Newcastle Upon Tyne

[Phaedrus]

There are definitely some people (fools) who continue to believe that BTL in the region is viable!!

<{POST_SNAPBACK}>

Yes, I mentioned one earlier in the thread, who has just bought one of the Conran apartments opposite the Copthorne, as a BTL. If that one doesn't pay off I think he could be in serious trouble.

[neilrich]

Yes, I mentioned one earlier in the thread, who has just bought one of the Conran apartments opposite the Copthorne, as a BTL. If that one doesn't pay off I think he could be in serious trouble.

<{POST_SNAPBACK}>

He shall not be alone, just think how many thousands of other BTL investors are going to be in serious trouble.

[Phaedrus]

Back to the reason for this thread. Property at the High Street end of Salters Road, here:http://www.sandersonyoung.co.uk/property/v...bd=&p1=&p2=&dt= Nice place, 4 beds, set back off the road, good sized gardens front and back, I think it even has a garage. Went on last Autumn, one agent for £315000, now price dropped to £285000 and on with 2 agents. (Your Move/Rightmove[green board] is the other agent).

[Quokka]

Back to the reason for this thread. Property at the High Street end of Salters Road, here:http://www.sandersonyoung.co.uk/property/v...bd=&p1=&p2=&dt= Nice place, 4 beds, set back off the road, good sized gardens front and back, I think it even has a garage. Went on last Autumn, one agent for £315000, now price dropped to £285000 and on with 2 agents. (Your Move/Rightmove[green board] is the other agent).

<{POST_SNAPBACK}>

For a terrace - seems a touch expensive

If the amount of patter the agent had time to post is anything to go by they have a bit of time on their hands

[Phaedrus]

For a terrace - seems a touch expensive

<{POST_SNAPBACK}>

Can I nominate you for the "Understatement of the Week" award?

[kevino]

55 degrees North has to be the biggest laugh-who pays almost a quarter of a million to sit on the biggest/busiest roundabout in Newcastle, especially now the High level Bridge is closed!!!!!! Don't open your window's between 3-5 pm in the summer guys and gals, it'll literally bring tears to your eyes!!!!

Newcastle is really living on a knife edge-the Biggest employers are Local Authorities/the Civil Service or call centre job's, so the prices for these developments are really stupid.

If you look at the EA websites and Knightsbridge Court/55 degrees North/Baltic (no matter how they try to gloss that one over-it's still Low Fell/Felling), you will see some are going a lot cheaper than they originally sold for, the ones at auction look about 20% cheaper (BTL deposit???), so are they repossesions???

WHO IS TO BLAME???

EA's!!!

As for EA's, well I have no sympathy for them or the Mortgage advisors when it all comes crashing down. 5 yrs ago my then fiancee (now wife) were looking for a mortgage of 70K to buy our house (3 bedroom semi-one bedroom for us, one as a study and one for possible 1st child, now due in August incidentally!!!). I work overseas on drilling rigs so am fortunate that I have a very good salary, particularly for the North East (I'm not saying this to brag, just to illustrate the point). The "Advisor" turned around and said; "Why do you only want that", with your salaries you could go to well over 200K" I said no thanks and explained that I don't want to buy a house only to be skint and have to be staring at the same four walls-her reply?? "The house will increase in value-take out the extra equity" MADNESS!!!!!!

Last time I was home I checked out the new Wimpey "Central Grange" development between Kenton and Cowgate, I asked how much the new 4 bedroom houses were, "Next release 250,000" came the reply. Being a bear I smiled and said "We'll see", to which she replied "They WILL sell at that price". Well, it seems work has slowed down, are Wimpey Dragging their heels to ensure they get them sold before commiting to buy them???

Now we are awaiting the crash and looking to move up the ladder in a couple of years time when baby is up and about and prices are much lower. In the mean time we are saving hard and banging off loads of overpayment on the mortgage to save in interest over the long run (25 years!!!!).

I do feel sorry for the majority who have been suckered into borrowing heavily. Inflation is going to ramp up long term (I can tell you now, oil isn't going to get cheaper any faster) and interest rates will follow. It's starting now, and Newcastle is going to suffer more than most.

Sorry if I have repeated a lot of what has already been said. I'm new here but am looking forward to discussing this with others on the forum!!!!

[Phaedrus]

Last time I was home I checked out the new Wimpey "Central Grange" development between Kenton and Cowgate, I asked how much the new 4 bedroom houses were, "Next release 250,000" came the reply.

<{POST_SNAPBACK}>

HOW MUCH???!!!!!!

Madness. The residents there will be basically surrounded by very dodgy areas, I wouldn't fancy their chances of getting home contents insurance. They'll be prime targets for burglary. That is provided they can afford to put anything in these houses after they've made their IO mortgage payments on their 1/4 million pound mansions each month.

[Phaedrus]

Just had a look on Sanderson Young website. 52 2 bedroom apartments to rent in the various city centre and quayside developments. Rents range from £600 pcm to £2500 pcm, with the majority around the £800 pcm area. Also interestingly, they were all available immediately. I'm going to keep an eye on that page. I would like to know how the rent received compares to purchase price and gearing.

Edited May 20, 2005 by Phaedrus

[kevino]

HOW MUCH???!!!!!!

My point exactly, smack bang between Cowgate and Kenton Bar......................

It's on the site of the Old Ministry buildings, just off ponteland way on the way to the airport!!!

[Phaedrus]

Two houses on with Bairstow Eves, Church Road Gosforth. Had Sold STC, for a few weeks, now for sale again. I can hear those chains collapsing.

[neilrich]

Two houses on with Bairstow Eves, Church Road Gosforth. Had Sold STC, for a few weeks, now for sale again. I can hear those chains collapsing.

<{POST_SNAPBACK}>

I know exactly which two houses you mean and admit to being a little alarmed last week when I saw those SOLD signs! I only hope that you are correct and not a case of the 'SOLD' coming off in yesterday's strong wind.

[Phaedrus]

I know exactly which two houses you mean and admit to being a little alarmed last week when I saw those SOLD signs!  I only hope that you are correct and not a case of the 'SOLD' coming off in yesterday's strong wind.

<{POST_SNAPBACK}>

The first house, number 7, I think it's a flat, had the sold sign taken off about 2 weeks before the other, number 17. Quite a few places for sale on Church Road.

[neilrich]

Checked out the Keith Pattinson website again for an update on Knightsbridge Court where I find eleven units For Sale and six available to rent from £600 per month! Prices for some of these apartments have gone up from £210k to £215k since 11 April 2005!

Key points were as follows,

7 Apartments being advertised as ‘Available now with no upper chain’

2 Apartments ‘ For Sale by auction’, one of which says ‘We have been verbally informed by the vendor that this property is often let by a short-term letting agency at approximately £400 per week’, so how come they are so desperate to off load the property at auction?

1 Apartment advertised ‘Looking for a QUICK SALE!!’

Some observations reference Knightsbridge Court in Gosforth, whilst walking past Today could not help but notice the high level of litter that is collecting in the grounds of the development, I guess from the pupils of Gosforth High and people walking to and from Regent Centre. The other thing that stood out was the fact that weeds were growing up through the tarmac of the pavements that lead to the front doors within the development, perhaps Bryant have been cutting a few corners not what you expect when paying £215k for an apartment!

[Phaedrus]

So they've increased the asking price despite no offers? Is this some 'clever' marketing ploy to reassure potential buyers that house prices always go up?

[QuietObserver]

Pattinson's auction results for May are out: -

Pattinson Auction Results - May

It takes a few days for the results to finalise, but more sold than I expected to be honest - and some at a higher price than I'd have expected (e.g. Benwell).

They're still listing some Sold properties without prices though. Never did work out what this means - possibly the property has been withdrawn and that's their way of classifying it as not available. Any ideas?

[Quokka]

Pattinson's auction results for May are out: -

Pattinson Auction Results - May

It takes a few days for the results to finalise, but more sold than I expected to be honest - and some at a higher price than I'd have expected (e.g. Benwell). 

They're still listing some Sold properties without prices though.  Never did work out what this means - possibly the property has been withdrawn and that's their way of classifying it as not available.  Any ideas?

<{POST_SNAPBACK}>

Most not sold though, have you worked out percentage?

Looks like they have high reserve prices as most sold for around valuation.

Not the bargain basement I thought it may be, just another way of selling.

[Marina]

It's difficult to find a straight answer to this one, but the Office of the Deputy Prime Minister reported a mean gross weekly wage of £410 for Newcastle in 2002, compared to an average of £439 across all core cities (see Competitive European Cities: Where do the Core Cities Stand? ), which translates to £21.3K gross salary in Newcastle compared to £22.8K across all core cities.  This would be skewed by a small number of high earners (e.g. footballers, directors, judges etc.) - a quick look through this week's jobs supplement points to £15-18K being much more realistic, with around £12K being the norm for call centre jobs.  Not much compared to asking prices, eh!?!

<{POST_SNAPBACK}>

Yeah, but no problem if both partners work, and maybe the bloke does a couple of nights behind the bar as well.

What a f@cking life! Thought Geordies had more sense.

Worked with a brickie years ago (1987) who had it all worked out. He was living down here for 5 years - roughing it - living in a caravan on building sites working as a site foreman - plan was to save 20k - go home to Gateshead, buy a plot for £10k and build a new bungalow for £10k. Then make a living building garden walls - nice and easy, work when he felt like it etc.

1989 the crash came - often wonder if his dream worked out.

[QuietObserver]

Pattinson Results - at the moment it works out that 29% are listed as sold with a selling price. I think it'll be a couple of months before we see lower reserve prices creeping in, so it's stalemate for now. Can't believe how much run down properties in the west end are still selling for though!

Marina - not sure what you're getting at. I can't see how a FTB couple on 'real' average earnings in the North East doing a bit of bar work on the side could bring in enough each month to cover a 95% LTV repayment mortgage on a modest house (i.e. somewhere you'd dare to bring up a kid) alongside feeding and clothing themselves. Wages have traditionally been lower in the North, but the boom was so fast and steep here that wages had no chance of keeping up. Personally, I think it's been investment from outside the area, chasing the ripple of the boom up the country, that inflated things to where they are now.

Hope your brickie mate did as well as this guy - enjoy!

Dave Tordoff's Home Page

[Inky]

Saw my first "Reduced Price" sign outside a house in Newcastle yesterday - it was this one

The red band on the For Sale sign is now a tasteful mint green, though the web advert says nothing about a reduction. There are 3 other similar for sale on the same street - what does a "Reduced" sign out in the open do for their prices?

Just thought people in Newcastle might be interested. If Gosforth is dropping, what about the rest of the city?

[Quokka]

Saw my first "Reduced Price" sign outside a house in Newcastle yesterday - it was this one

The red band on the For Sale sign is now a tasteful mint green, though the web advert says nothing about a reduction. There are 3 other similar for sale on the same street - what does a "Reduced" sign out in the open do for their prices?

Just thought people in Newcastle might be interested. If Gosforth is dropping, what about the rest of the city?

<{POST_SNAPBACK}>

It's empty. Desperate sale?

This is where it starts..

[QuietObserver]

It's empty. Desperate sale?

This is where it starts..

<{POST_SNAPBACK}>

Funnily enough, I was walking round Gosforth today and the number of Sale Agreed/Sold signs outside FTB flats has definitely increased (e.g. on the Grove). I've been expecting the posher end of the FTB market to pick up a bit on the back of rate cut promises in the media. Anyone else spotted this in other areas?

I'm not surprised that we're seeing the next rung up stuff like that house being reduced, although I haven't seen any boards yet. As the rungs are now too far apart in somewhere like Gosforth for most normal families to trade up, this may well be where it starts!

[Favre]

Saw my first "Reduced Price" sign outside a house in Newcastle yesterday - it was this one

The red band on the For Sale sign is now a tasteful mint green, though the web advert says nothing about a reduction. There are 3 other similar for sale on the same street - what does a "Reduced" sign out in the open do for their prices?

Just thought people in Newcastle might be interested. If Gosforth is dropping, what about the rest of the city?

<{POST_SNAPBACK}>

I regularly read the Whitley Bay News Guardian Property section and you just have to look in there to see where its headed, there a plenty of adverts with "reduced" stamped on them.

One advert for a bungalow in whitley bay events goes so far as to say HOW MUCH IT IS ACTUALLY REDUCED BY advert states:

"delightful bungalow which has been reduced by £10,000"

Must be desperate to get out!!!!

[neilrich]

Funnily enough, I was walking round Gosforth today and the number of Sale Agreed/Sold signs outside FTB flats has definitely increased (e.g. on the Grove).  I've been expecting the posher end of the FTB market to pick up a bit on the back of rate cut promises in the media.  Anyone else spotted this in other areas?

I'm not surprised that we're seeing the next rung up stuff like that house being reduced, although I haven't seen any boards yet.  As the rungs are now too far apart in somewhere like Gosforth for most normal families to trade up, this may well be where it starts!

<{POST_SNAPBACK}>

Checked out 'The Grove' Today and I take it that you were referring to 'Ettrick Lodge' where I counted four or five sale boards, one of which was under offer and one was sold subject to contract! More interesting is 'The Oval' still under construction being built by Polish builders judging by the number of Polish registered cars, checked out Sanderson Young website which lists no fewer than thirty apartments still For Sale!

The top of Kenton Lane and I see that Wimpey have finally started construction of 'Central Grange', they seem to have been dragging their heels with this one, it shall be interesting to see whether they can actually sell any. £176995 for a three bedroom or £219995 for a four bedroom!

[neilrich]

Reference the regional economy there was a small piece on this morning’s BBC Breakfast news (local), saying that an Indian recruitment agency was in town to recruit people from the North East and persuade them to emigrate to India where the cost of living is 1/7 of here in the UK and for a wage of £400 a month!

[QuietObserver]

Checked out 'The Grove' Today and I take it that you were referring to 'Ettrick Lodge' where I counted four or five sale boards, one of which was under offer and one was sold subject to contract!  More interesting is 'The Oval' still under construction being built by Polish builders judging by the number of Polish registered cars, checked out Sanderson Young website which lists no fewer than thirty apartments still For Sale!

<{POST_SNAPBACK}>

Now only one sold board? Bang goes my theory then! Here's the link to the Knight Frank site, listing the Grove Park flats - the top end of the Oval is up to £465K for a 2 bed flat with 3 bathrooms!?! New flats are still available according to this - Knight Frank in Newcastle

It looks like Sanderson Young are trying to sell on flats bought off plan, given the way they are being listed, so no shortage of supply there -Sanderson Young - Oval Listings