acceleratorhams

The reduction was 3.5% from a valuation that was not at the top end 2 bed flat Weston-s-Mare It had outstanding views which was the one thing which helped it to go.

Thanks. The cash will be going away for a few years!

I`ve had my flat on the market since March. Two sales fell through because `Buy to Let merchants` could not get a mortgage. Finally it completed last week and I was amazed that the purchaser did not try to get a reduction at the last minute. Never have I felt so relieved as I do now. From my perspective I see absolutely no reason why the there will not be a further 30% reduction from here. My reasons are as follows: 1] The B-T-L`s [who replaced the first time buyers for much of the last 8 or so years] have disappeared or are unable to get mortgages. It is very unlikely that banks will relax policy on lending to them for at least a couple of years. 2] Inflation is rampant. Everyone I know has tightened their belt. This will result in significant redundancies in the very near future. 3] You can already see wage claims coming in from strong unions. This will increase inflation. 4] Transactions for property sales are at a record low. I have always thought that it would take until the autumn for the penny to really drop ie when the results of the lack of transactions from estate agents during the spring/summer selling season is really reinforced to the man on the street. Having vividly lived through the last house price crash between 1989-1996 [for my area], I can remember the pain of trying to sell a house which was already 20% down on the purchase price. In a nutshell, you could not give property away when people knew that it would be several thousand less expensive in the next few months. Sadly for a generation who only know rising prices, this will start to gather pace and will leave many in extremely difficult situations for many years. The downturn will be like an ocean going liner, slow to start but very difficult to stop. I feel very, very sorry for those of the younger generation who will find themselves in negative equity. The government can tinker with stamp duty but it will have no effect whatsoever. Having been affected by the last crash, I`ll allow myself a `pat on the back` for getting out now!