laurejon Posted February 8, 2007 Share Posted February 8, 2007 Last year, 645 million square metres of Photographic Wood Laminate flooring was sold in the North of England, and 650 Million Tons of Blue, Green, Yellow, Red Stone Cladding was sold in Manchester alone. There is a boom going on up North, only a fool would not see it. Quote Link to comment Share on other sites More sharing options...
Guest grumpy-old-man Posted February 8, 2007 Share Posted February 8, 2007 Last year, 645 million square metres of Photographic Wood Laminate flooring was sold in the North of England, and 650 Million Tons of Blue, Green, Yellow, Red Stone Cladding was sold in Manchester alone.There is a boom going on up North, only a fool would not see it. I recommended that they use the laminate to make a perimeter shuttering around the North East to hide the fooken place. as regards manchester's stone cladding, well I think they should just drop the lot from a big plane onto Manchester & see who notices. Quote Link to comment Share on other sites More sharing options...
Guest grumpy-old-man Posted February 8, 2007 Share Posted February 8, 2007 (edited) CAN ANYONE ACTUALLY FAULT MY FIGURES - Or is it true, it all "depends"? Houses stagnate and yes you are better to wait, rent and save a larger deposit????????????????????????????????????? I think you have got it right NB, just sit tight & let them all keep telling you that house prices are shooting up, when really it's probably them shooting up with gear making them talk a load of sh1te. Edited February 8, 2007 by grumpy-old-man Quote Link to comment Share on other sites More sharing options...
laurejon Posted February 8, 2007 Share Posted February 8, 2007 If you speak to the Experts, the North of England is destined to be hit very very hard in the next recession. The vast amount of the economy in the North of England is dependent on state funding, and when that dries up its curtains. As the funding has fuelled a property boom, its removal will collapse it. Quote Link to comment Share on other sites More sharing options...
BrickingIt Posted February 8, 2007 Share Posted February 8, 2007 A number of my friends has bought around the Middlesbrough and Stockton area over the last year or so.One bought an ex-council property in a really bad area for £55k (up from about £17k 5 years ago!), another friend has bought a 1 bed!! flat for £95k (cashback and free mortgage for a year!!). Another close friend is now considering buying a two bed semi for £120k!! I'm trying to convince him not to!! I'm currently renting a three bed (new build) for £550 a month, the mortgage is around £850 over thirty years. So unless the landlord put down a big deposit they are loosing money each month, hoping for capital gains!! The development has has a couple of houses for sale for the last six months, at £155k, even if they dropped the price to £150k and managed a sale they wouldn't have made a penny!! Considering the average salary for the area is around £18k I don't believe prices can go any higher. I've been watching properties for the last year and none have gone up in price, they are dropping by £3/5k because they are taking so long to sell. Rent remain static, I know that atleast 6 of the houses (of which there is 30 on this development) are BTL. Three of which are up for rent at the mo for £595!! We got ours for £550 as the landlord had waited 4 months for a tenant. The world of BTL is truely insane!! I believe it is only this that has kept the market at such levels. Now the sentiment is changing with interest rates rising I assume that BTL will falter and prices will come down. To add to this, they have been building two bed apartments, selling for £125k (5% deposit paid and all that), now they are strugging to sell them they have dropped to £115, some people have lost £10k in a year. So much for its better to buy than rent?!? There are 24 apartments due to be completed in the next month or so and only 7 have sold, no more BTL t prop then up... Anyway, getting to the point, I did some maths to try and convince my friend, the results are as follows... He buys and I rent, I pay the difference into savings and in 5 years time he has paid of around 8% of his mortgage. So I have saved around £20k and he has £28k in equity. This is assuming prices rise by 2% pa in line with inflation (which I doubt considering no rise in the last year!!). If prices were to drop 5% then the difference between his equity and my savings is zero!! Hence, I think it better to hold out and see where the market goes. Even better, assume prices stagnate (rent and house prices), again I save the difference and he buys. After 5 years he has around £12k equity, again I have £20k savings. I then take out a 25 year mortgage (he would have taken out 20) with a 20k deposit. Assuming the same rates apply in 5 years then in total I would have paid £265k for the property and he would hae paid £315k!! £50k difference because I waited and rented for 5 years. THIS IS WHAT I AM HOPING FOR AND THINK IT IS MORE THAN LIKELY!! Even better, prices stagnate and drop 5/10/20% in the next 5 year!! You don't have to be a genius to work it out. People don't realise that mortgages are front end loaded with interest an that they pay very little of the capital at the start. They assume I've paid in £10k, so I've knocked £5k of the capital, this just isn't the case. THE OTHER SIDE OF THE ARGUEMENT IS: Prices rise with inflation (2%!!!!!??) and don't drop - you would have been better buying. Prices rise at a much higher rate than inflation (10%!!!!) - you would have been better buying. IMHO neither of these will happen, especially in the North East, where the top of the market has been reached and passed due to BTL. Plus all the MEW and rising interest rates will push people over the edge. We simply don't have the supply and demand problem of the South, if we did their wouldn't be houses and apartments up for rent and sale for six months+.. Please feel free to add to this or try and pull my arguement/ figures apart.. Northern Boy Oh god Yawnnnnnnnnnnnnnnnnnnnnnnnnnnn Another bloody the economics of renting Yarn. This time from Middlesbrough of all places. Amazed any can afford houses there after every crap jonny foreigner football player had ripped you off. Quote Link to comment Share on other sites More sharing options...
Guest grumpy-old-man Posted February 8, 2007 Share Posted February 8, 2007 If you speak to the Experts, the North of England is destined to be hit very very hard in the next recession.The vast amount of the economy in the North of England is dependent on state funding, and when that dries up its curtains. As the funding has fuelled a property boom, its removal will collapse it. These are my feelings also. Once you pass York & Harrogate there is nothing until you reach Newcastle, and to be honest, not much there either. Quote Link to comment Share on other sites More sharing options...
Guest grumpy-old-man Posted February 8, 2007 Share Posted February 8, 2007 Oh god YawnnnnnnnnnnnnnnnnnnnnnnnnnnnAnother bloody the economics of renting Yarn. This time from Middlesbrough of all places. Amazed any can afford houses there after every crap jonny foreigner football player had ripped you off. c'mon BI, your better than that. that was a good post from NB. Quote Link to comment Share on other sites More sharing options...
BrickingIt Posted February 8, 2007 Share Posted February 8, 2007 c'mon BI, your better than that.that was a good post from NB. It was more ooh look the markets crashing, if it crashes, i'm better off renting. Ill put my life on hold (ish) for five years and potential save £XK. I think this will happen. Counter argument historic average increase = 6% hence FCUKED. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.