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The Need To Sell - Prime / Semi-Prime

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In some semi-prime/prime areas, I'm hearing a few more tales of people who need to sell

Needle type stories/circumstances. Their creditors coming down hard, and one threatening bankruptcy proceedings.

In 2 instances, their homes worth £1m - £1.5m in the minds of many, in this market. One on the market and cut by £250,000 in two stages past few weeks. Thoughts from other owners as to what is fair value hold no sway though. What matters is what price a seller and any buyer agree to transact on, which affects wider market values..

However it could be nothing as many need-to-sell seems to have been around for a while now, but have found buyers willing to step in to meet high asking prices... and HTB2/property-safety investors maybe a part of that.

Forces of HPC are there lurking imo, but resisted by what has been a strong buying dynamic, of those willing to meet higher prices. New full drawdowns on pensions might forestall further correction a while, but some underlying forces in play.

Hello fellow Hale/Alty/Timperley HPC'ers havent posted in a while but have been checking in periodically.....

Just read through the thread from end of last year onwards. Noticed a lot of despondency with regard to prices not falling.

Cant say too much here but I am fairly convinced that prices will continue to fall especially in the more upmarket areas.

The reason for this is that I have a very indiscreet friend who works in finance and knows about the various investments of the wealthy who are generally concentrated in these areas. These people are heavily invested in property commercial and residential and are basically broke. From what I understand their businesses have been savaged over the past 4-5 years - as you'd expect, I suppose.

However, believing the recession was a 'normal' recession (it isnt) they drew down all their cash (pensions, savings, bonds) and pumped it into their companies to keep them afloat in the interim. Unfortunately the 'interim' has turned into the long term and now, devoid of liquidity, they are either closing their businesses or desperately trying to sell commercial property.

Be in no doubt whatsoever the pips are very definitely starting to squeak. As are some very expensive wives......

It doesn't matter how many dick tease posts that needle makes, I'm seeing little difference. All these people who want to get out but don't need to and are not being forced to. I was at a kid's class last week and overheard some woman telling another they she needed to pay for something (presumably at a rental) and would just put the rent up on 2 places to pay for it. The market is letting people get away with this behaviour.

For how much longer. ;)

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In some semi-prime/prime areas, I'm hearing a few more tales of people who need to sell

Needle type stories/circumstances. Their creditors coming down hard, and one threatening bankruptcy proceedings.

In 2 instances, their homes worth £1m - £1.5m in the minds of many, in this market. One on the market and cut by £250,000 in two stages past few weeks. Thoughts from other owners as to what is fair value hold no sway though. What matters is what price a seller and any buyer agree to transact on, which affects wider market values..

However it could be nothing as many need-to-sell seems to have been around for a while now, but have found buyers willing to step in to meet high asking prices... and HTB2/property-safety investors maybe a part of that.

Forces of HPC are there lurking imo, but resisted by what has been a strong buying dynamic, of those willing to meet higher prices. New full drawdowns on pensions might forestall further correction a while, but some underlying forces in play.

For how much longer. ;)

I think I here the sound of a toilet chain being pulled. I have pulled all my money into cash-deposits.

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There are many expensive mansions/'farm houses' and other upmarket type properties near me that seem to have been languishing on the market for many years.

hey are looking quite silly since te introduction of HTB the cheaper properties <£250k are moving at high velocity. I think it must be quite obious to man that they will never sell their 'mansions' unless they halve the price.

There just are not enough wealthy young families about to buy the sheer number of 'mansions' that older folk wish to offload.

The running costs of such properties electricity, water, heating, council tax, insurance is also becoming prohibitively expensive for even good earners.

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There are many expensive mansions/'farm houses' and other upmarket type properties near me that seem to have been languishing on the market for many years.

hey are looking quite silly since te introduction of HTB the cheaper properties <£250k are moving at high velocity. I think it must be quite obious to man that they will never sell their 'mansions' unless they halve the price.

There just are not enough wealthy young families about to buy the sheer number of 'mansions' that older folk wish to offload.

The running costs of such properties electricity, water, heating, council tax, insurance is also becoming prohibitively expensive for even good earners.

A fair number of them round my way (South Cambs/Essex border) are rented out. The rent that they are settled at gives a gross yield of 1.5 - 2.0 %. Much better than putting it in the bank :lol:

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For how much longer. ;)

I was sat waiting for a kid the other day and the posh mums were discussing their planning applications. Apparently the male planning officer is ok but the female one who is also a conservation officer is a b1tch.

These people are not requiring food parcels, just yet.

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.....you only need someone to sell as 'priced to sell' such that the price is a realistic price and will sell quickly compared to the other local higher priced and not as nice places, be it plot size, location, or so well looked after and renovated tastefully to put the backs up of the very obvious over priced places languishing for months, handful of different agents, re listed on and off to make it look like only just come onto market places close by......now who in their right mind would pay a high price knowing a far better place close by was sold for 20% less and a better priced place will be available soon.....they are 'aving a laugh, wait long enough and it may reach the price they are asking, time means they missed the bargain that the realistic quick seller was able to snap up quickly. ;)

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I was sat waiting for a kid the other day and the posh mums were discussing their planning applications. Apparently the male planning officer is ok but the female one who is also a conservation officer is a b1tch.

These people are not requiring food parcels, just yet.

It's difficult to know how so many people do it. Where the money, or is it debt, comes from to pay. Partly I think it's too much showing off in many instances, a big gamble on 'recovery', and not all is as it appears. Or if it is, it could all come to a sudden halt. I think it maybe has for one home-owner in centre of the village. This house came to market as a normal listing, but was later updated in a way I associate with bank possession houses. http://www.rightmove.co.uk/property-for-sale/property-29403669.html?premiumA=true and a few I've noticed left empty, where it seems either owner (or perhaps a bank) holding out for someone stupid to come along and meet their over-valued (by £100Ks) house.

A few weeks ago I arranged for some essential building works for a relative, via one of those MyTrade websites sometimes advertised on the television. Set out the job and invited tenders. Got a range of quotes, with some curt but. Went with one who submitted a really friendly and honest sounding approach with their quote, importantly setting out that they'd done similar works many times over. They came down from Rochdale and did a perfect job over a few days, at less than 1/2 the price the main builders around here quoted. I've seen some of the threads on here where people have received crazy-high quotes for extensions. I think its apathy in searching for a good deal, that too many builders just quoting crazy-high as some will pay it, into this crack-up boom. That it masks some serious deflationary tugging forces that are really in play.

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These types of sales tend to be family firms, where the companies working capital/deb is tied up against a house.

On the way up, the leverage is great - big house, backing a cheap loan to run a profitable business. Hooray!!!!

Terrible on the way down - business starts sucking in cash, families income and housing is all on the line. Oh dear.

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In some semi-prime/prime areas, I'm hearing a few more tales of people who need to sell

Needle type stories/circumstances. Their creditors coming down hard, and one threatening bankruptcy proceedings.

In 2 instances, their homes worth £1m - £1.5m in the minds of many, in this market. One on the market and cut by £250,000 in two stages past few weeks. Thoughts from other owners as to what is fair value hold no sway though. What matters is what price a seller and any buyer agree to transact on, which affects wider market values..

However it could be nothing as many need-to-sell seems to have been around for a while now, but have found buyers willing to step in to meet high asking prices... and HTB2/property-safety investors maybe a part of that.

Forces of HPC are there lurking imo, but resisted by what has been a strong buying dynamic, of those willing to meet higher prices. New full drawdowns on pensions might forestall further correction a while, but some underlying forces in play.

For how much longer. ;)

We have returned to normal, albeit in a far from normal way laugh.gif

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It's difficult to know how so many people do it. Where the money, or is it debt, comes from to pay. Partly I think it's too much showing off in many instances, a big gamble on 'recovery', and not all is as it appears. Or if it is, it could all come to a sudden halt. I think it maybe has for one home-owner in centre of the village. This house came to market as a normal listing, but was later updated in a way I associate with bank possession houses. http://www.rightmove...l?premiumA=true and a few I've noticed left empty, where it seems either owner (or perhaps a bank) holding out for someone stupid to come along and meet their over-valued (by £100Ks) house.

A few weeks ago I arranged for some essential building works for a relative, via one of those MyTrade websites sometimes advertised on the television. Set out the job and invited tenders. Got a range of quotes, with some curt but. Went with one who submitted a really friendly and honest sounding approach with their quote, importantly setting out that they'd done similar works many times over. They came down from Rochdale and did a perfect job over a few days, at less than 1/2 the price the main builders around here quoted. I've seen some of the threads on here where people have received crazy-high quotes for extensions. I think its apathy in searching for a good deal, that too many builders just quoting crazy-high as some will pay it, into this crack-up boom. That it masks some serious deflationary tugging forces that are really in play.

Joiners/gardeners been reduced to knocking on doors to ask for work here for a long time now.

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