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hedi

Be Prepared To Wait

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while i firmly believe that the debt chickens are going to come home to roost, it might be some time.

i believe that we are in a situation where the govenments and banks are so up to their necks in whats going on that they have no option but to play this to the very end. they are making absolutly no attempt to curb borrowing or encourage saving. banks are lowering their savings rates. mr brown has lowered the premium bond payout rates etc etc.

they are playing this one all the way, that so it will go on a while yet.

be patient.

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ps, one must remember that this is the generation that believe that if you think everything will be alright in the end, it will be. they do not believe in planning ahead, or thinking things through. just look at every other thing they have done, from wars in iraq to ill thought out laws and regulation.

our rules just do not think things through

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Good news here and there:

. . . while some regions recorded increases of less than 1 percent, said Hometrack Director of Research Richard Donnell.
The survey also showed that house prices were static in more than half of the country, and Donnell said rising unemployment and fears of higher interest rates could curb price gains in the coming months.

http://uk.news.yahoo.com/26062006/325/hous...-year-half.html

Where I am houses dropped over 8% YoY and things are getting better every week with more "new prices" and "unexpectedly back on the market" ads in my local property paper. Depends where you are I suppose. At the current rate of local decline we shall hit the magic 20% down within 12 months. Barring any more factory closures or other emploiyment bombshells, rise in IR, or other negatives for the economy. Then a pick up in the HPC may well materialise.

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Here's a thing, met this guy over the weekend, only 28, starting buying property at auction 2 years ago. Now on his 9th 'fixer upper'. Has mortgage free place in Woolton L'pool, (nice area) and 2 more to sell to make profit. Started with 5K loan from his Dad. Some would have told him to wait 2 years ago <_<

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People on this site said that 2 years ago!

There has been no thunder or lightening this week in my part of the country.

Must mean there will never be any ever ever again!!

:blink:

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People on this site said that 2 years ago!

Actually property in Derbyshire has been falling for the last two years since it peaked in 2004.My problem,having liquidated my property,is to avoid getting sucked back in;I need my daily fix from HPC forum to stop myself doing anything stupid.The trouble is there are desperate sellers out there because the East Midland's market is on its knees.I recently made a230K offer on a property originally on at 285K in 2005,it was accepted in view of my cash buyer status;i did not,however,proceed with it.The price in 2005 was not unreasonable by comparison to others and indeed sold STC at that time for 275K.

Thanks for the warning Hedi.

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Here's a thing, met this guy over the weekend, only 28, starting buying property at auction 2 years ago. Now on his 9th 'fixer upper'. Has mortgage free place in Woolton L'pool, (nice area) and 2 more to sell to make profit. Started with 5K loan from his Dad. Some would have told him to wait 2 years ago <_<

has he paid tax on that lot?

thought not... <_<

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Here's a thing, met this guy over the weekend, only 28, starting buying property at auction 2 years ago. Now on his 9th 'fixer upper'. Has mortgage free place in Woolton L'pool, (nice area) and 2 more to sell to make profit. Started with 5K loan from his Dad. Some would have told him to wait 2 years ago <_<

On the other hand, I posted with a guy on HPC who has 2 investment properties in Crawley near the airport and he wants to sell. ODPM stats show that a HPC is actually occuring in that area due to overbuilding, employment and affordability issues:

Crawley £303,250 last Q: -4.8% YoY: -17.7%

http://news.bbc.co.uk/1/shared/spl/hi/in_d...county101.stm?d

Imagine someone who bought into that market last year. They would be weeping now. But I agree with you, some areas have seen appreciation and Liverpool may have been a hot spot for investment property. For the guy in Liverpool he obviously took advantage of the strong figures for cheaper properties in that area (up a massive 11%):

Liverpool £141,475 last Q: -2.0% Yoy: 11%

http://news.bbc.co.uk/1/shared/spl/hi/in_d...county54.stm?se

The most recent quarter saw a small drop but as things improve employment-wise in that area he should do okay--barring a HPC of course <_<

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has he paid tax on that lot?

thought not... <_<

No idea..probably..again this illustrates one of many misconceptions prevalent on here, that somehow it must be 'dodgy'. Buys house for 45K spends 10 on it, sells for 70, does this 9/10 times in the period of 2-3 years... <_< Can't see much wrong with it myself, if each house is in his name and he is technically a single dweller, or puts others in Girlfriends/Mum and Dad's name...only what a decent accountant would suggest in order to avoid tax. My overall point is that this guy could have taken advice and waited, he didn`t, rolled up his sleeves and made things happen. Now 2 years later even with a 20% correction it will not hurt him. Still plenty of opportunity for FTBs out there...

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No idea..probably..again this illustrates one of many misconceptions prevalent on here, that somehow it must be 'dodgy'. Buys house for 45K spends 10 on it, sells for 70, does this 9/10 times in the period of 2-3 years... <_< Can't see much wrong with it myself, if each house is in his name and he is technically a single dweller, or puts others in Girlfriends/Mum and Dad's name...only what a decent accountant would suggest in order to avoid tax. My overall point is that this guy could have taken advice and waited, he didn`t, rolled up his sleeves and made things happen. Now 2 years later even with a 20% correction it will not hurt him. Still plenty of opportunity for FTBs out there...

Might be too close to the top now. With Hometrack even reporting today that London is good but the rest of the country flat.....

A lot of markets have already turned. Where I am it is dropping steadily with many "no upward chain" "Reduced price" and "unexpectedly back on the market" type ads. The ODPM shows 8.8% down for Stratford and with the next round of closures coming in the Birminghma Motor industry (Land Rover closing in B'ham in November) I don't see sentiment improving anytime soon.

But, as you point out, there may be opportunities in places where a correction is not going to happen soon. Ireland is still soaring and may be good for a little while longer. I wouldn't touch it though as I would be constantly watching out for signs of the turnaround.

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No idea..probably..again this illustrates one of many misconceptions prevalent on here, that somehow it must be 'dodgy'. Buys house for 45K spends 10 on it, sells for 70, does this 9/10 times in the period of 2-3 years... <_< Can't see much wrong with it myself, if each house is in his name and he is technically a single dweller,

nope - he's trading - the PPR rules don't work as his intention is to buy and sell. he is entitled to deduct his initial costs and expenses from the property sales figure like any other business.

actually a 'decent accountant' would advise him to declare his earnings.

still good luck to him - why pay taxes for gordon to pee down the drain :(

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this is a very interesting story.

what are is debts,

what is his net prifit.

it would be interesting to know, so we can really judge what he has made.

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this is a very interesting story.

what are is debts,

what is his net prifit.

it would be interesting to know, so we can really judge what he has made.

How can I 'prove' it? What I do know is that he sold one house for 71K over the weekend and his last one (in the same street) for 63K 6 months ago. He paid 35K for one and 42-45K for the other. Let's not lose sight of the fact that one of the reasons the market won`'t tank (IMHO) is the levels of activity, the market will correct, again IMHO, but the levels of business will keep the correction drawn out to a point that will make it only able to spot retrospectively.

Example, just been in Land Reg. on the Wirral, girl there said she'd never seen the customer facing dept. so busy, lots of small players 'playing houses'.

P.S. I was there for purely altruistic reasons ;)

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Guest grumpy-old-man

How can I 'prove' it? What I do know is that he sold one house for 71K over the weekend and his last one (in the same street) for 63K 6 months ago. He paid 35K for one and 42-45K for the other. Let's not lose sight of the fact that one of the reasons the market won`'t tank (IMHO) is the levels of activity, the market will correct, again IMHO, but the levels of business will keep the correction drawn out to a point that will make it only able to spot retrospectively.

Example, just been in Land Reg. on the Wirral, girl there said she'd never seen the customer facing dept. so busy, lots of small players 'playing houses'.

P.S. I was there for purely altruistic reasons ;)

yes, they are all in a hurry to remortgage on a 10 year fixed rate deal.

I bet no-one can provide an acurate breakdown of this data, eg. how many total mortgages are remortgages, & if any of the lenders supply this info I bet it's weighted in a particular direction....al IMHO of course ;)

just had a plumber round my house & he started a conversation off regarding house prices......he is in the process of doing this now, remortgaging with barclays for a 10 year 6.4 % deal.

He has mates in thre building trade who said they are waiting for it to collapse, he also said he had noticed a big drop in the amount of work he has over the last 6 months.

talk to the horses mouth....it never lies.

Edited by grumpy-old-man

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Yes, just wait and it will happen.

That £500,000 house you really like but only want to pay £220,000 for will come down in price eventually, just you wait and see.

I forsee a day when the houses in my area will end up costing 60% less than they do now i.e. less than half the price. I can really see it, can't you?

:)

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No idea..probably..again this illustrates one of many misconceptions prevalent on here, that somehow it must be 'dodgy'. Buys house for 45K spends 10 on it, sells for 70, does this 9/10 times in the period of 2-3 years... <_< Can't see much wrong with it myself, if each house is in his name and he is technically a single dweller, or puts others in Girlfriends/Mum and Dad's name...only what a decent accountant would suggest in order to avoid tax. My overall point is that this guy could have taken advice and waited, he didn`t, rolled up his sleeves and made things happen. Now 2 years later even with a 20% correction it will not hurt him. Still plenty of opportunity for FTBs out there...

For what it's worth (bugger all I suppose) - even if a place is your sole residence - if you are a serial renovator and seller you are deemed to be doing it 'by way of trade'. Would have thought these days a quick trawl through the LR database will show your mate up and he may well suddenly get hit with a very big tax bill.

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Guest grumpy-old-man

Yes, just wait and it will happen.

That £500,000 house you really like but only want to pay £220,000 for will come down in price eventually, just you wait and see.

I forsee a day when the houses in my area will end up costing 60% less than they do now i.e. less than half the price. I can really see it, can't you?

:)

no, not 60%, that will only be true in the sh1tty areas, 20-30% will do me thanks very much ;)

I assume you were being sarcastic of couse :P if not please excuse my tounge & the comment below

oh & ps - I forgot houses never go down in Londinium, so your 500k 3 bed semi will be 100% safe, go treat yourself to a new aluminium kitchen.

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People on this site said that 2 years ago!

And they were right.

Would you lose a fifth of the value of an investment or hope it gets better. After all that fifth would be a huge part of the investment's profit. I think many like the BBC debt diary woman are going to be backed into a corner and that's what the insolvency / repo stats are showing.

Their hands will be forced as sellers after all houses only go up in value and they will be and are being made to sell.

Edited by music man

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Here's a thing, met this guy over the weekend, only 28, starting buying property at auction 2 years ago. Now on his 9th 'fixer upper'. Has mortgage free place in Woolton L'pool, (nice area) and 2 more to sell to make profit. Started with 5K loan from his Dad. Some would have told him to wait 2 years ago <_<

Really? Have you got the figures? No, didn't think so. :lol:

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im a little fed up with this rubbish. i have been buying and selling houses for the last ten years, sold this jan.

and to those who read this stff, i can tell you that it is very difficult to buy and sell and do up a poperty in under year. it can be done and is, but the idea that somebodies mate is doing 10 a year sounds a bit fanciful to me.

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  • 333 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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