Guest uberstuka Posted August 2, 2005 Share Posted August 2, 2005 (edited) Unbeknown to me - until now - a friend of mine has set about purchasing his first property in Hull, South Yorkshire. He's had his hands snapped off by a vendor selling a two bedroomed house for £100K; though it was for sale at £115K. My friend was telling me he couldn't believe his luck that they got it so cheaply. Seriously, it looks like this place is actually worth £60K maximum. They have a £10K deposit and have secured a mortgage around 5%. They've yet to finalise anything, though the purchase is gaining pace as no chains are involved and the vendor is looking for quick closure. I know these figures are pretty low and most of you will probably laugh at them, but he's like many FTBs; he's been duped into believing that this is his only option to get on the ladder and he's `breaking the bank' to make it happen. Is he making a huge mistake? And if so how do I go about telling him so without messing with his head? Edited August 2, 2005 by uberstuka Quote Link to comment Share on other sites More sharing options...
Phaedrus Posted August 2, 2005 Share Posted August 2, 2005 Sounds like a BTL landlord offloading one of his places. Depends upon how good a friend he is. Could you break the news to him that his girl was cheating on him? If not, then you're not that good a friend, and I'd let him make his own mistakes. If you are that good a friend, have a quiet word, nothing heavy, just ask has he really thought of the downside, then point him toward FTB help website(Warks Lad) and here and let him make his own mind up. Quote Link to comment Share on other sites More sharing options...
SpankyDoodle Posted August 2, 2005 Share Posted August 2, 2005 Unbeknown to me - until now - a friend of mine has set about purchasing his first property in Hull, North Yorkshire. He's had his hands snapped off by a vendor selling a two bedroomed house for £100K; though it was for sale at £115K. My friend was telling me he couldn't believe his luck that they got it so cheaply. Seriously, it looks like this place is actually worth £60K maximum. They have a £10K deposit and have secured a mortgage around 5%. They've yet to finalise anything, though the purchase is gaining pace as no chains are involved and the vendor is looking for quick closure. I know these figures are pretty low and most of you will probably laugh at them, but he's like many FTBs; he's been duped into believing that this is his only option to get on the ladder and he's `breaking the bank' to make it happen. Is he making a huge mistake? And if so how do I go about telling him so without messing with his head? <{POST_SNAPBACK}> It all boils down to what a home is worth to you! At the end of a day if you believe its worth 60 and you pay 60 your happy. If he thinks 100 is good and he's happy even after your warnings its his call... Personally i'm a FTB and have a large deposit and a good salary but i wont buy a terrace/crappy semi i'll wait around until I get the property i want for the price i am willing to pay. Sometimes people just want to get on with their lives and worry about crashes as they happen as many people will be in the same boat. Personally happy to rent until prices are more reasonable! Ciao! Quote Link to comment Share on other sites More sharing options...
clv101 Posted August 2, 2005 Share Posted August 2, 2005 Since when is Hull in North Yorkshire? For what it's worth I think he's making a mistake. Borrowing 90% in a market that many think will fall by 10-30% over the next couple of years sounds daft. He could rent an identical house for less than he's spending on this house then buy this house in a few years for less. Quote Link to comment Share on other sites More sharing options...
sign_of_the_times Posted August 2, 2005 Share Posted August 2, 2005 Unbeknown to me - until now - a friend of mine has set about purchasing his first property in Hull, North Yorkshire. He's had his hands snapped off by a vendor selling a two bedroomed house for £100K; though it was for sale at £115K. My friend was telling me he couldn't believe his luck that they got it so cheaply. Seriously, it looks like this place is actually worth £60K maximum. They have a £10K deposit and have secured a mortgage around 5%. They've yet to finalise anything, though the purchase is gaining pace as no chains are involved and the vendor is looking for quick closure. I know these figures are pretty low and most of you will probably laugh at them, but he's like many FTBs; he's been duped into believing that this is his only option to get on the ladder and he's `breaking the bank' to make it happen. Is he making a huge mistake? And if so how do I go about telling him so without messing with his head? <{POST_SNAPBACK}> sounds like there's no hope for him......... for a start he thinks Hull is in North Yorkshire Quote Link to comment Share on other sites More sharing options...
Guest Riser Posted August 2, 2005 Share Posted August 2, 2005 Looks like people in Hull still remember the last boom when local prices hit 50% above the long term regional average then at the peak of the crash they fell almost 40% year on year. This time round the boom in Hull has been more subdued altough prices are still around 35% above the long term average. When they do crash they could still go with a bang Quote Link to comment Share on other sites More sharing options...
Without_a_Paddle Posted August 2, 2005 Share Posted August 2, 2005 sounds like there's no hope for him......... for a start he thinks Hull is in North Yorkshire At least he didn't say Hull was in Humberside. I was at college in Hull and you could get strung up for using the H word. They can be very touchy Oop Noorf... Quote Link to comment Share on other sites More sharing options...
Guest uberstuka Posted August 2, 2005 Share Posted August 2, 2005 You ask for advice and what you get is a geography lesson. Adopts farty voice: "Hull is not in North Yorkshire, it's in South Yorkshire. So, there!" Tedious. Quote Link to comment Share on other sites More sharing options...
AgeingBabyBoomer Posted August 2, 2005 Share Posted August 2, 2005 The East Riding (of Yorkshire) to be geographically precise,and politically correct ABB Quote Link to comment Share on other sites More sharing options...
Phaedrus Posted August 3, 2005 Share Posted August 3, 2005 You ask for advice and what you get is a geography lesson.<{POST_SNAPBACK}> Am I on your ignore list then? Quote Link to comment Share on other sites More sharing options...
E Powell Posted August 3, 2005 Share Posted August 3, 2005 Sucker!!! Quote Link to comment Share on other sites More sharing options...
Guest uberstuka Posted August 3, 2005 Share Posted August 3, 2005 Am I on your ignore list then? <{POST_SNAPBACK}> Nope Why would you think I'd ignore you? You were one of the few who had something constructive to say. Quote Link to comment Share on other sites More sharing options...
Johnny Posted August 3, 2005 Share Posted August 3, 2005 I'm here in North Yorkshire only 40 mins from Hull. The prices up here have just stagnated over the last couple of months and nothing seems to be moving now. There are many "For Sale " and "Sale Agreed" signs every so often then they go back to "For Sale" presumably due to the chain collapsing. If I was your friend , I would tell them that they are making a mistake. I feel in two or 6 months you will start seeing falls in prices or at least be able to offer a lot less than the asking prices without being laughed at which is currently what is happening. Don't forget the salaries up here are not as much as those in the South East but in areas here even the FTB homes are well over 8 times some peoples wage. Quote Link to comment Share on other sites More sharing options...
justanewbie Posted August 3, 2005 Share Posted August 3, 2005 The common perception is that the boom starts in London and the bust starts in London. Not true. As the waters from a spring "withdraw" as the pressure from the spring reduces, so a bust actually starts in the outlying parts first and the bust is far worse in areas where the unsustainable prices simply cannot withstand consumer pressure. London has artificial money, foreign money, oil money, to keep it going. Hull, Yorkshire doesn't. The bust will be deeply tragic in such areas. No, they should not buy. It is a truly awful time to buy a house. Quote Link to comment Share on other sites More sharing options...
Phaedrus Posted August 3, 2005 Share Posted August 3, 2005 Nope Why would you think I'd ignore you? You were one of the few who had something constructive to say. <{POST_SNAPBACK}> I was trying to be witty. failed miserably. Quote Link to comment Share on other sites More sharing options...
RET Posted August 3, 2005 Share Posted August 3, 2005 What makes you think it's worth 60K? Can you point to sales figures etc? Quote Link to comment Share on other sites More sharing options...
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