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House Price Crash Forum

1800s

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About 1800s

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    Lincoln
  1. They are a waiste of time. Your 12v battery will be flat in minutes boiling a kettle!!
  2. Presuming the average mortgage is 160K. The average house is said to be around 180,000 now. If you take a 10% deposit that brings the mortgage to around 160K. But the average house is higher up the ladder than a first time buyer so that means that someone buying a 180K house should have capital bigger than 10% deposit by around another 25K from there previous house increase for a guide. That brings the mortgage down to £135K which is just less than 5 times average earnings. I actualy dont think that houses need to fall more than about another 10% to actualy be on track for average 3.5 times earnings. I believe people think that they should all be living in four bedroom detatched houses. Or buying the average house as a first time buy. I want houses to drop as most people do, even though i am a house owner myself, just for the fact that i may want to climb the ladder or more importantly for my children, but i actualy think that if those figures are somewhere near, prices are not far off where they should be. The biggest problem people face is that they have no savings. Which on the whole is their own fault for not doing their ground work right from the start and building a foundation of money to see them through the property ladder
  3. I don't remember one bit of evidence that relates to houses being valued by how many bedrooms it has in any of the three pages. "are you on another planet"
  4. Dont believe what you read. The house in question that i was refering to was sold in 05 for £182,500. Refurbed and then a year later went on the market for £325,000. The value of houses in Lincoln has been pushed so high in the last few years that this is probably why nothing has shifted. There is a bungalow on my road that has been for sale for the said time as well. Infact on my road there is three houses for sale that have been there for two years and more. Similarly around the corner. They are just too expensive. I realised this two years ago so why havn't they. My grans neighbour had there house for sale over two years ago for £210,000 it sold just six months ago for £172,000.
  5. People were still buying overpriced houses in 2006 and they are devalueing, but i mean the houses that were (and there is a big proportion) well overvalued have not shifted for over two years. I live in Lincoln and i can say that very very little has sold that i have kept my eye on for at least two years. I have kept my eye on the market in my area for a long time and up until mid 2006 all was well but since then It has totaly come to a stand still and that was at least six months before the credit crunch. The houses were and still are way over valued. A house up the road from me went on the market over two years ago for £325,000. Even then i would have only valued it at £250,000 maximum. It is now still there at £265,000 and worth around £220,000 max. total lunacy. The house has been unocupied for all this time.
  6. I still keep reading about estate agents trying to overvalue property and i have written about it a couple of times in posts, but being told that there are estate agents doing it right. I don't think so, they are all in the same circle, for some reason they want house prices to stay high and so desperate to keep them high they are prepared to lose huge amounts of business in no sales in the process. I realy do not understand their thinking. They are all the same and they are all telling people to hold out, very strange behaviour as they would definately know what is happening to the market. Insidentaly like the 1990's crash, house prices reached a point where they actualy never sold at so the top valuations was very rarely reached. This downturn has been going on for two years (2006) and not since 2007.
  7. In fainess, the auction is stateing the starting price. It will be interesting to see what they fetch. More likely wont reach reserves.
  8. Who in their right mind would pay 240,000 for a flat that can only be rented out for £850 pm. That is giving you an income of 4.2% before, as you said, the costs. If anyone out their thinks this is not crazy please say. You seem to have contradicted your argument. One minute you are saying that 12.5% yield actualy is not that good and then you say i am a troll as you have never seen flats sell for £70,000 that gives you a rent of £750 pm, going on about your flat bought for £240,000 for a rent of £850. Your flat explains my case that people bought purely on the value going up and not making money out of the rent. the idea of renting is to make some money out of rent otherwise you will go under if it costs more than what you are bringing in. If this can't happen because of prices then that is very dangerous and now the consequences have to be paid. If you read my post i didn't say the flats were £70,000 i said if they drop 50% they would be from their current overvaluation. The start of this topic was based on properties losing 50% of their value. Those flats of my parents in my opinion are worth around £100,000 at the moment but the estate agents value them at £140,000 still miles out of the actual selling price.
  9. I know what you are saying and there are always reasons why prices may seem to drop below what you think is a good time to buy. But it's all maths and when the equation works out to that sort of leval that will be the bottom if we are lucky. I actualy don't believe it will be that low but i do hope so even though i am a home owner myself. By the way i am not sure what you are getting at with your last line. "BTW I think you are a Troll as my flat in IG10 rents for 850 pm and got sold for £240,000 in 2007 ...." Please explain
  10. The reason for quoting the estate agents price was just a reference to the valuations and the so called asking prices of that type of property at the moment. The property in question is actualy not for sale, i was trying to point out that £140,000 is the price that it is suposed to be worth and if it was 50% lower it would then be at a price which would be snapped up by an invester which would be myself. The discussion was based on if prices drop by 50% and i am pointing out that if they got that low which i doubt very much, although i would love it to happen the investers would jump in and cick start the growth along with FTB
  11. Very interesting posts and on the whole very true
  12. It's all about when the time is right to make money. When that leval is reached that will be the bottom. My parents have a house converted into two flats. They had them valued only a month ago for £140,000. To me because estate agents have no idea i would say the selling price is around £100,000 but we have to go by the £140,000 valuation because that is the price that people have them for sale at. If you half that valuation to £70,000 for the pair i would and so would anyone else who is looking for investment, pounce. The rents for both flats is £740 a month that gives you a 12.5% yield on £70,000 which anyone who knows anything about property investment would know this is very good. You would also know at this level that prices wont fall much further, but that wouldn't matter because its' just the same as shares. if you are lucky enough to buy shares that give you the same return on dividend, it doesn't matter that the price fluctuates as long as you are getting the right yield. Then you only sell when the price is right unless you are unlucky to have to sell when they are low. People have got into trouble because they bought far too high hopeing to make money on the valuation riseing only. Very dangerous as we all know.
  13. If house prices dropped by 50% the invester would be back in on buy to let as the maths would add up. first time buyers would be buying as mortgages are still available and again the maths would add up. All this would see prices start to rise allowing the rest of the investers waiting in the wings to jump back on board and off we go again but hopefully at a steady rate which should be governed by only allowing three and a half times wages and a deposit. When the price is right you will be surprised where people find deposits.
  14. If house prices lost 50%. I would be straight in there and so would many others. There is a level, which is affordability and when this is reached life will get back to normal
  15. It's about time people started getting wise to the fact that estate agents were and are still overvalueing properties. I wrote an article trying to emphasise this and was jumped on. people trying to twist what they wanted to read and making out i was ripping off my family by the armchair mechanic gang. Estate agents need to get together and then demand all house sellers to drop their prices by around 20% or leave the market. Then sit back and see what happens. If that fails do it again and lets get on with getting houses back to where they should be
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