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GAL BEAR

2 'interesting' Letters In The Property Section Of

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I am referring to two letters in THE MAIL ON SUNDAY property section.

I am referring to them from memory so forgive any slight 'misquotes'

The 'property expert' (cannot recall his name)came accross quite 'bearish'.

LETTER 1

From a person basically asking if now was a good time to get on the property ladder as it appeared

to him that the so called 'crash' had appeared not to have happened after all, due to low interest rates, low unemployment etc.

The 'property expert ' in reply said that yes, interest rates were low, unemployment levels were also low.

However the fact that nearly all first time buyers were now effectlively priced out of the poperty market would lead any sensible person to the conclusion that property was overpriced and some sort of correction 'could' happen. (or words to that effect).

LETTER 2

This was from a BUY TO LET 'landlord'.

This one creased me up !!!

He was moaning because the interest rate on his BTL had gone up (therefore his mortgage had gone up) and he had ask the girl renting his flat to pay more rent or she would have to leave!

I can't recall what his question to the 'expert' was, something like 'is there anything else I can do?'

The 'property expert' was brilliant and basically gave it to him with both barrells.

He said it seemed a bit unfair to put her rent up.

He advised the BTL 'landlord' either "SELL THE PLACE, OR GET A LOW INTEREST RATE BY CHANGING THE MORTGAGE" .

I bet that was not the sort of answer the 'BTL' expected to hear.

I thought both responses were very 'balanced' and definitley 'bearish'.

:P:o:o

Edited by GAL BEAR

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I think the fact that first time buyers are priced put of the market almost everywhere will be the key factor in a house price correction and this is sometimes overlooked.

The bulls can bang on about low interest rates and high employment all they like but if people can not afford the repayments they will not and can not buy these houses and something will have to give.

The point often made by bulls about BTL taking over where FTB;s are absent is also a poor argument. BTL;s can not buy up every property that comes on the market. There are loads of empty houses sat around on EA's books in my area. They can't sell them and can't rent them either.

This is basic economics - there is no bottomless pit of money for FTB's to keep dipping into.

The other point made about new build city centre 2 bed flats crashing but not having an inpact on the rest of the market is also rubbish.

Look at it this way - if you are 20/21 yrs old and straight out of university you will be looking for somewhere to live - but you also want to party and have a bit of fun. What you going to do buy a 2 bed for £50K in the city centre or tie yourself down with a terrace house in the burbs for £245K. It's a no brainer.

What the bulls forget is that there was actually a time when youngsters were not clambering to get on the ladder because house prices had crashed and were not even an issue - no one talked about them. When this happens again the youngster will buy a cheap 2 bed flat for half what it was worth when built and enjoy themselves. This will take the pressure of the lower end of the market and help push prices down across the board.

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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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