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HPC and related issues aside, I really hope not. The day shipbuilding ends here will be a dark day for the NE.

Dunno about that, there can't be many employed there now.

Engineering in the N/E has been declining steadily since the 70's

Thats why so many of us have left.

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HPC and related issues aside, I really hope not. The day shipbuilding ends here will be a dark day for the NE.

The brummies are saying the same thing about the closure of Longbridge. If no one wants to buy the things we make, there's no reason to employ thousands of people to do so. Sad, but true.

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Dunno about that, there can't be many employed there now.

Engineering in the N/E has been declining steadily since the 70's

Thats why so many of us have left.

There aren't many left, it's true.

I just think it will be sad, purely for sentimental reasons really...a bit like the fibre glass pencils!

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City Centre Flats a winner investment:

http://www.houseprices.co.uk/e.php?q=21+Ce...on+Tyne%2C&n=10

Mortgage payments, EA and solicitor fees and a 5k loss.

Sell in haste, repent at leisure.

I have a theory about city centre apartments, and it is just a theory. They are no different to any other type of property. If you buy one that is spacious and/or interestingly designed and/or in a decent location, you won't come a cropper. If, on the other hand, you buy a tiny, square, one-bedder, you will. There are so many of these flats, and more to come, that you're going to need to stand out from the crowd in SOME way to sell in the future. Otherwise there'll always be someone selling something identical cheaper than you.

Edited by Seamaster
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Seamaster

I agree with you that the better quality city centre appartments will hold their price better than the others. However due to the sheer quantity (of good and bad city centre developments in some cities), the timing relative to the cycle and inflationary pressure (on both IR and the economy in general), they are both tanking. Rubbish ones will be down 35 to 45% with many effectively unsellable. The better quality ones will fare better loosing between 25 to 35% over the next 18 month to 3 years and possibly a lot more.

The property market is realatively 'good' now, IR at historical lows with property 'flying off the sheves'. Agaist the background theses places are allreadt 10 to 15% off the top.

This is a crazy time to be holding New City appartments as investments as many are discovering they are worth less than they paid for them and thousands more in the pipeline. The demand that is left is from new mug BTL's as there are hadly any end users buying these.

Pablo Silver or Lead?

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This is a crazy time to be holding New City appartments as investments as many are discovering they are worth less than they paid for them and thousands more in the pipeline. The demand that is left is from new mug BTL's as there are hadly any end users buying these.

I was out in the sunshine washing my car earlier, and who should come by but my EA, showing someone round the building. Had a conversation along the lines of the posts above and, interestingly, was told that business in city apartments is brisk — but to owner occupiers only. Apparently they're selling next to nothing to BTL investors right now. Purely anecdotal, of course, but worth passing on.

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Guest Guy_Montag

Hope you don't mind invading the Newcastle forum, but Durham seemss close enough, I was looking to see if any of the Durham estate agents do special reduced sections, when I came across this:

*snip*

"the Blairs can console themselves with the fact that Sedgefield wasn't the worst performer last year. That dubious accolade goes to the nearby city of Durham. There, prices plunged 12.6% last year, pushing the average price-tag down to £123,066."

*snip*

Blairs experience ups and downs of the property market

Rupert Jones

in the Guardian

Wednesday January 11, 2006

Sorry it's couple of months out of date.

12.6% sounds like a crash to me.

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Unlikely to feel like one if you made 200% profit on your last place, though.

but relevant if you bought last year pre the 12.6% drop as a FTB'er not sat on a property profit carried forward from another house.

Edited by Catch22
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but relevant if you bought last year pre the 12.6% drop as a FTB'er not sat on a property profit carried forward from another house.

So, what you're saying is that a small change in the short-term financial status of an even smaller sliver of the millions of property owners in this country is a "crash"?

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Guest Guy_Montag

So, what you're saying is that a small change in the short-term financial status of an even smaller sliver of the millions of property owners in this country is a "crash"?

Bear in mind that the drop is not likely to be a one-off hit, it is part of a trend. The trend was up at 10-20% per year, now it is down at 12% per year. Whether it continues to drop at that rate, we will have to wait & see.

You are, of course, right Seamaster; the only people this will effect are the people who bought when the prices were >88% of the peak. Of course if prices continue to drop at their current rate, this time next year, it will affect people that bought at >76% of the peak. The question is: how far will the drop continue?

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So, what you're saying is that a small change in the short-term financial status of an even smaller sliver of the millions of property owners in this country is a "crash"?

No I'm saying exactly what I said....... to a FTB'er in that position it would be relevant.

Pray tell why you would want to twist what I say? .......Whats your agenda on here?.............No don't tell me, let me guess :rolleyes:

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You are, of course, right Seamaster; the only people this will effect are the people who bought when the prices were >88% of the peak. Of course if prices continue to drop at their current rate, this time next year, it will affect people that bought at >76% of the peak. The question is: how far will the drop continue?

How far has it ever dropped historically? How long has it ever stayed dropped?

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Guest Guy_Montag

How far has it ever dropped historically? How long has it ever stayed dropped?

Last crash (90-93) prices dropped nominally 13%, & they stayed down for c. 7 years.

This is nationally, rather than just for the NE unfortunately. Will try to find local figures.

Edit for update:

According to Nationwide:

Peak for the "North" was Q4 1991, at 106.8 index points.

Trough for the "North" was Q4 1994 at 91.7 index points (86.6% of peak).

Q2 1998 was the next time the index exceeded 106.8 points.

Edited by Guy_Montag
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According to Nationwide:

Peak for the "North" was Q4 1991, at 106.8 index points.

Trough for the "North" was Q4 1994 at 91.7 index points (86.6% of peak).

Q2 1998 was the next time the index exceeded 106.8 points.

Interesting local stats, thanks for posting them.

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Guest Guy_Montag

Interesting local stats, thanks for posting them.

In fairness, I've checked the nationwide stats webpage & I regret to say I can't work out where the Guardian jouno got his stats from. I couldn't find any indication that Durham had fallen 12%, & the Land Reg via the BBC suggests +10% yoy to December 2005.

Edited by Guy_Montag
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Seamaster

I agree with you that the better quality city centre appartments will hold their price better than the others. However due to the sheer quantity (of good and bad city centre developments in some cities), the timing relative to the cycle and inflationary pressure (on both IR and the economy in general), they are both tanking. Rubbish ones will be down 35 to 45% with many effectively unsellable. The better quality ones will fare better loosing between 25 to 35% over the next 18 month to 3 years and possibly a lot more.

The property market is realatively 'good' now, IR at historical lows with property 'flying off the sheves'. Agaist the background theses places are allreadt 10 to 15% off the top.

This is a crazy time to be holding New City appartments as investments as many are discovering they are worth less than they paid for them and thousands more in the pipeline. The demand that is left is from new mug BTL's as there are hadly any end users buying these.

Pablo Silver or Lead?

Surely there are no new BTL investors in the city. I own 3 flats in Brady & Martin court (all 2 beds) bought a few years ago for btw 100-120k. This year I made £612 profit on the 3. Ok I could dispense with the letting agent & make a bit more, but still cant see how anyone could make money from 2 beds over £135k in the city. This I feel is probably the true value of an average city centre 2 bed

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Surely there are no new BTL investors in the city. I own 3 flats in Brady & Martin court (all 2 beds) bought a few years ago for btw 100-120k. This year I made £612 profit on the 3. Ok I could dispense with the letting agent & make a bit more, but still cant see how anyone could make money from 2 beds over £135k in the city. This I feel is probably the true value of an average city centre 2 bed

£612? :blink::blink:

Is it worth the effort? Why don't you sell up and take the profit?

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http://www.rightmove.co.uk/action/publicsite.PropertySearch

Al least 17 in City Lofts available from the developer, and others being flipped on as well.

Type in NE1 and new homes to count the 17.

All properties to see the rest :o

What happens if they don't shift?

The developer isn't gonna pay interest for ever.

Edited by undersupply
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According to nethouseprices.com the following house sold on 25/08/2004 for £130k. At the end of 2004 the house was back on the market for £225k and recently reduced to £215k!! This house is on Hollywood Ave which is in Gosforth a suburb of Newcastle upon Tyne and five years ago these were selling for less than £75k! A complete joke, price marked up by £95k in a couple of months and for what? Walls painted in magnolia and a B&Q kitchen!! House does not even have a driveway let alone a garage.

Forth Park Residential

Remember this one? The first post at the very top of this thread, over 12 months on and the property remains empty!! Now advertised with Pattinson it is listed both 'For Sale' and 'To Let'!

Pattinson.co.uk - Hollywood Ave - For Sale £199,950

Pattinson.co.uk - Hollywood Ave - To Let £750

Next stop Pattinson Property Auction!

:lol::lol::lol::lol:

Edited by neilrich
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Surely there are no new BTL investors in the city. I own 3 flats in Brady & Martin court (all 2 beds) bought a few years ago for btw 100-120k. This year I made £612 profit on the 3. Ok I could dispense with the letting agent & make a bit more, but still cant see how anyone could make money from 2 beds over £135k in the city. This I feel is probably the true value of an average city centre 2 bed

I think what we're seeing in Newcastle is a stark divergence of opinion on the concept of value. How BTLs value an investment versus how OOs value a home are starkly different. That's certainly what my EA told me on Saturday — lots of city-centre 2-beds are selling to, and between, OOs, but BTLs are buying nothing.

PS: I know someone who made just made a bundle selling his pad in Brady and Hindley, but he bought way back when.

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I think what we're seeing in Newcastle is a stark divergence of opinion on the concept of value. How BTLs value an investment versus how OOs value a home are starkly different. That's certainly what my EA told me on Saturday — lots of city-centre 2-beds are selling to, and between, OOs, but BTLs are buying nothing.

PS: I know someone who made just made a bundle selling his pad in Brady and Hindley, but he bought way back when.

Seamaster, I have been monitoring city centre 2 beds (albeit only via Rightmove, so I am making the assumption, perhaps incorrect, that it is representative of the mareket as a whole) and not much has shifted in the city centre in months. Ok, the odd one here and there but this seems at odds with what your EA has told you. Things on the ground may be different to my view from the lofty heights of the internet, of course.

spoonunit

ps i agree with you on the 'value' concept BTW

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  • 442 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%



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