Jump to content
House Price Crash Forum
Sign in to follow this  
chronyx

Just Can't See It

Recommended Posts

I have been reading this forum since early last year but only just signed up. Based on what I read here, I put off buying a house (Had a £180,000 mortgage agreed) in the Surrey area and decided to hold fire and see what happened.

I believe I would have now been in negative equity, so I am grateful to the forum for providing a source of 'un-biased' information.

But I am confused as to the atmosphere of recession that exists here. I don't doubt the figures, I just don't think it is going to happen. (Or be allowed to happen)

I work in the electrical contracting industry and the company is still very busy, there have been quiet spells but there is plenty of work.

So I am holding onto my savings for now, and letting everything play out. I think it is actually going to be a very boring, drawn-out 'game' though.

Share this post


Link to post
Share on other sites

What are your circumstances currently?

I nearly bought in Febuary last year but couldnt bring myself to offer anywhere near the asking price. The house is still on the Market asking LESS than my final offer. Also since then my savings have increased and I am in a much much better position.

I think this year will get interesting.

Share this post


Link to post
Share on other sites

What are your circumstances currently?

I nearly bought in Febuary last year but couldnt bring myself to offer anywhere near the asking price. The house is still on the Market asking LESS than my final offer. Also since then my savings have increased and I am in a much much better position.

I think this year will get interesting.

I'm 26, male, no dependents and single so not tied down at all - which I am very pleased about. I am considering now letting the economy/rat race do whatever it is going to do and do some travelling I have long put on hold. (Once I have completed an apprenticeship this summer)

Like I said, this forum was a massive help in deciding what not to do; it's the what to do that is the hard part!

All of my (Modest) savings are in cash too and reading here about what to do with it makes my head spin

Share this post


Link to post
Share on other sites

I have been reading this forum since early last year but only just signed up. Based on what I read here, I put off buying a house (Had a £180,000 mortgage agreed) in the Surrey area and decided to hold fire and see what happened.

I believe I would have now been in negative equity, so I am grateful to the forum for providing a source of 'un-biased' information.

But I am confused as to the atmosphere of recession that exists here. I don't doubt the figures, I just don't think it is going to happen. (Or be allowed to happen)

I work in the electrical contracting industry and the company is still very busy, there have been quiet spells but there is plenty of work.

So I am holding onto my savings for now, and letting everything play out. I think it is actually going to be a very boring, drawn-out 'game' though.

Unemployment is rising. Inflation is rising. The 'game' just got interesting. You lacked the conviction to follow through with the mortgage. You must see something?

Share this post


Link to post
Share on other sites

Unemployment is rising. Inflation is rising. The 'game' just got interesting. You lacked the conviction to follow through with the mortgage. You must see something?

Don't get me started on the inflation and interest rates! Not so much for myself, although some return for being prudent would be nice, but for my parents who worked hard and paid off a mortgage when interest rates were 17%, saved carefully, and now get savings and pensions plundered.

It is theft, but now the game is pretty much a foregone conclusion - and it seems as if 'they' want to get away scot free, or take everyone down with them.

Share this post


Link to post
Share on other sites

I was talking to an EA today who told me that people are mostly still in denial demanding ludicrous asking prices and expecting to get the full asking price.

He told me they either just leave them on at that price or take them off only to put them on with another EA for more some time later.

He said that he is getting a lot of flake from sellers who blame him for not marketing, not doing his job. Refuse to believe it is the price.

But he said that some sellers were now taking offers 20% below asking and then demanding 20% off the house they are buying. It is like wading in treacle at the moment to get this started but started it apparently has.

Share this post


Link to post
Share on other sites

I'm 26, male, no dependents and single so not tied down at all - which I am very pleased about. I am considering now letting the economy/rat race do whatever it is going to do and do some travelling I have long put on hold. (Once I have completed an apprenticeship this summer)

Like I said, this forum was a massive help in deciding what not to do; it's the what to do that is the hard part!

All of my (Modest) savings are in cash too and reading here about what to do with it makes my head spin

Living with parents?

You sound in a similar position to me (except I'm attached) I think it's fairly safe to say that house prices will not be rising significantly within the next couple of years. So if you are saving every month you will almost certainly be in a better position in another year two time. For every £1 you save now you will save £2 off your total future mortgage.

Share this post


Link to post
Share on other sites

I was talking to an EA today who told me that people are mostly still in denial demanding ludicrous asking prices and expecting to get the full asking price.

He told me they either just leave them on at that price or take them off only to put them on with another EA for more some time later.

He said that he is getting a lot of flake from sellers who blame him for not marketing, not doing his job. Refuse to believe it is the price.

But he said that some sellers were now taking offers 20% below asking and then demanding 20% off the house they are buying. It is like wading in treacle at the moment to get this started but started it apparently has.

I've heard the same thing from 2 EAs - and a guy who has been in the "property game" for 18 years.....

Share this post


Link to post
Share on other sites

Living with parents?

You sound in a similar position to me (except I'm attached) I think it's fairly safe to say that house prices will not be rising significantly within the next couple of years. So if you are saving every month you will almost certainly be in a better position in another year two time. For every £1 you save now you will save £2 off your total future mortgage.

Yeah still at home. Took a big paycut when I began the apprenticeship, but it has a long-term future against various I.T. jobs. At least people's eyes don't glaze over at the word 'sparky'. :lol:

Share this post


Link to post
Share on other sites

Don't get me started on the inflation and interest rates! Not so much for myself, although some return for being prudent would be nice, but for my parents who worked hard and paid off a mortgage when interest rates were 17%, saved carefully, and now get savings and pensions plundered.

It is theft, but now the game is pretty much a foregone conclusion - and it seems as if 'they' want to get away scot free, or take everyone down with them.

But in the markets it doesn't work that way. What the masses want doesn't matter. Markets are fickle and ruthless, the people who play them will say whatever suits their current position, but sell their grandmother tomorrow if it makes a profit. And that is what is starting to happen.

Interest rates will rise, irrespective of the pain it causes mortgage holders. The markets are already pricing in an increase irrespective of what BoE say and do. Why else are interest rates for mortgages more like 5% rather than 0.5%? Simply because the BoE rate isn't as powerful as many think. The amount we import from overseas is a prime example. The BoE can set any rate it wants but the cost of a pair of Nike trainers will be determined by overseas pressures and not at home.

It's fun times ahead. And well done for sitting tight. We're just at the beginning of real pain for many average joe families, particularly those who panicked and bought expensive houses believing if they didn't now then they never could.

Share this post


Link to post
Share on other sites

Yeah still at home. Took a big paycut when I began the apprenticeship, but it has a long-term future against various I.T. jobs. At least people's eyes don't glaze over at the word 'sparky'. :lol:

I'm still living with parents at 28. I could rent but I'd rather stick it out as the amount I'm saving currently is a fair bit and most of salary. So I think its worth waiting it out here for the time being. Ateast until they kick me out anyway! :lol:

Share this post


Link to post
Share on other sites

Cheers! I did try and 'warn' people. Mostly of a similar age, just about to buy, but you can only get that look so many times before you think "Go on then, do whatever you like"...

Edited by chronyx

Share this post


Link to post
Share on other sites

[/b]

Damn generous, considering how much chocolate has gone up.

There's a thread for that.

Edited by chronyx

Share this post


Link to post
Share on other sites

I was talking to an EA today who told me that people are mostly still in denial demanding ludicrous asking prices and expecting to get the full asking price.

He told me they either just leave them on at that price or take them off only to put them on with another EA for more some time later.

He said that he is getting a lot of flake from sellers who blame him for not marketing, not doing his job. Refuse to believe it is the price.

But he said that some sellers were now taking offers 20% below asking and then demanding 20% off the house they are buying. It is like wading in treacle at the moment to get this started but started it apparently has.

Went to view a house on Tuesday that I've been keeping my eye on since it came on the market in May last year. Started at £350, dropped once to £339,950 and then to £329,950, but no movement since.

Like the house, its location, its potential for me and the missus for the long-term, just not the price and said as much to the EA. Said it was useful feedback but no different really to what any of the other viewings had commented. Only change now is that a house on the same road that was being used as a business is currently selling at around £255, around the price that probate sales in the road were going for in early 2009. Damn the agent concerned for not calling me about that one.

I made it clear to the EA that if they REALLY wanted to sell, I definitely wanted to buy, but that I accepted they'd need to see they were getting a similar discount on what they were looking to move to. And the problem is, further up the market in Maidenhead, there's still a fair amount of money sloshing around. So, for the time being, we'll just keep on waiting, but right now, I don't think EAs are the problem.

Share this post


Link to post
Share on other sites

I have been reading this forum since early last year but only just signed up. Based on what I read here, I put off buying a house (Had a £180,000 mortgage agreed) in the Surrey area and decided to hold fire and see what happened.

I believe I would have now been in negative equity, so I am grateful to the forum for providing a source of 'un-biased' information.

But I am confused as to the atmosphere of recession that exists here. I don't doubt the figures, I just don't think it is going to happen. (Or be allowed to happen)

I work in the electrical contracting industry and the company is still very busy, there have been quiet spells but there is plenty of work.

So I am holding onto my savings for now, and letting everything play out. I think it is actually going to be a very boring, drawn-out 'game' though.

180,000 mortgage

youre an apprentice and 26, how much savings do you have?.

I thought mortgages were supposed to be hard to get.

aside from that.

Youre 26, just about to finish a sparkys apprentiship and by the sounds of it you have some sort of degree too.

You can make exceedingly good dayrate on industrial projects as a sparky, but I think you need to be able to travel worldwide and be able to do the days. Tying yourself down to a uk house which at best outcome will barely match inflation might not be the best idea. I ve seen a lot of good guys miss out on oppurtunities because they cant jack their current employment and take a chance, because of the mortgage.

Share this post


Link to post
Share on other sites

180,000 mortgage

youre an apprentice and 26, how much savings do you have?.

I thought mortgages were supposed to be hard to get.

aside from that.

Youre 26, just about to finish a sparkys apprentiship and by the sounds of it you have some sort of degree too.

You can make exceedingly good dayrate on industrial projects as a sparky, but I think you need to be able to travel worldwide and be able to do the days. Tying yourself down to a uk house which at best outcome will barely match inflation might not be the best idea. I ve seen a lot of good guys miss out on oppurtunities because they cant jack their current employment and take a chance, because of the mortgage.

Well, my parents were guarantors on the mortgage, and I would have needed to take in lodger. They were prepared to put up 20,000 deposit.

No degree, just a couple of I.T. A level equivalents and what will be a City and Guild's course.

Mortgages hard to get? I thought the problem was the fact they were being thrown about like confetti! :D

Very encouraged by your last paragraph though!

Share this post


Link to post
Share on other sites

We have half an eye on the market because we want the forever, bigger house, the estate agents that we talk to when we're viewing just haven't a clue about the wider economy.

They will not pass on bad news to the vendors.

We saw one house on the market for £365k, obviously owned by an elderly person because the vendors were in their late 50's, the house had NO KITCHEN and the vendors plans to help them to achieve the asking price was to paint the bathroom cupboards :blink:

We looked around, weren't convinced but said that if we were to offer it would start with a 2 and were told no chance.

However where we live I'd say 50% of people work for either the NHS or LEA so maybe that will be the straw that breaks the camels back.

Who's going to blink first though.

Share this post


Link to post
Share on other sites

(...)

I made it clear to the EA that if they REALLY wanted to sell, I definitely wanted to buy, but that I accepted they'd need to see they were getting a similar discount on what they were looking to move to. And the problem is, further up the market in Maidenhead, there's still a fair amount of money sloshing around. So, for the time being, we'll just keep on waiting, but right now, I don't think EAs are the problem.

Round Oxford, that is a huge problem.

Nobody wants to drop to 250 from 300, because the next step up is rock solid with cash buyers paying peak prices.

And so, nothing sells except the probates and other chain free places.

Share this post


Link to post
Share on other sites

We have half an eye on the market because we want the forever, bigger house, the estate agents that we talk to when we're viewing just haven't a clue about the wider economy.

They will not pass on bad news to the vendors.

We saw one house on the market for £365k, obviously owned by an elderly person because the vendors were in their late 50's, the house had NO KITCHEN and the vendors plans to help them to achieve the asking price was to paint the bathroom cupboards :blink:

We looked around, weren't convinced but said that if we were to offer it would start with a 2 and were told no chance.

However where we live I'd say 50% of people work for either the NHS or LEA so maybe that will be the straw that breaks the camels back.

Who's going to blink first though.

A little up date, it's only bloody sold subject to contract :( , no kitchen, no bathroom, bloody great cracks running down the walls and ceilings, backs on to a main line railway (no where near London) and that'll be £365k please :o

Share this post


Link to post
Share on other sites

A little up date, it's only bloody sold subject to contract :( , no kitchen, no bathroom, bloody great cracks running down the walls and ceilings, backs on to a main line railway (no where near London) and that'll be £365k please :o

You don't know what the offer was. And I would bet quite a bit that it won't go through to an actual sale...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.