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red

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Posts posted by red

  1. SNAP.

    I have had an offer accepted on a broadly similar property in Coastal East Sussex--about 10 miles East of Brighton. Listed last summer at £325k. Series of drops to £249k. My offer of £201k accepted. House upchain dropped to meet my Vendor on more or less equal terms.

    Crash speed--at least in the affluent "prices are stable" SE! :lol:

    see my post above - prices holding and in some cases rising here, sadly...

  2. Fair points but I still think £50k off of a £295k price is good evidence of some harsh reality.

    Of course, the other positive is that it sets the ballpark for similar properties.

    Similarly, all it takes is for one cash-rich fool to buy a place at asking price in a decent area to make all other vendors hold out for their absurd asking prices - or even up them, as they're doing around here (N London), where the madness continues unabated...

  3. I think there might be a modest bounce but it will only be part of the up-down pattern we see at the moment. The property market's going nowhere.

    Not so much a bounce here, just more of the same...sadly, that means prices holding firm and in some cases rising.

    Since IR cuts, hardly anything on the market, hence prices of decent stock back to pre-2008 crash levels.

    Just made offer on house for 65K more than I did back in 2008. Rejected outright as vendors has offers near asking...150K more than those properties were going for in 2008. That's a serious increase and what's worse, people are paying, encouraging other vendors in the area to hold firm on their prices - or in some cases, up them.

    Fecking depressing.

  4. Had this discussion with a friend recently - if / when rates rise substantially, will banks raise their lending rates with the same margins they operate at now?

    Can we really expect to see, with base rates at 5%, the average (80% LTV) mortgage going for 8-9%?

    I don't know of any tracker at the moment less than 2.3% above base, and that's with a 40% deposit. Most seem to operate at around 4% above base.

    This would obviously mean carnage for the market - well before rates got to 5%, too...

    Your thoughts?

  5. A largish three bed semi was on sale for around three weeks just down to the road to me for 525k. It easily needs at least 50k of work doing to it as it currently looks like an ex student squat. The For Sale sign changed to Sold last week and another similar property has now gone on for 520k. This new one is actually a two bed. This area does appear to command a premium but these prices are beyond a joke. The more sales that go through at these prices will just enable sellers to continue to try their luck and hold out for obscene prices.

    Exactly what I'm seeing around here - one sale goes through on a particular road then the rest in the area jack their prices up in the hope of matching it.

  6. My offer on a property was accepted today. £325k last July--drop drop drop--offer at £201,250 accepted. They are tumblinhg darn sarf.

    Transactions down 50% YoY, job losses brewing--gloom everywghere--don't belive the EA hype this market is crashing.

    Oh, RB... with all due respect to where you live - and I'm glad you got such a huge discount - prices are most certainly not tumbling in my part of the 'sarf'...

    And the EAs aren't having to work hard to see any decent property go straight under offer for near asking (around peak 2008 prices).

    IR rises, please.

  7. Mrs Red and I made an offer 15-20% below asking price for a property last week.

    EA (slimy 30-something) said it wasn't the highest they'd received but as we're chain-free, big deposit buyers, we might have a chance.

    Through gritted teeth, I was as nice as pie to the idiot, who couldn't answer basic question about the property, proving that they are indeed a total waste of space and an unnecessary evil in the whole house-buying process.

    Anyway, the offer was made Thursday morning, by email and phone. He said he'd put offers to the vendor that afternoon.

    It's now Tuesday. We've heard NOTHING. Not even a courtesy call to say why the delay.

    You offer over half a million pounds of your money to buy something and the person responsible for overseeing the transaction can't be @rsed to let you know what's going on.

    I am desperate to call the manager and give him an earful for appalling customer services but know I'd blow my chances of getting a property through them in the future.

    It strikes me as a perfect example why the EA industry needs greater training and regulation. How can an ill-educated, irresponsible moron lacking in basic communication skills be so instrumental in the biggest financial decision anyone is likely to make in their lives?

    And what do I do to vent my anger...?

    (Edit for naff spelling)

  8. Sorry, a grind down is what we're going to see.

    2005 = 2015. Our very own lost decade

    Yep.

    Low IRs and ZIRP-like schemes will keep over-stretched 'owners' in their homes, meaning no short, sharp crash, I fear.

    Which would be better for the economy in the medium-long term - but since when have politicians cared about medium-long term policies?

    Keep the plebs happy in the short term, get re-elected and on we go...

  9. Where are you looking? In London prices are sliding and prices in the capital have supposedly held up much better than many regions. Get yourself Property Bee up and running and I think you'll be pleasantly surprised at the number of reductions you can find.

    Here in London N2 there are simply not enough properties coming to the market and all it takes is one over-priced one to sell and the rest dig in for their absurd asking prices, hence very little movement.

    We just made an offer for a 3-bed ABOVE what we made for an identical place during the dip in 2008 - no joy. It's gone for near asking price.

    As I keep saying, until the forced sellers return, it'll be a painfully slow grind downwards - in desirable areas at least...

  10. http://uk.finance.yahoo.com/news/Instant-View-Q4-GDP-reuters_molt-3414107872.html?x=0

    Q4 GDP unexpectedly revised down 0.6 percent
    9:48, Friday 25 February 2011
    LONDON (Reuters) - The economy contracted even faster than previously estimated in the last three months of 2010, shrinking by 0.6 percent after downward revisions to industrial and services output, official data showed on Friday.
    The figures may make Bank of England policymakers wary of raising interest rates, although there have been signs that activity picked up at the start of this year following December's snow-related disruption.

    It was not unexpected as AFAIAC.

    Double dip cometh and no, Merv, does not have to raise the rates.

    precisely what I was thinking.

  11. I too am considering an offer on a place in the sure knowledge that it will lose value over the coming years.

    Sometimes the desire and need to provide a home for your family is simply stronger than rational, financial action.

    My criteria have changed somewhat - I can no longer wait for a perceived 'bottom' in the market.

    Provided I can service a mortgage at 4 or 5% over the next few years (I can get 2.29% with HSBC, so factoring in a few rate rises), during which I will be overpaying like a madman, I will do it.

  12. America has accepted the ugly truth, are taking the punishment and as such have light at the end of the tunnel.

    The UK, foolishly remain adamant that pain can be avoided. The pain will now be worse and felt by everyone. We're all in this together remember. Stupid *****.

    I agree - and I think it's something to do with our property-mad philosophy:

    "You can't go wrong with bricks & mortar / renting is for second class scum / prices only ever go up / etc..."

    We have convinced ourselves that the 'norm' is to see prices rising YoY - it's our pension, after all - and when they fall it's panic stations.

  13. Sounds good. We don't have 40% deposit, though.

    I'm also considering discount/tracker - looks like Norwich & Peterbrough offer discounted rate currently at 2.59% for 85% LTV, 2yr fixed which is staggeringly cheap for such a high LTV. That is very very tempting. Sure, rates are going to go up, but are they going to go up more than +2% in the next two years?

    http://www.nandp.co.uk/mortgages/mortgage-products/discounted-mortgages/2-year-discounted-mortgage/

    Precisely the reason I'm so scared of over-borrowing right now.

    We can service a loan at 2.29% no problem - even 4% is manageable for us. It's a gamble, for sure, but my money's on deflation after the next economic dip becomes entrenched.

    The idea is that we overpay like mad in the first few years to eat away at the capital owed, before any potential big rate rises hit us.

    The Norwich & Peterboro deal allows overpayments...big up-front fee, though.

    Borrow up to 85% of the value of your property or the purchase price (subject to criteria)

    Minimum loan £20,000

    Make capital repayments up to 10% of the loan or £10,000 a year (whichever is the lower) without charge

    Option to overpay or underpay (subject to terms and conditions)

    £995 product fee

    Early repayment charge if you repay in full within the first two years or if you repay over £10,000 or 10% of the loan per year

    No self-builds or conversions are allowed

  14. I'd be interested if anyone knows of a better deal than 3.89% with ING with 80% LTV (2yr fixed) with £895 booking fee.

    Or I am also looking at ING's 3yr fixed 4.49% (but only £195 booking fee).

    I'm debating whether fixing for two years is such a good idea - are we really going to get IR rises that would justify fixes when you can get 2.29% trackers from HSBC with no fees? (OK, it's 60% LTV)

    All depends on whether you believe the BoE who reckon inflation will subside within the next year... <_<

  15. I think average prices will fall very fast in the next 6 months. I think it is too early to buy. Well, unless you are in a region of the country where prices fell already, like in Northern Ireland, or some parts of the Midlands and/or North of England?

    Without wishing to be rude, I'm not interested in 'average' prices, since they appear to mean nothing when looking at my local area.

    Very little on the market, back to 2007 prices. And what good stock comes on is selling.

    It's going to take a serious catalyst for big falls in my area this year. Sentiment still too bullish.

    Yes, I believe prices will fall here, but I can't see things turning around this year to such a degree that I could afford to buy.

    Depressing and frustrating.

  16. I really need to make friends with the local EAs. Have started trying to do so, but when some don't even bother to call you back after a viewing to get your feedback, I can only assume they're rushed off their feet...

    We've tried to arrange two viewings recently and the EAs never bothered to call back on both occasions.

    My level of contempt for them has grown so much since we started looking to buy recently that I can hear my own teeth grinding as they show us around properties making obvious, idiotic statements like: 'Here's the bathroom.' Well, no sh1t, sherlock.

    And yesterday's classic was "Yes, it looks small, but if you take the shed out you've actually got quite a good sized garden here."

    The sooner Tesco or whoever come up with an internet portal for buying & selling properties to make these useless parasites redundant, the better.

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