Bubble Pricker Posted February 17, 2009 Share Posted February 17, 2009 I don't like it, but I have been watching today's Allsop residential auction on the Internet http://www.auction.co.uk/residential/onlineCatalogue.asp and everything is literally flying off the shelves way above the guide price, sometimes 30% higher. It seems we are entering the dead cat bounce stage. Quote Link to comment Share on other sites More sharing options...
0q0 Posted February 17, 2009 Share Posted February 17, 2009 (edited) Couple of cheaper end repo flats I've been monitoring since autumn - most have gone under offer this past week, 1 is up by 2% on the asking price from last week but unsold. I don't know where the money's suddenly coming from, I assume Brown's scared people out of holding cash. Quite an amazing feat. Edited February 17, 2009 by The Last Bear Quote Link to comment Share on other sites More sharing options...
50%deposit Posted February 17, 2009 Share Posted February 17, 2009 ggggggrrrrrrrrrrrr Quote Link to comment Share on other sites More sharing options...
leptokurtotic Posted February 17, 2009 Share Posted February 17, 2009 If transactions return- particularly at auctions- it might well be a sign that some vendors are setting more reasonable asking prices and reserves. My guess is that prices will continue to fall (though perhaps more slowly than during the last year). The inital pace was awfully fast, and if this crash is like the last one there will be a very long period of slow declines after the first big bump down. The US has seen a couple of these periods of apparent renewed interest over the last 18 months or so, but all of them have been drowned pretty quickly by the extent of forced sales and lack of affordable mortgage finance. Quote Link to comment Share on other sites More sharing options...
0q0 Posted February 17, 2009 Share Posted February 17, 2009 ggggggrrrrrrrrrrrr ound rent? Quote Link to comment Share on other sites More sharing options...
moonriver Posted February 17, 2009 Share Posted February 17, 2009 I don't know where the money's suddenly coming from, I assume Brown's scared people out of holding cash. I think you could be right there.... As well as the safety factor, cash holders do not like the low interest rates. for example....hubbie tells me a work colleague's father who has a good supply of cash, is now insisting he wants to spend his retirement cash on btl properties, so he can get a rental income. He says he doesn't like the poor return on his cash in the banks now. Strange way of thinking imo, bearing in mind how highly priced property still is. Quote Link to comment Share on other sites More sharing options...
TeddyBear Posted February 17, 2009 Share Posted February 17, 2009 Guide prices were very low again in many cases. A one bedder in Paddington/Lancaster gate went for £200k, with a guide price of £145 - £165 but, even given that this is probably a very small flat, it would have been going for around £300k at peak. Quote Link to comment Share on other sites More sharing options...
darwin Posted February 17, 2009 Share Posted February 17, 2009 Once again the Housing Associations and Local Authorities are offloading, big time. I find this really disturbing. Social housing anyone? Forget it. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted February 17, 2009 Share Posted February 17, 2009 It could be a leading signal, people are worried about inflation/money printing even through they are being told deflation is the big bad wolf!? Quote Link to comment Share on other sites More sharing options...
Sonic the Hedge Fund Posted February 17, 2009 Share Posted February 17, 2009 Once again the Housing Associations and Local Authorities are offloading, big time. I find this really disturbing. Social housing anyone? Forget it. Many HA are struggling with finance. Quote Link to comment Share on other sites More sharing options...
darwin Posted February 17, 2009 Share Posted February 17, 2009 Many HA are struggling with finance. Quite. Seems only a matter of time before many of them go t!ts up. Starting some time this year, I reckon. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 17, 2009 Share Posted February 17, 2009 It could be a leading signal, people are worried about inflation/money printing even through they are being told deflation is the big bad wolf!? could be the scaremongering is having an effect. the more that people puttheir cash into property and capital returns to the banks, the better. If enough do it, then there wont be a "need" for QE. not that there is one anyway. Quote Link to comment Share on other sites More sharing options...
mightytharg Posted February 17, 2009 Share Posted February 17, 2009 Once again the Housing Associations and Local Authorities are offloading, big time. I find this really disturbing. Social housing anyone? Forget it. Great news for people who aren't scroungers though... Quote Link to comment Share on other sites More sharing options...
jac Posted February 17, 2009 Share Posted February 17, 2009 4/5 bed house near clapham south, next door went for 730k in mid 08, sold for 475k. my mate who saw it said it was a shell and needed 100k to do up central heating etc so 575k would be 22% off peak Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted February 17, 2009 Share Posted February 17, 2009 4/5 bed house near clapham south, next door went for 730k in mid 08, sold for 475k. my mate who saw it said it was a shell and needed 100k to do up central heating etcso 575k would be 22% off peak except of course this might be a savvy investor snapping up a bargain. Quote Link to comment Share on other sites More sharing options...
bearORbullENIGMA Posted February 17, 2009 Share Posted February 17, 2009 Great news for people who aren't scroungers though... How is somebody who wants social housing a scrounger? Land was stolen by rich elites (long ago) & Capitalist property laws put in place to keep it in the hands of the privileged few who then either force us to pay rent or to buy back a tiny scrap of this land (which nature provided freely with the intention of us all sharing). So, Social housing & even some benefits can be seen as compensation for having all your land stolen off you. Quote Link to comment Share on other sites More sharing options...
bearORbullENIGMA Posted February 17, 2009 Share Posted February 17, 2009 Land was stolen by rich elites (long ago) & Capitalist property laws put in place to keep it in the hands of the privileged few who then either force us to pay rent or to buy back a tiny scrap of this land (which nature provided freely with the intention of us all sharing). http://anarcho-mortgages.741.com/ (views best in Internet Explorer) Quote Link to comment Share on other sites More sharing options...
nixy Posted February 17, 2009 Share Posted February 17, 2009 I don't like it, but I have been watching today's Allsop residential auction on the Internet http://www.auction.co.uk/residential/onlineCatalogue.asp and everything is literally flying off the shelves way above the guide price, sometimes 30% higher. It seems we are entering the dead cat bounce stage. But how low was the guide price....23% lower? Quote Link to comment Share on other sites More sharing options...
jac Posted February 17, 2009 Share Posted February 17, 2009 But how low was the guide price....23% lower? guide price on 475k one was 400-450k vs previous selling price of 735k but was a shell so needed money spent to be refurbished Quote Link to comment Share on other sites More sharing options...
Spark Posted February 17, 2009 Share Posted February 17, 2009 It's interesting to see the number of properties that have been sold prior to the auction. Around 25% of the lots were sold prior to auction - I've never noticed more than 5-10% being sold prior before. When buying prior, the seller normally wants you to pay significantly more than the guide price to withdraw the property from the auction. Any buyer who buys prior normally risks paying slightly too much to secure a property. If waiting until the auction, the buyer risks losing the property to somebody else on the day that wants the property more than they do. I think a lot of investors look at loads of properties in the catalogue and go to the auction in the hope of getting one of the places they viewed at a cheap price. When I see places selling prior to auction, it makes me think that private buyers are viewing places local to them (most of the places are outside London) and realising they are getting a place for less then similar properties advertised by the EA. When they enquire with the auction house about how much the vendor would accept, they must be paying that price to secure a reasonably priced house. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted February 17, 2009 Share Posted February 17, 2009 Finding a place where the rent overs the mortgage and costs is still a challenge let along with the economic problems tennants will be having soon. It must be the low savings rates added to the belief that this is the last chance that you will get to finance that property or add to that BTL facility before the banks tighen up even more. That last bit always surprises me but it is a fact many people just cannot afford a home and will just buy when they can. Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted February 17, 2009 Share Posted February 17, 2009 Seems the cash rich intelligence poor are having their day. Caught the tail end of some piece on Sky had an interview with an property auctioneer saying that there was a pick up in interest. He did also state quite categorically that he believed prices in the general market would fall another 10 or so percent this year and that only realistically priced properties were selling. Definite attempts are being made to ramp the market this year - again. Quote Link to comment Share on other sites More sharing options...
co2_is-not_man_made Posted February 17, 2009 Share Posted February 17, 2009 Seems the cash rich intelligence poor are having their day.Caught the tail end of some piece on Sky had an interview with an property auctioneer saying that there was a pick up in interest. He did also state quite categorically that he believed prices in the general market would fall another 10 or so percent this year and that only realistically priced properties were selling. Definite attempts are being made to ramp the market this year - again. guys, you cant have it all ways, most people called a 30-35% fall a couple of years ago, this is happening at auction now!remember auction prices are probably 18 months ahead of estate agent prices. Go careful you dont hope and wait for fallls that may not emerge, bit like judging when to sell a share! Position yourself to be able to purchase a property you want when it comes up at the right price, the people on here calling for the downfall of the whole world financial system are likely to end up with nothing if they stay in cash ironically !! just my 2p worth !! Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted February 17, 2009 Share Posted February 17, 2009 guys, you cant have it all ways, most people called a 30-35% fall a couple of years ago, this is happening at auction now!remember auction prices are probably 18 months ahead of estate agent prices. Go careful you dont hope and wait for fallls that may not emerge, bit like judging when to sell a share! Position yourself to be able to purchase a property you want when it comes up at the right price, the people on here calling for the downfall of the whole world financial system are likely to end up with nothing if they stay in cash ironically !! just my 2p worth !! It's a fair one too IMO. My problem is that my industry is cyclical and having a pile of cash that I can spend on food for a couple of years is preferable to having a house with no mortgage and no cash. So I might be buying on the other side anyway. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted February 17, 2009 Share Posted February 17, 2009 At least this might reduce the end debt due via the taxpayer. I just hope the frenzy dies down when i am buying. Quote Link to comment Share on other sites More sharing options...
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