Si1 Posted June 17, 2014 Share Posted June 17, 2014 A friend of mine lives in a block of flats and as the only person on the management committee he gets to know what's happening. Over the last 10 years most of the flats have become BTL and apparently whenever another goes on sale lots of perspective BTL'ers turn up. And he also says there's lots of of them waiting in the wings, ready to jump as soon as prices fall. -- On a different note, the box flat I've been watching has just has it's price cut from OIEO £110K to OIEO £105k. Still way overpriced but it's a drop. Except they won't be able to get the finance. Apart from that impeccable logic Quote Link to comment Share on other sites More sharing options...
renting til I die Posted June 17, 2014 Share Posted June 17, 2014 Who's talking about FTB s? Or have you personally fixed the ladder? Where might someone nearing 40 with kids and a 10th decile income be allowed to live then? +1 I'm nearing 40!...... and I'm still a potential FTB (and could be for a long while yet)! The only ladders I have ever seen are the ones to clean up-stair's windows! There is no property ladder! Quote Link to comment Share on other sites More sharing options...
renting til I die Posted June 17, 2014 Share Posted June 17, 2014 (edited) 1: Thats not a first time buyer house in that area, thats a definite 2nd/3rd stepper There is no property ladder! Its just a story they made up to make you feel good about getting into so much debt! If you are a 20 year old or 60, the more money you have saved or the greater your income the better/bigger house you will be able to buy! Where's the ladder? How many prem footballer players buy a little shared ownership flat before taking another step up the ladder?! Repayment mortgages force people who can't save to save. If I rent, I can still save/invest the difference between the rent and the interest on the repayment mortgage. (Yes, I know in some places rent is currently higher than mortgage interest but that is more to do with the very low rates and not the norm! Whatever people tell you!) When you pay your rent you are not wasting money or making someone else rich! At least not any more than when you buy an overpriced house off someone or pay huge amounts of interest to a bank! Whatever you do, someone else will be receiving money from you. Its called an exchange for goods or services! So, what is this magical ladder! Nothing more than a lie for people who don't understand saving or inflation! Edited June 17, 2014 by renting til I die Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 17, 2014 Share Posted June 17, 2014 As I'm sure you know it can take a few months for sales to get registered,hence the lag in the data. Until the sale gets registered,you're really just guessing at the price action.No offence. As for the late 90's there was a bit of 'arms race' in terms of banking post the repeal of glass steagall. No offence taken because I'm not guessing. My point was that rather than use old data (that certainly is a just guess to base selling prices now), I'd prefer to rely on what people are seeing in an area they know about. Surely a huge clue is in how quickly properties sell. The quicker it is the more likely the sold price was nearer to the asking price. If someone like 7YI is saying properties are going to final offers over asking prices higher than previously sold, I'd be fairly confident prices were rising. Quote Link to comment Share on other sites More sharing options...
LandOfConfusion Posted June 19, 2014 Share Posted June 19, 2014 . Over the last 10 years most of the flats have become BTL and apparently whenever another goes on sale lots of perspective BTL'ers turn up. And he also says there's lots of of them waiting in the wings, ready to jump as soon as prices fall. Except they won't be able to get the finance. Apart from that impeccable logic I hope you're right and I also hope we don't see the pro's flooding in with cash. Quote Link to comment Share on other sites More sharing options...
debtlessmanc Posted June 20, 2014 Share Posted June 20, 2014 Problem with probate, I have to agree with siblings, one of whom is a g****y t**t. My dad bought it in 2004 and spent £15k on it. I would be happy to get the 2004 price tbh. Still no interest, coming up to six months empty and council tax/insurance hike looming. spoke to one sibling yesterday, he said that the EA had asked whether we had considered auction, he thought of letting it (ffs it's an old persons disability bungalow). My other sibling just stated that his wife wouldn't countenance selling it for less than "it's worth" and suggested his son move in (student so no CT)!! Think I am in for the long run on this one. Tbh if this is typical of people's positions - zombie market here we come What's even more amusing is that a developer wants to build a huge estate that will effectively double the size of the village, who the hell do they expect to sell to? There a dozens of properties for sale there already Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted June 20, 2014 Share Posted June 20, 2014 Still no interest, coming up to six months empty and council tax/insurance hike looming. spoke to one sibling yesterday, he said that the EA had asked whether we had considered auction, he thought of letting it (ffs it's an old persons disability bungalow). My other sibling just stated that his wife wouldn't countenance selling it for less than "it's worth" and suggested his son move in (student so no CT)!! Think I am in for the long run on this one. Tbh if this is typical of people's positions - zombie market here we come What's even more amusing is that a developer wants to build a huge estate that will effectively double the size of the village, who the hell do they expect to sell to? There a dozens of properties for sale there already Probates are the 'hole in the dam'.Not forced sellers but as close as we'll get with forebearance being as widespread as it is. The reality is that after a year,eventually,the penny drops, especially with the drip,drip of bills eating away at the capital. I've been through it myself and had to deal first hand with the denial as well as the greed and anger,at the same time as losing someone you cared for. Good luck with it DM. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 20, 2014 Share Posted June 20, 2014 I hope you're right and I also hope we don't see the pro's flooding in with cash. Flooding with cash! They don't have any cash. They never had any - it was all leverage. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted June 20, 2014 Author Share Posted June 20, 2014 Just had a look at RM in my area for the first time since about January. Loads of stuff on but most of it is stuff that has been on for years. Lots have raised their asking prices but, in some cases, propertybee is now showing drops in asking prices. What a load of denial ramping b*ll*x. Seems most could not sell so why not increase the asking price, no doubt due to all the media hype this year, but it seems clear that people are not selling in any great numbers. I wonder how many of the SSTCs will actually complete. Quote Link to comment Share on other sites More sharing options...
nnails Posted June 20, 2014 Share Posted June 20, 2014 In the last week 3 have come back on the market after being sold subject to contract for couple of months. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted June 20, 2014 Share Posted June 20, 2014 (edited) https://pbs.twimg.com/media/BqjsNn2CcAALIhp.png:large No of £1m+ sales outside London doing same as ... 2007/08. Tum tee tum tee tum... Edited June 20, 2014 by Killer Bunny Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 20, 2014 Share Posted June 20, 2014 Expect to see a lot of houses, that have been on the market for ages, getting re-listed on Rightmove at a higher price for the summer. This happens every year as nothing much sells in the summer months, due to holidays, so the EAs bump the price during the dead season so they can drop it (bargain anyone?) in the autumn when the market seasonally picks up when the holiday season is over and the kids are back at school. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted June 20, 2014 Share Posted June 20, 2014 http://www.markiteconomics.com/Survey/PressRelease.mvc/e0a4e1e9f9034efa9486cffb2b85d54c Future house price expectations ease to six month low Every little helps Quote Link to comment Share on other sites More sharing options...
cuddlybear Posted June 20, 2014 Share Posted June 20, 2014 http://www.markiteconomics.com/Survey/PressRelease.mvc/e0a4e1e9f9034efa9486cffb2b85d54c Future house price expectations ease to six month low Every little helps Isn't that bullish for UK property though? "Cash on the sidelines", "climbing a wall of worry" etc etc? Mortgage finance still available at less than cost of rental in most places so we actually need the imbalances to build up into a proper global calamity before we get another crash (one which might not be frustrated this time), I think you said it's the next global economic implosion that will do it I think we will now get a proper HPC when the government support isn't there any more. Sovereign debt crisis and Japanese-style deflation should do the trick, that means government can't cut rates below the natural level and can't bail out in other ways either. Due 2016 or thereabouts. Quote Link to comment Share on other sites More sharing options...
Venger Posted June 20, 2014 Share Posted June 20, 2014 Mortgage finance still available at less than cost of rental in most places If you pass the MMR, 2 hour interviews, and other criteria which may become even more stringent. There's would be big-borrowing mortgage applicant spanners on MSE gutted their lenders have told them they wouldn't even qualify for their existing mortgage, let alone their plans to upsize. And some implying they're stuck, prisoners with existing mortgage lender, as hard to pass MMR with a new lender, to switch to a possible better rate. Carney's warned about it - give him that - even into the height of the madness past few months of NattyYes and HTB. And not just jawboning, with MMR. Yeah your remaining savers really worry me - too many of them already frenzied into the market, including BTLers buying up sort of home I would like (lower-mid end) at crazy high prices. Perhaps I've skip that level and go straight into mid-market, (3-4 bed semi) in the crash. ISA Deposits Suffer Unprecedented Fall - Sky News news.sky.com/story/1274709/isa-deposits-suffer-unprecedented-fall 3 Jun 2014 - The amount UK households have stored away in cash ISAs fell in April at the fastest monthly rate since the accounts were introduced in 1999, ... Britons 'Draining Savings' To Stay Afloat - Sky News news.sky.com/story/1274782/britons-draining-savings-to-stay-afloat 3 Jun 2014 - Borrowing levels are low but instead consumers are increasingly turning to their savings, with ISA deposits taking a big hit. Mark Carney warns house buyers: can you afford the ... theguardian.com › Business › Bank of England 29 Nov 2013 - The governor of the Bank of England has issued a blunt warning to potential home-owners that they must be able to pay their mortgages when ... Carney warns against taking out big mortgages - Telegraph telegraph.co.uk › Finance › Economics 29 Nov 2013 - Mark Carney has warned home-owners not to take out big mortgages that they will not be able to afford when interest rates start to rise. Bank of England governor Mark Carney warns over housing ... ft.com/cms/s/0/2cf521bc-de5f-11e3-9640-00144feabdc0.html 18 May 2014 - Mr Carney's comments follow a similar warning from Sir Jon Cunliffe, ... which offers mortgages guarantees to borrowers with small deposits. But he said the central bank could ensure that banks were strong enough and underwriting standards tough enough to “reduce the risks that come from a housing market that has deep, deep structural problems”. Quote Link to comment Share on other sites More sharing options...
nnails Posted August 3, 2014 Share Posted August 3, 2014 the house that i mention one has now been sold and the other is sstc again Quote Link to comment Share on other sites More sharing options...
byron78 Posted August 3, 2014 Share Posted August 3, 2014 Loads of SSTC round here. Loads of prices tumbling as well. Many of the SSTC come back on after a while (oddly a few say SSTC but also have open day viewing coming up). Quote Link to comment Share on other sites More sharing options...
debtlessmanc Posted August 3, 2014 Share Posted August 3, 2014 Fathers house now been on four 4 months, no further viewings. Bro spoke to EA, they said not to drop price as the house was just "waiting for the right buyer" Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 3, 2014 Share Posted August 3, 2014 Isn't that bullish for UK property though? "Cash on the sidelines", "climbing a wall of worry" etc etc? Mortgage finance still available at less than cost of rental in most places Wow More maintenance, insurance, risk free houses. I must be living in the wrong parallel universe. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted August 3, 2014 Share Posted August 3, 2014 Fathers house now been on four 4 months, no further viewings. Bro spoke to EA, they said not to drop price as the house was just "waiting for the right buyer" They don't want to devalue the surrounding properties. Quote Link to comment Share on other sites More sharing options...
cybernoid Posted August 3, 2014 Share Posted August 3, 2014 Fathers house now been on four 4 months, no further viewings. Bro spoke to EA, they said not to drop price as the house was just "waiting for the right buyer" Is there some industry standard book with meaningless phrases they have to study or something? You wouldn't want the wrong buyer would you, that would never do. Quote Link to comment Share on other sites More sharing options...
gf3 Posted August 3, 2014 Share Posted August 3, 2014 They don't want to devalue the surrounding properties. I wonder if EA over value say 90% of their houses by say 10% so that the 10% of their stock they are trying to sell look like bargains. I know if I am looking to buy something I will spend ages looking for the best price and even then I may not buy until that one day comes along when I see a bargain and jump at the chance. But I look at the other prices as a reference to gage if it is a bargain or not. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 3, 2014 Share Posted August 3, 2014 Is there some industry standard book with meaningless phrases they have to study or something? You wouldn't want the wrong buyer would you, that would never do. Is there a government backed cartel? Why were bank of England agents visiting estate agents before this new round of lunacy kicked off? Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted August 3, 2014 Share Posted August 3, 2014 Fathers house now been on four 4 months, no further viewings. Bro spoke to EA, they said not to drop price as the house was just "waiting for the right buyer" Dangerous to listen them IMO, you want to get it sold before things really turn, although you did say it is not your sole decision? Personally I would go at 5 or 10% less than the last sold price, that should make sure you start to get viewings? Many people are going to regret holding out for a few grand more when the market actually does collapse. Quote Link to comment Share on other sites More sharing options...
Mr 0.01% Posted August 3, 2014 Share Posted August 3, 2014 Fathers house now been on four 4 months, no further viewings. Bro spoke to EA, they said not to drop price as the house was just "waiting for the right buyer" The EA phrase that gets on my Titos more than any other EA phrase is 'PRICED TO SELL'. OF COURSE IT'S PRICED TO SELL!!! OTHERWISE THE OWNER WOULDN'T HAVE PUT IT UP FOR SALE!!! Unless they're just inflating the asking price beyond its actual value/trapped in negative equity, of course... Quote Link to comment Share on other sites More sharing options...
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