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House Price Crash Forum


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Posts posted by electrogear

  1. My brother in law in reference to my partner and I looking at houses (I do love him but he's just getting into BTL so we're on different wavelengths):- 

    "You know, you just need to get on with it and put a proper asking offer in because otherwise you'll never buy a house".

    To put some context there, he decided to get into BTL after splitting up with his SO and after getting pipped to the post on the first property he looked at (offered 88K on a 90K house) he then bought the next one he looked at a few days later at the asking price....

  2. I don't think it's particularly significant for most of the country, but greater London looks to be in a terminal decline now I'd say, especially when you look at some of the prime areas dropping 10-15% in one month, and perhaps that's a precursor for the rest of the country. There's been a 3% drop for my area (Yorks & Humber) following on from the -1.1% last month, but I remember seeing something similar last year (might have been -2% and -1% or something along those lines).

  3. 19 hours ago, TheCountOfNowhere said:

    I99% of the time when we've shown interest in any house the agent immediately tells us they've just had an offer.

    It's sickening isn't it? We've been looking for a year, viewed 30 or more properties, and only found value for money a few times (when we've usually been pipped to the post by a cash buyer) but the common theme whenever we've shown interest at less than asking price is "there's an offer already on the table'. COMPLETE BS 90% of the time. 4 weeks ago we were looking at this house:- http://www.rightmove.co.uk/property-for-sale/property-44372307.html and we were told "you need to get your offer in today because they're on the verge of accepting an offer". Still for sale now... don't fall for the massive garden, it's not very big (wide angle lens).

  4. I was party to a bitter sweet conversation between my mum and dad the other day. They're 60, homeowners/HPI fanatics and have been flipping cheap houses (around the 100K mark) for about a decade now, making a good living from it. They're keen for me to buy, continuously pointing out "bargain buys" to my wife and I, and we've been getting quite frustrated at their comments of "oooh that's cheap, buy that one" always ending up in an argument about property being over-priced, so we've reached a stale mate where we just don't respond to them any more when they start talking about houses. They've been brainwashed by HPI so much they seem to have forgotten what "value" is when compared to earnings and affordability.

    Anyway, they're selling their last 2 properties and they'll have about 180K in the bank plus about £120K in their current property (so 300K ish). They've been talking for years about down sizing from their 4 bed semi to a 2/3 bed detached closer to the village but with some land/outbuildings so that my dad can have a smallholding. Land near the centre of the village has a premium and I've been telling him this for some time. Years ago it was probably do-able to buy somewhere like this for <300K, but as my dad's only been working at the bottom end of the market he's not realised how much prices have gone up at the top end of the market too, and there was a moment of realisation last weekend that they weren't going to be able to buy their dream house at all. Although obviously I'm sad for them, there was a feeling that they got a taste of their own medicine too.

  5. http://www.rightmove.co.uk/property-for-sale/property-56365129.html

    Went to view this last year. Although we thought it was pricey for the area we went to see it as the garden and rooms look massive in the photos (turned out to be a nice bit of extreme wide angle photography & photo editing). The garage was converted into a through-office which led to a toilet and utility, but the office wasn't big enough for a desk and chair whilst allowing access through, (terrible design) and the garage conversion was half baked, leaving the garage door on the outside!

    The property was removed from the market in Feb/March and we thought some idiot had bought it, but apparently not as it went back on the market again in October 9much to our delight). 2 months in and it hasn't shifted yet. By my reckoning (and similar asking prices) it's priced 25-30K above comparable properties that aren't selling either. My guess would be actual (pre-crash) value of 230K, but given that the last sale of 170K was during the ramping prices of 2006, it's got a long way to fall!


  6. I can't get my head around the Zoopla area data. Up until last month it was showing a fall (-1 to -4%) over the last 3 and 6 months in Beverley & Cottingham where we're waiting to buy. For some reason everything has gone positive (+1 to +2%) with their latest update for the last 3 and 6 months which means in the last month prices must have shot up considerably, OR their data for the previous months was wrong and they've corrected/updated it?

  7. In August, Beverley (HU17) was full nearly all red, this month it's nearly all green. Other than waiting a year for the data to be properly collated and represented, there doesn't seem to be a reliable way to see how the market is performing over the last 6 months - 1 year, and the smaller the search area, the less data, the less reliability. In areas of low supply and demand there seems to be more anomolies (i.e. f**&^ing idiots overpaying or people needing to sell quickly flogging them cheap).

  8. 36 minutes ago, Bland Unsight said:

    The insanity is so wide you can't go around it and so deep you can't cross it.

    When she bought she could presumably only 'afford' interest-only because at that point SVRs were about 7%, hence repayment terms were out of reach, given the house price and given her income.

    Now, largely as a direct consequence of a deep balance sheet recession caused by this idiotic borrowing and lending, some borrowers with significant amounts of equity are able to access incredibly low mortgage rates.

    Hence she concludes that a solution to the her problem is that she might be allowed to switch to a repayment mortgage at those same incredible low rates.

    There is this minor matter of repaying the capital. There was talk of the fact that her mortgage is split between her and her son IIRC. Let's say it's half each. At present she's paying 4.5% on about £150k, that's £6,750 pa and her share is thus £281 pcm. Let's say she can re-finance to 2%. The interest cost goes down to £125 pcm leaving a princely £156 to chip away at the principal, her share of which is £75,000, so all paid off in a mere 480 months, which is 40 years, at which point she'll be 110 years old.

    It's the innumeracy that always amazes me. So much for homo economicus, behold homo f*ckwitus

    I suppose it's not so ridiculous that HPI idiots might expect deals like this, given the precedent that the banks and government have set over the last decade or so, but the bank have given that stupid hag 2 years notice to sort something out (i.e. sell the damn thing or switch to a different lender) and now she's panicking as she's only got 4 weeks left. The only people sympathising will be other HPI idiots.

  9. My brother in law was at ours today talking about a 30 year old colleague and her new boyfriend, who are trying to take out a 35 year mortgage. Both in mediocre office jobs, both with kids, both with outstanding non-mortgage debt. They've had an offer accepted on a 4 bed detached house for 480K because "house prices are cheap at the moment, HPI forever etc". To buy they've both sold their own houses and scraped together just enough equity for a 10% deposit but have been knocked back apparently due to the combination of long term and relatively low deposit. They're now going to a broker to find a bank stupid enough to lend to them. Another for the 'greater fools hall of fame'...

  10. 1 hour ago, simon49 said:

    York area is selling at the lower end, but anything decent over £500,000 is static, some have been on the market over a year now, but still with a sky high price in some sort of act of defiance against the inevitable.

    We found a bargain property a couple weeks back that was too good to miss. Offered asking price but was gazumped by a cash buyer :-( Everything else on the market is rubbish and there's no value for money, so none of it is selling. There's a couple of do-er uppers with a lot of potential, but both priced about 25K above what they'd be worth after they're renovated, so just sat watching those in the hope that the vendors might get a reality check. Extremely stagnant market.

  11. 10 hours ago, londislagerhound said:

    I was in Bayswater yesterday working for a client and happened upon an "open house" viewing of a place. It was superb, no question and the asking price £8.5m - I said to the estate agent that I'd heard prices at this kind of level and above were dropping and also asked if they'd had any offers.

    His (assumingly) honest reply was that there had been little interest, no offers and that a year ago it wuld have sold for £10m "within a few days of going on the market".

    To be fair, I take statements like that with a pinch of salt. Some estate agents will say whatever they think you want to hear, to get you on side. We've viewed a lot of properties and often been told to get a low offer in because "it'll probably be accepted" only to find we're the leverage bid for a first time buyer willing to mortgage themselves up to the eyeballs and the estate agent knew it all along. I've been on the receiving end of a leverage bid too, where the EA says "there's a better offer on the table" (note the use of the word "better" not "higher") expecting you to raise your offer,  then getting frustrated that you don't play ball and they end up calling you back a few weeks later in desperation because the vendor is withdrawing their property or listing with another EA.

    Estate Agents prioritise people in the following order:-

    1) Themselves

    2) Their mates/family Themselves

    3) Their mates/family

    4) Their colleagues

    5) The local pub landlord

    6) The vendor

    7) Dogs

    8) Dog poo

    9) Solicitors & surveyors

    10) The buyer


  12. 1 minute ago, One-percent said:

    Ah, sounds like oil and gas?

    Yep, but we're not all like that. I'd say 50/50 idiots/decent people. The conditions can be crap, the days are long, but I work 2 weeks away for 3 weeks at home which gives me more quality time with the family than a 9-5, and I get about 40% additional pay when compared to the same job on land, so despite the emotional rollercoaster (leaving my wife and 2 year old girl is heart wrenching - every time) the benefits far outweigh the negatives for me.

  13. 3 minutes ago, One-percent said:

    No, a question though. How does someone so stupid end up landing an 80k job?

    I am constantly asking myself the same question but he's not the only one! He joined the company as an electrical contractor and somehow slipped under the radar and onto our payroll a few years back when the offshore game was struggling for numbers, but since then the oil price has crashed, projects have been canned, and there's a surplus of staff but now he's "in" there's no getting rid. He freely admitted to me the other day that he doesn't understand the theory behind electricity but he knows how to measure the voltage with his meter. :rolleyes: To give you a clue to his "type" - he talks over everybody at twice the volume, skin head, tattoos, thinks "ex on the beach" makes good TV, and when his intellect is exhausted (almost immediately) resorts to bashing, name calling, and on occasion physical violence (although not in the workplace, yet).

  14. I had an enlightening conversation today with a work colleague. I'd suspected for a while that he must be in debt if his bragging was true regarding his expensive spending habits but I hadn't realised quite how bad it was. He is one of these people who drops how much something cost into every conversation - His Audi, his BMW, how much he's spent on the kids for christmas, how much his wife's spent on the christmas dinner, iPads, phones, sound systems etc etc (yawn). We earn decent salaries (in the region 70-80K) so it's not unthinkable that he would own these things (I do too in moderation) but he lives way outside of his means, taking his wife and kids out for tea to Michelin star restaurants twice a week, using the mantra "if it costs a lot it's better" and having everything now rather than when he can afford it. He doesn't bother finding a good price for something, he'd "rather pay retail than faffing around trying to save a few quid" - case in point, an oak dining table and chairs last month £2000 on finance. We paid £100 for our solid oak table from a Wren returns outlet and £45/chair from an online company. I call it being sensible, he looks down his nose at me for it and calls me tight. "At the end of the day our coffins will be the same size", I said, "so stay humble". That's not strictly true though because he's a fat b8^5Rd - must be all the fine wine and cheese!

    Anyway, eventually between three of us we got talking about credit cards and mortgages. I don't have any debt at all (no credit cards, no mortgage, no car lease or payments of any sort) - just a student loan which I'm due to pay off in Dec. The other guy has a new kitchen on 0% finance but other than that lives pretty well within his means and has some savings. Obviously, being a serious black-catter our financial mess of a colleague had to brag that he had waaaaay more debt than us both put together. It transpires that he's got £35,000 on credit cards, two car leases, and a £125K mortgage. He's lived in his house (a very small 3 bed on a new build estate) for 3 years and has only around £15,000 equity. He didn't tell me all of this directly but I'd sussed it out because he said he wanted to remortgage but was waiting until he had 85%LTV. After tax he takes home £3500 per month. His monthly credit outgoings (credit cards, mortgage, cars) is a whopping £2200! With food shopping and other monthly bills he admits he struggles to get by without doing overtime. I pointed out that if his interest rate on his SVR mortgage or credit cards go up he'll be screwed. He reckons life's too short to worry about that...

    It was quite a satisfying moment for me because earlier in the week he'd been calling me "tight" because I'd said that I thought £60/head was expensive for a meal out.

    Anyone got a similar story?

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