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Average Joe

New Build Apartments - Dodgey Valuations

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Richard Jones, a sole trader agent, added: "A lady asked me to value her flat. She had paid £210,000 for it. I couldn't honestly value it at more than £150,000 on a good day. That was after just seven months. And even at that price it'll be tough to find buyers."

There's a nice published 28% fall in price, after 7 months. £60k down, that must really hurt.

I hope it's cash flow positive, but we know on this forum how unlikely that is.

This women is now trapped. There's no longer an easy way out, for her the hard times have begun.

Just a few more months of articles like these and amateur investors are going to do what they do best, follow the herd and panic too late.

Negative equity might not be a short-term problem. Investment bank Dresdner Kleinwort Wasserstein says new-build flats have fallen in value by 5.6% in the past three months. If the two-bed flat explosion continues, prices have only further to fall.

So can we make that a 22% annualised fall? The VI's did the same on the way up.

It's starting to look like prices are falling faster than they did in the 90's crash.

Edited by BandWagon

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http://money.guardian.co.uk/property/story...1669126,00.html

The truth about those dubious new build valuations......enjoy!

Think this is some early "Not me Miss" from both sides. The CML is anticipating that the fallout of negative equity will be the investors looking Daily Mail-style to blame someone and the participant in the charade with the biggest ability to pay will be the lender. The CML wants to ensure they arent the sole flak recipients.

RICS are a ridiculous organisation. The whole valuation thing has always been more art than science and it looks now like a shabby Turner prize nominee. They should be ashamed of themselves. Profit before professionalism. Like the journos - no questioning just do as you are told thats why we pay you - but with letters after their name.

The Fox

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Typical of the CML blame the surveyors. If a firm of valuers didn’t come back to the lender with the ‘right’ figure they were kicked off the valuation panel. Sue the banks not the surveyors. <_<<_<<_<<_<

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Typical of the CML blame the surveyors. If a firm of valuers didn’t come back to the lender with the ‘right’ figure they were kicked off the valuation panel. Sue the banks not the surveyors. <_<<_<<_<<_<

Number hitting and ditching appraisers who attempt to price honestly seems to to have taken over the US market as well. The financial bun fight appears to have started - wait till the investors find out the real value of their "AAA" mortgage backed assets then the feather spittng will really begin.

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This has the potential to be much bigger than the mis-sellling scandals of endowment mortgages and personal pensions. I am not sure who will be legally liable but potentially surveyors etc could find themselves in big trouble as BTL investors realize that they have paid way over the odds. A lot of people will find that they are 10's of thousands out of pocket.

OUCH!!!

As property prices fall it becomes VERY interesting.

When the tide goes out you find who has been swimming without a costume. ;)

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  • 301 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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