dothemaths

I know of a sale last month where the buyers had agreed on a price with vendors but the buyers lender after valuation, forced them to reduce the price by 10K before agreeing to the mortgage. The vendor of course agreed saving the buyers 10K.

We had that about a month or two ago here in the south west. Things seem to have calmed down a bit since then.

With our current crop of leaders I give it less than 2 decades.

This `fact' sounds highly suspect to me - I am mathematically literate. I assume you mean there was probably quite a bit of mismanagement and maybe some dodgy accounting.

"Right to buy" is classic deficit spending - extracting cash from council property today via a massive subsidy to buyers with no plan for funding the future housing stock for those on low incomes. Goodies for today's voters while letting future generations (us) pay the bill. Well this was done 2 and a half decades ago and it is now time to pay.

why is it surprising - nulabour always said they were tory light

A country which has had a proper housing correction, lots of land and has dynamic economy, i.e. the US. Turned down job offers in the past essentially for personal reasons. Now I know better.

600K houses these days are not what the wealthy aspire to - this is a subsidy aimed squarely at the middle class.

Given what happened in this country, US, Spain over the last decade, this is the most financially irresponsible policy by a government I have ever seen. Unbelievable ! Time to emigrate methinks.

These government subsidies are essentially a rather inefficient form of social housing for mainly lower middle class people. Politically not a bad move as that is where the Tories have lost the most support. Personally, I've decided to emigrate.

When the last bear turns bull ....

Don't think so. I was feeling nosy and went to see it. Structural problems with foundations - there has been significant movement in the last decade. The walls and floors upstairs are all wonky. I guess it could turn out to be a sink hole of money.

£ 325K I guess the sale fell through and the vendor ran out of cash.

Because the previous owner couldn't keep up their mortgage payments ???

And everything follows from that simple fact. The rest is just irrelevant waffle.

This is what some of the more naive banksters still haven't figured out. The politicians are stupid but not that stupid - the bailouts have fundamentally changed the relationships between banks and the state. Only an idiot thinks that banks make money these days. IMO this kind of thing is also inevitable in the US, it will just take a bit longer, maybe in the next President's term, and I'd say even in Switzerland because the crisis is not over and we will continue to bail out the zombie banks.

Agreed. In real terms for sure. I'm willing to double your money

Nice summary of the situation.

£ 834 per month works out at more than £150 K mortgage - doesn't sound 'pretty small' to me

Interesting article on renting in Bristol http://www.guardian....-home-ownership My experience has been that actually in decent areas for decent properties (3 bedrooms or higher plus garden), asking prices are actually a fair bit higher than a year ago. Absolutely bonkers.

I find this very convincing. I guess those who got into BTL really early and didn't keep on expanding their portfolio by increasing leverage will cope better. However I think a big slice of the BTL sector will be finding things harder and harder over the next few months. It is a slow burn though, first there will be wishful thinking - expecting numbers of renters in arrears, voids to decrease, before realisation hits so I am expecting the full scale panic to hit BTL in a year or 18 months. If I was a BTL'er I would be trying to streamline my portfolio as fast as possible - however I imagine most will be hoping and praying until it is too late.

In my rightmove searches, I'm seeing big reductions in the multi-million pound houses and in the two bed flats but not much in the way of reductions in the middle.

wise words, geezer - let's see what happens as the eurozone unravels ....