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House Price Crash Forum

Rock-n-Roll

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Everything posted by Rock-n-Roll

  1. hi md like your style some interesting figures first of all i cant agree with your assertion that a house cant be sold below build cost price if a house has to go to auction for example the highest bid wins and that may bear precious little relation to build cost! when things are depressed bidders are few ! lets take your build figures slightly on the high side in my own limited experience but whats a few K between friends if i got it right 75k for site 93.5k for building 27.3 k for finish total almost 196 k add in buying costs brings it to say 200 k for easy counting interest only morgage at 5% if you could get one that low at the moment in the north 10k letting self same property will bring in 6, 7k if you are lucky so obviously things dont add up either a truly massive increase in rent is required or the house and its build cost will have to be reduced substantially or a big fall in interest rate just for it to theoretically wipe its face but any sucessfull experienced landlord investor will tell you that dont cut the mustard in times like these hope i now dont offend any of the renters on the board but you will have void periods of occupation you will have tenants disapear while owing a couple months rent you will need a plumber on a saturday night you will need a spark on a sunday morning you may even have the tenant from hell where significant expense will be incurred removing him from the property legally and then clearing up his and the dogs mess afterwards! add in the fact that property is unlikely to appreciate in the next few years and may well fall further and the grey beard investors will tell you that they need a potential yield closer to 10% to get the old blood pumping again! just my twopennies worth keep on rockin!!!!!!!!!!
  2. great work Paul many thanks for all the effort you put in just wondering did they give any clue as to who was actually selling ? ie banks or private sellers keep on rockin!
  3. hi MD with your undoubted insight into the banking game perhaps you would like to comment on some of that industrys recent little plays FTBS 100% + morgages self cert morgages with little or no questions asked wet behind the ears BTLS allowed to pay the deposits on their new portfolio with handfuls of 0% credit cards many including no doubt some on this board would see the above as playing a significant role in the creation of the asset bubble which is now imploding ! many will also find it highly ironic that while the punters who bought into the overhyped overpriced dream will eat porridge for a good few years or may even have their lives ruined by the situation they now find themselves in while the banks and their managers are bailed out by the tax payer !! and now we find out that darling is now planning to do it in secret!! something stinks !!!!!!! IMHO
  4. hi all from what i hear 20% fall is probably here already there are as we know very few houses being sold at the moment but there are always a few who have to sell the wonderfully titled motivated seller these are the ones which will be recorded in the statistics not the thousands soldiering manfully on who wont sell at a loss! as for 50% being silly perhaps but try telling that to the japanese
  5. most definitely is fact but not one the property gurus mention when they are telling you to buy buy buy i live in an ancient wee pile many moons ago done some research of the history of it it was sold just before the 1920s property bubble burst for £5000 18 months later the bank sold it for £2000 they the bank actually got all their money out of it the unlucky punter lost everything it was sold again 2 years later for £2500 but it took it another 30 years to get back to its 1920s high! i asked an old time local estate agent was this an exceptional case NO was the reply this was the norm he knew of even bigger falls asked if it could ever happen again of course he said no the 30s were exceptional nobody could get a loan
  6. hi all i am the idiot who just voted for the 40% + drop hope i am wrong but this credit crunch just seems like a 1930s scenario to me then prices in these parts fell 60% in 18 months! time will tell all
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