Duplex Posted August 29, 2005 Share Posted August 29, 2005 Report on the probability that recent BTL'ers are in negative equity already. The Herald Quote Link to comment Share on other sites More sharing options...
teddyboy Posted August 29, 2005 Share Posted August 29, 2005 Report on the probability that recent BTL'ers are in negative equity already.The Herald <{POST_SNAPBACK}> poor bastards Quote Link to comment Share on other sites More sharing options...
ʎqɐqɹǝʞɐɥs Posted August 29, 2005 Share Posted August 29, 2005 poor bastards <{POST_SNAPBACK}> Me heart bleeds. Quote Link to comment Share on other sites More sharing options...
Dosser Posted August 29, 2005 Share Posted August 29, 2005 (edited) Nice. Kinda flies in the face of the oft repreated Scottish estate agents reassurance - sales patter - 'there has never been a case of negative equity in Scotland'. More of the same please Edited August 29, 2005 by Dosser Quote Link to comment Share on other sites More sharing options...
aclwalker Posted August 29, 2005 Share Posted August 29, 2005 Nice. Kinda flies in the face of the oft repreated Scottish estate agents reassurance - sales patter - 'there has never been a case of negative equity in Scotland'. More of the same please <{POST_SNAPBACK}> You are kidding! Have you actually heard that statement from estate agents? Quote Link to comment Share on other sites More sharing options...
Scarecrow Posted August 29, 2005 Share Posted August 29, 2005 Nice. Kinda flies in the face of the oft repreated Scottish estate agents reassurance - sales patter - 'there has never been a case of negative equity in Scotland'. More of the same please <{POST_SNAPBACK}> Have to say I've never heard that sales patter in my life - why would any Estate Agent feel the need to say that? Quote Link to comment Share on other sites More sharing options...
Night Owl Posted August 29, 2005 Share Posted August 29, 2005 Report on the probability that recent BTL'ers are in negative equity already.The Herald <{POST_SNAPBACK}> That's a cracking article Duplex: Revaluation is only triggered if an owner seeks to borrow more against the value of a property. Of course, if you are trying to switch lenders for a cheaper deal, the new lender will also need a new survey. Do not assume that you will be offered the same terms as you already have by a new lender. Heh Heh Heh - locked into that old mortgage deal. Quote Link to comment Share on other sites More sharing options...
Dosser Posted August 29, 2005 Share Posted August 29, 2005 You are kidding! Have you actually heard that statement from estate agents? <{POST_SNAPBACK}> Yes I have personally heard that, although it was some years ago now. I have also heard an associate say the same thing last year when she was buying and I surmised she was told that by an EA. Although, I will admit that perhaps I might generalised my anecdotal experiences too much. Quote Link to comment Share on other sites More sharing options...
Dosser Posted August 29, 2005 Share Posted August 29, 2005 (edited) Have to say I've never heard that sales patter in my life - why would any Estate Agent feel the need to say that?<{POST_SNAPBACK}> To alleviate the fear of ending up in negative equity by paying too much for a property. For an example see why Tenerife? Paragraph 3 http://www.soldirect.com/buyingproperty.htm I know that isn’t the UK, but the principle remains the same. Edited August 29, 2005 by Dosser Quote Link to comment Share on other sites More sharing options...
fatfreddie Posted August 29, 2005 Share Posted August 29, 2005 It won't be the first nor will it be the last. It hasn't been that hard during the boom to inflate the cost of your house for re-mortgaging purposes to borrow more for BTL purchases. Likewise during this boom as well people have been re-mortgaging to take money out of their home for personal spending. Normally the rule of thumb is property goes in a 7 year cycle and doubles every 10 years. Things are different this time and reading between the lines is that if the USA goes belly up houses will drop and not recover for 15 years. A problem that will occur for BTL is that they could be strapped to pay for the mortgage and likewise the tenant will be strapped as well in a serious recession. Also there will be a decrease of working tenants. In coming months and years there should be job increases in both security and debt collectors. Also security type devices for homes if you are thinking of another business. My tip take a really good holiday this year so you have some good memories of this millenium. 15 - 20 years in the doldrums is a long time. Quote Link to comment Share on other sites More sharing options...
since the beginning Posted August 29, 2005 Share Posted August 29, 2005 It is disgraceful though. I mean you would think the banks would have to guarantee future appreciation or your money back. I mean i never buy shares unless my broker guarantees me a profit on my investment. Quote Link to comment Share on other sites More sharing options...
Guest horace Posted August 29, 2005 Share Posted August 29, 2005 The article states `Take an example. A 6% decline in the value of a flat purchased for £200,000...` I am not familiar with Scottish prices but `£200,000` for a flat in Scotland sounds like journalistic licence and with this in mind (if I am correct) is good reason to take this story with a very large pinch of salt. horace. Quote Link to comment Share on other sites More sharing options...
curious1 Posted August 29, 2005 Share Posted August 29, 2005 The article states`Take an example. A 6% decline in the value of a flat purchased for £200,000...` I am not familiar with Scottish prices but `£200,000` for a flat in Scotland sounds like journalistic licence and with this in mind (if I am correct) is good reason to take this story with a very large pinch of salt. horace. <{POST_SNAPBACK}> I'm glad you mentioned you are not familiar with scottish prices, so you comment should be taken with a even larger pinch of salt Plenty flats for sale around that price. Fair enough, its well above an average price for an average flat, but there are plenty. here's a few around that price http://www.gspc.co.uk/forsale/searchres.as...=15&image1.y=14 Quote Link to comment Share on other sites More sharing options...
Guest horace Posted August 29, 2005 Share Posted August 29, 2005 Phew!! I find those prices staggering. Solid gold toilet seats I hope. horace. Quote Link to comment Share on other sites More sharing options...
curious1 Posted August 29, 2005 Share Posted August 29, 2005 Phew!!I find those prices staggering. Solid gold toilet seats I hope. horace. <{POST_SNAPBACK}> I dunno... you get alot more for your money than down south... proper high ceilings, solid construction, period details, 4-bedrooms.... Unless, ofcourse, you consider glasgow to be such an undesirable place that even with the quality of housing, you aren't prepared to pay these amounts for them. hmm.... I may actually have to take that back after looking at this one http://www.gspc.co.uk/PropertyImages/pdf/9...08/200517:17:01 (although its in THE most desirable area of glasgow.... very posh) I do believe these sort of properties are due for quite a drop though. Quote Link to comment Share on other sites More sharing options...
DoubleBubbleTrouble Posted August 29, 2005 Share Posted August 29, 2005 I am not familiar with Scottish prices but `£200,000` for a flat in Scotland sounds like journalistic licence and with this in mind (if I am correct) is good reason to take this story with a very large pinch of salt.<{POST_SNAPBACK}> Go to www.espc.com you can do a detailed search on every flat in Edinburgh >= £200K. Just checked it and it came up with 399 flats. There are a total of 1921 flats for sale so that means 20.7% of the flats on sale in Edinburgh are over £200K. I find those prices staggering. Solid gold toilet seats I hope.<{POST_SNAPBACK}> No just the result of 5 years of rampant speculation... both by locals and evil out of town speculators looking to make a quick buck. It sucks. Quote Link to comment Share on other sites More sharing options...
ʎqɐqɹǝʞɐɥs Posted August 29, 2005 Share Posted August 29, 2005 The article states`Take an example. A 6% decline in the value of a flat purchased for £200,000...` I am not familiar with Scottish prices but `£200,000` for a flat in Scotland sounds like journalistic licence and with this in mind (if I am correct) is good reason to take this story with a very large pinch of salt. horace. <{POST_SNAPBACK}> Unfortunately 200000 is becoming the norm Quote Link to comment Share on other sites More sharing options...
curious1 Posted August 29, 2005 Share Posted August 29, 2005 Go to www.espc.com you can do a detailed search on every flat in Edinburgh >= £200K. Just checked it and it came up with 399 flats. There are a total of 1921 flats for sale so that means 20.7% of the flats on sale in Edinburgh are over £200K. No just the result of 5 years of rampant speculation... both by locals and evil out of town speculators looking to make a quick buck. It sucks. <{POST_SNAPBACK}> I would love to know how many flats have been bought up by people south of the border recently... Its fun to play 'spot the scot' on a night out sometimes... I've gone whole walks through town without hearing a scottish accent on a few occassions. Quote Link to comment Share on other sites More sharing options...
Scarecrow Posted August 29, 2005 Share Posted August 29, 2005 I dunno... you get alot more for your money than down south... proper high ceilings, solid construction, period details, 4-bedrooms.... Unless, ofcourse, you consider glasgow to be such an undesirable place that even with the quality of housing, you aren't prepared to pay these amounts for them. hmm.... I may actually have to take that back after looking at this one http://www.gspc.co.uk/PropertyImages/pdf/9...08/200517:17:01 (although its in THE most desirable area of glasgow.... very posh) I do believe these sort of properties are due for quite a drop though. <{POST_SNAPBACK}> That is an incredible price for Novar Drive - those closes are often very noisy as a lot of the flats are student houses. You could get a 3 bed house in Jordanhill for less - anyone who pays that is crazy!!! Quote Link to comment Share on other sites More sharing options...
New Darker Law Posted August 29, 2005 Share Posted August 29, 2005 I dunno... you get alot more for your money than down south... proper high ceilings, solid construction, period details, 4-bedrooms.... <{POST_SNAPBACK}> Yep, you also get a lot less high paying jobs than down south too. NDL Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted August 29, 2005 Share Posted August 29, 2005 the article refers to a possible 'scandal' - can't see what the scandal is really, lenders desperate to increase profits over-lend to borrowers gambling on the property market who pay greedy vendors and greedy EAs who have facilitated price rises - the gambler loses - everyone else wins - standard type of transaction - no scandal Quote Link to comment Share on other sites More sharing options...
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