Thursday, Oct 01, 2009
Remain Bullish but act Bearish
Yourmortgage: Reluctant Landlords Urged to Hold Steady
Despite the ramping on rising house prices EVERYONE seems to reach the same conclusion, the chances of selling an overvalued property is VERY difficult if not impossible without a cash buyer :
"In spite of improving house prices, the continued lack of mortgage finance remains a key obstacle for a return to any level of robust sales, and those hoping to sell may still face disappointment.”
Should say "face disappointment UNLESS you are willing to market at TODAYS value". Even then however, Rightmove said months ago that : " ..even sellers who have dealt with the market reality and drastically dropped their asking price are faced with buyers unable to obtain finance" .
Posted by sybil13 @ 01:14 PM (804 views) Add Comment
10 Comments
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1. mander said...
Landlords should sell now cause QE is not comming back. People are not rushing on to the property ladder either so property will mean missery for few years.
2. smugdog said...
Sybil, not EVERYONE seems to be reaching the same conclusion. Sensibly priced properties in good condition and in a reasonably nice area are flying. Rental yields are also holding up well. The wheels are turning very nicely in my neck of the woods.
3. mark wadsworth said...
Round my way rents are not going up. And rents for one-bed flats like the ones I sold between 2002 and 2005 are much the same as they were then (or maybe ten per cent higher, at most).
4. mrflibble said...
Every time I hear the term 'reluctant landlord' it make me chuckle. This created terminology infers these bozo's didn't have a choice and were somehow forced into renting out a house they couldn't sell. The reality is they were too greedy to sell the house at the current acceptable market price.
I hope they do hold on and I hope we can all have a good laugh at them if/when fear turns to capitulation and they all run for the exits. I say 'run' loosely as these fools have yet to understand how hard it is to liquefy an illiquid asset when all hell breaks loose...
5. smugdog said...
Who honestly believes that we will follow the "Holly Grail" bubbles chart that is so often posted here. Do we honestly believe that we are on the capitulation part of "that" steep slope into certain oblivion.
Come on, look out of your windows, breath in, breath out, the sun still shines.
6. mark wadsworth said...
More anecdotal - I sold a one bed upstairs Victorian conversion in 2004 for £120,000, it was basic but big and clean and solid. A house three doors up (i.e. twice as big) is now being auctioned via an EA and the highest bid is £235,000. So that looks five-year-on-five-year no price rises (even ignoring inflation).
7. sybil13 said...
Smugdog "the wheels are turning very nicely in my neck of the woods" .....that's OK then ....good for you , but for those of us interested in the wider picture, and that perhaps includes the good people that write Rightmove's HPI / and the good people at Moneyweek / and and and .......and the article I quoted, it would seem, quote article:
"In spite of improving house prices, the continued lack of mortgage finance remains a key obstacle for a return to any level of robust sales, and those hoping to sell may still face disappointment.”
YOU KNOW that sales are at historic lows and not likely to pick up to anything like the levels needed to sustain a recovery no matter how many £1 million mansions are selling in your "neck of the woods" to overseas investors and the cash rich.
Of course you are entitled to believe that just because your "neck of the woods" is still full of green shoots then we are in RECOVERY but I think the FACTS confirm that the conditions are nowhere near right for stability let alone recovery, but then I am just a bear of simple brain so what would I know
8. mrflibble said...
@5. smugdog
Who honestly believes that we will follow the "Holly Grail" bubbles chart that is so often posted here.
We won't, instead we'll continue to burn up the currency, import a nice slab of inflation and then pay ourselves loadsa money to cover the short fall. It is written in stone you know, house prices shall only ever go up...
Measured in anything other than Knockout, aka Sterling, UK house prices are already down 40%.
I know one thing, an average house is still 6x an average income, so either prices fall of wages rises.
9. mystie010 said...
mrflibble - well said! - and smugdog please keep posting as you are helping to keep a balanced perspective on here.
10. Smips said...
I looked in my local papers property section this evening,a depressing experience ,and one I have been witnessing for the past 5 years.
At least 10% of the properties for sale seem to have been around for that long, and for the SAME PRICE! I keep the old editions,nerdish ,but interesting!
And very depressing.