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Mrs Bear

Second-Home Owners In Cornwall Selling Up

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Sorry, no link, but a few quotes:

'Second home owners in Cornwall are selling up, giving the locals a look-in at last.'

'The 2 bed, 2 bath flat had been on the market for a while, at £195K. I offered £173K, which was accepted.'

(Former Cornish resident buying a '2nd home' flat to live in full-time.)

'Autumn is always our best time of year, when the grey market comes on holiday, but this year we've noticed more of our customers have been families with chidlren. They've bought older people's second homes and live here full time.' (Shop owner)

'All of this makes sombre reading for the holiday-home owner trying to sell. Junathan Cunliffe, head of Savills' Truro office, says average asking prices are down by about 16%, but says properties begin to attract interest only when they have been discounted by 20-25%.'

'The high-value, impulsive second home buyer is a thing of the past. Three or four years ago, it seemed every call was a cash buyer looking for a second home; now they account for just 10% of our buyers. (Savills again)

Edited by Mrs Bear

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Same in Swansea Wets and on the Gower - vast numbers of properties for sale, a large number of them clearly second homes/holiday homes.

I understand that the staycations did not happen this year - money is tight - so plenty of those who had bught a second homw with the aim of renting it out to pay their mortgage had very little 'income' - also, the tax laws changed on holiday homes didn't they?

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This can only be a good thing, is it not......anyone who is fortunate enough to own a second home would be wise to put the money to better use......some would be better off selling the main home and moving into the holiday home. :unsure:

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Holiday home owners have been the main driver up of prices in places like Cornwall, Swansea West, Gower, etc, which, in turn, has forced locals to pay higher asking prices.

Once all those who wish to buy a second home have bought or, worse, once the second home owners start to sell up en masse then it is only a matter of time before a crash in local prices becomes inevitable.

I can think off several houses that I viewed 2 years ago which are second homes in Swansea West of people who live in London - they are still on for the same asking prices now as in 2009. Nuts.

But I have seen numerous more second homes in Swansea West and Gower drop considerably in price - and still not sell. Local still can't afford those prices.

If we ever get a return to higher IRs then the second home market will collapse in places like Cornwall and the Gowerr bringing the rest of the market down.

:lol::lol::lol:

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The price of local property should be in line with the local job market and pay scales.....second homes have priced the local population out, that is part of the whole injustice of HPI......the rich have priced the poorer out in their own communities.........society is now having to pay the price for that. ;)

Edited by winkie

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There was a similar article in the Financial Times in early September which I posted in the South West regional forum:

Second-home owners forced to cut prices

Price reductions are becoming an increasingly common occurrence in the popular second-home market of the South West, as sellers find themselves forced to cut asking prices to achieve a sale, according to property agents.

New figures from Savills, the property agent, reveal that 75 per cent of the properties on its books in Devon have had their prices cut at least once this year, with the average reduction being 15 per cent.

These price cuts are also being seen in the Cornish market. Just over 40 per cent of this year’s stock has had its price reduced, with average price cuts of 16 per cent. However, properties that have been reduced by 20 per cent have attracted the most interest and most frequently led to a sale.

http://www.ft.com/cms/s/2/bd2ee2ae-d4c1-11e0-a7ac-00144feab49a.html#axzz1WYfYkwH8

I also posted the Halifax regional indices for Q3 2011 on Friday, and the South West is currently the second worst performing region (after N. Ireland) both on an annual and quarterly basis, with prices -9.2% year-on-year and -3.8% over the last three months.

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'All of this makes sombre reading for the holiday-home owner trying to sell. Junathan Cunliffe, head of Savills' Truro office, says average asking prices are down by about 16%, but says properties begin to attract interest only when they have been discounted by 20-25%.'

As a cash buyer ~ 450k next year I can say that this is excellent news. I'm looking to retire to Cornwall next year, this confirms what I've been told behind the scenes.

Off for some dancing in the streets etc.

:P

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I'm sure the locals will be queuing up at these prices. :lol:

However this is the Sunday Times which is the posher persons ramper par excellence so bound to be a "fill your boots now" slant to the article.

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As a cash buyer ~ 450k next year I can say that this is excellent news. I'm looking to retire to Cornwall next year, this confirms what I've been told behind the scenes.

Off for some dancing in the streets etc.

:P

Good on you Simon, that's buying a decent place now, should buy a mansion next year. If they do keep tanking I may be joining you in buying back in.

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As a cash buyer ~ 450k next year I can say that this is excellent news. I'm looking to retire to Cornwall next year, this confirms what I've been told behind the scenes.

Off for some dancing in the streets etc.

:P

You can play bowls with a friend of mine, who is planning to retire to Corwall in a few years. :o

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Savills' marketing team is pushing this line hard. There was another thread on it a couple of weeks back. The message seems to be... you're not alone in dropping your price, and it will bring results. Lillicrap Chilcott is pushing out the same message albeit using more convoluted language.

Not much sign of 2nd homers selling up around here. Which surprises me. The second home owners I know are middle management types or doctors, not millionaires. They spent 500k to 800k on a second home a few years back. They must be haemorrhaging money into these properties now.

The only homes I see moving are the sub 500k ones. I think they are selling to "real people"* who need to move for more space, nearer schools or work. Just like old times. The 700k plus market is dead as a doornail from what I can see.

The next leg down will be in the spring when the amateur developers who are hitting a cashflow crunch try to sell. There are loads of them living in half finished projects funded by 100% interest only self cert mortgages. Many of them are itinerant "builders" "plumbers" and "gardeners". The point has come where inflation and declining work means they simply can't cover the mortgage, diesel and food. Then they'll have to sell up, or turn to crime (both quite likely IMHO).

Local news this week:- amateur developer has been charged with torching his home for the insurance after failing to sell it for 4 years. First I've seen. Also burglaries up 33%. Just like the last recession eh old timers??

* by "real people" I mean public sector workers, mostly GPs, the only people in Cornwall with half decent wages. I am staggered by the number of quacks in Cornwall.

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Good on you Simon, that's buying a decent place now, should buy a mansion next year. If they do keep tanking I may be joining you in buying back in.

This will be the last time I buy a property - been living on the continent since 1986, want to purchase next year but can wait if needed until 2013.

Some prices being asked are La-La prices, what amazes me is how lazy and unprofessional some EA's are.

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Same in Dorset - more homes on market with 'No forward chain'.

Looking at photos, they're holiday homes with usual crap furniture etc.

Wait until the depression really bites!

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Had a discussion with Estate agent yesterday.

He came out with a blinder about 'That Bank of England' guy saying 'There's a light around the corner and next year things will improve'. I then listened to the usual boollocks about how they're selling houses fast etc etc.

I said you mean Mervyn (Benny Hill) King and laid into him with some economic facts. I finished with 'Just you wait when the Bond Market bursts' and explained the implications.

You could have heard a pin drop! They all looked at me in disbelief.

I cannot believe how economically illiterate most people are.

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Three or four years ago, it seemed every call was a cash buyer looking for a second home; now they account for just 10% of our buyers.

We're running out of cash buyers !?

What a surprise!

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I hate to be obtuse, but what's the difference between people owning second homes in Cornwall who keep locals out of housing, and people who are celebrating prices coming down so they can retire down to Cornwall, hence keeping locals out of housing....? :huh:

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I hate to be obtuse, but what's the difference between people owning second homes in Cornwall who keep locals out of housing, and people who are celebrating prices coming down so they can retire down to Cornwall, hence keeping locals out of housing....? :huh:

> Set underpants /type=asbestos /thickness=max

Those who retire will bring more money into the economy, but remember it's locals who sold out to provide the holiday homes in the first place. Tourism salaries don't really provide enough to buy a house anywhere.

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> Set underpants /type=asbestos /thickness=max

Those who retire will bring more money into the economy, but remember it's locals who sold out to provide the holiday homes in the first place. Tourism salaries don't really provide enough to buy a house anywhere.

Disagree (take that, underpants!). Locals have been priced out since the M5 was built. But during the bubble the whole Cornish economy realigned itself into fleecing incomers and 2nd homers. The locals have done very, very well out of the boom. Example: Andy Chilcott of Lillicrap Chilcott bought a £2.7 million house last year. The problem comes now:- only retirees are coming, and they are much, much more careful with their money.

As I said on another thread, the whole Cornish economy is a monster that eats incomers and 2nd homers, and spits the carcasses back over the Tamar when it's sucked them dry. But the juicy meat's stopped coming. Retirees buying £400k houses and doing their own DIY won't feed it. The monster is dying.

IMHO next few years will be like Mad Max only with more rain and pasties. I am upgrading the defences of Chez Incomer even as I write this.

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As I said on another thread, the whole Cornish economy is a monster that eats incomers and 2nd homers, and spits the carcasses back over the Tamar when it's sucked them dry. But the juicy meat's stopped coming. Retirees buying £400k houses and doing their own DIY won't feed it. The monster is dying.

I was raised on the Isle of Man. I can fleece a Cornish man on a Monday morning before he's had time to sign on the dole!

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I was raised on the Isle of Man. I can fleece a Cornish man on a Monday morning before he's had time to sign on the dole!

Exactly. You're no good to the monster, not enough meat. The monster wants Incomers with three quarters of a mill in their back pocket who say "oooh look at the pretty house nice Cornish builder man says he'll make us"

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Exactly. You're no good to the monster, not enough meat. The monster wants Incomers with three quarters of a mill in their back pocket who say "oooh look at the pretty house nice Cornish builder man says he'll make us"

Love it :)

Now we're seeing these disasters coming onto the market but there are some lovely places as well.

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Locals have been priced out since the M5 was built. But during the bubble the whole Cornish economy realigned itself into fleecing incomers and 2nd homers. The locals have done very, very well out of the boom. Example: Andy Chilcott of Lillicrap Chilcott bought a £2.7 million house last year. The problem comes now:- only retirees are coming, and they are much, much more careful with their money.

Not surpised - very professioanl comapny, he deserves it.

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Its not just second homes but also properties in rural areas that have been occupied by the elderly.

These properties are no longer a viable place to live for someone who has retired, this is because there are no longer any services/shops in the villages and the bus routes are being trimmed to virtually nothing as the councils cut back on fare subsidies.

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Its not just second homes but also properties in rural areas that have been occupied by the elderly.

These properties are no longer a viable place to live for someone who has retired, this is because there are no longer any services/shops in the villages and the bus routes are being trimmed to virtually nothing as the councils cut back on fare subsidies.

Retired people can drive cars and we're not all skint :rolleyes:.

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      • down 5% +
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      • up 5%



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