red
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Posts posted by red
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Where do they find these ar5eholes? Do they have some kind of tunnel between the Sixth Forms of the nation's public schools and the Foxtons recruiting office?
Definitely public school boys who weren't up to it academically and couldn't hack it in the City. Not sure which I detest more - Foxton's posh-boys or the spotty young chavs with sovereign rings & ill-fitting suits from Bairstow Eves...
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So has it gone bust or on the edge or what?
I think the idea of FOXTON'S going bust is more in hope than expectation. But they have just shelled out a heap of money on revamping their offices and their infamous fleet of minis are probably on HP...
Most EAs are getting desperate but I imagine one that only operates in affluent areas (ie. Foxtons) has bigger overheads than Fred Bloggs & Sons in Edmonton and the way they've been expanding so quickly may suggest they'll be hit harder... fingers crossed.
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the mini's have been there for ages (at least a year!) I'm afraid - I've often wondered what they were doing there since they come and go.
Can't stand Foxton's but got to admit their marketing is the best I have seen - as also testified grudgingly by other EA's I have spoken to.
Won't be sorry to see the back of them
FOXTON'S marketting may be slick, but they ALWAYS overprice property. They have certainly had their hand in pushing prices up and their new office in Muswell Hill looks more like an advertising agency with it's massive plasma screens & cabinets full of bottled water on display (what's that all about?!). Hope to see it close down and turn into a 'EVERYTHING FOR A POUND' shop!
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Oooh, it makes my blood boil. Here's my letter which calmed me down as soon as I clicked 'SEND'. I urge everyone to do likewise!
Dear Ms Russell,
I have been receiving the Enfield Independent for many years and commend you and your team for it's lively and informative content.
I have a major concern, however, regarding the PROPERTY INDEPENDENT supplement. It's front page always carries a short article, usually on the state of the housing market. The most recent edition (Wed 12th Jan) bears the heading "The Forecast in sunny".
It clearly isn't. The housing market is in decline and to suggest that it will continue to rise whilst allowing more first time buyers to get 'on the ladder' is both contradictory and hugely irresponsible. The article ends:
"The planned slowing in house price inflation will allow buyers to once again enter the market."
First time buyers cannot afford to buy at PRESENT prices, so how can houses become more affordable without a downward trend?!
I appreciate that you have a vested interest as a journal which receives revenue from Estate Agent advertisers but you also have a massive responsibility to your readers who are influenced by these bullish and clearly inaccurate articles.
The longer media organisations such as yourselves - who influence many thousands of local people - perpetuate the property myth, the bigger and more severe will be the correction in prices.
I urge you to carry articles which tell the truth so that readers will be better informed and ultimately grateful.
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You are quids in, and so is your landlord and the Chancellor.
Its a win win and everyone should do it.
YES, we STRs are quids in, and so perhaps is the Chancellor - but I fail to see how a landlord can be happy with seeing his property rapidly losing value, irrespective of whether or not there's a mortgage to pay on it. Sell up, pay the CGT and cut your losses.
Then buy back in at the bottom.
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Very confused down town today. A local EA (Bairstow Eves/Countrywide) has redesigned there front window. It's got ZERO british property just a lot of spanish flags and a few spanish properties. Lots of "Ole we have a spanish sale now on"
I've not got much else to say, it was sureal. I'm trying to think of something to compare it to, so as to show how stupid it is but i can't. Even advertising used german cars in england isn't as bad as you could go over there and drive them back. A house in Spain just stays there. How can this be a home? Pretty long commute.
Funny, I just noticed the same thing in several HAART agency windows in London. 3 display boards and one entirely dedicated to houses in Spain! There is more life to be squeezed out of their market, I guess...
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Well I have decided that this week I will be viewing houses like mad. I have listened to all the talk about prices and firmly believe that there are some very very worried people out there.
I will make offers up to 20K less than the asking price and see how low these people are prepared to go. If nothing else it will give a good idea as to the confidence these sellers have and certainly knock the EA's.
People are still spending like crazy so its not a case of if but when it goes pear shaped.
My gut feeling is that I will probably get some very good results this way and hey, I might even buy one.
I want a semi with garage, nice garden and all mod cons for approx 90k.
Heres hoping.
I don't know where you're looking, but my advice would be to WAIT. There's a long way to go...
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Quite obviously hit a nerve there. LOL don't shoot the the mesenger. Not talking investments CARS ARE NOT. Talking general expenses like the orignal thread started with.
Guess you just bought a new car
Sucker
Er, I think he was being tongue-in-cheek funny, actually...
Note the
at the end...? Made me laugh, anyway. -
This COC as the great white hope makes me laugh. Be surprised if any of you can tell me the 2005 Capital of Culture - it's a city in the UK.
The COC will have no effect on Liverpool prices - there's already a huge number of empty flats to let.
It's CORK in IRELAND - a few Guinness drinkers might be a bit miffed you lumped them into the "UK"...
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Out of curiosity, when you say "cash buyer", do you mean just those with the full amount of cash in the bank, or do you also mean those who are chain-free, mortgage-approved, and ready to complete quickly?
The latter usually, as it amounts to the same thing. The vendor gets a no-hassle, immediate deal.
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True but if you only paid 55K for the house that today is worth 225K and your tenants have paid off the bulk of your loan then its a good deal and remains so.
If someone stopped you in the street and said you could own 100 houses with mortgages that will be paid by someone else over the next 25 years would you refuse the offer?.
Damn right I'd refuse. I'd take the cash, though. In a falling market, you'd be mad to take the properties and watch those paper profits dwindle...
Cash is king right now.
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Being an STR myself, I could be bias, but in their shoes I would do the following:
Rent it out.
No matter how far the prices might crash (and it is still only a might, remember) there is no way that their house will ever see £30k again. Which means that the rental yeild will be huge. Assuming a mortgage of £30k and a rental income of £700pcm, what is the yield on that? I have to be honest, I've never worked out yield before. (never needed to)
You're forgetting to take into account capital depreciation. Even without a mortgage, their 700 p.c.m. will be swallowed by loss in value of the property. Even with moderate falls in prices next year (5%, let's say) It makes sense to STR...
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Alex Bannister, group economist at the Nationwide,
...said: "A sharp downturn in prices cannot be completely ruled out but, while the economic outlook remains positive, it looks unlikely."
A terrorist attack, large-scale job losses, many people deciding to sell their buy-to-let properties or home-owners being forced to sell quickly could all trigger a collapse.
UNQUOTE
What a copout.
Unless Bannister is an idiot, he must understand that a slowing of Houseprice inflation will tighten credit, as easy borrowing against rising home equity stops. In reaction to a marked reduction in spending, the economy will slow, and then THERE WILL BE A LARGE-SCALE JOB LOSSES. That's when his copout "escape clause" kicks in.
This is all predictable. He is a fool not to say so.
It's HIS JOB to say so. He is trying to maintain a level of confidence in the market whilst trying not to lie completely!
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Just for reference purposes.
Does the property crash start at midnight tonight or only during business hours for January 1st 2005.?.
Its just that I will be extra carefull to look out for it when I ring in the new year in London tonight.
He, he...
The crash started months ago, it's just that some of you bulls never noticed - or chose not to.
Happy New Year, anyway...
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Next 5 sit on the property you bought three years ago.
Stock Exchange too volatile and far too many middlemen helping themselves.
Bank Term Deposit who wants to fund the labour parties tax and spend policy.
Aaaargh! Why sit on properties bought 3 years ago?! SELL THEM! NOW!
Why sit and watch your paper profits disappear when you can REALISE them?!
I cannot understand this 'must hold on' mentality and it only seems to apply to property...
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Another point here is that if you were the owner of a house what would you prefer.
By being an owner you can afford to see your house tumble in price at 500 quid a month to be breaking even with someone investing the cash and renting.
But why sit and watch your BTL fall in value? Why not sell up and buy back in when prices drop?
If you're going to play the property market, why not do it like other financial markets?
Sell high, buy low...
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I know it's already been posted, but I really wanted to pick this particular section out to make any STRs or FTBs out there feel better! Happy New Year!
http://www.moneyweek.com/article/478/inves...t-drowning.html
According to FPDSavills, rental yields in most major cities are now below even the interest portion of a mortgage. Add in the repayment portion and the average cost of servicing mortgage debt rises to about 7.5% a year. From a cash-flow point of view, at this point it really does pay to rent. Indeed, it is likely the true cost of home ownership is actually approaching 10% per annum. Crispin Odey of Odey Asset Management reckons that the cost of home-ownership, taking account of buildings insurance, service charges and maintenance, can average about 3% of property value a year.Â
This means that in London, where rental yields are 4-5%, a potential house buyer could live in a property worth twice as much for the same monthly outlay if he rented rather than bought. This is on top of any “gains†a renter would make as a result of capital depreciation if property prices continue to fall. Indeed, once you take away the promise of capital gains from the mix, renting becomes what is known in the City as a “no-brainerâ€.
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http://www.moneyweek.com/article/478/inves...t-drowning.html
this quote does it for me:
"According to FPDSavills, rental yields in most major cities are now below even the interest portion of a mortgage. Add in the repayment portion and the average cost of servicing mortgage debt rises to about 7.5% a year. From a cash-flow point of view, at this point it really does pay to rent. Indeed, it is likely the true cost of home ownership is actually approaching 10% per annum. Crispin Odey of Odey Asset Management reckons that the cost of home-ownership, taking account of buildings insurance, service charges and maintenance, can average about 3% of property value a year.Â
This means that in London, where rental yields are 4-5%, a potential house buyer could live in a property worth twice as much for the same monthly outlay if he rented rather than bought. This is on top of any “gains†a renter would make as a result of capital depreciation if property prices continue to fall. Indeed, once you take away the promise of capital gains from the mix, renting becomes what is known in the City as a “no-brainerâ€."
As Kevin Keegan said, "LOVE IT."
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Good of you to post this, BBB...
He seems to suggest that house prices will not fall, only experience gentle rises, which would mean that earnings inflation would have to accelerate to ridiculous proportions in order for most FTBs to get on the ladder, and if you haven't got on it yet, do it now.
I shan't waste time saying what I think of his article - it should be pretty obvious.
My question to you and any other resident bulls is: do YOU agree with him?
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Cutting interest rates WILL change everything.
It makes mortgages cheaper, it gives people more money in there pocket and that means people have more money to spend on hosuing.
I reckon a cut in interest rates will stop any price drops and prices will remian at the level they are. FTB's get fed up of waiting and end up buying
So how does a FTB on an average income of 25 grand a year get a mortgage for a 150 grand 'starter' flat? (That's a 6x income multiple)
Don't you see it's a case of AFFORDABILITY that is affecting the market? A move in interest rates will not affect this.
FTBs won't get fed up of waiting and end up buying because they can't afford to! They will sense the market is dropping and enter when they feel it's bottomed out.
Or maybe things are different 'up North..'
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Christmas a day early? That must have been decided by a child in order to get presants earlier. I think they might do that in Germany. My Nan is German and we used to open the pressies from her family round her house on xmas eve.
Now I must go and see the family (sigh) Well, it is the day of santas birth, I suppose I should make an effort.
Santa's birth?! Like it.
Reminds me of Japanese Easter card I saw with Santa nailed to a cross. Classic...
Yuletide greetings to all - I'm off to open some prezzies!
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http://www.myfinances.co.uk/property/housi...036;7395811.htm
Buy-to-let rental yields break £10,000 barrier, finds Paragon Mortgages
The average landlord rental income has risen above £10,000 for the first time since Paragon Mortgage began its Buy-to-Let Index.
It is the third month in a row that yields have risen, meaning landlords are now receiving 8.5 per cent more than they were in September.
"Landlords have been seeing steadily rising rental incomes over the past three months, helped by good levels of tenant demand which is in part attributable to the ongoing impact of affordability constraints on first-time buyers," said John Heron, managing director of Paragon Mortgages.
He added: "This is now feeding through into higher yields, which have risen for the last two consecutive months, despite the fact that buy-to-let property prices have continued to rise steadily.
"With solid returns on their lettings businesses and strong levels of capital appreciation over the past year landlords continue to benefit from good overall returns - taking into account both rental income and capital appreciation.
"Overall returns have now reached 29.5 per cent, up from 24.5 per cent last month and 23.6 per cent in September this year."
Lovely. Good for you.
It might go some way towards making up for the huge capital losses many landlords are incurring by hanging onto their properties. But Paragon don't want to talk about that, do they.
And you really show your class with the 'ha, ha' bit...not to mention your awful posting name. Ever thought of changing it to Mr Scrooge, just for Xmas?
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Driving through a village called Arlesey (near Letchworth) I came accross something that stopped me in my tracks (causing a multi car pile up*). I had my camera phone with me, so I had to take a picture:
Notice the house next door is for sale? Good luck with that!
*A lie
Is that a vulture sitting on top of the chimney stack, waiting for the crash?!
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Some will...and are... most won't though... most wil just ride out the storm epecially those who have used it as a pension substitue... ie have a pension fund and pay £250p/m or have a property and pay £100p/m.. which would you choose???
Er, if I were a BTL I'd sell now and buy back in when prices drop. That's what people who play stock markets do, why should BTLers be any different...?
People Cannot Sell Their Houses
in House prices and the economy
Posted
As much as I dislike EAs - they are woefully underqualified to be dealing with the biggest investment most people make in their lives - they are not really to blame for the price rises.
They have done their bit, sure, but it's the 'must own a home' mentality amongst the general public and the proliferation of media guff (Spencer & Allsopp, et al) that feeds it that is to blame.
Owner Occupation has become too much of a status symbol.
And then there's BTLs, of course...