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VeryMeanReversion

Friends Just Paid Full Asking Price

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Viewed a 4-bed detached with a decent plot a couple of months ago but in need of a complete gut and strip, asking price £400K. We had a look around and

estimated the value to be £280K allowing for all the work required, access problems, drainage problems and knew via a neighbour that the garden has been flooded all the way up the side of the house before.

It was block viewings only but we went along as it was only 10 paces across the road and we were subsequently told it was sold in the first week. We left well alone and thought "What nutter has bought that". Turned out it was a friend of the Mrs who has now told us they are going to be broke for a long time, they move in next week.

It's going to cost them £500K in the end to get the same standard as a comparable house on the street (refurbed+extended) that didn't get a buyer back in 2007 at an asking of £389K. I think I've just been a witness to a financial suicide. Just for info, this was a big trade-up rather than an FTB.

On the HPC good news side, I've noticed that there has been a shift in the local market since then, lots of properties have come on to the market, very little is selling and many SSTC houses are stuck after several months. Building plots have come on at half the price they would have been in 2007.

VMR.

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Viewed a 4-bed detached with a decent plot a couple of months ago but in need of a complete gut and strip, asking price £400K. We had a look around and

estimated the value to be £280K allowing for all the work required, access problems, drainage problems and knew via a neighbour that the garden has been flooded all the way up the side of the house before.

It was block viewings only but we went along as it was only 10 paces across the road and we were subsequently told it was sold in the first week. We left well alone and thought "What nutter has bought that". Turned out it was a friend of the Mrs who has now told us they are going to be broke for a long time, they move in next week.

It's going to cost them £500K in the end to get the same standard as a comparable house on the street (refurbed+extended) that didn't get a buyer back in 2007 at an asking of £389K. I think I've just been a witness to a financial suicide. Just for info, this was a big trade-up rather than an FTB.

On the HPC good news side, I've noticed that there has been a shift in the local market since then, lots of properties have come on to the market, very little is selling and many SSTC houses are stuck after several months. Building plots have come on at half the price they would have been in 2007.

VMR.

Interessting... clearly they are getting a mortgage for it... we all know valuers are no longer allocating crazy valuations expecially for properties that need work... if it goes through chances are the valuer agreed with the price being paid... so maybe thats where the local market is currently ( of course it may fall again) but if it loads of viewings and good offers and sold at the asking price you can argue you wouldn't pay that for it, but like it or not it would appear that that is the current market level ( of course it may fall later)

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still plenty of morons about. See my thread in the anecdotals board for my one. Maybe we should use that as a morons

thread and add people there as we hear of them. Then we can update on them as they start going under.

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Viewed a 4-bed detached with a decent plot a couple of months ago but in need of a complete gut and strip, asking price £400K. We had a look around and

estimated the value to be £280K allowing for all the work required, access problems, drainage problems and knew via a neighbour that the garden has been flooded all the way up the side of the house before.

It was block viewings only but we went along as it was only 10 paces across the road and we were subsequently told it was sold in the first week. We left well alone and thought "What nutter has bought that". Turned out it was a friend of the Mrs who has now told us they are going to be broke for a long time, they move in next week.

It's going to cost them £500K in the end to get the same standard as a comparable house on the street (refurbed+extended) that didn't get a buyer back in 2007 at an asking of £389K. I think I've just been a witness to a financial suicide. Just for info, this was a big trade-up rather than an FTB.

On the HPC good news side, I've noticed that there has been a shift in the local market since then, lots of properties have come on to the market, very little is selling and many SSTC houses are stuck after several months. Building plots have come on at half the price they would have been in 2007.

VMR.

This is the trouble when government intervene in markets and try to set prices. People are being drawn into making monumental mistakes. More people are drawn into the unsustainable debt trap requiring greater bailing out later.

What a mess.

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Viewed a 4-bed detached with a decent plot a couple of months ago but in need of a complete gut and strip, asking price £400K. We had a look around and

estimated the value to be £280K allowing for all the work required, access problems, drainage problems and knew via a neighbour that the garden has been flooded all the way up the side of the house before.

It was block viewings only but we went along as it was only 10 paces across the road and we were subsequently told it was sold in the first week. We left well alone and thought "What nutter has bought that". Turned out it was a friend of the Mrs who has now told us they are going to be broke for a long time, they move in next week.

It's going to cost them £500K in the end to get the same standard as a comparable house on the street (refurbed+extended) that didn't get a buyer back in 2007 at an asking of £389K. I think I've just been a witness to a financial suicide. Just for info, this was a big trade-up rather than an FTB.

On the HPC good news side, I've noticed that there has been a shift in the local market since then, lots of properties have come on to the market, very little is selling and many SSTC houses are stuck after several months. Building plots have come on at half the price they would have been in 2007.

VMR.

Quite obviously the worst investment they will ever make.

There is no doubt the HPC and wider financial crisis is brewing. History shows almost all major corrections take place autumn. So watch out.

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Quite obviously the worst investment they will ever make.

There is no doubt the HPC and wider financial crisis is brewing. History shows almost all major corrections take place autumn. So watch out.

There's only one word for it:

Muppets.

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Quite obviously the worst investment they will ever make.

There is no doubt the HPC and wider financial crisis is brewing. History shows almost all major corrections take place autumn. So watch out.

Each to their own though. If prices do fall, it will just mean that they may have to stay put for a while. It also depends on what finance they got if any.

Any correction wont make a difference to them at all, although that is not to say the financial crisis wont effect them.

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So they've just bought a money trap for full wack at the top of the second peak, brilliant.

Still the good news here is this, when the market corrects these clowns won't be competing with the rest of us hpc'ers as they'll be shackled up to this nightmare.

The more the market sucks in people like this the better.

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So they've just bought a money trap for full wack at the top of the second peak, brilliant.

Still the good news here is this, when the market corrects these clowns won't be competing with the rest of us hpc'ers as they'll be shackled up to this nightmare.

The more the market sucks in people like this the better.

Tend to agree for the most part, getting rid of people with the money now could help ease the upwards pressure

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South Cambs.

It is a pricy part of the country. And a 4 bed detached will not be cheap there in any condition. If they turn it into a family home and live there for 20 years i expect it might turn out ok.

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This is the trouble when government intervene in markets and try to set prices. People are being drawn into making monumental mistakes. More people are drawn into the unsustainable debt trap requiring greater bailing out later.

What a mess.

Maybe, but if you want to live in these places, and you can afford it, there is no cheap housing. Its not the same as some flat in leeds.

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So they've just bought a money trap for full wack at the top of the second peak, brilliant.

Still the good news here is this, when the market corrects these clowns won't be competing with the rest of us hpc'ers as they'll be shackled up to this nightmare.

The more the market sucks in people like this the better.

From what i know of the area, prices havnt collapsed there. They might not do. Only the next 10 years will be the judge. Personally i dont believe you will ever get a house in south cambs at such a bargain price that some think. But i will keep looking just in case.

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From what i know of the area, prices havnt collapsed there. They might not do. Only the next 10 years will be the judge. Personally i dont believe you will ever get a house in south cambs at such a bargain price that some think. But i will keep looking just in case.

In 1989 I recall people telling me that 'prices won't fall in this area'. I told them they will and the prices made no sense. By 1992 they had fallen in that area 30% ish. The principle of 'the higher they rise as a result of loose credit, the harder they fall' turned out correct.

The graph for today is spookily like the 1989-91 graph, showing a revival in 1991 rather like now. Still to come, is the the second leg being a very sharp down LIKE 1992-3. In 1993 I thought it had botttomed, but it fell and dithered for another 18 months. I dithered some more. The rise had already begun in 1994. In 1996 I bought. 2006 I sold for 360% x original price. By then wages had only risen 80%. So again, I know it had become fantasy prices.

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In 1989 I recall people telling me that 'prices won't fall in this area'. I told them they will and the prices made no sense. By 1992 they had fallen in that area 30% ish. The principle of 'the higher they rise as a result of loose credit, the harder they fall' turned out correct.

The graph for today is spookily like the 1989-91 graph, showing a revival in 1991 rather like now. Still to come, is the the second leg being a very sharp down LIKE 1992-3. In 1993 I thought it had botttomed, but it fell and dithered for another 18 months. I dithered some more. The rise had already begun in 1994. In 1996 I bought. 2006 I sold for 360% x original price. By then wages had only risen 80%. So again, I know it had become fantasy prices.

While I am sure most will argue the market remains overvalued generally, I certainly don't share the view that this correction has any similarity to the last one... conditions are very very diffierent so I think the shape of it will be very very different too. I remain convinced its going to long and slow , not quick and deep as many such as yourself believe.. the only test will be to see how it turns out in reallity.

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This is the trouble when government intervene in markets and try to set prices. People are being drawn into making monumental mistakes. More people are drawn into the unsustainable debt trap requiring greater bailing out later.

What a mess.

Nail --------------------------> Head

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Nail --------------------------> Head

This is out of date so even more people have bought in at bubble prices. The government has been intervening in the market since 04 when it naturally topped out. They are simply digging the hole deeper and deeper.

As taught very early on in school maths the area under the graph is very important!

Income to house price ratio

areaundergraph.jpg

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  • 144 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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