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pete.hpc

Ruthless Estate Agents

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Ok so, in contravention of the advice from the good people of HPC, I've started looking at places with a 3.5x single salary mortgage approval in principle in my back pocket, and am finding lots of stuff around here within that price. Feel free to tell me I'm insane. :P

Just had a call about one place which was, rather frantically it seems, listed for "Sale or Rent! MY GOD, SOMEONE PLEASE GIVE ME SOME MONEY TO OFFLOAD THIS THING"

A bad sign in itself, one would perhaps say.

So as I come into the equation, it's just this minute been let to new tenants. But the EA's have insisted some form of clause was put into the agreement to have them out in 6 months, which would be a timescale I'd be perfectly happy to wait out.

But this is where my conscience comes in. Having one foot firmly in the BTL are utter scum and should rot for the destruction those mortgage products have done to the lives of my generation, I surely can't make an offer on this place.....

My hunch is it's about 15% down on 2006/2007 prices in the still very bubbly Greater London.

I just don't think I could bring myself to be part of such an appalling piece of skullduggery in seeing probably chuffed to bits tenants told on the day they move in that their complete shitstain of a landlord has sold their home already and they need to start looking again :(

I hate this country.

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The lady's not for turning! :o

Who knows, I figure it can't hurt to look right now. I just don't see much falls around here in nominal prices, I think most of the losses from this point on will be masked by grinding inflation, and renting just isn't working for me anymore. Whilst I don't think there is a house price boat that can be missed, there is the creeping passage of time and I'm heading into my mid-thirties :(

Regarding this particular place, I won't be making an offer as it's blatantly just not fair on the tenants, and I've been on the other end for so many years I'd hope someone would do the same for me.

Edited by pete.hpc

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The lady's not for turning! :o

Who knows, I figure it can't hurt to look right now. I just don't see much falls around here in nominal prices, I think most of the losses from this point on will be masked by grinding inflation, and renting just isn't working for me anymore. Whilst I don't think there is a house price boat that can be missed, there is the creeping passage of time and I'm heading into my mid-thirties :(

Regarding this particular place, I won't be making an offer as it's blatantly just not fair on the tenants, and I've been on the other end for so many years I'd hope someone would do the same for me.

Pete do I recall correctly you are in the Slough area same as me?

Been given notice on our currently rental and been looking at both another rental and buying

Everything decent ,near "good" schools still at 2007 plus but not much shifting

Im going to give it another 6-12 months at least, the dam has got to break soon surely!!!

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Pete do I recall correctly you are in the Slough area same as me?

Been given notice on our currently rental and been looking at both another rental and buying

Everything decent ,near "good" schools still at 2007 plus but not much shifting

Im going to give it another 6-12 months at least, the dam has got to break soon surely!!!

I'm near Slough yes, I'm not seeing huge reductions, but as I've mentioned before, it just feels as though some places are more affordable to me. As though I'm seeing the benefits of some nominal reductions and some inflation linked salary increases

The place I'm hoping to put on offer in on is up for the same as the neighbours went for at the end of 2008, so I'd say prices nominally fairly stagnant from 2008 when they'd already taken a little hit at that point. The last time it changed hands was in 2002 for 40% less than what it's on for now

Importantly, it comes in at just under 3.5x my salary, and it's more than I ever thought I'd get for my first home. So if I'm not really being that stretched (mortgage is 35% of take home), it's sort of making sense for me at the moment.

It's a high interest rate due to the high LTV required, so it's not as though it's only affordable because it's on some super cheap rate. I think perhaps getting used to paying a couple of percent over their SVR might teach me some good lessons, but I can hear the claws sharpening on some of the more knowledgeable posters here who will probably tear holes in my strategy

I'm finding it hard not to plunge headfirst! :unsure:

ultimately, I could have my own place for a couple hundred quid a month more than it would cost to rent it, with the mortgage hopefully coming down quite a bit at the end of the fix when I either go onto SVR, or re-mortgage at lower LTV.

Edited by pete.hpc

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I'm near Slough yes, I'm not seeing huge reductions, but as I've mentioned before, it just feels as though some places are more affordable to me. As though I'm seeing the benefits of some nominal reductions and some inflation linked salary increases

The place I'm hoping to put on offer in on is up for the same as the neighbours went for at the end of 2008, so I'd say prices nominally fairly stagnant from 2008 when they'd already taken a little hit at that point. The last time it changed hands was in 2002 for 40% less than what it's on for now

Importantly, it comes in at just under 3.5x my salary, and it's more than I ever thought I'd get for my first home. So if I'm not really being that stretched (mortgage is 35% of take home), it's sort of making sense for me at the moment.

It's a high interest rate due to the high LTV required, so it's not as though it's only affordable because it's on some super cheap rate. I think perhaps getting used to paying a couple of percent over their SVR might teach me some good lessons, but I can hear the claws sharpening on some of the more knowledgeable posters here who will probably tear holes in my strategy

I'm finding it hard not to plunge headfirst! :unsure:

ultimately, I could have my own place for a couple hundred quid a month more than it would cost to rent it, with the mortgage hopefully coming down quite a bit at the end of the fix when I either go onto SVR, or re-mortgage at lower LTV.

Had a fantastic conversation with one of our local EA's this morning

ME"There's a house up for 209k Id like to view"

EA"Very good ,it's a good time to get in the market, prices are good at the moment"

ME" I see they brought it in 2007 for 193K at the peak of the market"

EA" That's right"

ME" So how is it on for 16k more than at the peak of the market"

EA (can hear him talking to collegue in the background)

" It's priced to sell"

ME: " What are you talking about , it's priced to sell? as opposed to priced not to sell?"

EA: " Do you want a viewing?"

HELP ME!!!!! I THINK IM GOING MAD!!!!!

They really are f*ckwits , unbelievable

Edited by Maddog21

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Actually, just doing some sums has put me back in Bear mode.

Can someone check this and let me know what they think?

Last known sale price for this house was in 2002

Average house price in Slough has gone up approximately 33% in that time (£126,671 to 168,250 latest Land Reg data)

This place is on for 65% more than it went for in 2002, that's a rip off, isn't it? :lol:

Absolute peak average house price in Slough was 2007 around 50% up on 2002

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Actually, just doing some sums has put me back in Bear mode.

Can someone check this and let me know what they think?

Last known sale price for this house was in 2002

Average house price in Slough has gone up approximately 33% in that time (£126,671 to 168,250 latest Land Reg data)

This place is on for 65% more than it went for in 2002, that's a rip off, isn't it? :lol:

Absolute peak average house price in Slough was 2007 around 50% up on 2002

I was / am having a serious wobble at the moment , going to view a rental tonight near where we are now

that I could no way afford to buy , was speaking to a few clued up people last night, one an EA himself in the area,

all think this has still got a long way to play out, people are starting to feel the squeeze ,myself included.

Think we will have a better idea by the end of the summer but it really is micro markets at the moment,

new build flats round Slough have collapsed 30% from peak easy but like I said ,houses still priced around peak

or above but not selling , went to view one in Burnham last month about 10% off peak they practically rolled out

the red carpet for us , first viewing they've had this year and they brought in 2001 for 100k less than they are

asking!!!!

Sellers will have to wake up and smell the coffee soon , it's just a deadlock at the moment

Still at the denial stage , waiting for fear to kick in!!!

Edited by Maddog21

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The lady's not for turning! :o

Who knows, I figure it can't hurt to look right now. I just don't see much falls around here in nominal prices, I think most of the losses from this point on will be masked by grinding inflation, and renting just isn't working for me anymore. Whilst I don't think there is a house price boat that can be missed, there is the creeping passage of time and I'm heading into my mid-thirties :(

Regarding this particular place, I won't be making an offer as it's blatantly just not fair on the tenants, and I've been on the other end for so many years I'd hope someone would do the same for me.

It's not just a house @ 3.5 times your salary!

You have to account for average interest rates at 9 -12% and then see if you can afford the monthly payments!

That's the 'marker' in working out the price of the house you want to buy without getting into too much trouble.

That's how the Financials/govt cohorts are going to trash the next round of buyers as prices fall.

Lulled in by interest rates at all-time 400 YEAR lows!

The fact that banks demand 30% deposits show they expect first time buyers to take 30% 'hit' in reduction of houseprice (under present known factors) before neg equity.

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It's not just a house @ 3.5 times your salary!

You have to account for average interest rates at 9 -12% and then see if you can afford the monthly payments!

That's the 'marker' in working out the price of the house you want to buy without getting into too much trouble.

That's how the Financials/govt cohorts are going to trash the next round of buyers as prices fall.

Lulled in by interest rates at all-time 400 YEAR lows!

The fact that banks demand 30% deposits show they expect first time buyers to take 30% 'hit' in reduction of houseprice (under present known factors) before neg equity.

I hear ya bro, but let me put these counter points to you;

Have mortgage interest rates ever been that high in modern economies?

If, at the end of my fix, rates rocketed, then my payments would be about 50% of my take home at 9%, and 60% at 12%. Crippling, but not enough to bankrupt me. But then so would everybody's, and we'd all be fighting over rats in the streets.

Banks just simply are not demanding 30% deposits, there are plenty of 90% LTV products on the market at fairly good rates, and there is at least one 95% product out there at the moment.

I'm still bearish, but I don't think prices will fall much in nominal terms.

So I can go on renting and fretting about global economic collapse and not knowing if I will be here in 2 months and in the same postcode, or I can think instead about conservatories and putting new flooring down and fitting a new kitchen :D

Edited by pete.hpc

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I have been wobbling a bit recently.

I'm just so fed up and want to have my own place I can do what I like to and also settle down.

However, when I check the past sold prices it annoys and shocks me that someone bought the place for 1/3 of the price back in 2001/2002. :o

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Estate Agents! By golly! They have a duty to get the best price for the clients. Not the buyers!

I always wear Edwardian clothes and offer the reasonable price it might have attained in 1905! ;)

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Estate Agents! By golly! They have a duty to get the best price for the clients. Not the buyers!

You do know that my "Ruthless Estate Agents" title refers to their behaviour towards tenants, and nothing to do with prices?

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You do know that my "Ruthless Estate Agents" title refers to their behaviour towards tenants, and nothing to do with prices?

No! I misunderstood! I am renting myself! :unsure:

I am not currently having a problem!

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No! I misunderstood! I am renting myself! :unsure:

I am not currently having a problem!

That might be down to unsung heroes like property bull scum like me who are refusing to buy off BTLers, especially those with sitting tenants :D

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Pete, if you can comfortably afford something, to a large extent it doesn't matter what the price is. Maybe there will be hyperinflation and it will pay off your mortgage for you. Maybe there will be substantial falls after you buy.. but as long as you can comfortably afford it, it doesn't really matter.

A friend of mine bought at the very peak of the market, but is still happy with his place, because he bought something he could comfortably afford. He paid about £280k.. with £60k down. And has a renter at £800 a month in a nice suite downstairs.

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  • 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%



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