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tomr

Krusty And Phil Tonight

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Wasn't actually watching it properly but it was on in the background, they showed them a house that was advertised at 575k and then a year later dropped down to 450k (i think), and they claimed they thought that an offer at the top of the couple's 390k budget would probably get it. So that's a crash of 32%..............

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Wasn't actually watching it properly but it was on in the background, they showed them a house that was advertised at 575k and then a year later dropped down to 450k (i think), and they claimed they thought that an offer at the top of the couple's 390k budget would probably get it. So that's a crash of 32%..............

They went for the other house in the end.

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They went for the other house in the end.

Yep, it was discounted 32% and they still couldn't afford it, because it needed work or something.

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Yep, it was discounted 32% and they still couldn't afford it, because it needed work or something.

What work? I missed that bit. Looked a lovely house. I think they were put off by it being a listed property.

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Caught the end of the programme, interesting wording Phil used when talking about the price drops.

He looked a bit pained when talking to the developer. Developer was on about how the market and economic climate had changed in the 2 years it had taken them to develop the property.

Edited by libitina

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What work? I missed that bit. Looked a lovely house. I think they were put off by it being a listed property.

Cost of upkeep involved in a larger property or something like that. Just an excuse made up by K&P to mask the fact that they couldn't afford it I think. Maybe it was their attempt to show that property is still affordable, look what kind of house you can get for this kind of money etc. Completely backfired IMO, the only thing I'll remember about it was that it was discounted 32%......

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When was this filmed and what area was it in for us non t.V. types.

Cheers in advance

According to digiguide, filmed in Jersey and it's not a repeat so presumably recently.

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Caught the end of the programme, interesting wording Phil used when talking about the price drops.

Yes. He actually opened the program talking about how you need to sell up at the right time to realise your "investment". The guy had a flat, and since so many new flats were being built, now was the right time for them to sell, as they would lose value over the next few years.

He bought for about £170 and sold for about £185, 2 years later - a nice £15K profit towards their next place as Phil said. Or looking at it differently, a whopping 4.5% rise in value each year.

So we saw the low end of the market being squeezed at the start, and the high end at the end. And lots of "not shifting" and "lowered prices" and "sell at the right time" messages. I really enjoyed that one ;)

Edited by AFineMess

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He looked a bit pained when talking to the developer. Developer was on about how the market and economic climate had changed in the 2 years it had taken them to develop the property.

Yes, I noticed this. The developer basically said "theres been a price crash here" before Phil quickly changed the subject.

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i dont care. property programs are *****. its tiresome - like the flood of garden invaders we had 1999-2001. got boring. samey.

its junk tv when every single station jumps on a bandwagon, some even many times. some even many times in one day.

property property property.

its only good to watch if your some sort of wotsit eating armchair stooge who already has a house, and it helps them marvel at their riches (on paper) and helps them feel secure.

for anybody else. i.e. under 40. its utter gushy made up shite.

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I know Jersey quite well. It's always been different from the UK property market and has been in a downturn for the last 7 years. Two main reasons for this, the first being the severe loss of confidence in the offshore financial services industry and the second being the massive explosion in new flats due to the demolition of a large number of hotels arising from the steady demise of Jersey's tourism industry, which has also had an effect of depressing house prices overall.

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I know Jersey quite well. It's always been different from the UK property market and has been in a downturn for the last 7 years. Two main reasons for this, the first being the severe loss of confidence in the offshore financial services industry and the second being the massive explosion in new flats due to the demolition of a large number of hotels arising from the steady demise of Jersey's tourism industry, which has also had an effect of depressing house prices overall.

Massive explosion of new flats? Hmm.... where else is that happening...

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Massive explosion of new flats? Hmm.... where else is that happening...

Shew, lucky we all know that could NEVER happen in the UK.

There's a property shortage, don't you know...

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Shew, lucky we all know that could NEVER happen in the UK.

There's a property shortage, don't you know...

Yes, I've always been interested in the parallel of the oversupply of flats in Jersey with the same oversupply seen in recent years in the UK property market. The difference I suspect is that there has not yet been the loss of confidence in the UK economic outlook for the time being. There is no doubt in my mind that when the profligate lending by financial institutions is brought to a halt, the downturn in the UK will be quite severe, far reaching and for a protracted period of time too.

I would also mention that the Jersey housing market never boomed to the same degree as in the UK and peaked much earlier around 1998. Therefore I feel that the longer term effect on the UK housing market will be much more severe than experienced by Jersey over the last 7 years.

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Very funny watching many small time developers gettig caught out recently. The penny is probably now dropping that the margins aren't there any more. I know of one who has gone back to his day job.

:)

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Yes. He actually opened the program talking about how you need to sell up at the right time to realise your "investment". The guy had a flat, and since so many new flats were being built, now was the right time for them to sell, as they would lose value over the next few years.

He bought for about £170 and sold for about £185, 2 years later - a nice £15K profit towards their next place as Phil said. Or looking at it differently, a whopping 4.5% rise in value each year.

So we saw the low end of the market being squeezed at the start, and the high end at the end. And lots of "not shifting" and "lowered prices" and "sell at the right time" messages. I really enjoyed that one ;)

£15K profit.

Minus Stamp duty of £1700 (1% of £170K).

Minus EA fees on selling of ~£2775 (Assuming a generously low 1.5% fee).

Minus Legal fees on buying and selling.

Minus Mortgage fees (if mortgage was needed).

So probably more like a £7K ish profit, not the £15K as stated.

Amazing how so many people conveniently 'forget' transaction costs.

You meet amateur investors who claim they've made a whole load of profit, but completely forget to add all of the transaction costs when they tell you what they've made.

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£15K profit.

Minus Stamp duty of £1700 (1% of £170K).

Minus EA fees on selling of ~£2775 (Assuming a generously low 1.5% fee).

Minus Legal fees on buying and selling.

Minus Mortgage fees (if mortgage was needed).

So probably more like a £7K ish profit, not the £15K as stated.

Don't forget theat VAT is payable on EA fees, so you need to take another £485 off the profit!

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Guest Alright Jack

i dont care. property programs are *****. its tiresome - like the flood of garden invaders we had 1999-2001. got boring. samey.

its junk tv when every single station jumps on a bandwagon, some even many times. some even many times in one day.

property property property.

its only good to watch if your some sort of wotsit eating armchair stooge who already has a house, and it helps them marvel at their riches (on paper) and helps them feel secure.

...Just wait for the GOLDRUSH. It's gonna be awesome!

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  • 337 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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