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House Price Crash Forum


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About costajus

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  1. And here are the greedy politicians desperately trying to fill their buckets from the flow of taxpayers money.
  2. Properties sold at auction including repossessions are usually sold at below market value for a variety of reasons: 1. You wouldn't normally get the property surveyed - properties get pulled from auction before the day for a variety of reasons and also you don't know if you will be the high bidder. You'd be mad to spend on a survey on an auction property. 2. Most auction bidders are cash buyers whereas most private transactions will involve a residential mortgage which takes time to arrange with valuations etc. 3. I've seen a few repossessions at auction - some boarded up, looted, doors kic
  3. If property expert Kirstie Allsopp says it is the worst place then it must be, she's a "property expert" after all. Didn't she also recently say property just couldn't drop in value?
  4. I'm sure it is - read back through the posts people - I NEVER MENTIONED HULL. I'VE NEVER BEEN TO HULL. WHERE THE HELL IS HULL ANYWAY??????
  5. No, I'm not spending £40k on a house in Hull! I didn't mention Hull. I've never even been to Hull! I mentioned a house near to me in Nottingham which I had seen for sale today and when I called the estate agent to find out more details I was told someone was exchanging contracts today so it should be sold by now - so I am definitely not buying it. I AM interested in the BTL market though and am doing some research and writing a business plan spreadsheet that takes into account all scenarios however unlikely - and that means including 30% interest rates, 90% drop in value of property etc. I ca
  6. How do you know for definite that property will fall 20% in value in the next 12 months? Isn't property officially supposed to be down around 20% from the peak today? If you look you can buy traditional property (not new build flats) for 50% of the peak value today. I don't think it has much further down to go than that. (Over-inflated new build flats I have seen fetching 25%-35% of their peak value at auction in places) Put it another way - if you built a 3 bed semi detached today what would it cost to build? You would struggle to build it for a total budget of £40k including land purchase.
  7. That's a very sobering thought. A valid point. Maybe some almost worthless houses got pumped up in value as people got more desperate to buy and looked at worse and worse areas for stuff they could afford. I looked at a house in Tamworth the other day, it was boarded up and slightly fire damaged and looked a good buy in the auction catalogue (I forget the guide price now, maybe £20k or something). It had sold for £85k I think previously and some neighbouring houses had recently fetched over £100k. When I popped down to see it in the flesh it was a REALLY rough area. The wife was scared to
  8. Regarding the value of this house in question. According to houseprices.co.uk (check yourself postcode NG8 5NU) Similar properties sold for £75k in 2007 and £82,500 in 2005 (I believe it is a small cul de sac with only a few very similar houses) - these are the 2 most recent sales in that post code. At £42k the house has already deflated around 50% from peak. Where do you see the bottom? Houses worth 10% of what they used to be? If we get that low then an awful, awful lot of people will be in negative equity. In fact UK PLC will be in liquidation. I'm not saying a recovery is around the corn
  9. Fair comment but I was talking about DSS tenants. Also, while a working person might be able to afford £266 mortgage a month, how many can manage to save up the £10k plus deposit currently required? I'll bet less than 90% are able or strong willed enough to do so.
  10. 1. No I didn't. What do you suppose that would cost for a 3 bed end terrace? 2. Professional landlords allow 2 months per year for voids. I would consider DSS tenants who qualify for the 3 bedroom allowance (between 2 and 4 kids) to be more likely to stay longer term. Even with 2 months void per year the figures are still very good. There are far fewer properties available where the landlord will accept DSS tenants so finding tenants for a clean presentable house in reasonable area would not be difficult. 3. Sorry I don't understand? With £42k in the bank you are getting diddly squat interes
  11. Actually I must partly come to Ajay's defence. I've looked into the Local Housing Allowance he mentions in his video. I just found a three bed end terrace near me in Nottingham for £42k (repossessed). I rang up about it and apparently the contracts are due to exchange today so it is most likely sold now. A similar house in the same street is up for just under £80k. Renting to a DSS tenant I could realise approx £518 PCM rent. On a purchase price of £42k with annual rental income of £6,200 that is an annual return of almost 15%. You don't get much better than that. The house would pay for its
  12. I've been studying Ajay's website for some time (before I noticed this thread). This is one of the property deals from his website: http://user19086.websitewizard.com/files/u...cted/Feb013.pdf He has found a property "valued" at £90,000 and negotiated a purchase price of £58,000. The LHA rental income is quoted at £525 (estimated I assume) or £475 privately. I presume these figures are from his extensive knowledge of the rental market in that area. The "financials at a glance" are: Ahuja Group Fee: £3,500 Legal/bridge fees: £1,200 Broker & Survey: £800 Cash Back: £9,500 Total Cash
  13. I don't personally see anything wrong with BTL. I rented property several times when on short term contract in London. I happily rented a 3 bed place in the Midlands years ago rather than move back in with the parents after splitting up with a girlfriend. Renting suits a lot of people for a lot of reasons. If I hadn't been able to rent short term in London I wouldn't have been able to work down there - and in fact I wouldn't have met the girl who is now my wife. OK so maybe there is a downside
  14. Bootle has a regeneration scheme in progress. You can get terraced houses for £20k but they're cash only purchases as they may get a CPO (Compulsory purchase order) slapped on them at some point so they can demolish all the slum housing for new stuff.
  15. What a great idea for a website! I noticed this flat at approx £67k: http://www.getanoffer.co.uk/property/73/qu...on-M34-6HH.html If you lookup the postcode on houseprices.co.uk you will see that flats in that block sold for anywhere between £105k & £145k (I don't know the flat number so cannot check the actual price) I feel sorry for the seller who is having to face up to losing between £38k and £78k if he/she manages to sell at £67k. Just shows how very overpriced all these new build 2 bed flats were that popped up like mushrooms all over the UK last few years.
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