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THE SAGE

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Everything posted by THE SAGE

  1. There is a story on the Express and Star website (a midlands paper do not know how to post it) that states that in Wolverhampton people are offering cash inducements to estate agents in order to secure properties and that one property sold for more than it's asking price.Cannot work out if express and star have suddenly turned bullish or if they are taking mickey out of the more intellectually chalenged people of Wolverhampton.
  2. The real pain will start to be felt when people come off their fixed rate mortgages and even with no tie ins will be unable to re mortgage as value of property has fallen below the mortgage outstanding. Wonder what 'advice' Kirsty and Phil will be able to give them?
  3. In the Birmingham area nothing is moving. I viewed a house yesterday as I liked the location but had no serious interest.It was for sale at 135k and from the outside looked like work needed doing.Inside it looked like nothing had been touched for thirty years,property is empty and elderly people had been previous owners. They will be lucky to get 50k for it. It is a two bed semi and only recently gone on the market but there are lots of other properties been on sale for 10 months and no interest at all.
  4. Interest rates need to go up in the US and the UK but I think Greenspan and others are still mindful of Deflation and it's effects on the economy.
  5. Quite right zz I think of it as a see saw movement ie. as one goes up the other goes down.
  6. The negative equity headlines will only start to appear in a few months time when the people who bought 12-18 months ago may be looking to sell and move up the chain.A lot of people do not realise they are in NE until they come to sell so it is something that creeps in over time. A lot of sellers are still in denial over asking prices and once this stage is over then lower prices will become the norm and then feed down the chain. I do not expect to see realistic prices until at least September and with realistic prices will come the spectre of negative equity.
  7. The banks will never make it easy if there is money to be lost. I think the best thing to do now would be to put it up for sale and if an offer is received that means on balance she has not lost any money then accept it, move on and think herself lucky.
  8. If you are in negative equity and you do not have funds to make up the shortfall you basically cannot sell the property hence people posting keys back to their lenders and repossessions in the last crash.
  9. No it doesn't involve above but it does involve couples with two children sharing a one bed flat,negative equity,lack of privacy, loss of self esteem etc. Not very pleasant.
  10. I don't think I would like to buy a used motor home off that woman.
  11. You are able to sell the property as long as you have the funds to make up any shortfall.Proof of funds would have to be verified by a solicitor before completion could take place.
  12. The fact that the Blairs have lost money is a relevant topic as even though you may deem them celebrities and not real people it is real money that they are losing.
  13. ZZ when I used the term luxury studio flat my tongue was placed firmly in my cheek. These shoebox's currently fetching 150k will be unsellable in two years time. I agree with you that at present effectively there is no housing ladder and it will take years for things to go bact to the correct equilibrium.
  14. Quite right zz. With the way the economy is heading luxury studio flats at £110k will be unsellable at even 50% reductions. Do you think things may go into reverse now in so much as inflation may start creeping up but house prices conversely go sharply downwards? I know prices will fall but wondered if you think inflation is going to increase?
  15. Yandros- Your situation sounds exactly the same as the one I was in. Even down to the burnt out cars and tenants on benefits etc. What people don't realise is that today's first step onto the housing ladder quickly becomes the flat I would not touch with a bargepole and think yourself luck that I am offering you £12k to take this property off your hands(this actually happened) Now that the crash has started flats will be ignored and the people who paid 140k for their dream starter home will be nursing losses of thousands. Yandros - we have both been there and I am sure there are a lot of
  16. A popular misconception about the last crash is that prices suddenly started falling from say late 1989 onwards.This was not the case.There is always a timelag. A similar thing is happening now because we are currently in the Denial stage. In this current crash I expect the denial stage to end in latFeb/March when people will finally realise that they are not going to sell their property fpr anything like what they are asking. Unfortunately I purchased my flat as the denial stage was ending and crash proper was starting hence the inaccuracy of the figures that were quoted. We will only sta
  17. It is now a proven fact that the figures released by the Institutions and vested interests are both hopelessly out of date and quite possibly false and I don't think that even the average Joe Bloggs believes them anymore. In a way I feel our work has now been done. When I started visiting this great site in August of last year people knew a crash was inevitible but were not quite sure. But it is now official!! The crash is upon us and although I will feel for the innocents who have been caught up in the madness and will lose a lot of money the BTL,s etc. deserve all they get. Sit back,have
  18. The mortgage was secured on future earnings from lecture tours and book sales but considering his track record on running the country and his financial acumen are people going to listen to his 'lectures' or buy his books? I think not so he will probably end up owing the publishers thousands as well! Oh Dear!
  19. The above figures are a perfect example of how statistics lag behind events on the ground. Now whenever I have to make important decisions I ask around a few people whose opinion I trust and go with my gut instinct as statistics are pointless. Havn't the Halifax just released figures showing an increase in house prices! I am a veteran of the 90's house price collapse and I can tell you this time it will be bigger and even more painful. I shudder to think what is going to happen.
  20. I bought a small flat in 1991 and this halved in value in two years and have only managed to sell it in the last 12 months without making much profit at all. I also had an endowment mortgage on the property. I was only 21 at the time and naive but the experience although unpleasant taught me a lot of lessons and in the end I was not out of pocket but at times things did look bleak. Thankfully I got through ok and sold the flat and have also cashed in endowment (it is hard to sell endowments now) but I do worry about the people who are taking out interest only mortgages because I would
  21. The last time I went to Sheffield it was closed!
  22. Also on Radio 5 Live around 7.50am (I was trying to motivate myself to go to work or at least get up) a guy from Nationwide was on talking about the just released figures.The five live business guy(keep forgetting name) was lapping up the fall in house prices while representative of Nationwide trotted out all the usual cliches but stopped short of ruling out a full blown crash altogether which was interesting.He said the market was returning to more normal conditions and predicted around 2% increase for next year. Intriguingly at the start of the piece one of the presenters referred to
  23. You are very lucky Charlie! Some of the ladies that work in estate agents in my area make Geoff Capes look feminine.
  24. Thanks Charlie a bottle of sherry will be yours when I complete the purchase of my next property in two years time. Please note I am an uber bear so I am hanging on for a 40% fall and this will be in all areas including so called good school catchment areas. My next door neighbour has reduced his asking price from 240k to 200k and still no viewings.It's going to be carnage out there.
  25. That is what I am thinking though. If a property is currently valued at say 140k now obviously in two years time it will be worth a lt less so therefore my current 30k might be 50k and so it be a significant chunk of the purchase price.I live in the Midlands so I feel a cash sum of around 30k is considered a tidy little sum in these parts.
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