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eric pebble

Surveyor: "she Had Paid £210,000 For It. I Couldn't Honestly

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Get a load of this!!!! HAa HAAAA!!

[surveyor] - "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."

http://www.tiscali.co.uk/money/guardian/fe...fartoohigh.html

There's one born every minute... i mean a first time buyer who does absolutely no due diligence on the biggest purchase they'll ever make but spends hours comparing prices of beans at tesco and asda and cutting out coupons :unsure:

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To be fair to the buyer it was possible that at the time of the purchase prices were going up and that was the going rate. "Better get a foot on the ladder" etc. In today's market where buyers are seeking heavy discounts it is only to be expected that the seller would get less. It is what happens when the market goes down.

But what is the problem? The seller can get the same discount on the next house purchase so nothing is lost.

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The problem is she needs the mortgage company to allow her to carry her negative equity on to her next house.

True. If she had an IO mortgage or other form of "baloon" payment with large cancellation fee she will be in difficulty for sure. But then, isn't this going to happen to a lot of buyers who thought they had better "get in quick" and paid top of the market when the market was going down? This next crash is surely going to be rather nasty for a lot of people.

<_<

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The problem is she needs the mortgage company to allow her to carry her negative equity on to her next house.

Or onto another mortgage when she reverts back to an svr!

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I especially liked this bit:

Earlier this month, The Mortgage Works, an arm of the Portman building society that specialises in buy-to-let properties, said it would stop lending on new-build properties targeted at buy-to-let customers.

although:

It said valuation in the sector was "more of an art than a science".

You don't say!?! :lol:

And oh dear... :ph34r:

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.
Edited by vicster

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And another thing about new builds in the slowing market.............The official purchase price might be say £200k which appears in the land registry and Halifax data but the buyer has actually got furniture included in the price or large cashback discounts from the developer which often take the form of ''we'll guarantee your first 2 years' rent'' incentives to investors..........(equivalent to 10or 11% discount i guess).

These de facto price cuts therefore do not show up in any of the official prices ..so almost all new build prices are overstated........meaning the Halifax figures are rubbish.

Hotel-style new build flats will lose at least 40% of their value however well the rest of the the market holds up...The centres of Leeds and Manchester will be worst hit.

Edited by Michael

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[surveyor] - "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."

Richard Jones, a sole trader agent, added

I believe there is a difference between an Estate Agent and a Surveyor. ;)

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Hang on house prices only ever go up so it should be worth 250K by now ;)

At least! I'm surprised it isn't on the market for 300k with sealed bids, gazumping et al :D

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At least she's on the LADDER now, unlike the rest of you layabouts. :P

when does the ladder become the snake ??

Right where it always does..

after peak..

It doesent take a nobel prize winner to predict that a downturn follows an upturn.

It does to predict when..

He said last week

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Eric, I like you and your style..normally...but that article is 4-5 months out of date. TMW pulled out of newbuild ages back ;)

Guardian Unlimited © Guardian Newspapers Limited 2005

Edited by Converted Lurker

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And another thing about new builds in the slowing market.............The official purchase price might be say £200k which appears in the land registry and Halifax data but the buyer has actually got furniture included in the price or large cashback discounts from the developer which often take the form of ''we'll guarantee your first 2 years' rent'' incentives to investors..........(equivalent to 10or 11% discount i guess).

These de facto price cuts therefore do not show up in any of the official prices ..so almost all new build prices are overstated........meaning the Halifax figures are rubbish.

Hotel-style new build flats will lose at least 40% of their value however well the rest of the the market holds up...The centres of Leeds and Manchester will be worst hit.

Driving across SE & SW UK regularly - I cannot help but see all sorts of "New Build" estates. lying practically EMPTY - no takers - the prices are just an insult to an amoeba's intelligence...

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There certainly is an EA that has to sell property (in a tough market) to eat, is more likely

to value it accurately than an RICS bod, who gets paid to value it!

Pablo Silver or Lead?

Thick EAs can't work it out: Turnover is dictated by price.

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  • 338 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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