Sunday, Jun 15, 2008
The penny drops for citizen O'Kane
Times: Should you drop your house price to sell?
"her immaculately renovated home was put onto the market at £650,000 - some £250,000 more than she had paid for it 18 months earlier. The valuation was, to put it mildly, somewhat optimistic" Now, after receiving just one offer - of £500,000, rejected at the time as derisory" that was still 10% hgher she had paid... she will regret in due course!
Posted by confused76 @ 09:30 AM (1370 views) Add Comment
10 Comments
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1. confused76 said...
The Times hits hard on homeowners and wanna be investors this Sunday... HAHHAHAH HA
House Prices to fall by 23% by 2011
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article4136447.ece
http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article4136493.ece
Sell sooner rather than later
I was hoping to free up some capital. Should I put my house on the market as soon as possible?
Ed Stansfield of consultancy Capital Economics thinks prices will fall by 20% by the end of next year, before slowly recovering. He recommends selling your house sooner rather than later if you need the money within that time.
He said: “If you plan to use the equity in your property, you would be better off acting now or be prepared for the long haul and wait until prices recover.”
Capital Economics is a notable bear, however, and has been proved wrong in the past. Even normally bullish commentators still recommend acting sooner rather than later, though. Martin Gahbauer, senior economist at Nationwide said: “There is a tremendous amount of uncertainty at the moment. If you are already thinking of downsizing it would be better to do it sooner rather than later.”
Notorious bear? wait and you will see AHA HHAHAHAHAHHA HHAAHAHHA
2. wdbeast said...
I really am staggered at how thick people are.
I know several people that have been unsuccessful in selling their houses, so they have let them out instead on 6 month leases, whilst still marketing their houses to sell.
Worse than that, I know two people who have bought their “dream home” and taken a bridging loan out.
They are crapping themselves but still do not reduce their selling prices by more than the odd £20k.
Boffo-O’Kane is probably getting about £2000 a month rental for her property, if she is lucky.
The house went down in value last month by 2.4%, £12000.
HELLO IS THERE AYBODY IN THERE?
3. paul said...
Helen Davies is a rather thick vest interest.
4. Bananasplit said...
The global economics are heading for serious problems that will affect everyone with likely food shortages, strikes and countries that have energy resources will hold their customers to ransom. Luxury items will be replaced with essentials.
Holding on to a home with a large debt attached is stupid even if the mortgage is affordable because of a high salary, the economics of the world is changing and New emerging countries will gradually have a bigger bite of the cherry leaving the UK with bankers and insurance salesmen and I was going to say estate agents but they will be disappearing. If an offer is made for a property that is more than you paid, sell! sell! If you are in negative equity and need to sell, can you afford the mortgage then stay if the mortgage is not affordable, rent a room or cut your losses and try to do a deal with your lender but to stay in your property thinking that prices will go back up is rediculous because the lenders will only lend sensibly according to income and house value which means that house prices will fall so that the scales are re-balanced.
5. Cheekie Charlie said...
wdbeast said...
Funny. You beat me to it! I have an identical post: A colleague of mine took out a bridging loan to buy a house before his was sold to the tune of 300K (alot for a Firefighter) and can't sell so he's renting the house out. Infact I have seen alot of for sale and to let signs side by side in the Leeds area! Is this a tactic of defiance advised by estate agents to stop the crashing market dropping any further? I think all it will do is push rents even lower. Hhaa hahaha.
6. yoyo1 said...
The properties that have reduced their price 10/12% are just starting show the others up. Serious sellers need to take a second look at all the neighbouring houses for sale in their price range and keep a watchful eye because prices are being reduced all time. They need to remember that buyers are nearly an extinct breed and then ask themselves, which one property in this neighbourhood, stands a chance of selling? Then they should compete with that particular property on price and price alone. That way, you might get a sold sign.
7. inbreda said...
"her immaculately renovated home was put onto the market at £650,000 - some £250,000 more than she had paid for it 18 months earlier. The valuation was, to put it mildly, somewhat optimistic" Now, after receiving just one offer - of £500,000, rejected at the time as derisory" that was still 10% hgher she had paid
Ummm. if 650 is 250 more than she paid that means she got it for 400. If she was offered 500 for it, that was a 25% increase to what she paid 18 months earlier. And she probably bought it with the banks money, not her own, so basically she rejected a 25% leveraged profit because she wanted (without doing any real productive work) a 62.5% profit. Stupid and greedy to the extreme.
But they will probably get bailed out.
8. it_is_going_with_a_bang said...
Foxton's giving people illusion of wealth and then it doesn't happen - surely not?
On the very same page a link to Anne Ashworth
"Unloved, unvalued - and now unemployed. Estate agents might just deserve our respect..."
Quite amusing. Obviously someone has told Mariateresa Boffo-O’Kane ( where the heck did that name come from ?!?!?! ) that this is just a blip and that the London market will recover soon.
9. Claird said...
Lots of people I know genuinely believe that London prices will not decrease. But I travel to work in the city on the central line and it is a heck of a lot quieter that it was this time last year, those city job losses are freeing up seats on the tube in a big way. I think there are also fewer tourists cluttering up the place too.
10. icarus said...
inbreda - she may have paid £400k but we don't know how much she spent on the 'immaculate renovation'. In fact, it's such a pisspoor article that we don't know whether she bought it immaculately renovated or did the renovation herself. Makes a big difference to how we evaluate this story.