Wednesday, Mar 14, 2007
Shortages will drive further increases
Telegraph: Bovis predicts 4pc rise in house prices
Housebuilder Bovis released a strong set of 2006 results, and said it expected propery prices to continue increasing, by about 4%, in 2007. It said recent IR raises have effected demand, but continuing shortages in the South East would drive prices up
Posted by jellycaster @ 09:53 AM (223 views) Add Comment
8 Comments
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1. tyrellcorporation said...
Have these fruitcakes been reading the papers or not? The slide has started... and the mainstream media are switching camps.
2. Davros said...
4% isn't very optimistic is it? Not much good if you're planning a new build buy to let either.
3. bingo said...
Of course they are making money, they build a house for next to nothing and sell it for a lot more than it is worth, who couldn't make money under those circumstances? I got dragged along to look at a Wimpey development a few months ago by my wife and what I saw shocked me. Without any disrespect to anyone in a recently constructed home, I looked up in the attic space and the first thing that came to mind was 'swan vestas'. Looking in the kitchen, the standard units could only have cost about a tenner each, I really was amazed at the lack of value, and the money they thought they could obtain for them, I'll be surprised if a lot of them are still standing by the time the mortgage is paid off.... So, like I said you don't have to be a financial wizard to make money building houses...
4. tyrellcorporation said...
Spot on Bingo. Like everything from houses to clothes, the quality is plummeting to reach that positive bottom line. I bought some Gap stuff the other day and it's markedly poorer quality than my last purchases from tha store about a year ago.
I rent a 5 year old house and it's utter shite. All the plug sockets and light swtitches slide around in the holes, the radiators are held up with screws directly into plasterboard (two have recently had to be re-hung because they were falling off). The guttering is leaking and the soffit board across the garage door has fallen off (it was just glued in). The wooden balls on the banisters are all loose and the shower leaks. This house is apparently worth £350k!!! There is no way I'd buy a house which has been thrown up in the last 15 years or so.
5. inbreda said...
"Housebuilder Bovis ... said it expected propery prices to continue increasing, by about 4%, in 2007"
Which is quite a coincidence really because I have just finished my analysis of the situation, and I expect Housebuilder Bovis to continue sh****ng their pants throughout 2007. I have taken my analysis one step further and predict that shares in Housebuilder Bovis will be worth somewhere in the region of between diddly-squat and F all by 2008.
6. bingo said...
Ha, sounds like we have houses in common at least. the house I currently rent is about 3 years old and is built to the same exacting standards as yours. Not built by a national builder but local construction company, timber framed and when it rains, there is a river running down the inside of the door frame. There has been a slate off for the last year, and they keep 'forgetting' to come fix it. Like your radiators, they are mounted direct into the sheetrock. The patio doors don't close properly, the light fittings are just hanging onto the plasterboard etc. etc. etc. I could go on and on. To be honest, I really don't care as I don't see myself there for too much longer. The property was valued at 285k originally and the landlord had a surveyor in about 2 months ago (he was restructuring the finance (taking more capital out)). Looking at the crack along one wall in an upsairs room, the property will collapse within about 6-7 years.... Cheap to replace though....
7. mrmickey said...
If you think the new builds in this country are badly built try having a look at properties in Spain, the last time I was over there you could actually see daylight through the brickwork where they'd used so little mortar, once rendered over you won't know this well not until the property starts falling down around your ears.
8. dohousescrashinthewoods said...
I think it's a common theme, spiralling prices and value, just in opposite directions.
What it would cost to train someone and then have them do the job properly is just too much and too long-term, so boge-it and leg-it has become the order of the day. It's a good metaphor for "spin without substance", which seems to be the lead from the top.