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VacantPossession

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  1. Here are some more gems from property-agent twaddle-speak. Vote for a prize for the most creative twaddle! "Are prices coming down? It's difficult to say - some of the price falls that have been reported are on properties that were overvalued to begin with - they're now being realistically revalued. " ie:prices are fallling. "We're not seeing prices falling as such - in the past, property was selling at close to valuation and sellers were in a strong position whereas now they have to be open to offers. Typically we're seeing discounts of around five per cent." Double speak for: prices are falling. "as we approach October and November we expect there to be a shortage of available properties as the properties that came on over summer get picked up in September - more realistic asking prices will move them." More double speak for: prices are falling! "Are buyers trying it on? ""Yes, some are. Buyers can bargain..." Well what a surprise! ""Our auctions department is also very busy - we've just sent out a record number of catalogues " Yes, they are busy because auctions are cheaper than conventional buying. "It's fair to say that buyers are more cautious and vendors are having to change their expectations" Yawn...will the script ever change? "Buyers and vendors will become more involved in closer negotiating and the expertise and professionalism of agents comes to the fore in these circumstances" A ludicrous euphemism for "prices are on the way down". This gets my vote for the most creative spin yet!! "Some buyers are putting in unrealistic offers - but we haven't seen a big drop in asking prices" Translation: "some sellers are asking unrealistic prices and the buyers are understandably holding firm." "investors are usually the first to come back in and get the market going again after a slowdown. " You have to admire EA's for their dogged determination to put a positive spin on everything. "we'd much rather have a stable market....... we see it as a sensible price realignment." Hoorah!! At last a meaningful and believable comment from a ...."professional". VP
  2. Beachbabe, you sound (from the above and your previous replies) to be a refreshingly reasonable person in regard to Cornwall property situation. Perhaps I'll recommend you to my friends who come down every year but there are too many to stay in my flat in Falmouth. VP
  3. ""Are prices coming down? It's difficult to say - some of the price falls that have been reported are on properties that were overvalued to begin with - they're now being realistically revalued. " ie:prices are fallling. "We're not seeing prices falling as such - in the past, property was selling at close to valuation and sellers were in a strong position whereas now they have to be open to offers. Typically we're seeing discounts of around five per cent." Double speak for: prices are falling. "as we approach October and November we expect there to be a shortage of available properties as the properties that came on over summer get picked up in September - more realistic asking prices will move them." More double speak for: prices are falling! "Are buyers trying it on? ""Yes, some are. Buyers can bargain..." Well what a surprise! ""Our auctions department is also very busy - we've just sent out a record number of catalogues " Yes, they are busy because auctions are cheaper than conventional buying. "It's fair to say that buyers are more cautious and vendors are having to change their expectations" Yawn...will the script ever change? "Buyers and vendors will become more involved in closer negotiating and the expertise and professionalism of agents comes to the fore in these circumstances" A ludicrous euphemism for "prices are on the way down". This takes the biscuit for agent-spin-babble! "Some buyers are putting in unrealistic offers - but we haven't seen a big drop in asking prices" Translation: "some sellers are asking unrealistic prices and the buyers are understandably holding firm." "investors are usually the first to come back in and get the market going again after a slowdown. " You have to admire EA's for their dogged determination to put a positive spin on everything. "we'd much rather have a stable market....... we see it as a sensible price realignment." Hoorah!! At last a meaningful and believable comment from a ...."professional". VP
  4. Hi Beachbabe, Well let's see ...£170 per day is near £1200 per week, or close to £5000 per month. I find it difficult to understand your yield of 17% let alone 7% even with seasonal lows. Sounds like a licence to print money to me, but perhaps your bed linen is very lush! The point I'm making is that it is a pity to see that the Cornish, traditionally identifying themselves as the poor relation of the UK, now are blatantly cashing in to a degree which they themselves would have been horrified to witness ten years ago. Actually I had a very pleasant few days in St Ives recently with some other visiting friends who took a flat near the firestation for a week. It was a pretty dismal place aside from the view and they again paid a fortune. As pleasant as Cornwall is on the best days, for half the price of third class West Country accomodation you can have a luxurious and long holiday in an exotic place with a free car and guaranteed sunshine. Cornwall is going to price itself out of the market very soon. VP
  5. Down here in the South West, prices have exceeded even the highest gains in the rest of the country over the last 5 years. For the Cornish, the housing shortage has gone past acute and is now in crisis mode....yet for those here who formally wanted to declare the county an independent state but now own their own home, a marked change in attitude has come about. Life for some Cornishmen and women who bought at the right time has never been better: A higher quality of life and huge cheap loans against the notional value of their properties resulting in the best of both worlds: a glorious Cornish summer followed by bank-loan paid foreign holidays for all the family in winter. There are truly cynical attempts to greedily cash in elsewhere. Some friends of ours wanted to visit and take a small flat with a sea view. Everywhere was fully booked, except for one modest flat overlooking Falmouth harbour at £170 per day....no typo...I confirm £170 per day. I booked them into a pleasant B & B run by a friend at £28 per person per day. Yes, the Cornish certainly have made up for their past history of being the underdogs of the UK. From exploited slaves one decade to property tycoons the next. The exploited certainly know how to exploit! Result, Cornwall is now the most deeply divided county in England. Homelessness is at a record high, along with property prices, yet salaries here are a half to two thirds of the South East. Half the county is owned by Greater London commuters who visit their piles for three weeks a year and let them to other tourists for already mentioned rip off prices. A cocktail in St Ives (unheard of 5 years ago) costs £4. The whole point of actually coming to St Ives was once to ESCAPE cocktails and City life. Not any more. Nowadays everyone wants to EXPORT their lifestyle to places whose former charm was the antithesis of that which have-your-cake-and-eat-it people now desire. The result is that, like Devon, Cornwall is on the brink of destroying the very thing that made it attractive. Devon, by the way, and especially South Devon around the fringe of Dartmoor, has become the resting ground exclusively of retired advertising execs, judges, journalists and money men. Walk through a Dartmoor village and you won't see a car more modest than a Merc or BMW. Everyone wears green wellies and talks with a plumb. There are no Devonian people left in South Devon. The price of a reasonable family detatched home in Falmouth is now around of £280,000-300,000. Might not sound much to the Londoners, but this is an immense rise compared with just 3 years ago. Cornwall's core economy is a million miles from this distortion and the Cornish will fall the furthest when a crash comes. VacantPossession
  6. Yuk! This ghastly house perfectly illustrates the insane property business, driven as it is by equally ghastly, petty, middle class, prosaic, greedy, small minded, artless, uninspired drones who feel the pinnacle of their lives' achievement is to buy and live in a house that is a testament to mock. I hope it DOES sell for an insane price and the buyers enjoy their ghastly mock surroundings before its price crashes to the floor. Double punishment for being 1) stupid enough to buy it and 2) having the worst possible taste. VacantPossession
  7. "I told you so". Ah, but wait a while. Initially buy to let will boom a little while first time buyers and bears sell up and keep their heads down in a rented bolt hole, but the Buy-to-let market will nose-dive once the slack is taken up and people have battened down the hatches. BTLetter's will be the first to hand in the keys when the banks call in their second, third and fourth mortgages which they never should have given them in the first place. There will then be a flood of repossessed BTL homes auctioned and otherwise disposed of, pushing prices down further, which again will depress the BTL market once more, which will further push prices down...ad infinitum. VacantPossession
  8. Tut, Tut....now that's not nice. I don't agree with Kirsty and I can't stand make-over/location location/property type programmes but your perception of "fat" is clearly predicated on an assumption that "Vogue" type anorexics are healthy and Kirsty's wholesome body type is unhealthy. If you have a personal preference for girls who look like skinny boys that's up to you but personal remarks like this are not part of this discussion, unless you want to post a picture of yourself here so we can all judge your attractiveness! VacantPossession
  9. Thank goodness for this thread. The whole language of house-speak is driven by ludicrous statements in the press. For goodness sake, if you can buy a hi-fi for 5% less this week than you could last week, that would be considered a triumph for consumers. If food costs the same or less than it did a year ago, that is considered a good thing. But house prices are considered "in crisis" or "in a state of collapse" if they so much as stop growing quite at the same rate as they were for ONE month, or if they actually reduce this is considered a disaster. This confirms the notion that house-speak is at root galvanised by property professionals who are not interested in a stable (and sane) market but a constantly spiralling price regime. Why don't they grow up. VacantPossession
  10. Most of the quotes in this thread from surveyors, agents, etc are uncannily (and in my view laughably) close to more or less the same script run in 1988-1990 when typical agent-speak for "prices are diving" was "sellers need to go to market at realistic prices". This is luducrous; the two things mean the same. It is incredible how these property-types can repeat the same garbage 15 years on from the last crash with absolutely no self-awareness of how ridiculous they sound. BTW, many of these property professionals are the same people who in 1988 were not only advising buyers to consider endowments, but were actually INSISTING they bought subsequently worthless endowment mortgages. A few calculations on the back of an envelope show clearly that endowment mortgages were a complete disaster for the buyer, but even seemingly intelligent people at the time failed to see what a con they were. The same folks who mis-sold these endownments are still around today and still peddling the same old garbage, still telling the same old lies and still 90% of the population believes them. Interesting points from Dr Bubb too...and I agree with all you say VacantPossession
  11. It astounds me how short the memory of some people is. Here's a quote by a "professional body" in 1989 (other similar quotes from all over the net and the FAQ page here). "House owners in many parts of the country are lowering the price of their homes in order to sell them, the Royal Institution of Chartered Surveyors (RICS) states in its survey for the quarter ending in March." ....ie: they are not lowering prices because a massive crash is imminent, but because they advertised at the wrong price....ha-ha. and another from an "expert" in 1989 "House prices 'to rise' Property prices in London, the south-east and East Anglia will recover next year and begin to increase by about 10 per cent a year, according to Morgan Grenfell, the merchant bankers, in a report on the housing market published yesterday.." Why are people taken in by those who palpably are driven by a need to talk the market up? The whole property world is festooned with King Canutes. Why do newspapers and TV/radio organisations always refer to Property agents, surveyors, banks and lenders when trawling for statements about property prices? They are the LAST people anyone should ask if seeking an objective view. It is a complete myth that property industry professionals don't care either way about the state of the market. When prices are low, or falling, few buy and their turnover takes a dive. Anyone with any involvement whatsoever in any conceivable arm of the property business should NEVER be asked for an opinion on air without their personal interest being clearly defined and declared. Even with comparitively low interest rates, the conditions for a massive fall have never been more ideal, and are a great deal worse than in 1988 in all other respects. Once the dive takes hold, it will surely hit free-fall. VacantPossession
  12. Apologies if this has been posted before. From a US perspective....same situation as UK....but worse. ---------------------------------------------------- The formation that has developed in the REIT index on the 200-day moving average appears to be a inverted flag - implying that another sharp plunge is brewing. The developments in these charts all point to a severe bear market in property in the US, and it is no coincidence that bonds and stock indices are also looking very sick at this time, as an across the board meltdown begins to unfold. I am aware that a large percentage of my readers are US citizens a good many of whom are likely to be adversely affected by these developments, and am, therefore, endeavouring to assess these developments calmly and rationally, without descending into the realms of alarmist fantasy. I take the view that many readers would rather gain an insight into what is likely to happen before it happens, the better to protect themselves and their families, than live in a fool's paradise and find out at much greater cost, after the event. In any case, appropriate defensive action will depend entirely on the personal circumstances of the individual. If you are perfectly happy in the house in which you live, if it is a real home, then you have quality of life, and in a sense it is irrelevant whether your house is worth $15 or $500,000. Appropriate action for you would probably be to pay down debt to ensure that if, in the coming recession/depression, you get kicked out of your job, you won't also end up being booted out of your home. On the other hand, if you have additional discretionary property, such as a second and maybe a third house, I believe you would be very wise to take of advantage of the fabulous, insane prices currently on offer and cash in, in the knowledge that you can buy back a similar property for perhaps half the price, maybe less, in a few years. Property speculators in particular would be very wise to cash in their chips now, in my opinion. Homeowners who are undecided about a potential move, perhaps due to having neighbours like the Osbournes, would probably do well to rent for a while and then move in to buy a really nice place after prices have plunged. The rot has already set in a good many states, where State budgets are under severe pressure, unemployment is rising and property prices are falling, or about to fall as prices stick, buyers evaporate and a forest of "for sale" boards appears. The crash in US markets and in particular the US property market will, of course, have global repercussions. Two countries that will be particularly badly affected will be Australia and the UK. Speculation in property in Australia has been rampant driving prices to giddy heights, but at least you get something for your money there. The same is not true of Britain, which seems to specialize in what I call "rabbit hutch" housing - unimaginative, poorly constructed, overpriced boxes. Don't get me wrong - there are nice houses in Britain, just be prepared to pay a huge sum if you want one. Clive Maund, Diploma Technical Analysis [email protected] www.clivemaund.com Kaufbeuren, Germany, 9 May 2004
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