So what's going to happen to the Dollar then?

[srebbe64]

We've been spending so much on hotels in Manhattan recently (at $400+ per night) that I'm thinking it may be cost effective to have an apartment there. I reckon the 'break-even' figure is about 8 nights per month. So the question is, do we buy or rent? With the Dollar week it makes buying attractive - but it seems to be pretty volatile!

So anyone with a view? I'm thinking it won't stay week forever and I should buy, but I'm no currency expert!

[NoelWatson]

srebbe64,

I personally would worry more about what the US housing market is going to do rather than currency fluctuations

[srebbe64]

k

NoelWatson said:

srebbe64,

I personally would worry more about what the US housing market is going to do rather than currency fluctuations

So what's it gonna do then?

[NorthernBoy]

srebbe64 said:

With the Dollar week

Is it not the normal 7 days there then?

[ACEparts_com]

NoelWatson said:

srebbe64,

I personally would worry more about what the US housing market is going to do rather than currency fluctuations

aGREED. People keep quoting that the price drops are now over but i believe that this isn't even the end of the beginning. UK will follow suit.

[NoelWatson]

srebbe64 said:

k

NoelWatson said:

srebbe64,

I personally would worry more about what the US housing market is going to do rather than currency fluctuations

So what's it gonna do then?

Noone can predict the future, but the signs are not good

http://interestrateroundup.blogspot.com/2007/08/ju...

[jeevescat]

That says the US problem is an over supply of housing units, a situation we do not have.

So I do not see how the problem across the pond is necessarily going to ocurr here.

[ACEparts_com]

jeevescat said:

That says the US problem is an over supply of housing units, a situation we do not have.

So I do not see how the problem across the pond is necessarily going to ocurr here.

Funnily enough I remember reading that their boom was due to tight planning restrictions that reduced supply. The UK doesn't have a shortage of properties just an excess supply of credit.

[NoelWatson]

jeevescat said:

That says the US problem is an over supply of housing units, a situation we do not have.

So I do not see how the problem across the pond is necessarily going to ocurr here.

jeevescat,

I'd be extremely surprised if the UK market doesn't follow US downwards at some point in the future. I think we have a similar subprime problem here but think this will only start to show once the market stops rising. I think the global housing boom will go down in history as one of the biggest bubbles the world has seen.

[emicen]

srebbe64, I would suspect you need to talk to someone US based as New York and Manhattan specifically are much like London is to the UK. Same country but entirely different market.

My immediate thoughts would be if the dollar rate weakens further, then you would be quids in, as the cost of servicing the monthly payments would reduce. If the dollar regains strength, well, you would then be effectively paying more for the hotel rooms (unlikely to change dollar price due to currency fluctuations) so you would still be breaking even at your calculated 8 nights per month.

From my limited knowledge of US lending, their mortgages seem easier to budget for as they are generally fixed rates for the term so you can plan quite accurately.

In other business:
Will someone make aceparts a cyber sandwich board with "the end of the property world is nigh" on it? Save his fingers from hammering out the same chat on every housing thread.

[ACEparts_com]

No. I like my own views thank you. I do not follow the herd. baaaaa

Not everyone can cope with ideas that are so radically different from their own

Edited by ACEparts_com on Friday 31st August 11:29

[srebbe64]

NoelWatson said:

srebbe64 said:

k

NoelWatson said:

srebbe64,

I personally would worry more about what the US housing market is going to do rather than currency fluctuations

So what's it gonna do then?

Noone can predict the future, but the signs are not good

http://interestrateroundup.blogspot.com/2007/08/ju...

Well I'll be very happy if prices fall because I'll buy a property then! Suits me!

[Imran-vx]

I have spent the last 2 weeks with Merkins from across the country. It seems that the price drops are not across the market and that some states/areas are holding their own. Location, location, location.

[BJWoods]

ACEparts_com said:

jeevescat said:

That says the US problem is an over supply of housing units, a situation we do not have.

So I do not see how the problem across the pond is necessarily going to ocurr here.

Funnily enough I remember reading that their boom was due to tight planning restrictions that reduced supply. The UK doesn't have a shortage of properties just an excess supply of credit.

sorry but you've got that arse about face..

the us has massive over supply, lots of available, partly brought about by very easy credit (ninja loans) which generated large ammount of speculative building

the uk
has a huge shortfall in houses being built, partly planning, partly developers sitting on land banks, small island.

[NoelWatson]

BJWoods said:

ACEparts_com said:

jeevescat said:

That says the US problem is an over supply of housing units, a situation we do not have.

So I do not see how the problem across the pond is necessarily going to ocurr here.

Funnily enough I remember reading that their boom was due to tight planning restrictions that reduced supply. The UK doesn't have a shortage of properties just an excess supply of credit.

sorry but you've got that arse about face..

the us has massive over supply, lots of available, partly brought about by very easy credit (ninja loans) which generated large ammount of speculative building

the uk
has a huge shortfall in houses being built, partly planning, partly developers sitting on land banks, small island.

I'm not convinced that any of these arguments would stop the UK housing market heading south - didn't Japan have most of these in place when it tanked in the 90's?

[srebbe64]

Anyway, back on topic. I've looked into it over the weekend and it's possible to buy a very decent three room Condo, in the best parts of Manhattan, for less that £300k. As such, today I've arranged to view a bunch of places next month.

The housing market in the USA is oversupplied and the Dollar is weak. Both of these things make buying property quite attractive. I'm in NY for just four nights and this is gonna cost (circa) £1200 for a hotel. As such, I will simply get my company to bill me for the same rent (£300 a night) whenever anyone goes there and this will avoid paying hotel bills!

[johnfm]

£300k? That seems mighty cheap. When I was there in June, I looked into a few prices and anything decent cost $1.5million+, and on top of the actual price there was the massive monthly fees (ground rent & concierge costs).

I suspect at £300k it can't be in Soho, Chelsea etc.

[srebbe64]

johnfm said:

£300k? That seems mighty cheap. When I was there in June, I looked into a few prices and anything decent cost $1.5million+, and on top of the actual price there was the massive monthly fees (ground rent & concierge costs).

I suspect at £300k it can't be in Soho, Chelsea etc.

Yep, surpised me too. The best places for under $600k (£300k):

Yes there are managment fees on many of them, averaging I guess about £300 per month. Here's some I looked at, all in prime locations:

http://realestate.nytimes.com/sales/detail/363-AUG...
http://realestate.nytimes.com/sales/detail/307-881...
http://realestate.nytimes.com/sales/detail/46-8815...
http://realestate.nytimes.com/sales/detail/3098-55...
http://realestate.nytimes.com/sales/detail/45-2471...
http://realestate.nytimes.com/sales/detail/1388-59...
http://realestate.nytimes.com/sales/detail/45-3233...
http://realestate.nytimes.com/sales/detail/759-377...
http://realestate.nytimes.com/sales/detail/343-227...
http://realestate.nytimes.com/sales/detail/185-146...
http://realestate.nytimes.com/sales/detail/185-127...
http://realestate.nytimes.com/sales/detail/343-227...
http://realestate.nytimes.com/sales/detail/343-227...
http://realestate.nytimes.com/sales/detail/253-NS7...

[emicen]

NoelWatson said:

BJWoods said:

ACEparts_com said:

jeevescat said:

That says the US problem is an over supply of housing units, a situation we do not have.

So I do not see how the problem across the pond is necessarily going to ocurr here.

Funnily enough I remember reading that their boom was due to tight planning restrictions that reduced supply. The UK doesn't have a shortage of properties just an excess supply of credit.

sorry but you've got that arse about face..

the us has massive over supply, lots of available, partly brought about by very easy credit (ninja loans) which generated large ammount of speculative building

the uk
has a huge shortfall in houses being built, partly planning, partly developers sitting on land banks, small island.

I'm not convinced that any of these arguments would stop the UK housing market heading south - didn't Japan have most of these in place when it tanked in the 90's?

• cough* and a decade of recession they still arent out of *cough*

Comparing Japan with either the UK or US is not valid. They have an entirely different attitude to housing, massively different geography which severely restricts where they can build and a very different ecconomy.

[gumshoe]

srebbe64 said:

johnfm said:

£300k? That seems mighty cheap. When I was there in June, I looked into a few prices and anything decent cost $1.5million+, and on top of the actual price there was the massive monthly fees (ground rent & concierge costs).

I suspect at £300k it can't be in Soho, Chelsea etc.

Yep, surpised me too. The best places for under $600k (£300k):

Yes there are managment fees on many of them, averaging I guess about £300 per month. Here's some I looked at, all in prime locations:

http://realestate.nytimes.com/sales/detail/363-AUG...
http://realestate.nytimes.com/sales/detail/307-881...
http://realestate.nytimes.com/sales/detail/46-8815...
http://realestate.nytimes.com/sales/detail/3098-55...
http://realestate.nytimes.com/sales/detail/45-2471...
http://realestate.nytimes.com/sales/detail/1388-59...
http://realestate.nytimes.com/sales/detail/45-3233...
http://realestate.nytimes.com/sales/detail/759-377...
http://realestate.nytimes.com/sales/detail/343-227...
http://realestate.nytimes.com/sales/detail/185-146...
http://realestate.nytimes.com/sales/detail/185-127...
http://realestate.nytimes.com/sales/detail/343-227...
http://realestate.nytimes.com/sales/detail/343-227...
http://realestate.nytimes.com/sales/detail/253-NS7...

They are all 1 bedrooms, small and mostly not quite prime locations.