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Jason

Rightmove +0.8% Mom, +4% Yoy

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Ah our dear friend Miles Shipside.

It's worth getting a subscription to Moneyweek just to read the occasional "round-tables" where he gets taken apart by a few brokers and analysts.

The type of thing you should be able to read in the mainstream press.

Anyway, get used to these reports for the next 5 years at least, don't you know, house prices never fall.

Edited by BandWagon

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Anyway, get used to these reports for the next 5 years at least, don't you know, house prices never fall.

If they carry on repeating this c**p for long enough they might actually start getting people to believe it.

For anyone new on to this site, remember that Rightmove just measures initial asking prices of properties (which are consistently overinflated at the moment), and that there is a wide gap between these and actual sale prices.

Looks like Shipside has actually stuck his neck out to say that the soft-landing has now definitely arrived.

0.8% means absolutely nothing to me.

The Nationwide know what's coming. They know what happens when their own index goes negative.

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Guest Time 2 raise Interest Rates

Maybe they'd like to explain to my brother why a new build house

he bought 2 years ago as a buy-to-let for £350,000 has just been

valued at £320,000 if he's lucky (Estate agent). In the meantime

why it's sitting empty, it's costing him £1,300 a month on an

interest only mortgage.

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Maybe they'd like to explain to my brother why a new build house

he bought 2 years ago as a buy-to-let for £350,000 has just been

valued at £320,000 if he's lucky (Estate agent). In the meantime

why it's sitting empty, it's costing him £1,300 a month on an

interest only mortgage.

New houses are like new cars, they lose 10% of their value the minute you drive them off the dealer's forecourt. You can't tell anything about the housing market by comparing the new price for a house with the used price for the same house.

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New houses are like new cars, they lose 10% of their value the minute you drive them off the dealer's forecourt. You can't tell anything about the housing market by comparing the new price for a house with the used price for the same house.

:blink::blink::blink:

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New houses are like new cars, they lose 10% of their value the minute you drive them off the dealer's forecourt. You can't tell anything about the housing market by comparing the new price for a house with the used price for the same house.

Rarely have I read such drivel.

I have worked on dozens of housing developments over the years. On most of the them the last house on the development sold for a massive amount more than the first one. Sometimes every plot went for 5k more than the one before.

Apart, of course, in 1989 to 1992. Plenty of developments were simply abandoned then as developers went broke.

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Maybe they'd also like to explain to Dan Atkinson of the Financial Mail

who had this to say in yesterdays Mail on Sunday.

Falling prices for new one and two bedroom flats.

"IN THE SOUTH AND THE MIDLANDS, PRICES ARE DOWN TEN, 15 OR 20

PER CENT IN SOME CASES" ;)

Edited by Time 2 raise Interest Rates

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I have worked on dozens of housing developments over the years. On most of the them the last house on the development sold for a massive amount more than the first one. Sometimes every plot went for 5k more than the one before.

Fine, but what prices were houses getting that were being resold by the original purchaser in used condition, compared with the prices the new builds were getting at the same time?

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"This is not a return to a boom market, but the arrival of the long-awaited 'soft landing'," the report said.

That was the bit that bugged me.

0.8% pcm implies an annual growth rate of nearly 10%. 6% per annum above trend would appear to be a boom to me.

So, are we back in boom times? Or is (assuming we can trust Rightmove (ahem)), 0.8% a blip?

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Maybe they'd like to explain to my brother why a new build house

he bought 2 years ago as a buy-to-let for £350,000 has just been

valued at £320,000 if he's lucky (Estate agent). In the meantime

why it's sitting empty, it's costing him £1,300 a month on an

interest only mortgage.

What rental is he trying to achieve? If he is paying £1,300 per month interest only, then the rent would probably have been assessed as £1,700 pcm.

How long has it been empty and what is his target for tenants? Is it a family/sharers/other.

It really depends on location - the key factor in buying somewhere to rent out is how good the rental market is.

Re the price/valuation - has he checked out how much similar properties went for when he purcahsed?

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New houses are like new cars, they lose 10% of their value the minute you drive them off the dealer's forecourt. You can't tell anything about the housing market by comparing the new price for a house with the used price for the same house.

Don't tell the Monkey. :P

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I like the title "The bubble that never burst" How arrogant is that? Things seem to be moving quite quickly now - The Fat lady has stoped singing and the "Crash" is now begining.I'm seeing many Echo's of the last crash i.e. VI's in denial. Add to that the Nationwide's latest bleak statement and I think we can work out what'll happen next!

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The key statement in the Rightmove spin:

"It said the market had reached a level of "sustainable pricing" that was attracting increased buyer demand without resorting to dramatic price falls."

Thus, the market rise of about 120% over the past 5 years levels off at a sustainable rise of 4% and all of a sudden people can afford to buy homes? The FTBs who couldn't afford to buy last year can now afford to buy because the prices have slowed to 4% increase per annum? Has everyone suddenly got a pay rise to equal the HPI of the past 5 or 6 years?

The market slowed because prices were not sustainable. Going up another 4% would not change that.

The Rightmove propaganda would even make Goebels and Bagdad Bob blush.... :lol:

At least they contradict their whole spin with this final, truthful statment that says it all:

But he added: "There are still some properties where price expectations are too high to benefit fully from the improving buyer sentiment."

Edited by Realistbear

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NAEA's FTB level going back down to the lowest levels in history recorded earlier this year - down to 9% (8% being the lowest recorded).

Stuffed market, only themselves to blame - it seems as if they still think that increasing house prices are the only thing in this country that matters - we will see when more jobs are shipped abroad. Debt is becomming so large that it requires £B's more per month just to "stabilise" the maket, well that is unsustainable.

Nice to see it being seen for what it is though, a bubble.

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What rental is he trying to achieve? If he is paying £1,300 per month interest only, then the rent would probably have been assessed as £1,700 pcm.

How long has it been empty and what is his target for tenants? Is it a family/sharers/other.

It really depends on location - the key factor in buying somewhere to rent out is how good the rental market is.

Re the price/valuation - has he checked out how much similar properties went for when he purcahsed?

To be totally honest, I'm not quite sure what he's trying to achieve. I

only know he puts it down to one of the biggest mistakes he's ever made.

And it only gets worse. Believe it or not, he's a mortgage broker and his

main objective was capital appreciation, which seems to have backfired.

He was renting the property for £1,500 per month. The tenants have just

vacated, he's currently redecorating the whole house as it's been totally

trashed due to four children and a total lack of respect. Reading this back,

I find it hard to believe myself but I swear that's the situation.

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New houses are like new cars, they lose 10% of their value the minute you drive them off the dealer's forecourt. You can't tell anything about the housing market by comparing the new price for a house with the used price for the same house.

What a strange thing to say. So when does the new-build join the market for statistical purposes? After 3 owners or is it a time thing?

A bizarre statement.

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Cant wait for the Brown Blair Corporation to report this!!!

Bet its HOUSING MARKET HOT! BUY NOW BEFORE SS TITANIC LEAVES!

TBH tho - when this corporation reports such shyte as this - is it any wonder that sellers say our offers are SILLY?

I think we are at a turning point here. Nationwide admitting that next year will be modest drops and then stagnation. Rightmove on asking prices pushing up the ante!

Anyone with a marketing strategy of "It's not selling so we will have to up the price" has got to be a complete bell-end!

I know who will wn. The buyers!!!

TB

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Also in the latest Rightmove report

"It was also the second consecutive monthly increase after a 0.5% rise in October. However, the record prices mean the average home now costs nine times more than the average annual salary of £22,000, making the situation very difficult for first-time buyers. …"

Nuff said

:rolleyes:

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To be totally honest, I'm not quite sure what he's trying to achieve. I

only know he puts it down to one of the biggest mistakes he's ever made.

And it only gets worse. Believe it or not, he's a mortgage broker and his

main objective was capital appreciation, which seems to have backfired.

He was renting the property for £1,500 per month. The tenants have just

vacated, he's currently redecorating the whole house as it's been totally

trashed due to four children and a total lack of respect. Reading this back,

I find it hard to believe myself but I swear that's the situation.

Oh dear - it does sound as if, possibly, he jumped onto the bandwagon without doing enough up front research. The whole BTL thing only works if you can rent out - it is very easy to buy something but you need also to make sure it will rent out.

I check out the rental agents to see what sort of things they deal with & what sort of rents they are asking. It is no help to your friend - but a horrible lesson.

This time of year is dreadful for finding tenants, but maybe the rent is too high? If he asked say 1400 pcm - he would at least cover his mortgage outgoings.

I don't know where his place is, but if it was me - I would rent it at a loss and wait for the prices to pick up. Unless he's bought in an area that people don't want to live in - then it is a problem. Did he find out why his tenants left? that might help him in his decisions.

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What I have found with new houses is that when the market starts to slow builders are more realistic than owners. New Construction will often lead a crash as the objective of the builder is to move the bricks and pay back construction loans. If they see the market turning they will start offering incentives (free cars etc) to move inventory. Owners often resist price drops because they have bought into the VI spin that houses only go up in value.

In my area (West Midlands) there are a number of local new build sites where nothing has sold for months. They offer 10% off for just walking in the door.

As the crash gathers momentum we will see more and more silly statements and meaningless statistics emerge.

The simple reality is that houses are at pricing levels that can no longer be sustained by a faltering economy. The eroding confidence in this market demonstrates that the average person realizes that property speculation no longer offers a quick path to riches. The economic cycle cannot be beaten.

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If they carry on repeating this c**p for long enough they might actually start getting people to believe it.

I think that's the point warks.

try and grind the stragglers down and they will buy.....

this is WAR,hold your nerve.....and don't put your head over the trench yet,you'll get shot.

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  • 302 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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