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I Am Going To Put An Offer In On Monday - Am I Mad?


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Having lurked on these wonderful pages for a year or so, it is time to contribute, and have you support or ridicule me as the case may be! (I am thick skinned and genuinely interested in your opinions).

We live broadly in south manchester/cheshire.

Sold our house in October having had it on market for 13 months and so naturally feel very fortunate. As a property bear, we substantially reduced the price to make sure it sold before things got really sticky. Made very little indeed in 3 years of ownership, but frankly not complaining...

Currently renting a pleasant 5 bedroom 'executive home' in north Derbyshire for £1,300 per month which is less than the mortgage payments on the old house. As the house is better in every way than the old, being bigger, better garden, nicer area, so the STR thing has made an awful lot of sense. But it is too far out from my workplace in Manchester and so we do want to move.

Have found a house we really like. It is not in Hale/Altrincham areas for those who know this area of the market, still expensive but less demand. 5+ bedrooms. Interesting house and suits our requirements in many ways. On the market since May 2007. Originally on for over £800,000 which is frankly a joke. There is no long sweeping driveway, garden is only 1/4 acre as a previous owner ago sold most of back garden to a builder 20 years ago. Asking price down to £700,000 which would have been on the right lines for late 2006/early 2007 boom time.

Appears no meaningful interest in the house. EAs have let slip that might go for £640,000.

We reckon that offer of £600,000 is appropriate at the moment, as owners are pissed off, having bought their replacement home a year ago and now having to rent it.

Have a flat to sell in Manchester city centre, which as you would expect is not going very fast, but at least is getting decent viewings as I have put it on at a 15% discount to similar properties. Was not a BTL but my main residence for many years before getting married so don't jeer! :P

Can afford to buy (and more importantly pay for - the two are obviously not synonymous!) the house without selling the flat but will make a substantial dent in monthly outgoings until flat is sold.

Am I mad to make any offer in present climate? £100,000 off asking is a fair whack off though. We think only 20% chance of offer being accepted, but am not minded to offer more until flat sold. But my wife will just want to up the offer until they accept (wholly contrary to my instincts) so grateful for any food for thought.

Obviously, you the merry reader do not know our full circumstances (and less would I give them) but observations of a general nature are greatfully received.

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£600,000 & North of Watford???? :blink::lol:

Does not even compute now!

Think 2013, violent, out of control wasteland Britain.

Ask yourself, will fings get better or worse.....cos they darned sure never stay the same

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Am I mad to make any offer in present climate? £100,000 off asking is a fair whack off though.

It all depends on your priorities.

If you have found your 'dream home' and you can afford it, then I can see that it must be a tempter.

However, if you are thinking purely rationally, then now is a crazy time to be re-entering the market. We are still at the stand-off stage, where sellers won't reduce to a realistic price, and buyers won't pay what is being asked.

Over the next couple of years, values will really start to fall.

£100k off asking means nothing. The asking price is completely irrelevent.

Why not offer to rent the house off them so they can move into their replacement home? Then make an offer to buy it when the time is right.

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Having lurked on these wonderful pages for a year or so, it is time to contribute, and have you support or ridicule me as the case may be! (I am thick skinned and genuinely interested in your opinions).

Hmmmm, should you follow your (self-styled bullish) instincts, or ask for advice from a community called housepricecrash?

Alternatively...

AWOOGA!

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This week's Moneyweek described the UK housing market as toxic and advised readers to stay away from buying. That is pretty much my view.

I read somewhere last week that within a year of the 1929 crash that house prices in the US fell by 90% and then people jumped in to buy only to discover that houses then fell another 90% from their remaining 10%, people who had bought with cash lost everything and those who had bought supopsedly cheap property with a mortgage went bankrupt as the banks demanded back their money.

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Northern Rock shares have fallen from £12.50 to 90p and then nationalised.

Other bank shares are off at least 50%.

Builders shares are off similar amounts and Barratt's may be technically in breach of bank lending covernants.

This housing crash has only just begun.

The trough after the 89/90 crash was around '95.

You're barking - Come back in 5 years.

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This week's Moneyweek described the UK housing market as toxic and advised readers to stay away from buying. That is pretty much my view.

I read somewhere last week that within a year of the 1929 crash that house prices in the US fell by 90% and then people jumped in to buy only to discover that houses then fell another 90% from their remaining 10%, people who had bought with cash lost everything and those who had bought supopsedly cheap property with a mortgage went bankrupt as the banks demanded back their money.

:o Is it legal to be that bearish MT? :D

That wont be allowed to happen here because NR's 'loan book is good' :blink::rolleyes:

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Sell up, move to a better country. Get more bedrooms, a few acres for less than half the cost, better schools, lower cost of living, better weather and money in the bank. I can't believe people aren't taking their money for nothing and running.

Edited by jez123
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Having lurked on these wonderful pages for a year or so, it is time to contribute, and have you support or ridicule me as the case may be! (I am thick skinned and genuinely interested in your opinions).

We live broadly in south manchester/cheshire.

Sold our house in October having had it on market for 13 months and so naturally feel very fortunate. As a property bear, we substantially reduced the price to make sure it sold before things got really sticky. Made very little indeed in 3 years of ownership, but frankly not complaining...

Currently renting a pleasant 5 bedroom 'executive home' in north Derbyshire for £1,300 per month which is less than the mortgage payments on the old house. As the house is better in every way than the old, being bigger, better garden, nicer area, so the STR thing has made an awful lot of sense. But it is too far out from my workplace in Manchester and so we do want to move.

Have found a house we really like. It is not in Hale/Altrincham areas for those who know this area of the market, still expensive but less demand. 5+ bedrooms. Interesting house and suits our requirements in many ways. On the market since May 2007. Originally on for over £800,000 which is frankly a joke. There is no long sweeping driveway, garden is only 1/4 acre as a previous owner ago sold most of back garden to a builder 20 years ago. Asking price down to £700,000 which would have been on the right lines for late 2006/early 2007 boom time.

Appears no meaningful interest in the house. EAs have let slip that might go for £640,000.

We reckon that offer of £600,000 is appropriate at the moment, as owners are pissed off, having bought their replacement home a year ago and now having to rent it.

Have a flat to sell in Manchester city centre, which as you would expect is not going very fast, but at least is getting decent viewings as I have put it on at a 15% discount to similar properties. Was not a BTL but my main residence for many years before getting married so don't jeer! :P

Can afford to buy (and more importantly pay for - the two are obviously not synonymous!) the house without selling the flat but will make a substantial dent in monthly outgoings until flat is sold.

Am I mad to make any offer in present climate? £100,000 off asking is a fair whack off though. We think only 20% chance of offer being accepted, but am not minded to offer more until flat sold. But my wife will just want to up the offer until they accept (wholly contrary to my instincts) so grateful for any food for thought.

Obviously, you the merry reader do not know our full circumstances (and less would I give them) but observations of a general nature are greatfully received.

When we sold out house last year, one EA said something like "This is the type of property that buyers will mortgage sky high for". Are YOU buying such a house? if so then realise that you have a lot less competition now.

Never underestimate how much a seller (or the EA) has "got your number" and knows how much you're willing to pay because "you love the house".

FWIW

- The sellers won't accept your price - If you wait a few years, the 2nd owner might. ;)

- If you are going to buy another house, sell your flat first and use the released equity.

- Only buy a house that you can own outright.

I may have bought another house and I accept it will fall in "value" but I sure wouldn't have 2 houses!

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£600,000 & North of Watford???? :blink::lol:

Does not even compute now!

Think 2013, violent, out of control wasteland Britain.

Ask yourself, will fings get better or worse.....cos they darned sure never stay the same

A friend of my mums sold her new build which is next door to Kevin Moran for 1.2 Mil , there is life outside the southeast of England, I agree with you about the housing nightmare to come but you need to get out more.

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These threads are popping up more and more - they are really boring.

You know the answer HOUSEPRICECRASH.CO.UK

I was thinking the same thing.

This idea that £600k is now some kind of massive saving on a house that was once 'worth' £800k is ridiculous.

If the EA is suggesting they'd let it go for £640k and if there was a buyer willing to pay that now then that would be what that house is worth, if a buyer could be found. That's now in beginning of 2008 when the property slide has only just begun.

If you think £600k is a bargain then fill your boots but these threads asking for advise on purchases now because they've come down a few % from some joke price originally being asked are just getting tedious.

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Sold to rent October 2006. Not looked at a house since, until...

We looked at a house yesterday at £495k. It is a new build that has been for sale for about 2 years - previously at £650k IIRC.

We can rent a similar house for £1300 per month.

Based on the latest quarterly drop of 1.6% in Scottish prices, we would be £4000 a month worse off by buying vs renting at the asking prices.

There is no point making an offer as I would need it for <<£350k to be totally happy.

So we're looking for the next rental property as we have to leave this one (5 bed 3000 sqft £875/month awesome location) by the summer.

Edited by sell2rent
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I know lots of you think this guy is a troll but he sounds genuine to me and this is a classic example of the dilemma of the STRer. As I mentioned in another thread I have found a house I would like to buy and I'm struggling between the folly of buying at the top of the market and the feeling of limbo at living in a place I can't decorate or expand or make my own.

At the moment common sense is winning but it is naive to ignore the emotional aspect of buying and owning a home. There will be plenty of people like the OP who have bought for a variety of reasons even though they know that rationally it is a poor financial choice.

The reason this market is going to crash so hard and so fast IMHO is that people's emotional response won't get a look in when the banks simple refuses to lend them the money.

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I know lots of you think this guy is a troll but he sounds genuine to me and this is a classic example of the dilemma of the STRer. As I mentioned in another thread I have found a house I would like to buy and I'm struggling between the folly of buying at the top of the market and the feeling of limbo at living in a place I can't decorate or expand or make my own.

At the moment common sense is winning but it is naive to ignore the emotional aspect of buying and owning a home. There will be plenty of people like the OP who have bought for a variety of reasons even though they know that rationally it is a poor financial choice.

The reason this market is going to crash so hard and so fast IMHO is that people's emotional response won't get a look in when the banks simple refuses to lend them the money.

Look, I don't mind if he's trolling or not, it's just boring.

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