a low-debt country where every household saves half their income!
When half your income is 300 bucks, it has negligible effect on macroeconomic metrics.
This is impossible. Just ask Albdan.
‘First home buyers in NSW are loading up on nearly 25 per cent more debt than they were when the Reserve Bank began cutting official interest rates, as buyers scramble to get a foot in the door as house prices soar.’
‘They are, on average, borrowing $68,400 more today than they were three and a half years ago, when RBA governor Glenn Stevens kicked off the round of interest rate cuts that have put a rocket under house prices.’
‘The average new loan for a first home buyer has risen 23 per cent over this period to $362,000, significantly outpacing growth in wages, as buyers across the board take out bigger loans in response to very cheap debt.’
‘Sydney dwelling prices have surged nearly 15 per cent over the past year and 49 per cent since the RBA began cutting rates in 2011, CoreLogic RP Data figures show.’
‘The borrowing surge has been led by property investors, who receive a tax break on their interest costs, but regulators are also worried some owner-occupiers are taking bigger risks.’
‘Bank of America Merrill Lynch economist Alex Joiner said a key concern was the growth in owner-occupier borrowers using interest-only loans, which offer customers lower monthly costs by not paying back any principal.’
“That seems to be a bit of a red flag because they are trying to improve affordability at a time when interest rates are at record lows,” he said.’
A loan where you only pay the interest is just renting by another name.
‘Is it a property tax on capital gains or a capital gains tax on property? The Jesuitical distinctions in the government’s spin about its latest moves on property speculators are all about whether the government can claim that it jumped, or confess that it was pushed, into a response. Calling it a property tax means that it was an extension of existing provisions – while calling it a capital gains would be to ’fess up to sleeping with the enemy.’
‘Definitional issues aside – and since this new tax walks and talks like a capital gains tax, lets call it that – there is no doubt that the government has had to be dragged reluctantly to this position. Clearly, a politician can live in denial for only so long. For months, Finance Minister Bill English had been peddling the line that governments can’t really do much to dampen down the demand side of speculation in housing. Australia, English liked to point out, had (a) a stiffer capital gains tax and (b) strict rules against foreign speculators buying existing houses …but regardless, English claimed, they still have a housing price bubble in Sydney!’
‘It was never a convincing argument. (Hey, we still have fires too, but no one thinks it would be good idea to live without the Fire Service.) Reserve Bank governor Graeme Wheeler for one, didn’t buy it. Last week, the RB signalled that our Wild West stance towards housing speculation in Auckland is putting the New Zealand economy at serious risk, if and when the price bubble eventually bursts. Speculators account for some 41% of Auckland house sales. Come October, the RB decreed, such people will need to stump up with a 30% deposit before they can get a bank loan.’
‘With his back pushed to the wall, English has finally acted. Yesterday, the government announced that the Budget will unveil a new regime that’s likely to include such things as (a) a de facto registration system for foreign speculators which will among other things, make money laundering more difficult (b) a capital gains tax on property on-sold within two years, with a few exceptions for the likes of family – inherited property and (c) possibly, a withholding tax for foreign investors.’
‘Average new home prices in China’s 70 major cities fell for the eighth consecutive month in April from a year earlier, down 6.1 percent. New home prices in Beijing fell 3.2 percent last month from a year earlier, versus the previous month’s drop of 3.7 percent, the National Bureau of Statistics said on Monday.’
‘Shanghai’s home prices were down 4.7 percent last month from a year ago, versus a 5 percent fall in March. The weak property market is seen as one of the major risks for the economy, which looks set for its worst year in 25 years this year.’
The rate at which housing is losing value in China gets bigger and bigger by the month. Is there no one to explain to us how this is a good thing?
‘Australia’s apartment boom is in full swing. Nationally, 40% of new dwellings are now apartments or units, and building approvals outnumber those for houses. Melbourne and Brisbane are the most extreme cases, but these trends are national; and they are fundamentally reshaping the future of urban Australia.’
‘In Melbourne, for example, the inner city is being flooded with 1-2 bedroom micro-apartments set in increasingly tall towers (+30 storeys). Almost half are under 50 square metres – not much bigger than a generous double garage. These would be outlawed in other world cities, including Sydney.’
‘Many new apartments have bedrooms with no windows, low ceilings and inadequate storage. They have poor access to natural light and ventilation, and underperform on environmental efficiency. Apartment bedrooms without windows are illegal in New York, Hong Kong and Vancouver.’
‘Market-driven urban development “logic” is rarely questioned, but there’s evidence of wholesale market failure. Much of our high density, high-rise apartment stock caters to the local and overseas investor market, enticed by favourable taxation and regulatory regimes.’
‘Mortgage brokers are reporting credit conditions in Australian housing lending market have become a lot tougher in the past two weeks according to CLSA’s leading bank analyst Brian Johnson.’
‘Mr Johnson said recent discussions with broking contacts pointed to banks cutting discounts on investment loans and demanding tougher scrutiny on borrowers’ ability to repay their debts.’
‘The crackdown comes only days after data was released showing mortgages had soared to a new record high of $31.3 billion in March.’
‘Assumptions for rental incomes have also been cut by 20 per cent at NAB and the Commonwealth and by 40 per cent at Westpac, also cutting the amount that can be lent. “Separately, at least one broker has pointed out to us significantly increased bank verification of broker submitted details,” Mr Johnson added.’
‘APRA chairman Wayne Byres told a conference of smaller lenders and credit unions last week that a recent borrower survey the regulator had conducted with financial institutions had been “enlightening … and to be frank, a little disconcerting.”
‘Mr Byres was blunt in his assessment of the easy money the big banks had been offering investors, saying it was not uncommon to find that the most generous banks were prepared to lend 50 per cent more than the most conservative.’
‘In recent weeks Australian banks have endured their sharpest sell-off since the GFC, falling more than 12 per cent since late March. The earlier than expected capital raisings, rising bond yields and less-than-stellar profit results have not helped. Now the tightening in investment lending conditions in housing will only add more pressure to share prices.’
‘Mr Johnson quotes one broker as saying that present conditions in the investment property market feel like a “mini-GFC”.
‘As Mr Johnson noted, the increase in serviceability tests and subsequent reduction in access to debt for speculative investors, coupled with reduced ‘discounts’ pushing up effective borrowing rates “can’t be good for investment property prices.”
“Mr Byres was blunt in his assessment of the easy money the big banks had been offering investors, saying it was not uncommon to find that the most generous banks were prepared to lend 50 per cent more than the most conservative.”
Which means many borrowers moved their business to the less conservative lenders and these less conservative lenders got to collect some fees while the most conservative lenders got to watch.
Interesting that in credit fueled booms, the credit is taken away at what is considered “the worst possible time.”
Clearly not the Brian Johnson who is the singer for AC/DC.
‘Is there a bubble in Ethiopian property market?’
‘The answer is quite simple. Yes there is! The sky rocketing land price in Ethiopia, especially in Addis Ababa, is no longer a front-page story. The maximum-recorded lease price for a plot per square meter in Addis Ababa is USD 15,500 (307,000 birr). Presently, the average lease price of land per square meter for plots in the center of the city is USD 3,636 (80,000 birr).’
‘A recently released report by Global Property Guide that ranks the world’s most expensive cities in terms of buying price of properties (not land) puts Geneva as the fifth most expensive city to purchase a property (real estate) with an average price of USD 15,250 per square meter. With over 13 million people, Tokyo is the most densely populated city in the world and also one of the top ten most expensive cities. Real estate prices in Tokyo are close to USD 10,000 per square meter.’
‘According to some researchers, the maximum land lease price per square meter in Ethiopia, especially in Addis Ababa, should by no means be greater than or equal to the price of land per square meter of the most developed and more economically active metropolises such as Geneva, Tokyo and London. Hence, they argue that the unjustifiable price increase of land and housing in Addis Ababa is the act of speculators.’
‘This price hike is making Addis Ababa one of the most expensive cities in Sub-Saharan Africa.’
‘A person who lives in Addis Ababa with a monthly net salary of USD 1,500 (30,000 birr) and saves up to USD 1,000 USD (20,000 birr) every month to buy a mid-scale apartment in the city that is built on a 85 square meter plot and costs about 2.5 million birr will have to save the proposed amount for 10 years. Buying a two-bedroom condominium, which costs about one million birr and is being built by the Ethiopian government, will take the buyer four years. When we come to the reality, there are only a handful of citizens who earn this much salary per month. Currently the average monthly salary per month in Ethiopia on a relaxed estimate is USD 200 (4000 Birr).’
‘Apartment price per square meter in some countries’
No. Country Price
1 Sweden USD 8,389
2 Italy USD 7,116
3 Netherlands USD 5,888
4 Denmark USD 5,134
5 South Africa USD 4,214
6 Ethiopia USD 1, 500
7 Kenya USD 1,188
8 Tanzania USD 700
9 Madagascar USD 520
‘Is there a bubble in Ethiopian property market?’
Wha, wha, what?
Nice post Ben…Interesting data…
Thank you Bernanke. Thank you Yellen. & etc.
An Ethiopian housing bubble? Those straw huts? WTF?
‘The good thing about John Key’s announcement of a selective capital gains tax on Auckland housing is that he has responded to the Reserve Bank’s call to “do something” about the tax distortion around property ownership.’
‘It’s ironic that the Government’s belated acknowledgement of an issue that’s been around for ever comes the same week that The Economist magazine is calling for the end of tax deductibility of interest paid by corporates, property investors and home owners. This is in response to the gross distortion of wealth distribution and inequity in developed countries, which is largely driven by ballooning property prices.’
‘While I would debate the wisdom of such an indiscriminate measure, it does reflect the frustration the economics profession is having with governments that have sponsored an unbridled explosion of debt since financial deregulation, and the obvious consequence of that – a global bubble that threatens to bring down the world’s financial system.’
‘What change is needed to remedy the underlying disease? The Economist’s recommendation to try and cap this debt explosion by removing all deductibility of interest, while understandable, is drastic. It would be better framed as removing deductibility of interest paid to any related party. It’s long been a sport to load businesses and investment property up with debt, and use offshore entities as the lender.’
‘This in effect is using thin capitalisation to transfer profits beyond the reach of the local tax authority, and into the clutches of a corporate residing in a low tax area. I write this column as I sit in Monaco, marvelling at all the super yachts in the marina and tiny little apartments where all the tax exiles reside.’
‘Such behaviour is a global phenomenon, all I’m saying is the role of foreign investors in our property and corporate space is not insignificant, and this is a common trick.’
The “frustration of the economics profession”? Please. The economics profession has enabled this every step of the way.
‘It’s ironic that the Government’s belated acknowledgement of an issue that’s been around for ever comes the same week that The Economist magazine is calling for the end of tax deductibility of interest paid by corporates, property investors and home owners. This is in response to the gross distortion of wealth distribution and inequity in developed countries, which is largely driven by ballooning property prices.’
You all doubtless recall that eliminating the mortgage interest deduction was a hotly debated topic by the U.S. Congress a couple of years ago before it was mysteriously abandoned.
US Housing Demand Plunges To 20 Year Low
http://2.bp.blogspot.com/-fqSztKilps8/VFlPKlr52JI/AAAAAAAAhKU/v5oS41S-y0s/s1600/MBANov52014.PNG
P Bear -
Regarding 13 bankers - I continue to read this small tome and as I continue to get into it more - the madder I get - Rubin, Summers, Geithner, Greenspan, Clinton, Dodd, Frank, Gramm, Carter, Bush 43, even ol’ Reagan. Pick your criminal dolt of the day - and pound on ‘em. What a mess DC and Wall Street these blood sucking elites have made of our economy. What I have finally learned is that lefties and righties are no different. If something serves their handlers (read Oligarchs) or themselves they will with impunity throw the average Murikan tax payer under the bus. My cynicism in this regard runs deeper every day.
I would suggest one read this book with a large glass of stiff whiskey to keep from exploding!!!
I find reading Dickens’ David Copperfield far more entertaining and better for my blood pressure!
Yeah, I don’t read that crap anymore. It’s too unhealthy, and I am powerless to change it other than my own little lifestyle of starving the beast.
‘A proposed plan to remove the cap on loan-to-deposit ratios imposed on banks in China could inject an estimated 7 trillion yuan (US$1.13 trillion) into the market, leading to speculation of a possible surge in housing prices, reports Chinese web portal Tencent.’
‘According to Tencent, the loan-to-deposit ratio cap has been undermining Chinese regulators’ efforts to bring greater liquidity to the market through required reserve ratio (RRR) cuts. Because of the cap, some of the liquidity created by the RRR cuts has remained with the banks rather than being directed into the real economy as was intended by the RRR cuts, the Tencent report said.’
‘A recent research report estimated that the removal of the cap would release 7 trillion yuan (US$1.12 trillion) into the market, sparking speculation of a surge in housing prices given that China’s 4 trillion yuan (US$645 billion) stimulus package in 2008 led to a heated housing market.’
‘Yang Hongxu, deputy head of the E-House China R&D Institute in Shanghai, said in an article published in the Beijing News that a surge in housing prices was needed to save the economy. Citing economic data released by the National Bureau of Statistics, which showed investment in real estate grew only 6% year-on-year between January and April, compared to 20% growth in infrastructure investment, Yang said the property sector was holding the Chinese economy back.’
‘If the government is pursuing steady economic growth, an active housing market is required to stabilize investment in real estate, Yang said, concluding that higher housing prices are necessary.’
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20150518000099&cid=1102
The fire is getting out of control! More gasoline!
‘Stunning images show Chinese families and everything they own’
‘For more than a decade, Chinese photographer Ma Hongjie has asked dozens of families across the country to empty their homes and pose in front of everything they own. His goal is to tell the stories of those who have been bypassed by China’s economic boom — the people living on the bottom rung of society that haven’t enjoyed the fruits of the country’s transformation.’
“The possessions are not even wealth. It’s just their lives — showing how the grassroots try to make a living,” said Ma, a photo editor at Chinese National Geography magazine.’
‘Although China now is the second largest economy after the United States, it is also home to the second largest number of poor people in the world, according to the World Bank. Almost 100 million people lived below the national poverty line of $1 a day in 2012.’
http://www.cnn.com/2015/05/18/asia/china-families-belongings/
Not to worry, they have some pricier-than-Manhattan air boxes to sell you in towns with no jobs!
“…higher housing prices are necessary.”
http://www-rohan.sdsu.edu/faculty/vinge/misc/u05/figure4.jpg
‘Yang Hongxu, deputy head of the E-House China R&D Institute in Shanghai, said in an article published in the Beijing News that a surge in housing prices was needed to save the economy.
Only through higher housing prices can this economy be saved!!
Gilroy, CA List Prices Falling; Down 6% As Defaulted Inventory Grows
http://www.movoto.com/gilroy-ca/market-trends/
Alexandria, VA List Prices Crater 9% YoY; Washington DC Prices Slide Further
http://www.movoto.com/alexandria-va/market-trends/
‘Japan’s problems with a rapidly ageing and declining population have been widely publicised. Less so however, is that there is vast stock of ageing and dilapidated houses that could turn many population centres into “ghost towns” in the fairly near future.’
‘The Vacant Houses Special Measures Act, scheduled to take full effect on May 26, marks a belated attempt to deal with the problem of more than eight million vacant houses (nearly 14 per cent of the total housing stock).’
‘But more fundamental measures are needed to deal with the issue, analysts say. “The number of unused and abandoned vacant houses is high enough to impede efforts to stimulate communities,” says Hidetaka Yoneyama, senior research fellow at Tokyo’s Fujitsu Research Institute who predicts that the ratio of vacant houses could double to 30 per cent within a few decades.’
‘These problems reflect Japan’s rush to build new housing after World War II especially in the boom decades of the 1980s and 1990s, fuelled by export prosperity and a bubble economy.’
http://business.asiaone.com/news/japan-grapples-problem-decaying-vacant-homes#sthash.e8HeFAIO.dpuf
Don’t worry. This could never happen here in America.
Is this a difference between Housing Bubble 1.0 and Housing Bubble 2.0?:,… a significant lack of the use of the phrases, “G.F.” and “F.B.” in alternative webpages?
…Is it just me? I haven’t seen the phrase used so much this time around.
…Maybe it’s because the F.B.’s and G.F.’s look good while doing it? …So far.
In the background: I read rumors about how the statute of limitations has run out, in states such as FL. and NJ. and banks cannot pursue the homeowers for what they owe, er,… promised to pay,… and won’t. [Is that true? Free houses?]
I read a description about an interview with a very old man named Hugo Salinas Price recently. They say he talked about how people don’t “dress up” when they go out and how - I guess - this is a reflection of how the culture is falling.
The word, “falling” is a lot softer than the word, “imploding”. Quite a bit like how the word, “crater” is a bit different than the meaning of the phrase, “soft landing”,… or, “green shoots”. …Haven’t read the phrase “soft landing” in awhile either, funny that.
…I shouldn’t say any more, I already have enough points against me.
Such is life in an emerging police state.
May the odds be forever in your favor.
Spare us.