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ItalianV6

Sellers slash prices after family home market stalls

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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. 

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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. 

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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?;)

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Eye-watering slashing! Awesome Saturday morning sentiment.  Despite stamp duty and of course Brexit being to blame :rolleyes: the general sense of the article is - this is the way things are going to be now.

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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.

 

 

 

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1 hour ago, Simples said:

Eye-watering slashing! Awesome Saturday morning sentiment.  Despite stamp duty and of course Brexit being to blame :rolleyes: 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.

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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.

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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!

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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? 

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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. 

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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. 

 

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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. 

 

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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!

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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 by dryrot

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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.

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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.

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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

 

 

 

 

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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.

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  • 406 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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