Sogy Posted March 10, 2008 Share Posted March 10, 2008 So cash is getting nearer to being king then. Thanks for letting us know. Poor FTBs, like myself... Quote Link to comment Share on other sites More sharing options...
S S Posted March 10, 2008 Share Posted March 10, 2008 Poor FTBs, like myself... That could be the way thing will go, blow it out cheep at aution for cash. Who wants to mess about with a first time buyer who may have trouble getting finance in todays financial market. Watch what you wish for it might come true. Quote Link to comment Share on other sites More sharing options...
Sogy Posted March 10, 2008 Share Posted March 10, 2008 (edited) Who wants to mess about with a first time buyer who may have trouble getting finance in todays financial market. Watch what you wish for it might come true. Nemmine, there won't be enough cash buyers, even at normal prices, for all Kerrymen's "investments". So decent FTBs with decent deposits will be next. Edited March 10, 2008 by Sogy Quote Link to comment Share on other sites More sharing options...
azogar Posted March 10, 2008 Share Posted March 10, 2008 (edited) Poor FTBs, like myself... re. 'cash buyers only', AFAIK, this is standard for property auctions* IMHO, as long as you have a decent deposit, low outstanding debt, good credit history and a good source of regular income, then as an FTB, you will still be in the driving seat when it's the 'right time to buy'- just not at auction . I have just re-mortgaged with First Direct (5-year fix at 5%) and got myself away from Standard Life's exorbitant 7.34% SVR edit* or rather you have a very limited timespan to come up with the funds (which amounts to the same thing really) Edited March 10, 2008 by prophet-profit Quote Link to comment Share on other sites More sharing options...
Sogy Posted March 10, 2008 Share Posted March 10, 2008 IMHO, as long as you have a decent deposit £30K as of today, growing by £1K a month. low outstanding debt 0 pounds, 0 pence good credit history The only blemish on mine, is I haven't been in this great country for 3 years yet... but even this is coming to an end this spring. and a good source of regular income Putting in a tick mark. , then as an FTB, you will still be in the driving seat when it's the 'right time to buy'- just not at auction . Yep. In the land of destitute debtors even an FTB can be King! Quote Link to comment Share on other sites More sharing options...
S S Posted March 10, 2008 Share Posted March 10, 2008 Nemmine, there won't be enough cash buyers, even at normal prices, for all Kerrymen's "investments". So decent FTBs with decent deposits will be next. £100k 85% ltv finance 85k with First Trust @1.25 over base on a buy to let morgage = 6.5%, Morgage of £460.00 a month for £85K rental income of £500 - £550 a month. http://www.propertynews.com/brochure.php?r...amp;p=PNC246078. Looks good to me, might get a bit of that action. I'm sure the auction will be filled with landlords with mortages approved and waiting to go. Quote Link to comment Share on other sites More sharing options...
Sogy Posted March 10, 2008 Share Posted March 10, 2008 I'm sure the auction will be filled with landlords with mortages approved and waiting to go. Wait a bit, those will dry up, but the supply will still be there - for years to come. Quote Link to comment Share on other sites More sharing options...
S S Posted March 10, 2008 Share Posted March 10, 2008 Wait a bit, those will dry up, but the supply will still be there - for years to come. Please get real there has and always will be landlord and others with money to invest in all sorts of stuff. Don't tell me the housing market is any different because it says so here Quote Link to comment Share on other sites More sharing options...
S S Posted March 10, 2008 Share Posted March 10, 2008 (edited) Please get real there has and always will be landlord and others with money to invest in all sorts of stuff. Don't tell me the housing market is any different because it says so here Lmao, As I was reading back and seen the peeps logged on and the guests, It came to me I bet their all working out how they might come up with some cash to buy a cheep house in Larne. I smell a property boom coming get onto the property ladder quick lol. Edited March 10, 2008 by statinstoinker Quote Link to comment Share on other sites More sharing options...
azogar Posted March 10, 2008 Share Posted March 10, 2008 Please get real there has and always will be landlord and others with money to invest in all sorts of stuff. Don't tell me the housing market is any different because it says so here yes - but I think the days of the 'traditonal route' for landlords to fund their next purchase are over for a while ie. re-mortgatging equity from rented property in a rising market to enable funds to purchase the next property which can later be mortgaged to continue the cycle. when the market is not rising this model is screwed. Quote Link to comment Share on other sites More sharing options...
Sogy Posted March 10, 2008 Share Posted March 10, 2008 Please get real there has and always will be landlord and others with money to invest in all sorts of stuff. Don't tell me the housing market is any different because it says so here Have you read the Bible, about the time to do this and the time to do that? Well, there we are in NI now. Quote Link to comment Share on other sites More sharing options...
azogar Posted March 10, 2008 Share Posted March 10, 2008 (edited) an appropriate time to post this? Mortgage approvals drop 40% http://www.ifaonline.co.uk/public/showPage...PageName=741135 edit - sorry for stating the obvious but whatever your reasons for raising finance for property purchase, you had better be a 100% AAA rated borrower at present!!! so reverting back a few or more posts, if you fit this category, more power to you Edited March 10, 2008 by prophet-profit Quote Link to comment Share on other sites More sharing options...
azogar Posted March 10, 2008 Share Posted March 10, 2008 an appropriate time to post this?Mortgage approvals drop 40% http://www.ifaonline.co.uk/public/showPage...PageName=741135 edit - sorry for stating the obvious but whatever your reasons for raising finance for property purchase, you had better be a 100% AAA rated borrower at present!!! so reverting back a few or more posts, if you fit this category, more power to you or the reverse side of the coin, if you are hoping to go down the 'traditional landlord route' of financing property, good luck because you will need it Quote Link to comment Share on other sites More sharing options...
azogar Posted March 10, 2008 Share Posted March 10, 2008 (edited) right - last post from me (for a while anyway ) because my list of to-do's is just not getting done!! In a rising market, leverage is your best buddy, in a falling market, leverage is your worst enemy. How levered are you? edit - a question for landlords really Edited March 10, 2008 by prophet-profit Quote Link to comment Share on other sites More sharing options...
S S Posted March 10, 2008 Share Posted March 10, 2008 right - last post from me (for a while anyway ) because my list of to-do's is just not getting done!!In a rising market, leverage is your best buddy, in a falling market, leverage is your worst enemy. How levered are you? edit - a question for landlords really I'm not a landlord, however I'm sure someone will see If you can get a house cheep on the back of someone elses misfortune and rent that property out for more than the mortage costs its a no brainer for a long term investment. I'm not saying everyone should run out and invest in property but if the figures stack up and the deal stands on its own two feet then go for it. The time to make money in any market is when nobody wants to buy and you can get a bargain. Quote Link to comment Share on other sites More sharing options...
championmongo1 Posted March 10, 2008 Share Posted March 10, 2008 I'm not a landlord, however I'm sure someone will see If you can get a house cheep on the back of someone elses misfortune and rent that property out for more than the mortage costs its a no brainer for a long term investment. I'm not saying everyone should run out and invest in property but if the figures stack up and the deal stands on its own two feet then go for it. The time to make money in any market is when nobody wants to buy and you can get a bargain. That's exactly what I see happening in my area with desperate sellars taking very low offers from investors, who will see the rent cover the mortgage and then when the market does pick up, bang a nice capital profit to boot! This view will probably be hammered here because of the average wage, how we should return to 2.5x multiplier, 1974 prices, blah, blah, blah. People don't usually start off in their dream home but move up the ladder in time, some people here seem to forget that, and I concede that some properties are still overpriced but some have become reasonable so why not take advantage! There have always been private landlords, there always will be and the time to buy is when prices and interst are low as you can grab a bargain or dream home! Then sit back knowing that over the medium to long term, property has always been a sound investment! Quote Link to comment Share on other sites More sharing options...
Traktion Posted March 10, 2008 Share Posted March 10, 2008 I'm not a landlord, however I'm sure someone will see If you can get a house cheep on the back of someone elses misfortune and rent that property out for more than the mortage costs its a no brainer for a long term investment. I'm not saying everyone should run out and invest in property but if the figures stack up and the deal stands on its own two feet then go for it. The time to make money in any market is when nobody wants to buy and you can get a bargain. If all the houses started dropping to this rate, what makes you think there will be people out there willing to rent? A lot of people are only renting as they can't afford to buy in the current climate. Also, ask yourself this - if this house is selling at this price already and crashes tend to take a few years to unfold, then maybe it will be worth less in a few months' time? I'm not going to try to convince you of the above though as it's up to you. I would just be steering away from anything to do with property during a property crash. Near the end, maybe, but imo, this is far too soon to be near the end. Quote Link to comment Share on other sites More sharing options...
azogar Posted March 10, 2008 Share Posted March 10, 2008 when my wife gets home and asks why I haven't fitted the shower I am going to blame you lot right! seriously, re., the property in Larne, until we know what it sells for, a lot of our discussion remains hypothetical right where's my spirit level........ Quote Link to comment Share on other sites More sharing options...
Sogy Posted March 10, 2008 Share Posted March 10, 2008 Also, ask yourself this - if this house is selling at this price already and crashes tend to take a few years to unfold, then maybe it will be worth less in a few months' time? It wil certainly sell for more than that - this time. Quote Link to comment Share on other sites More sharing options...
S S Posted March 10, 2008 Share Posted March 10, 2008 If all the houses started dropping to this rate, what makes you think there will be people out there willing to rent? A lot of people are only renting as they can't afford to buy in the current climate. Also, ask yourself this - if this house is selling at this price already and crashes tend to take a few years to unfold, then maybe it will be worth less in a few months' time? I'm not going to try to convince you of the above though as it's up to you. I would just be steering away from anything to do with property during a property crash. Near the end, maybe, but imo, this is far too soon to be near the end. I'm not saying i'm going out to buy property, but if the figure stack up yada yada yada. You say if prices drop to this figure everyone will buy instead of renting. Tell me this, as I've read on here, is there not a credit crunch??? Read above, mortgage approvals down by 40%. How much of that is banks not wanting to lend to peeps with 100% credit history? The credit crunch works both ways. You can't use it as a reason for low property prices one minute, and then on the other hand say when prices drop everyone can run out and pick up a mortgage because its cheaper or the same as renting. Quote Link to comment Share on other sites More sharing options...
Traktion Posted March 10, 2008 Share Posted March 10, 2008 (edited) I'm not saying i'm going out to buy property, but if the figure stack up yada yada yada.You say if prices drop to this figure everyone will buy instead of renting. Tell me this, as I've read on here, is there not a credit crunch??? Read above, mortgage approvals down by 40%. How much of that is banks not wanting to lend to peeps with 100% credit history? The credit crunch works both ways. You can't use it as a reason for low property prices one minute, and then on the other hand say when prices drop everyone can run out and pick up a mortgage because its cheaper or the same as renting. The credit crunch is reducing the number of people borrowing more than they can afford. Between my girlfriend and I, we earn enough to qualify for a bloody great mortgage (I run a web development business, she is a teacher), but we refuse to in debt ourselves to such a degree. The purchase price vs rental price is still way out of whack and I for one, am not going to saddle myself with a 200k loan, when the same roof over my head is less than half the price to rent. Many people just go to the mortgage advisor and borrow as much as they can without thinking of the consequences, but not everyone does. Debt is real, where as house prices are opinion. The reason people are not buying now is because the money supply has been tightened and the house prices have yet to adjust (think oil tanker manoeuvring). Combine that with a falling market, people are not going to be stretching themselves. Those who have waited (and continue to wait), rather than straining for that first run of the housing ladder, will be in a good position to buy. If they have not stretched or borrowed too much, their credit rating is likely to be relatively clean too. Sure, I see your point that it won't be any "easier" to get on the ladder, but it's much less risky when you're borrowing a lot less. Borrowing 2-3 times your salary is a big risk, but borrowing 6+ is a huge risk (but hey, house prices only go up, right?!). Unfortunately, it took the credit crunch forcing the bank to be more prudent with their loans, rather than the sheeple deciding this for themselves. I think the crux of the matter is that sure, you *can* be a landlord and make money, but that's not what appealed to the specuvestors trying to turn a quick profit in a housing boom. *That* is what pushed up the prices and caused there to be so many BTLers building up a portfolio of (sometimes empty) houses. I'm not concerned with the average landlord and, indeed, I am grateful for them giving me a roof over my head. The market will sort the rest out. Edited March 10, 2008 by Traktion Quote Link to comment Share on other sites More sharing options...
Belfast Boy Posted March 10, 2008 Share Posted March 10, 2008 (edited) This view will probably be hammered here because of the average wage, how we should return to 2.5x multiplier, 1974 prices, blah, blah, blah. No one here is saying that. I wish you would get your facts straight. You just make yourself look stupid. Edited March 10, 2008 by Belfast Boy Quote Link to comment Share on other sites More sharing options...
JoeDavola Posted March 10, 2008 Share Posted March 10, 2008 I have no idea what that house in Larne will sell for, but bear in mind that the average house price in Larne was £100K 2 years ago. Then, between 2006 and 2007, they went up 50%: http://news.bbc.co.uk/1/hi/northern_ireland/6583393.stm Quote Link to comment Share on other sites More sharing options...
Belfast Boy Posted March 10, 2008 Share Posted March 10, 2008 I have no idea what that house in Larne will sell for, but bear in mind that the average house price in Larne was £100K 2 years ago.Then, between 2006 and 2007, they went up 50%: http://news.bbc.co.uk/1/hi/northern_ireland/6583393.stm Why did house prices go up 50% in just 1 year? Did everyone but me, get a 50% pay rise? Or, could the 50% increase in anyway be connected with the £1.4 TRILLION of personal debt? Were the silly house prices simply caused by a credit bubble? Can anyone find me another plausible explanation? Now we have a credit crunch. Bye bye credit bubble and silly house prices. It's that simple! Quote Link to comment Share on other sites More sharing options...
Sogy Posted March 10, 2008 Share Posted March 10, 2008 Why did house prices go up 50% in just 1 year? We were catching up with London! The Peace dividen, you know. And, of course, the Kerryvestors with their cheap deutsche kreditt and ach beagon inchinn have helped. Quote Link to comment Share on other sites More sharing options...
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