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2buyornot2buy
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The developer cant pay purchaser deposits. this was effectively a 100% mortgage with a cash backed gurantee to cover any fall in price over 5 years up to a max of 15%.

At the time it sold houses. Any yes you could say the developers were coerced.

Yes they can't now but in 2008 - 2011 they could.

It looks to me that RBS expected prices to fall 15% and somehow convinced the developers to take the hit.

Did RBS offer any developer incentives? Loan write-down?

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Yes they can't now but in 2008 - 2011 they could.

It looks to me that RBS expected prices to fall 15% and somehow convinced the developers to take the hit.

Did RBS offer any developer incentives? Loan write-down?

I should correct myself, developers can always offer to pay deposits however they must notify the lender and the valuer has to deduct this from the valuation, which defeats the purpose. I dont believe this was any different when the Momentum scheme came in as I recall that being one of the (few) attractive things about it)

I have no idea what the RBS though prices were going to fall by. Judging by the way they were lending a few years earlier it would be difficult to credit them with much foresight.

No, there ware no incentives associated with participation, as far as I am aware.

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I should correct myself, developers can always offer to pay deposits however they must notify the lender and the valuer has to deduct this from the valuation, which defeats the purpose. I dont believe this was any different when the Momentum scheme came in as I recall that being one of the (few) attractive things about it)

I have no idea what the RBS though prices were going to fall by. Judging by the way they were lending a few years earlier it would be difficult to credit them with much foresight.

No, there ware no incentives associated with participation, as far as I am aware.

No vendor offers vendor gifted deposits now. Haven't since 2011.

This is probably the only vendor gifted deposit scheme left in the market.

I guess the developer is taking a gamble prices won't drop.

Don't know how this works with the new build premium.

Could be a good scheme to write off the inevitable drop in value inherent in any new build.

Basically buy a new build and don’t pay the developer profit.

I can’t see why you wouldn’t like it.

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  • 2 months later...

Still 9% lower than Q1 2005.

Need a bit more petrol on the fire I think before "escape velocity" can be claimed

Is anyone here looking 'escape velocity'?

I for one would be quite happy with another 4%, or thereabouts during 2014. Therefore, this time next year you can still say we are still 5% (or thereabouts) below Q1 2005. And that will be great.

No Petrol needed or wanted here.

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Is anyone here looking 'escape velocity'?

I for one would be quite happy with another 4%, or thereabouts during 2014. Therefore, this time next year you can still say we are still 5% (or thereabouts) below Q1 2005. And that will be great.

No Petrol needed or wanted here.

Perhaps not here, though we are probably a minority.

What about Simon Hamilton, who's Dept produces this report??

Or, as Mark Carney calls him, Simon Who?

http://www.northernireland.gov.uk/news-dfp-190214-hamilton-welcomes-growing

“The 4% increase over 2013 in house prices, tells us the Northern Ireland property market is moving in the right direction. This is the highest positive annual change since the fourth quarter of 2007, and is another sign of confidence in the market.”

So, he is content that as people get poorer, houses get dearer. Must play well with the electorate.

Edited by Shotoflight
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  • 3 months later...

NIRPPI Q1 2014

http://www.dfpni.gov.uk/lps/index/about-lps/publications_and_statistics/statistics-and-research-publications.htm

Between Q1 2013 and Q1 2014 residential property prices increased by 7%;

Between Q4 (October - December) 2013 and Q1 (January - March) 2014 residential property prices increased by 3%;

Between Q4 (October - December) 2013 and Q1 (January - March) 2014 21% increase in sales volume. the highest Q1 sales recorded since 2007

Largest increase since Q4 2007

Edited by BelfastVI
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4.2 times median gross salary in RPPI for NI

CML states over half are ftbs @ 2.91 - so the rest must be pretty high to bring it to the RPPI 4.2?

UK average, according to CML = 3.42 (presumably including London)

Perhaps each use totally different metrics. Lloyds cutting off loans above 4 times salary (£500k/London)

http://www.bbc.co.uk/news/uk-northern-ireland-27599715

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4.2 times median gross salary in RPPI for NI

CML states over half are ftbs @ 2.91 - so the rest must be pretty high to bring it to the RPPI 4.2?

UK average, according to CML = 3.42 (presumably including London)

Perhaps each use totally different metrics. Lloyds cutting off loans above 4 times salary (£500k/London)

http://www.bbc.co.uk/news/uk-northern-ireland-27599715

I think one of your references is talking about average House Price to the average income of the region

The CML, I imagine is referring to the average income of a house purchaser to the amount borrowed.

So you have two differences here - the average income of a region and the average income of (FT) house buyers.

The House Price and the amount borrowed.

And you are also correct. People moving house generally borrow less as a percentage of income as they have a house to sell.

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  • 2 months later...

my criticism of this report still stands. It includes all sales above £25k which (more so in years passed) included repos that couldnt be sold under a mortage as they needed, in some cases £40k of work to them. This had the effect of emphasing the drop in prices more than the ONS reports as used in the rest of the UK would have shown.

Similarly, now in the recovery, the increase is being emphasised by this report.

I dont believe the average house increased at 10%. it is just that the auction bargan basement that this report foolishly captured has increased in price or is not being sold at auctions at all. That downward pull has reduced and the reports average price has increased more than it should have.

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my criticism of this report still stands. It includes all sales above £25k which (more so in years passed) included repos that couldnt be sold under a mortage as they needed, in some cases £40k of work to them. This had the effect of emphasing the drop in prices more than the ONS reports as used in the rest of the UK would have shown.

Similarly, now in the recovery, the increase is being emphasised by this report.

I dont believe the average house increased at 10%. it is just that the auction bargan basement that this report foolishly captured has increased in price or is not being sold at auctions at all. That downward pull has reduced and the reports average price has increased more than it should have.

Using that logic, would you not have to strip the high value 500k+ houses out of the mix?

Looks like a big jump in transactions at this price level.

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Using that logic, would you not have to strip the high value 500k+ houses out of the mix?

Looks like a big jump in transactions at this price level.

If that 'house' was nothing more than a site and the buyer was knocking it down to start again or was spending 50% again to make it habatable to live in then yes. If someone bough a house for £30k and it is a perfictably habatable house then it should be included in any survey. However if he was spending another £30k to make it habatable then it is incorrect to record the house sale at £30k. the Office for National Statistics excluded such sales unless a mortage was offered.

I believe if this was the case the growth rate for the year would be closer to 5% than 10%.

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