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About PaulW

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  1. From houseprices.co.uk 27/05/2005 £300,000 Ter. F/H 30, Kirkwood Drive, Durham, DH1 4FF Car's probably worth £50k ish You could probably get a better deal buying new
  2. You are double counting the interest received. If you buy the house with your £100,000 you have no cash payment to make. If you buy the house with a loan you pay out £6500 but receive £3800 interest and your £100,000 becomes £97,300. Do that for a few years and you won't have any cash left. That's about as simple as I can make it!
  3. No it wouldn't - 100 x 2 x 67% = 134 (33% fall) A 50% fall would though - 100 x 2 x 50% = 100 (50% fall)
  4. A quote from their trading update: "The average sales price achieved during the first six months was £179,800 (average size: 1,060 square feet) compared with £201,100 in the corresponding period in 2004 (average size: 1,167 square feet). Average sales price per square foot decreased, year on year, by 1.6%. For private development units, the average sales price per square foot increased, year on year, by 3.3%." So not a like-for-like 10% decrease!
  5. What it means is that the number of sales per period per site has fallen by 22%. For example if they were selling 5 properties per month with a 22% fall it would now be approx 4 properties per month. So with a 16% increase in the number of sites and a 22% decrease in the sales rate I think sales will be running at about 90% of last year. (100 x 1.16 x 0.78 = 90.48). A decrease of about 10%.
  6. Update 22 June EA has just come back and said vendor might accept £75k (11%) less than asking price if we are still interested.
  7. Any predictions on what they might be? My guess is +0.5%.
  8. The place I'm renting was up for £2,000pm. I agreed £1,500 but it had been advertised for about 2 months before I made the offer. I would try 25% to start with - they can only say no! Regards, Paul
  9. Six months on and time for an update. There are now in the region of 100 properties for sale with about 20 SSTC (although many of these have been sold for a long time). Properties below £250k have continued to sell reasonably well. There seems to have been little movement in the £250k - £500k range. Properties over £500k have sat around for ages even after 5-10% reductions (there are several which have been up for a year or more), apart from a few exceptional houses which have sold almost immediately they have been advertised. We have made one offer - 14% below asking which has been refus
  10. Offered 14% below asking price 3 weeks ago - polite refusal from vendor. Waiting to see if price reduced.
  11. This happened in the area I monitor about six weeks ago - SSTC jumped from 12 to 25 overnight. It gave me a bit of a shock until I worked out that all the extra sales related to one estate agent and the properties had been "sold" for ages. Wonder what they'll come up with next!
  12. Hi all, Two months ago we nearly offered on a property but in the end it was just outside the school catchment area so we didn't bother. Yesterday we made an offer on another property, just over 14% below asking price. It's been refused so we're going to wait at least a few weeks before even considering increasing.
  13. I don't think it's quite as simple as that. Sales bonuses will be in admin expenses and not part of Gross Profit. Sub Contract rates have not been rising anywhere near as fast as house prices - probaly averaged about 3-4% over the last few years. Land prices have risen dramatically and quite a lot of recent higher priced land purchases will not have filtered through to sales and hence gross profit margins yet. Volume builders will not give all their margin away - at least not yet!
  14. Looking at Wimpey Gross Profit: £665m on Sales of £3,006m = 22% Average Price = £182,000 (George Wimpey UK) So GP per unit = £40,000 (approx) and therefore costs per unit = £142,000 This is very rough since their GP is not given by operating division. So not as high as you would think.
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