Jump to content
House Price Crash Forum

Recommended Posts

The Journal are on form Today!! :lol:

Over the past 50 years property has risen at an average rate of 10% or more. You have to believe that if you buy now, in three years’ time you will see a significant gain. Investing in property is, literally, the most rock solid investment people can find at present.

The Journal - Homemaker

Link to post
Share on other sites
  • Replies 3.4k
  • Created
  • Last Reply

Top Posters In This Topic

Over the past 50 years property has risen at an average rate of 10% or more. You have to believe that if you buy now, in three years’ time you will see a significant gain. Investing in property is, literally, the most rock solid investment people can find at present.

Now where have I heard that before....

Yuko Wakabayashi, a 38-year-old housewife, says: "In Japan we believed that the value of land never fell. All the estate agents said that whatever happened, we would be up after 10 years and could move on if we wanted. Instead we are left with a huge debt."

For those interested I have the full article below, you shall not find this in The Journal!! :lol::lol:

Paying off debt until past retirement

(Filed: 11/05/2003)

In 1996, the Wakabayashis spent £220,000 on a flat that would sell for half that today writes Colin JoyceBritish homeowners enjoying the boom in UK property values might spare a thought for the Japanese who have endured 12 consecutive years of decline.Falling house prices have created a generation in negative equity, damaging consumer confidence and reining in household spending.The Wakabayashi family from Kanagawa bought a two-bedroom apartment of 67 sq metres for £220,000 in 1996. They estimate that if they sold today they could get just £110,000.Though the apartment was a long way from the nearest station and more than an hour by train from Mr Wakabayashi's office in Tokyo, they bought because it was as much as they could afford at the time. Today, they say they could never afford to sell it.Yuko Wakabayashi, a 38-year-old housewife, says: "In Japan we believed that the value of land never fell. All the estate agents said that whatever happened, we would be up after 10 years and could move on if we wanted. Instead we are left with a huge debt."After seven years of meeting repayments they have barely made a dent in the £170,000 they borrowed. After sales taxes and agent's commission, they estimate that if they sold they would be left with a debt of £70,000.Their story is by no means unique. It is repeated in households across Japan, though people in apartments have fared worse than house owners and the suburbs have suffered more than cities.Mr Wakabayashi, a section chief at a dairy company, was 33 when he took out a 35-year loan. In other words, he will be paying off the loan well past Japan's official retirement age of 60.Japanese lenders often offer salarymen five times their annual salary, on the assumption that they have a job for life and receive annual pay rises. The loans are typically structured to fit the tradition that companies pay large bonuses twice a year and a huge lump sum on retirement.However, Japan's economic crisis means those assumptions are increasingly uncertain. Many companies have frozen pay. Others have simply gone bankrupt. People fear that companies may soon shrink bonuses and retirement packages, as they are discretionary.Mrs Wakabayashi said: "So far my husband has received his annual pay rises, but Snow Brand, one of Japan's biggest dairy producers, went bust last year. It is worrying to have such a big loan in such uncertain times."

Link to post
Share on other sites

Looks like Great North Park at Gosforth is going dow the Sh*tter.

Homes previously sold for £400k now available from £200k although bids are up to £265k

http://www.pattinsonauctions.co.uk/Propert...&SearchFor=

I've worked in a guys house who bought once of the "Redheugh" properties paying £400k for it last year, he was a wealthy guy but i bet he'll be really p*ssed when he finds next door moved in for £140k cheaper.

:lol:

Link to post
Share on other sites

This evening I attended the first part of the Pattinson property auction, the auctioneer was bullish reporting that Pattinson were having a very busy month, and a number of lots had been withdrawn prior to the auction having being SOLD. A short way into the auction there was a disturbance on the floor following the sale of lot 21b, the winning bidder claimed to have been confused by the picture on the overhead projector and had bid on the wrong lot, raised voices on the floor accused the auctioneer of engineering false bids, after several minutes of confusion lot 21b was auctioned yet again.

The main point of interest for me was the new build plots on the Great North Park, I watched five of them go through the auction, listed as four/five bedroom townhouses previously marketed at over £400k the auctioneer opened looking for bids of £250k!!! :lol: On four of the lots there was absolutely no interest, the remaining lot(lot 70 plot 658 Melbury) there was some interest, but the bidding stopped at £290k and was withdrawn as it did not meet the reserve. Lot 71 was also interesting 'The Old Forge Church Chare, Whickham NE16 4SH,' listed as being previously marketed at £269,950 withdrawn due no interest at £140k. I would like to have stayed for LOT115 'Edge Hill, Darras hall,' but could stay no longer.

Link to post
Share on other sites
Guest Daddy Bear
This evening I attended the first part of the Pattinson property auction, the auctioneer was bullish reporting that Pattinson were having a very busy month, and a number of lots had been withdrawn prior to the auction having being SOLD. A short way into the auction there was a disturbance on the floor following the sale of lot 21b, the winning bidder claimed to have been confused by the picture on the overhead projector and had bid on the wrong lot, raised voices on the floor accused the auctioneer of engineering false bids, after several minutes of confusion lot 21b was auctioned yet again.

The main point of interest for me was the new build plots on the Great North Park, I watched five of them go through the auction, listed as four/five bedroom townhouses previously marketed at over £400k the auctioneer opened looking for bids of £250k!!! :lol: On four of the lots there was absolutely no interest, the remaining lot(lot 70 plot 658 Melbury) there was some interest, but the bidding stopped at £290k and was withdrawn as it did not meet the reserve. Lot 71 was also interesting 'The Old Forge Church Chare, Whickham NE16 4SH,' listed as being previously marketed at £269,950 withdrawn due no interest at £140k. I would like to have stayed for LOT115 'Edge Hill, Darras hall,' but could stay no longer.

I think I left just after you Neil. The reserve on the Redheughs (there were 5 of them in total !!) must be 300K - the auctioneer let this slip on the last one when he initially started the bidding at £300K then changed it to £250K. These are eventually going to go for £199K !!! Great North Park will become a sink estate ! Think of the further change in sentiment to all those recent buyers on GNP when they hear what these did not go for!

Much hilarity with the guy bidding for the house "on screen" and then realising it was 21b he had actually bought :lol: Cost the phone bidder an extra £2K on 21b when they resold it. I reckon they were doing a hustle - and the idiot bidder was their stooge :ph34r::P

The main point of interest for me was Lot 46 Kuriakon House, Warenford. 6 bed detached 1/4 acre N70. Starting bid £360K. No bids so withdrawn. It had been marketed for £630,000 previously (asking I know).

I did not stay for Lot 115 - got bored.

I was actually suprised how much 'crap' got shifted - admittedly at 40% below peak - but still - braver then me. There seems to still be a few BTL investors adding to their portfolio. I would not like to catch a falling knife. But alot was unsellable.

If you find out what Lot 115 goes for let us know.

DB

ps would you really rely on those numpties on the phone to carry out a comission bid for you? Muppets.

Link to post
Share on other sites

Thanks for the update on the auction guys.

I don't suppose either of you remember what happened to the two houses I mentioned on page 168 of this thread?

Don't know lot numbers but they were:

3 Friarside road, Fenham

and

39 Palmerston Avenue, Walkergate

Both decent looking family homes, and the only two that I wouldn't have minded purchasing (at 1999 prices :P)

Link to post
Share on other sites
Thanks for the update on the auction guys.

You're welcome!

I don't suppose either of you remember what happened to the two houses I mentioned on page 168 of this thread?

Don't know lot numbers but they were:

3 Friarside road, Fenham

and

39 Palmerston Avenue, Walkergate

Both decent looking family homes, and the only two that I wouldn't have minded purchasing (at 1999 prices :P)

I'm sorry but I'd left before those properties were auctioned, LOT90 and LOT107, the results should be out in a couple of days.

Link to post
Share on other sites
I think I left just after you Neil. The reserve on the Redheughs (there were 5 of them in total !!) must be 300K - the auctioneer let this slip on the last one when he initially started the bidding at £300K then changed it to £250K. These are eventually going to go for £199K !!! Great North Park will become a sink estate ! Think of the further change in sentiment to all those recent buyers on GNP when they hear what these did not go for!

Much hilarity with the guy bidding for the house "on screen" and then realising it was 21b he had actually bought :lol: Cost the phone bidder an extra £2K on 21b when they resold it. I reckon they were doing a hustle - and the idiot bidder was their stooge :ph34r::P

The main point of interest for me was Lot 46 Kuriakon House, Warenford. 6 bed detached 1/4 acre N70. Starting bid £360K. No bids so withdrawn. It had been marketed for £630,000 previously (asking I know).

I did not stay for Lot 115 - got bored.

I was actually suprised how much 'crap' got shifted - admittedly at 40% below peak - but still - braver then me. There seems to still be a few BTL investors adding to their portfolio. I would not like to catch a falling knife. But alot was unsellable.

If you find out what Lot 115 goes for let us know.

DB

ps would you really rely on those numpties on the phone to carry out a comission bid for you? Muppets.

I agree with your comments on the Great North Park, anyone un-lucky enough to have purchased there is stuffed!! Come the revolution property on the Great North Park shall be less than £200k!!

I watched 'Kuriakon House', how times have changed!!

The LOTS that were selling, many were under £80k!!

I felt sorry for the poor Pattinson Girl on the telephone.

Next time we shall have to meet for a drink!!

Link to post
Share on other sites
Guest Daddy Bear
Thanks for the update on the auction guys.

I don't suppose either of you remember what happened to the two houses I mentioned on page 168 of this thread?

Don't know lot numbers but they were:

3 Friarside road, Fenham

and

39 Palmerston Avenue, Walkergate

Both decent looking family homes, and the only two that I wouldn't have minded purchasing (at 1999 prices :P)

I'm afraid I left after the last 5 bed GNP property failed to make reserve (£300K - I reckon). I'm 100% sure the two you enquire about were not withdrawn before the auction.

Neil made the point that most sales were < £100K. It stands to reason that when this pool of "cash" buyers gets used up ovver the next 6 months we will see the second leg of this price crash. I can see larger £500K circa properties taking a big hit.

Are these guys getting caught in a "bull trap" - or are these sales representing genuinely 'good value'... 'good investments' ??

DB

Link to post
Share on other sites
This evening I attended the first part of the Pattinson property auction, the auctioneer was bullish reporting that Pattinson were having a very busy month, and a number of lots had been withdrawn prior to the auction having being SOLD. A short way into the auction there was a disturbance on the floor following the sale of lot 21b, the winning bidder claimed to have been confused by the picture on the overhead projector and had bid on the wrong lot, raised voices on the floor accused the auctioneer of engineering false bids, after several minutes of confusion lot 21b was auctioned yet again.

The main point of interest for me was the new build plots on the Great North Park, I watched five of them go through the auction, listed as four/five bedroom townhouses previously marketed at over £400k the auctioneer opened looking for bids of £250k!!! :lol: On four of the lots there was absolutely no interest, the remaining lot(lot 70 plot 658 Melbury) there was some interest, but the bidding stopped at £290k and was withdrawn as it did not meet the reserve. Lot 71 was also interesting 'The Old Forge Church Chare, Whickham NE16 4SH,' listed as being previously marketed at £269,950 withdrawn due no interest at £140k. I would like to have stayed for LOT115 'Edge Hill, Darras hall,' but could stay no longer.

Darras Hall will be interesting over the next few months, the Edge Hill property is much larger than the average bungalow, although site is the standard 1/4 acre. Talking to the agents in Pont £250k seems to be where they think it will go (50% drop at least). Already a couple gone at this level. Darras is a strange mix of cash buyers & those leveraged to the hilt, plus only so much demand for £3k a month rentals. Interesting times.

Link to post
Share on other sites
Lot 71 was also interesting 'The Old Forge Church Chare, Whickham NE16 4SH,' listed as being previously marketed at £269,950 withdrawn due no interest at £140k.

If that's the one I think it is then I've been watching that one purely out of idol curiousity for a while, I just can't believe anyone would buy a house like that adjoining the bloody old lang jack pub, you'd have to be quite mad. Also, if it is the one I'm thinking of, I believe you have to pay to park outside your own front door for some daft reason.

Link to post
Share on other sites
If that's the one I think it is then I've been watching that one purely out of idol curiousity for a while, I just can't believe anyone would buy a house like that adjoining the bloody old lang jack pub, you'd have to be quite mad. Also, if it is the one I'm thinking of, I believe you have to pay to park outside your own front door for some daft reason.

Think it might be the same, not that I know Whickham, the postcode is NE16 4SH.

The description reads,

An impressive three bedroom semi detached house circa 1800. The property conveniently behind Whickham Front Street will appeal to families or young professionals. We are advised by the vendor that a parking permit is available at approx £20 per year.
Link to post
Share on other sites

Thanks for the help guys, looked at the results now.

The walkergate house failed to sell - got to 98k (reserve at 100k?) and is on again this month.

Fenham house made 151k. Unfortunate, as I reckon this is at least 2005 price given the amount of work it needed. Perhaps this reflects the rarity of nice family homes in this area coming to market? They all seem to be owned by old biddys.

Link to post
Share on other sites
Born an bread Whickham here.

That house is in probably the worst location ever. Next time I'm over that way, I'll take some piccies.

Yep, I'm pretty sure it's the one I think it is...

http://maps.google.com/maps?f=q&hl=en&...mp;t=h&z=20

It's the one (hopefully) in the middle, if google maps knacks this up on your browser then it's the one with the circular thing in its back garden, with a grey roof directly adjacent a pinky/red roof. The Ye Old Land Jack pub is just a smidge lower down, scroll down to the road and it's the building about 2 o'clock to the yellow and white bus.

edit: Also, on another point, does anyone have any inkling of what the average wage was for the north east in 00-02, and what the average regional house price was?

Edited by meow
Link to post
Share on other sites
  • 3 weeks later...
Darras Hall will be interesting over the next few months, the Edge Hill property is much larger than the average bungalow, although site is the standard 1/4 acre. Talking to the agents in Pont £250k seems to be where they think it will go (50% drop at least). Already a couple gone at this level. Darras is a strange mix of cash buyers & those leveraged to the hilt, plus only so much demand for £3k a month rentals. Interesting times.

Hi, I had to get registered to reply to the messages here.

I was the one who bid for £250,000 for the property. Pattinsons were trying to get me up on my bid but I refused. It looked like they had almost accepted the price but I was gazumped and some one was loony enough to bid around £280,000 for the property (that's what I think the selling price was as far as I know) when they could have easily has it for £260000.

Edited by fekoo
Link to post
Share on other sites
Hi, I had to get registered to reply to the messages here.

I was the one who bid for £250,000 for the property. Pattinsons were trying to get me up on my bid but I refused. It looked like they had almost accepted the price but I was gazumped and some one was loony enough to bid around £280,000 for the property (that's what I think the selling price was as far as I know) when they could have easily has it for £260000.

Welcome!

Should you have been successful, what were your intentions? Are you a developer?

Having checked rightmove, there's an awful lot available in Darras Hall at present. I've a friend who purchased a relatively modern four bedroom detached, good size plot, on Darras Hall back in 2000, he paid £158k!! At the height of the boom he believed it might have achieved £450k, but can't decide what it might be worth in Today's market.

Link to post
Share on other sites
Welcome!

Should you have been successful, what were your intentions? Are you a developer?

Having checked rightmove, there's an awful lot available in Darras Hall at present. I've a friend who purchased a relatively modern four bedroom detached, good size plot, on Darras Hall back in 2000, he paid £158k!! At the height of the boom he believed it might have achieved £450k, but can't decide what it might be worth in Today's market.

Thanks for the welcome. I am a long time follower of this forum but never felt the pressing need to join before.

I am looking to buy to live, I am not a developer. I have been looking for a while in that area. I am looking for the kind of property you have described. Is your friend keen to sell his house? is it already on market? Most of the good houses on rightmove are a bit expensive for me and people are not moving down much from asking prices.

Edited by fekoo
Link to post
Share on other sites
55 Degrees North still selling - 20% over reserve....

http://www.auction.co.uk/residential/LotDe...amp;S=C&O=A

from latest Allsop (December) auction results

http://www.auction.co.uk/residential/pastr...amp;O=A&P=5

55 Degress North...I just can't see the appeal, guess the purchaser believes they've bagged a bargain, time shall tell!!

This next one is very interesting, lot 533 is listed as an Investment Flat!! :lol:

9 St Catherines Court, Tyne & Wear NE2 1AG

It failed to find a buyer and is still available, guide £230k-£250k, here's the best bit previously SOLD May 2007 for £385k!!

17/05/2007 £385,000 Ter. F 9, St Catherines Court, Newcastle Upon Tyne, NE2 1AG

The Receivers understand that the property is subject to a 12 month Assured Shorthold Tenancy from 1st September 2008 at a rent of £921.82 per calendar month.

Hardly surprising then...that it's a repossession!!

Link to post
Share on other sites
Thanks for the welcome. I am a long time follower of this forum but never felt the pressing need to join before.

I am looking to buy to live, I am not a developer. I have been looking for a while in that area. I am looking for the kind of property you have described. Is your friend keen to sell his house? is it already on market? Most of the good houses on rightmove are a bit expensive for me and people are not moving down much from asking prices.

My friend is not looking to sell, but it's interesting to speculate as to the true value, assuming that the past seven years was an anomaly, safe to do so now that the housing bubble has BURST...I'd say that a house which SOLD in 2000 for £158K is today worth approx £200k, that's allowing for inflation, but because it's Darras lets say £250k!!

You have to ask, why would anyone pay a premium over year 2000 prices? You would need to ask yourself whether you believe that our economy is stronger and better placed today than it was a decade ago? High house prices have been brought on by an over supply of cheap credit, not an under supply of houses. Today the credit tap has been turned off, there is no fix, the system is BUST, unemployment is rising and our economy is TOAST!! This before the onset of deflation, interest rates are now irrelevant!!

Reference the Pattinson Auction, you did well to stick to your guns, this time next year you'll get similar for less than £200k!!

Edited by neilrich
Link to post
Share on other sites
Christmas Quiz!

How many bedrooms can you squeeze into a pokey little converted bungalow?

At £330k...you could buy a house with a proper upstairs and a decent sized living room for less!!

Also worth pointing out the three bathrooms and the downstairs WC!!

I'd need to lose a bit of weight to use the bathroom. Must be some sort of record though. Unfortunately the selling price won't be :lol:

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 440 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.