Harold Bishop
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Decent Price Reduction
Harold Bishop replied to Harold Bishop's topic in House prices and the economy
Decent reductions usually get the house SSTC in a short time. Despite the views on here about it's true value, this house has just dropped into the price range of a whole bunch of new buyers. The general buying public are ( unlike HPCers !) way behind the curve on house prices. Most still believe house prices are flat or maybe rising a tiny bit. So, these buyers will now bite at the new price - probably at asking or a little above as the old price is "sticky". -
Decent Price Reduction
Harold Bishop replied to Harold Bishop's topic in House prices and the economy
Agreed .... but...... the price change is in the right direction and not a piffling 1 or 2 %. It's a decent leg down. The vendors have realised there is no spring bounce. -
Not for me but this is the first meaningful reduction I've seen in the general location I'm looking. http://www.rightmove.co.uk/property-for-sale/property-28283372.html A little under 17% reduction - £450 k down to £350 k That's more like it. Been on the market 15 months. Delusional vendor has just woken up.
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Mad. You are right about the cost of refurbishment. If it is a light re furb ( kitchens, bathrooms, decorating etc ) I allow £50 per sq.ft. If it's more ( windows, moving walls, re-wiring, heating, plumbing, roof work etc) that figure goes to £75 - £100 per sq.ft. It's unbelievable how much it costs when you have to hire in the building trade. And once again, vendors are always delusional about the quality of their houses. So, houses that need a lot spending on them seem to be asking only marginally less than houses in very good order. And trying to get the price reduced is just a waste of time. Why should I pay for someone else's neglect ??? Come to that, why should I also pay for their MEW, stamp duty & EA fees The only exception are complete wrecks that seem to attract huge interest from all the rose specs wearers.
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Went to see a place ( N Oxfordshire rural village) today. It last sold Dec 2006 for £500k. The vendors have not spent a penny on the place. Asking £575k as a private sale ( no agent involved). Halifax and Nationwide calculators both put the value at about £460k . I thought it was worth £450k max. Others would probably say even less. The gap between it's worth and the vendor asking price is just too massive to even enter into a discussion about, so, I'll just tell them it's not for me - which it was not if I was being very honest with myself. Very nice vendors but deluded. Shame, as it is another house out of the market, even though it is on the market !!
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Anyone look at the Rightmove Market Trends ? Here is an area I used to be interested in TR13 in Cornwall http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalPropertiesSoldAndAveragePrice.html?searchLocation=tr13 277 properties on the market in Jan 2011 1 property sold in Feb 2011 ( yes, just one !) Every area I look at I just wonder how EAs are still in business. The letting business must be great. Incredible.
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Correct. But even if they just want more to pay the move costs of stamp duty, EA fees and a bit of MEW, they end up with a bigger mortgage against a similar value property. So, they pull out and sit tight - or expect the buyers to pay their bills. And I think you are right about the terms being changed - so even a similar amount of mortgage may end up costing much more per month. The whole system is fooked 'cause houses have stopped being ATMs. Cash buyers and mortgage buyers both being shut out.
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Probably been aired before. But, why are so few houses advertised privately. There seems to be a growing number of web sites offering this service for a modest fee but they are all pretty rubbish. Whats the problem ?
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It's happened three times to my ex who is a cash buyer. Three different houses, three offers accepted but a little way into each buying process, each of the vendors withdraws because the sale will leave them with "insufficient funds" to move. I think the reason is that their mortgage companies will not offer the vendors the same loan ( amount/interest rates etc) against to new house. Further, the vendors need to find around £15k in stamp duty/agent fees/costs etc. All of this was "traditionally" added to the mortgage. So, strpping out the MEW as well and a smaller loan, these vendors are trapped and cannot sell unless they want to seriously downsize. Any hopes of moving "up the ladder" are dead. The only way is down or sit tight and pray that interest rates don't rise. Chains failing, houses not selling and vendors stuck. All they can do is rent out and rent themselves if they abosolutey have to move. So much for a flexible workforce. How do agents survive ? House sales requiring mortgages are on their knees and now cash sales are also failing. The only way to unlock this is to raise interest rates and force defaults and repocessions. edit spelling
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Offer Of £30K Cash And £250K Via Solicitors
Harold Bishop replied to Harold Bishop's topic in Anecdotals
They wouldn't be aware. As far as they are concerned the selling price is £250k. However, the vendor, agent and buyer are all in on the scam and at least one of them may have a duty of care to disclose the cash sum. Coincidently, I viewed a victorian terrace today and the agent confirmed that the cash plus deals are not uncommon. As far as he is concerned, the selling price is £250 k and that's what he charges his fee on. He just didn't want to know about any other money or assets passing between buyers and vendors. I suspect he is in a very murky place !!! Probably quite comfortable there as well ! -
Offer Of £30K Cash And £250K Via Solicitors
Harold Bishop replied to Harold Bishop's topic in Anecdotals
In amongst lots of very sound advice in this thread, your response, ozmanky, is just an unhinged rant. Try engaging your brain. The "direct" cash-plus offer will be turned down and the potential buyer directed to the EA. Luckily, there is another 'conventional' offer of the same amount under consideration. This is the first time I have encountered such blatant evasion of stamp duty. I wonder if it is more common. I am not surprised as stamp duty is a large chunk of money and the jump from 1% to 3% is not very tapered. -
My father in law has been offered £30k cash plus £250k through the legal channels. Saves the buyer nearly £6k on stamp duty but .... this is tax evasion. Also, it would mess with the house price indexes if this was wide spread. No benefit to the vendor, so , why should he say yes ?
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Made My First Ever Offer
Harold Bishop replied to MinceBalls's topic in House prices and the economy
I've 'lost' a couple of houses like this. I know think that this type of reasoning gets you no where. I, like many here, have a pretty good idea at what improvements/renovations cost, however, I'm not a builder or a surveyor, so, my view is immediately rejected. But many buyers don't have a clue about costs and they put in stupidly high offers, then get told by their surveyor the roof ( say) needs £40k spending on it and the buyers/vendors generally come to an agreement and the sale completes. It seems it's better to get the price drop via the surveyor and valuer. But that means entering into agreements and survey costs with a strong chance of wasting that money. Do that several times and it starts to hurt. I also had an agent go cold on me when I said I wanted a proper valuation by an independent mortgage company valuer, even though I was a cash buyer. -
FUKUSHIMA earthquake and tsunami thread and aftermath
Harold Bishop replied to geezer466's topic in Current affairs
And the contaminated water is draining to the sea and the ground water. Its a short term measure - better to wash some contamination to the sea where it is diluted than let the bloody thing cook. The ground water contamination is serious and more difficult to deal with. -
FUKUSHIMA earthquake and tsunami thread and aftermath
Harold Bishop replied to geezer466's topic in Current affairs
I think this is right. The coolant water may even be de-mineralised to prevent scale build up on the rods, valves, pumps etc. It will be circulated in a loop. The loop will include a sea water heat exchanger. Like a car coolant system, except in a car the air passing over the radiator cools the 'coolant'. The sea water and the coolant obviously don't mix. Then from time to time, they will de-scale the heat exchanger because the minerals in the sea water will deposit on on the heat exchanger surfaces and reduce it's efficiency. If the pond is covered, then the humidity will be high and this will reduce evaporation but even so, top up coolant will be needed. Right now, the water they are pumping and dumping on the plant is draining back out to sea and will be contaminated with radiation. The sea will be hugely diluting but as it is said, dilution is not the solution to pollution. I would think that there will be a wide "off limits" fishing zone imposed. Some of the dousing water will be finding it's way into the ground water as well. The contamination will slowly spread through the ground water and may turn up in aquifers used for drinking water. This will then require additional treatment processes. All a bit grim. -
Planning Permission changes -commercial to residential
Harold Bishop replied to Timm's topic in House prices and the economy
I suppose it will come down to what a commercial building is. Apart from the obvious empty office block or industrial building, how about a closed village pub ? To date most end up closing and the owners often spend years trying to get change of use to residential. Same with uneconomical village shops. Are these commercial ? I doubt it. Also, there is a nice little piece of agricultural land near me for sale with a farm building on it. Is that commercial ? I doubt it. I suspect there will be a very narrow definition of what is commercial and there will still be all sorts of planning details to overcome. -
Yep, I've noted that news. LTV is 80% up from 75%. So, the very few mortgages being lent are at a slightly higher LTV. The key figure in the LTV is the Value ! If a lender's valuer marks the property down 20% from the EAs agreed selling price and this is accepted, happy days ! The sale proceeds. I don't think that ( apart from HPCers) that EAs or general public should be allowed to decide how much to pay for a house. They are not professionally qualified. As has been said before, a house is often a highly leveraged purchase of a illiquid asset. Perhaps this warning should be placed on all EAs particulars. This article in the Economist http://www.economist.com/node/18250385 pretty much explains things: An even bigger reason to beware of property is the amount of debt it involves. Most people do not borrow to buy shares and bonds, and if they do, the degree of leverage usually hovers around half the value of the investment. Moreover, when stock prices fall, borrowers can usually get their loan-to-value ratios back into balance by selling some of the shares. By contrast, in many pre-crisis housing markets buyers routinely took on loans worth 90% or more of the value of the property. Most had no way of bringing down their debt short of selling the whole house. And I would add to that article that shares are highly liquid. One click of a mouse and you can cash up. But sell a house is very different.
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It is clear now that there is little demand for or willingness to provide mortgage products. I just wonder how long the same excuses / reasons / explanations from the property industry can continue without the obvious being pointed out. It's as if no one of any authority in the enitre property business dare mention that lower houses prices is the answer. I'm also amazed that EAs are just buying all these excuses and then belly aching when the lender's valuations come in 20% + under the buyer's offers. I just can't see how the EAs can continue with such low levels of completions. It is very much in the EAs interests to have lower house prices yet they continue to strangle their businesses.
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Average Age Of F T B To Be Moved Up To 44
Harold Bishop replied to Realistbear's topic in House prices and the economy
Soon, FTBs will be able to move directly to McCarthy Stone retirement / sheltered accommodation. And miss out on the entire "housing ladder". -
And when you add up the labour & materials you get to about £1000/m2. Sure, if you scavenge and do the construction work yourself ( and the project management) then you can come it at little more than the material costs and fees. This is generally impossible for anyone trying to earn a living and keep a family together. I know it's makes good TV but Grand Designs is a pointer to how self builds quickly get out of control.
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Some bulbs can be mighty expensive. I've paid more than that for some specialist Allium but they are perennials and increase their numbers over time. People always under estimate the cost of gardening.
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There are some pretty nasty building methods and most are to be seen in the "Park Home" business. It is possible to factory manufacture modular build houses pretty cheaply but once you get serious about meeting UK building regs and level 4 or 5 Code for Sustainable Homes, then the price per sq.m will not be very much cheaper. Especially if you build something you might actually want to live in. There are factories making entire wall sections using a sandwich of two sheets of plywood filled with expanding foam. Cut out the window & door openings, fill with cheap pvc etc, assemble on site, clad or render, dry wall & bingo you have your walls up. Some chip board flooring and a cheap roof and you are done...... well sort of.. there is the plumbing, electrical and heating install. The problem is that current regulations demand high levels of air tightness ( eco) and these sealed houses just sweat and quickly become moldy inside. Proper attention must be given to air recirculation and heat recovery systems, dew points and thermal efficiencies. Without, these, the house will be quickly become a nightmare. This is why RICS (?) have stated that maybe only a 10% saving is possible. As for buying a house for £30k, forget it. A two bed house of say 70 sq.m ( and that is a small single story house ok for a couple) will cost about £1000 /m2 to build. You can add to that planning fees, architect/engineer fees, local authority fees, utility connections of maybe 10 - 20 % if you are lucky. As has been pointed out above, this all is minor compared with the cost of a decent plot ! By the way, the cost of cleaning up old industrial brown field sites, landfill sites etc to a level suitable for housing is very expensive ( soil remediation, hazardous material, waste disposal costs, planning) and you still end up with a house next to the sewage works ! If you want to look at some modern, modular, factory built houses that are well built see www.cloudnine-living.com Not everyone's cup of tea but it gives an indication of what can be done.
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Here's another beauty http://www.rightmove.co.uk/property-for-sale/property-17928585.html I like the description by the agent The property is served by good road communications including the A30 which is located to the north. Restaurants can be found in Plymouth City Centre Here is another choice Camborne property. http://www.rightmove.co.uk/property-for-sale/property-28784818.html Check out picture three, the sitting room. Some sort of projector screen dominates. Nice garden though..... and its been reduced... In 1995, I seem to remember these houses were around £35k and they were the ok ones. Of course there are very choice parts of the county, very far, financially, removed from these houses here but the reality is, Cornwall is largely very impoverished with poor housing. The current Condem government policies will be detrimental to most of Cornwall and these types of houses will continue to fall in value. I remember these types of houses ( the nice ones) were around £35k in 1995 and probably peaked at around £180k. I reckon they'll head towards the £50k bracket, maybe less. It'll be as is the 15 years of house price boom passed them by.