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This Is More Like It - Crash Speed Ahead


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HOLA441

Now I'm not saying this was ever worth £315k, but clearly they wanted a fairly swift sale last summer, dropping to £295k within a month. No takers, quelle suprise....

I reckon someone has just thought "dump the place" and slashed a luvverly £50k off: (Property Bee recommended)

http://www.rightmove.co.uk/property-for-sale/property-26746969.html?premiumA=true

Sure, it needs some paint, but it's a good sized plot in a reasonable part of town.

They'd clearly take offers and I reckon it will go for something not much more than £200k-£210k, representing over £100k off of a £325 initial asking price.

I like this kind of price drop and I know you do too.

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HOLA442

Now I'm not saying this was ever worth £315k, but clearly they wanted a fairly swift sale last summer, dropping to £295k within a month. No takers, quelle suprise....

I reckon someone has just thought "dump the place" and slashed a luvverly £50k off: (Property Bee recommended)

http://www.rightmove...l?premiumA=true

Sure, it needs some paint, but it's a good sized plot in a reasonable part of town.

They'd clearly take offers and I reckon it will go for something not much more than £200k-£210k, representing over £100k off of a £325 initial asking price.

I like this kind of price drop and I know you do too.

315k was total insanity, but there is nothing special here, why bother on the eve of the biggest property crash in UK history ? A little bungalow like that is 50k in the realistic world that is fast approaching, especially if the area is hit economically.

Edited by dances with sheeple
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HOLA443
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HOLA444
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HOLA445
5
HOLA446

Fair points but I still think £50k off of a £295k price is good evidence of some harsh reality.

Of course, the other positive is that it sets the ballpark for similar properties.

I see where you are coming from, but a quarter of a million quid is still a heck of a lot of money for that. A harsh reality will be if (when?) it's sub 100k. At 250, it is still cloud cuckoo land IMO... especially considering alternatives overseas.

Maybe I am utterly unrealistic... thinking about it, that is entirely possible :-).

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HOLA447

All it means is that it was fantasy priced in the first place.

They might as well have initially put it on for 5 million before dropping to £250k.

dropping house price ASKING prices is not really an indicator of a crash, just of initially unrealistic asking prices crash.

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HOLA448

Fair points but I still think £50k off of a £295k price is good evidence of some harsh reality.

Of course, the other positive is that it sets the ballpark for similar properties.

Similarly, all it takes is for one cash-rich fool to buy a place at asking price in a decent area to make all other vendors hold out for their absurd asking prices - or even up them, as they're doing around here (N London), where the madness continues unabated...

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HOLA449

Now I'm not saying this was ever worth £315k, but clearly they wanted a fairly swift sale last summer, dropping to £295k within a month. No takers, quelle suprise....

I reckon someone has just thought "dump the place" and slashed a luvverly £50k off: (Property Bee recommended)

http://www.rightmove.co.uk/property-for-sale/property-26746969.html?premiumA=true

Sure, it needs some paint, but it's a good sized plot in a reasonable part of town.

They'd clearly take offers and I reckon it will go for something not much more than £200k-£210k, representing over £100k off of a £325 initial asking price.

I like this kind of price drop and I know you do too.

SNAP.

I have had an offer accepted on a broadly similar property in Coastal East Sussex--about 10 miles East of Brighton. Listed last summer at £325k. Series of drops to £249k. My offer of £201k accepted. House upchain dropped to meet my Vendor on more or less equal terms.

Crash speed--at least in the affluent "prices are stable" SE! :lol:

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HOLA4410

SNAP.

I have had an offer accepted on a broadly similar property in Coastal East Sussex--about 10 miles East of Brighton. Listed last summer at £325k. Series of drops to £249k. My offer of £201k accepted. House upchain dropped to meet my Vendor on more or less equal terms.

Crash speed--at least in the affluent "prices are stable" SE! :lol:

see my post above - prices holding and in some cases rising here, sadly...

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HOLA4411

see my post above - prices holding and in some cases rising here, sadly...

Pricing does not matter in London as credit abounds and multiples of 10 X salary are easy to get--that is the reason prices are rising there and nowhere else. That, plus much hiher salaries and immunity to job cuts. Look at Islington council--average pay at the top £173k!

Solution: koff and live somewhere else. Prices are crashing in affluent Kent and Sussex and both are decent places to live.

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HOLA4412

Exactly. The absence of any photos of the interior would surely cause any prospective buyer to smell a big, hairy rodent (probably decomposing under the floorboards).

Yes, that is weird.

Bit of a weird description...

So the bloke was an engineer at Fox's and had the house built and still lives there. :blink:

Or , the house was originally built to rent to the Chief engineer of Fox's factory, but he left about 20 years ago and we've had some scuzzy housing benefit tenants in since, but since they changed the rules we've decided to evict them and sell up.

?

A chief Engineer's job used to be a fairly presigeous position. I guess what they are hinting at is that they did not scrimp on the proportions of the property, it would have been built in a better part of town, the siting of the property may have been positioned for its excellent views, it may be within a stones throw of the factory so you can get there fast?

Then again, if they had wanted to say these things, why did they nit just say them rather than reading between the lines? Maybe because they aren't true?

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HOLA4413

I see where you are coming from, but a quarter of a million quid is still a heck of a lot of money for that. A harsh reality will be if (when?) it's sub 100k. At 250, it is still cloud cuckoo land IMO... especially considering alternatives overseas.

Maybe I am utterly unrealistic... thinking about it, that is entirely possible :-).

After 15 years of £150K average mortgages, 200K just rolls off the tongue like it is the cost of a pint of best, rather than 8 times average salary where over half of earners dont even earn that.

For an average place.

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HOLA4414

After 15 years of £150K average mortgages, 200K just rolls off the tongue like it is the cost of a pint of best, rather than 8 times average salary where over half of earners dont even earn that.

For an average place.

I've noticed that - even caught myself doing it. Lying in the bath the other night, I considered what percentage that room took of the total house space and pondered whether what I could see was really worth twenty thousand pounds...

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HOLA4415
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HOLA4416

Now I'm not saying this was ever worth £315k, but clearly they wanted a fairly swift sale last summer, dropping to £295k within a month. No takers, quelle suprise....

I reckon someone has just thought "dump the place" and slashed a luvverly £50k off: (Property Bee recommended)

http://www.rightmove.co.uk/property-for-sale/property-26746969.html?premiumA=true

Sure, it needs some paint, but it's a good sized plot in a reasonable part of town.

They'd clearly take offers and I reckon it will go for something not much more than £200k-£210k, representing over £100k off of a £325 initial asking price.

I like this kind of price drop and I know you do too.

I think we search similar areas :)

Noticed that has just crept into my searches - knew it must have been reduced but didn't realise by how much! Think it is significant as much as anything because IMO it was bungalows (typical downsizer fodder) holding up that were responsible for most of the small bounce we had - now I'm seeing quite a few of them being reduced.

Also noticing more and more places going sold stc and then reappearing as available again - banks not lending? surveyors valuing lower? chains breaking? who knows or cares but all good with me :D

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HOLA4417

SNAP.

I have had an offer accepted on a broadly similar property in Coastal East Sussex--about 10 miles East of Brighton. Listed last summer at £325k. Series of drops to £249k. My offer of £201k accepted. House upchain dropped to meet my Vendor on more or less equal terms.

Crash speed--at least in the affluent "prices are stable" SE! :lol:

This is what needs to happen. The vendors higher up the chain needs to be encouraged to offer less on the house they're buying. So if you put in a cheeky offer, so should they and so on and so forth up the chain. The only "loser" then is the one at the top. Of course, you don't often get the chance to talk to the vendor rationally, only through an imbecile of an estate agent....

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HOLA4418

SNAP.

I have had an offer accepted on a broadly similar property in Coastal East Sussex--about 10 miles East of Brighton. Listed last summer at £325k. Series of drops to £249k. My offer of £201k accepted. House upchain dropped to meet my Vendor on more or less equal terms.

Crash speed--at least in the affluent "prices are stable" SE! :lol:

There is nothing even approaching a pattern or a fall like that in Brighton on PropertyBee.

Or indeed the whole of the UK.

Even if you don't want to post yours, can you point to others with 30%-50% drops as those numbers look way too optimistic, especially that last £48k.

Edited by Kyoto
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HOLA4419

Pricing does not matter in London as credit abounds and multiples of 10 X salary are easy to get--that is the reason prices are rising there and nowhere else. That, plus much hiher salaries and immunity to job cuts. Look at Islington council--average pay at the top £173k!

Solution: koff and live somewhere else. Prices are crashing in affluent Kent and Sussex and both are decent places to live.

It pains me to say it but I think this may be sadly true. I have been a member of this site for many years and am currently sitting with my fingers crossed that I will finally be able to afford a decent place to live in 18 months time in and around outer South West London (Kingston / Surbiton etc) - I earn pretty decent money tbh so any "normal" market and income multiple of lending ought to enable me to buy something suitable...

...currently looking with the missus and rental properties - 2 bed flats and small houses - and I am noticing a trend. Virtually every flat we have seen has been part of a larger block or development and the answer is the same every time - "yea, its the same guy who owns all 8 flats" blah blah - these arent dumps either, they are nice properties on decent roads.... then there is the guy who lives in my current block - he has a Range Rover, BMW M6 and a Bentley all parked next to each other (d1ck) and again owns a string of properties all over SW London. The whole ownership thing is so out of balance and its no use wishing for 1% rises in interest rates to blow these people out of the water - yes, this may clear our a few financially illiterate amateurs but the last 15 years (and it is 15 now, not 10) has allowed a relative few to amass a huge chunk of the property stock and this is now institutionalised - they don't need to sell, they won't sell - rental prices are going mental down here as all the would be buyers (eg Me, Aged 35) are forced to carry on renting. If you see somewhere decent, you need to take it there an then...

I hope I am wrong but I fear this could be a crash preventing factor inside the M25

One anecdote - a good friend of mine put his flat on the market the other week in Kingston (2 bed, ground floor) for 315 - he is a good lad and i wish him no ill but from a HPC perspective was hoping to see some good crash evidence. He sold it for 300 within a month. No crash here yet..... so RB may be right wrt London when he says "koff and live somewhere else"..............

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HOLA4420

One anecdote - a good friend of mine put his flat on the market the other week in Kingston (2 bed, ground floor) for 315 - he is a good lad and i wish him no ill but from a HPC perspective was hoping to see some good crash evidence. He sold it for 300 within a month. No crash here yet..... so RB may be right wrt London when he says "koff and live somewhere else"..............

Here I agree with those who say one-size fits all house price surveys (Halifax, Nationwide etc) can distort the truth. Strip London out of those indices and the crash that is happening in the rest of the country would suddenly come sharply into focus.

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HOLA4421

Here I agree with those who say one-size fits all house price surveys (Halifax, Nationwide etc) can distort the truth. Strip London out of those indices and the crash that is happening in the rest of the country would suddenly come sharply into focus.

London will be the last place to go but will need a helping hand from every factor that might cause a crash, rising IRs, unemployment, MMR...

When Buyers realise they can get far better value for money outside London as the differential gets to big this will in itself help to London prices to fall.

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HOLA4422

It pains me to say it but I think this may be sadly true. I have been a member of this site for many years and am currently sitting with my fingers crossed that I will finally be able to afford a decent place to live in 18 months time in and around outer South West London (Kingston / Surbiton etc) - I earn pretty decent money tbh so any "normal" market and income multiple of lending ought to enable me to buy something suitable...

...currently looking with the missus and rental properties - 2 bed flats and small houses - and I am noticing a trend. Virtually every flat we have seen has been part of a larger block or development and the answer is the same every time - "yea, its the same guy who owns all 8 flats" blah blah - these arent dumps either, they are nice properties on decent roads.... then there is the guy who lives in my current block - he has a Range Rover, BMW M6 and a Bentley all parked next to each other (d1ck) and again owns a string of properties all over SW London. The whole ownership thing is so out of balance and its no use wishing for 1% rises in interest rates to blow these people out of the water - yes, this may clear our a few financially illiterate amateurs but the last 15 years (and it is 15 now, not 10) has allowed a relative few to amass a huge chunk of the property stock and this is now institutionalised - they don't need to sell, they won't sell - rental prices are going mental down here as all the would be buyers (eg Me, Aged 35) are forced to carry on renting. If you see somewhere decent, you need to take it there an then...

I hope I am wrong but I fear this could be a crash preventing factor inside the M25

One anecdote - a good friend of mine put his flat on the market the other week in Kingston (2 bed, ground floor) for 315 - he is a good lad and i wish him no ill but from a HPC perspective was hoping to see some good crash evidence. He sold it for 300 within a month. No crash here yet..... so RB may be right wrt London when he says "koff and live somewhere else"..............

I agree with RB to a point in that London is certainly where the money is, hence higher prices. But moving out is not an option for us for various reasons and having seen prices crash so sharply around here in 2008 (damn, I wish I'd bought then!) I just hope that a turn in sentiment is not that far away (following an IR rise, for example) to soften the market.

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HOLA4423

Just a couple of random selections from my Property Bee

--------------------------------------------------------------------------------

37.5% off this retirement property in Beckenham:

http://www.rightmove.co.uk/property-for-sale/property-15030981.html

459_BEM090064_IMG_00_0002.JPG

History

date event

09 March 2011

* Status changed: from 'Sold STC' to 'Available'

23 February 2011

* Status changed: from 'Available' to 'Sold STC' [Found by n/a]

13 November 2010

* Price changed: from 'Guide Price £55,000' to 'Guide Price £50,000' [Found by n/a]

27 September 2010

* Price changed: from 'From £55,000' to 'Guide Price £55,000' [Found by n/a]

01 September 2010

* Price changed: from '£80,000' to 'From £55,000' [Found by n/a]

* Status changed: from 'Sold STC' to 'Available' [Found by n/a]

29 June 2010

* Status changed: from 'Available' to 'Sold STC' [Found by n/a]

21 March 2010

* Initial entry found. [Found by n/a]

20% off this 2br place in Earlsfield

http://www.rightmove.co.uk/property-for-sale/property-26794042.html

86954_EAR100099_IMG_00_0005_max_620x414.JPG

History

date event

09 March 2011

* Status changed: from 'Sold STC' to 'Available'

07 March 2011

* Status changed: from 'Available' to 'Sold STC' [Found by n/a]

22 February 2011

* Status changed: from 'Sold STC' to 'Available' [Found by n/a]

20 February 2011

* Status changed: from 'Available' to 'Sold STC' [Found by n/a]

20 January 2011

* Price changed: from '£312,000' to '£280,000' [Found by n/a]

26 September 2010

* Price changed: from '£324,950' to '£312,000' [Found by n/a]

01 September 2010

* Price changed: from '£349,950' to '£324,950' [Found by n/a]

16 July 2010

* Initial entry found. [Found by n/a]

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HOLA4424

London will be the last place to go but will need a helping hand from every factor that might cause a crash, rising IRs, unemployment, MMR...

When Buyers realise they can get far better value for money outside London as the differential gets to big this will in itself help to London prices to fall.

And in that one sentence you have just illustrated why there are no 'special' or 'immune' areas and why prices in London WILL fall and HAVE fallen in every other crash.

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HOLA4425

And in that one sentence you have just illustrated why there are no 'special' or 'immune' areas and why prices in London WILL fall and HAVE fallen in every other crash.

burn_the_witch.jpg

Edited by the.ciscokid
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