Has The Crash Already Happened?

[walker127]

Haven't owned a property in the UK since 1998.

Just bought a 1 bedroom flat in the West Midlands; one of a block of purpose built flats which, according to Zoopla all sold for between £101 000 to £124 000 when they were built in 2006.

These flats are now changing hands for between £50K and £55K

The flat I have bought was a re-possession losing just over £48K for the previous owner, who must be gutted.

Will these things go lower? I am not too bothered if they do as I bought it as a place to live, not as an 'investment' and I only have a small mortgage on it.

45% loss over 4 years ...... sounds like a crash to me.

[AteMoose]

If you take a uk wide cross section the most overpriced properties were the flats, houses are alot less over priced. In the last property crash terrace houses and flats were badly hit, this time it looks like flats have taken most of the flack...

[ccc]

FTB places have nearly all been dropping consistently.

Even in Edinburgh 'house prices here will never fall' - FTB places are down 20%+ across the board.

Those who are in the upper end of the market don't think this impacts them and continue in their own little bubble.

However there is only so long the upper end of the market can sell houses back and forwards to each other. Eventually they need new 'moving up' FTB blood. That is not going to arrive with the equity and cash required.

The top will more than likely follow the bottom IMO. It is all shapely up nicely. May take a good few years though.

How many people do you know buying at the upper end are keeping an eye on the foundations of the local housing market - the FTB places ? None ?

Foolish IMO. Like someone sitting comfy at the top of a tree, not bothered by someone else chopping their way through the base directly below them.

[neil324]

Where about in the West Midlands, ive been looking in north Birmingham and indeed flats have dropped a lot, also seeing many repo's for flats in my target area. Although not as much falls as your seeing.

Forget flats though the service charge on them is to much.

[Pent Up]

I read somewhere that studio flats are pretty much unmortgagable and so are pretty much wortless.

[twatmangle]

Where about in the West Midlands, ive been looking in north Birmingham and indeed flats have dropped a lot, also seeing many repo's for flats in my target area. Although not as much falls as your seeing.

Forget flats though the service charge on them is to much.

North Birmingham...... that's quite diverse.... Kingstanding and Sutton Coldfield.

Where were you looking?

Mr.T

[walker127]

Where about in the West Midlands, ive been looking in north Birmingham and indeed flats have dropped a lot, also seeing many repo's for flats in my target area. Although not as much falls as your seeing.

Forget flats though the service charge on them is to much.

Service charge is £300 and ground rent £100 per year which I consider reasonable.

[neil324]

North Birmingham...... that's quite diverse.... Kingstanding and Sutton Coldfield.

Where were you looking?

Mr.T

Erdington(Pype Hayes, B24). Not enough for Sutton and Kingstanding not if you paid me.

Just to add, Kingstanding mostly 3 bed ex council houses you are seeing lots of big reductions.

Edited August 16, 2010 by neil324

[neil324]

Service charge is £300 and ground rent £100 per year which I consider reasonable.

Sure is most seem to be around the £1000 a year, of course it could go up and you get stung for the one off's like the painting and the roof.

So where about are they if you don't mind saying.

[Mancghirl]

FTB places have nearly all been dropping consistently.

Even in Edinburgh 'house prices here will never fall' - FTB places are down 20%+ across the board.

Those who are in the upper end of the market don't think this impacts them and continue in their own little bubble.

However there is only so long the upper end of the market can sell houses back and forwards to each other. Eventually they need new 'moving up' FTB blood. That is not going to arrive with the equity and cash required.

The top will more than likely follow the bottom IMO. It is all shapely up nicely. May take a good few years though.

How many people do you know buying at the upper end are keeping an eye on the foundations of the local housing market - the FTB places ? None ?

Foolish IMO. Like someone sitting comfy at the top of a tree, not bothered by someone else chopping their way through the base directly below them.

Wise words and a great analogy. I would argue its moving up, 2 bedders in decent areas are dropping into my search criteria day after day. There is very little mortgage lending going on. In fact, a flat on my preferred street (2 beds & a boxroom, not living room and kitchen, massive bay windowed flat in a great area) has appeared on my search in the last couple of days. This was a big sign for me that its happening. These are 2nd time buyer flats and they are sinking fast.

[the-wife's-knickers]

I am not sure if I am getting greedy or not, but I am now after a two bed semi-detached property. I initially fancied a flat but I am now seeing two-bed semi detached PLUNGE into my price bracket. My Mrs was even talking about holding and saving for a three-bed. I have converted her to HPC thinking.

[mikthe20]

I am not sure if I am getting greedy or not, but I am now after a two bed semi-detached property. I initially fancied a flat but I am now seeing two-bed semi detached PLUNGE into my price bracket. My Mrs was even talking about holding and saving for a three-bed. I have converted her to HPC thinking.

Your Mrs is correct. In a crash buyers can usually skip the first rung or two of the ladder. We were fortunate enough to do this in 1996 - three bed house for 2.5 x my salary at the time. We're still in the same house and it's meant we could stay there even when kids came along. Those days will come back IMO.

[Mancghirl]

Your Mrs is correct. In a crash buyers can usually skip the first rung or two of the ladder. We were fortunate enough to do this in 1996 - three bed house for 2.5 x my salary at the time. We're still in the same house and it's meant we could stay there even when kids came along. Those days will come back IMO.

I had lost hope for a while but if even the least bleak of the predicted drops were to happen over the next 12-18 months, I'd be looking at 2x my salary for what I want, where I want it. I really believe it is coming now. The plate spinning has stopped.

[maxdiver]

Larger houses tend to have been extended - or have built into the price the potential for having a loft conversion/conservatory etc...

Flats - there's not much that can be done - many lack adequate storage let alone outside space.

Even having a shed is a luxury.

[Guest_James Toney_*]

i stopped looking in my area because i was checking rightmove every 10 mins, and it was driving me crazy,

but a friend and his wife who i stopped from buying a house 2 years ago, i talked to them at the weekend, and they said they could not believe the price falls they are seeing, and like a coouple of people have siad on this thread, will be skipping the first rung.

let hope for and mother 1.7% falls next month

[Guest KingCharles1st]

Seems that flats are the scabies on God"s arsehole.

The crash starts in earnest when the Sheeple refuse to pay the ridiculous rents on these stupid anomolies

[plummet expert]

FTB places have nearly all been dropping consistently.

Even in Edinburgh 'house prices here will never fall' - FTB places are down 20%+ across the board.

Those who are in the upper end of the market don't think this impacts them and continue in their own little bubble.

However there is only so long the upper end of the market can sell houses back and forwards to each other. Eventually they need new 'moving up' FTB blood. That is not going to arrive with the equity and cash required.

The top will more than likely follow the bottom IMO. It is all shapely up nicely. May take a good few years though.

How many people do you know buying at the upper end are keeping an eye on the foundations of the local housing market - the FTB places ? None ?

Foolish IMO. Like someone sitting comfy at the top of a tree, not bothered by someone else chopping their way through the base directly below them.

We are seeing upper end £400-700k homes beginning to take a hit in Sussex. The very expensive are sittting tighter, but not immune AND SMALLER DROPS STARTING TO APPEAR. Did you all see Jasper Conran bought the country's most expensive repo? It was Wardour house in Wiltshire - last on sale for £7million.......sold to Jasper for £2.75m!!!!!