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sammersmith

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Everything posted by sammersmith

  1. The young people I know believe strongly that property is a one way bet to riches, and whilst they don't like high prices it's only because it hampers their dream of being multi-property-owning 'entrepreneurs'. Their usual 5 year plan is to buy a Shared Ownership / HTB newbuild then rent it out on the sly once they shack up with someone. Not many have achieved this but it doesn't deter them. I can't actually blame them. For all their adult life they've had interest rates near 0% and BTL scum making out like bandits whilst they are regularly turfed out on a S21 with nothing to show for their efforts. They've never experienced a downturn or know what happens to sentiment when the market turns. Their entire financial approach to life is based on their experience of the last 10 years of 'unprecedented times'. They've never known normal.
  2. Sometimes houses have to sell, almost at any price. I saw a repo yesterday. Door kicked in by bailiffs and in mid-renovation condition. No effort done on presentation. Agent said the bank wants rid. Make an offer. I've also seen numerous probate properties and have been shown round by the adult children inheritors, some of them are approaching retirement themselves. They've built their own lives in different houses and they don't seem to want the hassle. That's 2 of the Ds - and these kind of properties do seem to be more frequent nowadays.
  3. I can't see that happening. It would be vastly more generous than both the HTB ISA and LISA, which only give 25% of deposit and only then up to a max of £50 per month for a HTB ISA and £1,000 per year for a LISA. In other words: It would take 20 years of having a LISA to get £20K off the government and what's proposed here would happen in one go. I can't see this happening either, nor the other often mentioned option of using pension contributions. The issue is that the market would go absolutely-insane-mental the day it was announced. There are so many high earners nowadays who have never owned that it will be a wall of morons bidding each other up. The govt might want a prop but they'd be nuts to create a feeding frenzy (again).
  4. I'm assuming the 'Zillow Zestimate' is an equivalent to our Zoopla estimated price. I just checked my tracked properties on Zoopla and they're still showing daft prices, but it might be an interesting metric to look at now and then. Assuming Zoopla are honest with their estimates and don't hide the drops to limit embarrassment.
  5. Given how liberally S21s are applied, I'm always surprised letting agents and landlords rarely seem to have evicted tenants come after them.
  6. I seem to recall those that took a repayment holiday during the first lockdown had issues remortgaging when the time came. The tighter lending criteria may have been masked by the subsequent stamp duty boom, but if there's no boom then will these holiday-takers find it harder to get off their rate fixes before time runs out?
  7. I don't, but i do think there's still a momentum in sentiment from the stamp duty holiday. It might take a while for this belief to die.
  8. Even the people 'benefitting' from the holiday seemed to think it only pushed prices up if the stories on MSE/Mumsnet are to be believed. The thing is it did 'work' as it was likely intended. March - June 2020 everyone expected a crash. Post - July 2020 people were seeing a boom and were desperate to pile in. Could they do something so cynical again given the narrative is now high food / fuel prices? I think that would be going too far. People still think we're in a housing boom (the EAs, mumsnetters, and sellers take a little longer to see reality), so adding more boom would seem unnecessary to most and would do nothing to address the 'cost of living crisis'.
  9. I've been concerned recently that this period we're currently living in feels like the time between March 2020 (Covid lockdown) and July 2020 (Stamp Duty Holiday Announcement). In those 3 months even the mumsnetters where talking about a HPC, until Sunak stepped in to save the day and everyone forgot their previous fears being high on the feeding frenzy. If this is it then there's no need to worry Default insurance, lol. Why not add another financial commitment on top of the already overburdened FTBer?
  10. Saying 'don't worry about it as long as you only lose the money you spent on the deposit then you're not officially in negative equality', may be technically correct but it's clearly a disaster for the poster if this is the outcome, and it's not really what they were asking. More than likely what they actually wanted to say is: 'will I lose money', but they don't want to sound vulgar.
  11. Surely if it was a loan then it the solicitor would've added it as a charge to the property. If the solicitor / parents didn't do that then they certainly can't rely on HPI to boost their 250K investment to £400K
  12. I emailed my MP last week to remind her of the promise to abolish S21, given it's the Queens Speech on Tuesday. She's a Tory so I spoke in language she'd understand and said renters are increasing and they won't vote for you while they stay renting. The only option is to turn them into homeowners at the expense of LLs. She was a LL herself and likely still keeps the same company of people around her, so I don't hold much hope she'll see past dreams of yield.
  13. I thought it already was the whole economy, and has been for some time. Look around at all the trade vans (and their printed signed), solicitors, EAs, TDS, checkout cleaners, auctioneers, care homes, equity release, property porn telly, etc etc.. And not forgetting it's the only thing that anyone with spare cash and limited intellect wants to put their money in to.
  14. It's currently a commercial building. No bathroom and presumably only a 'tea-making' kitchen. Wouldn't get a residential mortgage on it and there doesn't seem to be any financial scope for a developer to convert to residential. it's a smallish semi right on the road in Middlesborough and is listed. £600K was truly mad (hence it didn't stay that price for long). £350K is also very mad. They'd need to price it for a cash buyer who wanted to splash the cash in 'borough. My guess is these will be few and far between.
  15. MoneySavingExpert. Here's the property forum where this kind of question would likely be posted https://forums.moneysavingexpert.com/categories/house-buying-renting-selling You'll get more eyes on questions over there but beware as the resident posters can be VERY opinionated, judgemental and self righteous.
  16. That makes sense, and also if you get to over £16K in savings you'll lose your eligibility to benefits so, actually, buying shares in 25% chunks will maintain your benefits eligibility whilst reducing your rent and getting you closer to 100% ownership. You say there's 3 people in your family so i guess we're talking at least a 1/2 bed flat, which still seems cheap. Shared Ownership was created to enable people to save a smaller deposit and obtain a smaller mortgage on a % of the property. Usually if you can afford a 25% deposit then it almost always makes sense to go full ownership with a standard mortgage and large deposit. I can actually now see how you can hack the shared ownership rules to get UC to buy the flat from the council for you. Quite clever actually 😁
  17. So does this money (20 EURO / £15K) represent 25% of the ownership cost? That means full 100% ownership would be £60K? That seems unbelievably cheap for any property in any part of the country. Even a studio flat in Middlesborough probably costs more than that. Normally i'd say 'stair-casing' to 100% was unrealistic in most peoples lifetime and life stages, however if just saving 15K will buy you another 25% then i can see that as being possible. If it were me, i'd wait until i could afford the full 75% to avoid valuation/fees cost attached to every % bought.
  18. This is the problem, less so the money conversion cost. If you wanted to use that money for a new car/kitchen/holiday/etc then by all means find the most cost effective way of getting it converted as no one will care how you came into that money. Someone mentioned Revolut, that's a good option. Wise (AKA TransferWise) is also good for this. The problem when buying houses is there are AML checks and they are not standardised. This is particularly true when there is a mortgage on the property as that's another stakeholder who will have requirements to satisfy.
  19. I honesty don't know, but it does sound dodgy doesn't it? You wouldn't be the first to use gold to get around AML checks. Where is this money right now? Is it just in Euro notes under your bed? If you go down the cash route then you're going to have to pay it into a bank in person somewhere. How much are you going to pay in and over what timeframe? Assuming you pay in to a EU account then you pay Euros over the counter in person gradually and then also gradually transfer to a UK account. It might take a while and would still look proper dodgy on paper.
  20. That's just the automated checks by the banks when paying the money in. Conveyancers look at your paper bank statements over a period of time (3 / 6 / 12 months - seems to vary) and ask you where this money came from and how it was earned. It can the go a bit deeper, for example: if your answer is that your Dad / Mum gave you the cash then the question comes round to "how did they earn it" and let's see some of their statements. Having the Euro statements showing cash going out and then an amount of cash being paid in 6 months later is probably better than nothing, but it's not really ideal. You could have spent that money and then paid in a similar amount earned by nefarious means. The good thing is that it's not a huge amount of money so it's plausible if you've been working you could have saved something around £15K in a year or so. Trying to explain £15K is a lot easier than having to explain £100K!
  21. I'd be more concerned about the AML checks than the exchange rate. £15K cash dropping into your UK account a few weeks before you instruct solicitors will raise questions. I've never been through the buying process but i've heard/read horror stories about overzealous conveyancers. At the very least you should have your 6 months worth of Euro account statements ready showing the money going out in cash.
  22. The only useful poster on MSE is the land registry representative. Everyone else seems to consider themselves as a self-appointed guardian of morality. Post a genuine legal property question and it'll digress into questions of morals very quickly. Counter that with HPC, where people do seem to know their stuff for the most part. Why doesn't the OP try it with the question above and post the MSE thread here? I can almost guarantee the responses will be something like: "it's not your business", "make your own money instead of relying on parents", etc.
  23. That place is filled with sanctimonious prats who know nothing but revel in dishing out moral judgement. You'd be better off asking someone in 'spoons that seeking legal advice on MSE.
  24. I initially thought that looked like a decent house, until i saw what was behind the house. Wonder why the EA didn't show the public car park right up against the cottage walls?
  25. 650K is actually quite good for a 5 bed period detached in Egham. It's the same price for a south London conversion flat and i'd much rather have the house. What makes it unmortgagable? The two kitchens? Can't they just pull out the oven from one of them and call it a utility room?
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