50% Drop (Ho Ho Ho I Think)

[eek]

Well I'm just finishing a two week holiday in N Ireland (very nice if you must ask and no we haven't visited Dublin and yes we did visit some Uni friends). Anyway in today's Portadown Times there is a feature on http://www.propertypal.com/22-old-road-loughgall/109218 .

Supposedly this is now down to £197,500 from £395,000. Not knowing the market I cannot comment on how optimistic the original price. But 50% drops do appear to be here.

[Ricky_FTB]

Well, if RICS are anything to go by, we should be seeing more listings at -60%!

http://www.bbc.co.uk/news/uk-northern-ireland-10921331

[Ride_on]

Supposedly this is now down to £197,500 from £395,000. Not knowing the market I cannot comment on how optimistic the original price. But 50% drops do appear to be here.

It depends where they started, its still higher than DCV (£170K). It started at 2.3xDCV which is high even for the peak.

[maxdiver]

At that price it is a steal!

Prive is £197,500

Mortgage Information

£573.36 per month

This monthly mortgage payment calculation is based on a 65% tracker mortgage with a 2.39% interest rate. Mortgage information is sourced daily from price comparison sites and is for illustration purposes only. Contact mortgage providers directly to get a mortgage quote.

----

All you need is a £70,000 deposit to secure the privilege of owning this property for just £575.

So long as interest rates never rise - it's easily affordable to your typical Portadundonian.

[shifty_FTB]

At that price it is a steal!

Prive is £197,500

Mortgage Information

£573.36 per month

This monthly mortgage payment calculation is based on a 65% tracker mortgage with a 2.39% interest rate. Mortgage information is sourced daily from price comparison sites and is for illustration purposes only. Contact mortgage providers directly to get a mortgage quote.

----

All you need is a £70,000 deposit to secure the privilege of owning this property for just £575.

So long as interest rates never rise - it's easily affordable to your typical Portadundonian.

can see the typical portadonian having £70,000 deposit

[shifty_FTB]

Last time I was over there the recruitment agency wages were averaging about 16K-20K. They will not buy many houses on those wages.

your right, i meant cant, not can

[maxdiver]

If the banks would just lend more money - then all would be sorted.

There is no reason why someone on £20,000 should not be able to afford at £200,000 house.

10x Salary is a nice round number to lend to.

[SPADER]

Last time I was over there the recruitment agency wages were averaging about 16K-20K. They will not buy many houses on those wages.

Would this be the same area that has ALMAC as its biggest employer?

We don't all work in moy park, you know!

[shifty_FTB]

If the banks would just lend more money - then all would be sorted.

There is no reason why someone on £20,000 should not be able to afford at £200,000 house.

10x Salary is a nice round number to lend to.

are you being serious?

it was stupid lending like that that led to the unaffordability of houses for FTB. Do you really want to pay £200,000 for a 2 bed terrace again

[maxdiver]

I write like this because if I didn't have a sense of humour about property, I'd pull out my hair!

Property is overpriced - even with 50% falls in NI and if you can get your hands on the mortgage money and deposit.

It will probably be overpriced for a long time and given that NI's economy is so weak, you probably won't see a collapse in prices - the State sector will keep prices suspended with the cushy jobs paying ok wages.

Back to the house:

Most people didn't see anything wrong with prices in 2007.

We had a panic - people were very eager to buy and at any price!

Now in 2010 - people still want to buy but they can't get the mortgage.

The older generation have probably moved for the last time - people who are in their 50's - 60's - they are now living in their "dream" house or "forever home."

The people who want to move up the Ponzi Ladder - to a bigger house - they can't get the mortgages for the extra £50k that a 4th bedroom costs.

Sadly, for this seller - they'll have to wait for the buyers to be able to afford to buy the house.

1) Higher wages

2) Slack lending

3) Dead Aunt

4) Drop the prices further?

In the meantime - you have young people trapped in houses that are too small for them and their growing families and you have old people trapped in large empty homes that are too big for them.

So long as a house is the primary asset that people hold in their lives - the old won't readily trade-down.

This Property Ladder has a Glass Ceiling

[Ride_on]

So long as a house is the primary asset that people hold in their lives - the old won't readily trade-down.

This Property Ladder has a Glass Ceiling

Not quite sure what you mean by this, surely it depends if they bought recently? but it did make me think about the older generation. I know a couple in their 60-70s and they have mewed their way to an unaffordable mortgage, especially now only one is working in a call centre (previously accountant). I tried to understand why they would have done that, and the answer would seem to be that there were relying on the price increase to pay off their debt when they eventually traded down, which they still expect recovery in a 'few years'. They have no concept of renting, and quote the severest of landlord stories to justify their opinion. I also remembered that my (late) parents did exactly the same thing all while I grew up, to fund their (and my) middle class lifestyle.

Anyway not sure I have said much there, but I guess many of the older generation are stuck in houses they cannot afford the repayments on. I guess they are on borrowed time.