Pablo Posted January 6, 2018 Share Posted January 6, 2018 According to the BBC papers overview, this is front page news today. https://www.thetimes.co.uk/article/sellers-slash-prices-after-family-home-market-stalls-qxn5gs7f6 Quote Link to comment Share on other sites More sharing options...
Tempus Posted January 6, 2018 Share Posted January 6, 2018 The fact that The Times thinks "family homes" are those costing "between £1 million and £2 million" sums the madness up. What a fantasy world housing has become. Quote Link to comment Share on other sites More sharing options...
Majorpain Posted January 6, 2018 Share Posted January 6, 2018 QE is starting to lose its grip, supply and demand is coming back into play. Its about time. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 6, 2018 Share Posted January 6, 2018 ....people bought it for how much it could make them, not what it could do for them..... hopefully the tables are turning. Quote Link to comment Share on other sites More sharing options...
Tulip_mania Posted January 6, 2018 Share Posted January 6, 2018 They then towards the bottom of the article suggest that the kind of people buying £1-2M houses have a take home pay of £100k, so gross <£200k. So minimum 5*joint income for what are (even in London) well paid people. Though away from the delusional reporting, it's actually good news, as if these houses come down a bit then the slightly less desirable ones at £800k will drop and so on down the line. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 6, 2018 Share Posted January 6, 2018 2 minutes ago, Tulip_mania said: They then towards the bottom of the article suggest that the kind of people buying £1-2M houses have a take home pay of £100k, so gross <£200k. So minimum 5*joint income for what are (even in London) well paid people. Though away from the delusional reporting, it's actually good news, as if these houses come down a bit then the slightly less desirable ones at £800k will drop and so on down the line. .....but prehaps they will be selling at the top to buy the so called less desirable ones, desirable for some.....thinking they can add value? Quote Link to comment Share on other sites More sharing options...
Simples Posted January 6, 2018 Share Posted January 6, 2018 Eye-watering slashing! Awesome Saturday morning sentiment. Despite stamp duty and of course Brexit being to blame the general sense of the article is - this is the way things are going to be now. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted January 6, 2018 Share Posted January 6, 2018 I have viewed 2 properties this week (have not viewed any for a fair few months. first property decent 4 bed family house been rented out as owners have moved abroad last sold on road 365 asking 380 second bog standard 4 bed (small rooms) on estate next door to v good school asking 279 sold for 290 in sept last year (distressed seller). Imagine purchase to distress under 5 months :-( The interesting thing is that both seem to be BTL or tax change properties so if this is the case then it is doing exactly as it is supposed to do. It may prove shocking how many family homes are BTLs "accidental" or otherwise. I am interesting to see if the first one sets a new high (they paid 290 in 2008) or does not. Norwich is a finely balanced market fully valued underpinned by lack of properties for sale. More properties for sale is bad news for sellers around here and prices go under pressure immediately when 2-3 for sale in same area. Quote Link to comment Share on other sites More sharing options...
hotblack42 Posted January 6, 2018 Share Posted January 6, 2018 1 hour ago, Simples said: Eye-watering slashing! Awesome Saturday morning sentiment. Despite stamp duty and of course Brexit being to blame the general sense of the article is - this is the way things are going to be now. Yes the welcome knock on from PCL falling 25% in real terms from the summer 2016 peak. Rubbish journalism though - "Prices of upmarket family homes.." "..homes on sale for between £1 million and £2 million in London" So are all upmarket family homes in London then? It's almost as if Times journalists pay scant attention to anything, or anyone, outside the M25. I thought it was a national newspaper. Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted January 6, 2018 Share Posted January 6, 2018 4 hours ago, Tempus said: The fact that The Times thinks "family homes" are those costing "between £1 million and £2 million" sums the madness up. What a fantasy world housing has become. That's hilarious. With that sort of money (provided it's not just achieved via debt) one could FIRE and ride off into the sunset. Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted January 6, 2018 Share Posted January 6, 2018 44 minutes ago, wish I could afford one said: That's hilarious. With that sort of money (provided it's not just achieved via debt) one could FIRE and ride off into the sunset. The BBC highlighting of course, naughty Brexit, and doesn't everyone live this lifestyle?? Quote Link to comment Share on other sites More sharing options...
Funn3r Posted January 6, 2018 Share Posted January 6, 2018 I speed-read the title as Sellers slash prices of family home market stalls Quote Link to comment Share on other sites More sharing options...
thewig Posted January 6, 2018 Share Posted January 6, 2018 If you are the seller of a London house and you read this what do you do? Assuming the typical seller is sitting on x00/000% gains and isn’t DEBTleveraged up they can afford to be the marginal seller and find out where the buyers are without being constrained by buying in at bubble prices of the last 3/10/15 years. There’s going to be a sweet spot between the person who bought in 1997 for &75k and is now worth 1.5m so doesn’t care if that becomes 1m, and the person who bought the same house in 2007 at 800k who will probably ShT themselves as price plummets towards their purchase price. Anyone who bought in the last five years is probably fcked either way so will likely hunker down and wait for prices to recover as they plunge into negative equity, these guys won’t be market participants. We are about to witness crowd behaviour on the downside imo. It’s usually steep and brutal according to every market In history ever but this time could be different of course crazy bearish headline I was astonished to see it when i went for a walk to co op earlier although I didn’t buy anything double bonus! Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted January 7, 2018 Share Posted January 7, 2018 12 hours ago, ItalianV6 said: According to the BBC papers overview, this is front page news today. https://www.thetimes.co.uk/article/sellers-slash-prices-after-family-home-market-stalls-qxn5gs7f6 Sellers slash prices after family home market stalls Brexit and taxes force average drop of £142,000 Nuff said, would you expect anything less from the BBC? Quote Link to comment Share on other sites More sharing options...
Fletcher Posted January 7, 2018 Share Posted January 7, 2018 1 hour ago, GreenDevil said: Sellers slash prices after family home market stalls Brexit and taxes force average drop of £142,000 Nuff said, would you expect anything less from the BBC? It is because of Brexit, is it not? And to think, there are those who still say Brexit is an unmitigated disaster. Quote Link to comment Share on other sites More sharing options...
Tapori Posted January 7, 2018 Share Posted January 7, 2018 16 hours ago, ItalianV6 said: According to the BBC papers overview, this is front page news today. https://www.thetimes.co.uk/article/sellers-slash-prices-after-family-home-market-stalls-qxn5gs7f6 Absolute class that. Well done r'kids on HPC Quote Link to comment Share on other sites More sharing options...
Thorn Posted January 7, 2018 Share Posted January 7, 2018 6 hours ago, thewig said: If you are the seller of a London house and you read this what do you do? Assuming the typical seller is sitting on x00/000% gains and isn’t DEBTleveraged up they can afford to be the marginal seller and find out where the buyers are without being constrained by buying in at bubble prices of the last 3/10/15 years. There’s going to be a sweet spot between the person who bought in 1997 for &75k and is now worth 1.5m so doesn’t care if that becomes 1m, and the person who bought the same house in 2007 at 800k who will probably DEFINITELY ShT themselves as price plummets towards their purchase price. Anyone who bought in the last five years is probably fcked either way so will likely hunker down and wait for prices to recover as they plunge into negative equity, these guys won’t be market participants. We are about to witness crowd behaviour on the downside imo. It’s usually steep and brutal according to every market In history ever but this time could be different of course crazy bearish headline I was astonished to see it when i went for a walk to co op earlier although I didn’t buy anything double bonus! Double bonus is right. Had to edit your post. No probably about it. Definitely. And Definitely this will play on their minds from here on. Quote Link to comment Share on other sites More sharing options...
Mrs Bear Posted January 7, 2018 Share Posted January 7, 2018 I saw this article. Same old banging on about stamp duty/Brexit - no mention of the obvious: i.e. that many of the sort of people who would have taken it for granted that they would be able to buy such family homes 20 or 30 years ago, are now no longer able even to think of it. Many houses around here that are now routinely priced at around the £1m mark would not have been thought of as anything remotely special a couple of decades ago. Quote Link to comment Share on other sites More sharing options...
stop_the_craziness Posted January 7, 2018 Share Posted January 7, 2018 51 minutes ago, Mrs Bear said: Many houses around here that are now routinely priced at around the £1m mark would not have been thought of as anything remotely special a couple of decades ago. I know I'm out of touch because the phrase "million pound house" still makes me think of Footballer McMansions and Elvis Graceland houses. Not a stupid terraced house in downtown Kilburn! Quote Link to comment Share on other sites More sharing options...
dryrot Posted January 7, 2018 Share Posted January 7, 2018 (edited) 23 hours ago, Tempus said: The fact that The Times thinks "family homes" are those costing "between £1 million and £2 million" sums the madness up. What a fantasy world housing has become. +1. there was a thread a few weeks ago about the Lottery - £1m was lifechanging on 1992, now it "buys" an 4bed semi in Dalton. In the same vein http://www.dailymail.co.uk/money/mortgageshome/article-5229793/Would-raffle-home.html "Renu Qadri, 49, a former antiques dealer, wants to move to a smaller property because she can longer work and is struggling to pay the mortgage. She tried to sell her five-bedroom flat in Blackheath, South- East London, through an estate agent for £1.3 million but got only one viewing in six months." "Roger Hickman, 73, [...] had been trying to sell his two-bedroom flat in West London for 18 months but had not received any offers at the £950,000 asking price. Buyers had likely been deterred because of a complication with the lease. The main part of the flat is covered by a lease that has 71 years to run, but the bedroom had been extended into the basement of the property and this lease only has 11 years left. Someone had offered £850,000, which Roger says now he wishes he had accepted( !) Edited January 7, 2018 by dryrot Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 7, 2018 Share Posted January 7, 2018 "Buyers had likely been deterred because of a complication with the lease." ...or the price... Quote Link to comment Share on other sites More sharing options...
Dorkins Posted January 7, 2018 Share Posted January 7, 2018 16 hours ago, thewig said: Anyone who bought in the last five years is probably fcked either way so will likely hunker down and wait for prices to recover as they plunge into negative equity, these guys won’t be market participants. If I was a bank I'd be wanting some extra interest to compensate me for the ballooning loan to value in that scenario. Those borrowers might not want to be market participants but they may not have a choice if they can't afford the interest payments on a 150% LTV mortgage. Quote Link to comment Share on other sites More sharing options...
Si1 Posted January 7, 2018 Share Posted January 7, 2018 21 minutes ago, Dorkins said: If I was a bank I'd be wanting some extra interest to compensate me for the ballooning loan to value in that scenario. Or a govt handout to compensate. Quote Link to comment Share on other sites More sharing options...
thewig Posted January 7, 2018 Share Posted January 7, 2018 3 hours ago, Dorkins said: If I was a bank I'd be wanting some extra interest to compensate me for the ballooning loan to value in that scenario. Those borrowers might not want to be market participants but they may not have a choice if they can't afford the interest payments on a 150% LTV mortgage. no reason they won't be able to afford the interest payments assuming they can afford them now? or are you suggesting the interest rate will rocket when it comes to remortgage time due to NO FCKING EQUITY? if so hahah good serves them right for taking on a big fckoff DEBT thinking it would somehow magically pay itself off cos that's what the tellies been telling them for years Quote Link to comment Share on other sites More sharing options...
Dorkins Posted January 7, 2018 Share Posted January 7, 2018 2 hours ago, thewig said: are you suggesting the interest rate will rocket when it comes to remortgage time due to NO FCKING EQUITY? Exactamundo. Quote Link to comment Share on other sites More sharing options...
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