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Warwickshire Lad

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Everything posted by Warwickshire Lad

  1. The lenders seem to be doing anything but going off lending. It seems to me that they're getting even laxer.
  2. You just can't offer 50% all the time, and expect any Estate Agent or seller to take you remotely seriously.
  3. I do believe in the cyclical argument - but I can understand why many others have lost faith.
  4. "Lionel Richtea" That really made me chuckle. Welcome to the forum !
  5. Just ask Bruno, he's aware of the implications of using an umbrella.
  6. Well, I'm sorted now. Offered £495 on a property which had been on at £525. Landlord rejected so I upped to £500. Landlord didn't want to drop below £510 but since the property has been empty for a month, and the EA admitted the market is "quiet", the EA advised him that he should take it. So, I've now got me a modern 2-bed semi in a really nice area. Thanks to this site, I've learnt that you don't have to pay the asking price. I found it really easy to negotiate and had confidence about it. Incidentally, I've just found out from houseprices.co.uk that the landlord paid £90K for the property in 2002. Not sure how much his mortgage would be, but like other LLs his current yield must be fairly low.
  7. With the Ryton plant going off line next year, and the subsequent knock-on effect, I can't see house prices around the Rugby and Coventry area rising. I think they will continue to stagnate and/or slowly tank.
  8. I think that the sliding dollar will continue force the Fed to keep raising Interest Rates, even though they don't really want to.
  9. Sounds like a few more nails in the UK coffin, as far as I'm concerned.
  10. Well, they wouldn't drop another £15 a month to meet me, so I'm not playing ball. Walk away time. I don't care if the landlord's making money or not. Anyway, seen another two bedder in the same street, so might look at that instead.
  11. Adjust your watch RB ! We are currently in BST which is an hour ahead of GMT, so we'll hear the result in 1hr 13 mins.
  12. Oooh it's that time of the month again.. That'll put a 0.75% gap between us and the US. Will most likely be a 1% gap next time. The markets will be looking to see what's in the policy statement though.. that'll determine whether there will be more, er, volatility on the stock markets. At least America seems to be able to face up to having a HPC. In Britain, the MPC, the Government are just a bunch of pussies who are terrified to upset the sacred British property market.
  13. Yes, I watched it last night. A housing bubble has given the impression to morons like these, that forever rising property prices will bail them out of any costly overspend on the renovation and transformation of these properties. It was just another example of people in total denial when it comes to the property market. Sarah Beeny's got her head screwed on though.
  14. I have to agree, the 3.04 figure sounds like an absolute whopper of a lie.
  15. Property Guru is over there. Still, can't resist the odd posting though... might as well say that before this thread gets deleted....
  16. Well, I've been viewing property after property recently... sorting out the wheat from the chaff in my local area. The newbuilds are overpriced crap, so it's better to avoid them. Finally settled on a modern lovely 2-bed semi, which has a conservatory, a fireplace and a nice modern decor. Even has a brick BBQ in the garden ! The asking rent was £575pm which I thought was a tad steep, so offered £525pm, and made it clear I could pay 12 months up front and move in this weekend. Landlord rejected and came back saying he'd accept £550pm. I've counter-offered £535pm, and will wait to see back. Apparently there is other interest in the property, so I wouldn't blame the landlord if we wanted to hang on for full asking - but having said that he's already dropped to £550pm, and surely he can drop another fifteen quid for such a well-behaved tenant like me...
  17. The "you must make sacrifices" argument tends to come across as a finger-wagging exercise at FTBers to tell them to stop whingeing and just get a very large mortgage. These arguments tend to come from people who bought pre-bubble, and don't really understand a house price bubble. Making sacrificies is a fair argument, but I think it must be made within the context of a fairly valued housing market, which the UK market and other bubble markets simply are not. In a bubble, mania takes over from common sense. So we've got people who have no life at all because they are just paying their mortgages with every spare penny. When Interest Rates rise, houses will become a debt prison for many who were persuaded to buy at the top of the bubble because "you must make sacrifices" blah blah blah.
  18. Good luck to you Mike, I really do not blame you at all. And you'd speak for thousands who are doing the same. The 'Miracle Economy' has been little more than a very divisive housing bubble, and I'm glad to see people taking real positive steps, in the face of adversity.
  19. Well, it would be stretching it. I'm pretty sure that some of the asking prices have been creeping upwards, as well. Ex-council houses that used to be on at £125K last year are now on at £132K, for example. To get the sort of 3-bed semi I'd be happy spending many years in, I'd be looking at asking prices of around £145K or so and then trying to bring them downwards. It would be a very tough, no doubt about it. I'm not sure I've really got the commitment. But it's been an interesting look into it though. I assure you I'm not. To be honest I don't know whether I'm even prepared to commit to the UK in the long-term. So it looks doubtful, and my next move is a rental anyway.
  20. OK, the time has come for me to move out of my parents'. Now, I am of the assumption, and have been for a long while, that the only thing which is going to cause this housing market to crash in any significant nominal terms at all, is a significant hike in Interest Rates. And the renting strategy that many of you are taking has seemed to be the right option (and I've been looking at rentals all week). However, to play devil's advocate, I thought I'd look at how buying really stacks up for me. Basic Assumptions By negotiating, I could get a decent size house in my area for about £130K. I'd still need a £100K mortgage, even with the deposit that I needed blood, sweat and tears to save. The following calculations exclude buying fees and maintenance costs. Buy Now House: £130K. Deposit: £30K. Mortgage: £100K. Britannia do a 10-year fixed IR mortgage at 5.25%. This would cost me about £1K a month - which would be a real squeeze with my salary. Still, by having such a short mortgage, the total payout over the loan with initial deposit and loan+interest would be about £160K. Rent Strategy I'm assuming I would spend about £25K on rent for the next 4 years whilst we may or may not have a 20% nominal HPC. By really saving hard, my deposit could increase a further £20K whilst I wait. In 4 years, I must assume a higher IR (say 8.5%) and similar salary. So, this would change things a bit :- House: £100K. Deposit: £50K. Mortgage: £50K. Assuming I still pay about £1K a month, the total paid back on loan would be about £61K over 5 years. Add on my initial deposit and the rent paid, and this would still come to about £136K. Conclusion It looks great initially, if we had a HPC, and then buying a house with such a small mortgage in 4 years' time. But when I look at it again - the difference in total payout between buying now, and waiting 4 years is actually just £24K (£160K - £136K). Is it worth renting for the next 4 years, to wait for an elusive crash, in order to save £24K spread over 10 years ? Or it is worth buying now, and having the total freedom of such things as my own decor and my own pets ?
  21. The ethical question is whether it is OK to have allowed a redistribution of wealth due to rampant house price inflation. Labour have not only allowed it, but encouraged and endorsed it. They have achieved the very opposite in what they are meant to stand for. This is why I'll never vote for them again.
  22. Property is not a bull market anymore, neither is it a bear market. But it is on very thin ice.
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