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Guest KingCharles1st

Wow! Next Door Just Reduced Another 15k

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Guest KingCharles1st

Some of you might recall that the property adjacent to mine was previously privately owned, but the previous occupants did a "house swap" with a developer of a large site not too far away, so I would imagine that in the process, my ex next door neighbours ended up wit ha bigger house, but are currently living on an abandoned building site...

Anyhow- last Autumn it went up at 220K- stayed there, obviously the new owners (the developers) believed all the market hype) but a couple of months ago it was reduced to 210K.

This morning it is down to 175K!

Thats a drop of45K, so thats a 20% drop already, and we haven't even factored in the 10% reduction any buyer would now expect yet- taking it down to 157K .....ouch.

BUT- the developer almost certainly won't have a mortgage on this property as such, so can sell at whatever price they choose. Now lets assume that all builders are in trouble, so that means this lot too- so now they are having a fire sale and getting money in via any means available.

Therefore- can we now take as read the horrific scenario where large building companies are going to drastically undercut the prices of desperate sellers on like for like properties, who themselves cannot reduce their price anymore as their mortgage is too high... and how long before the ystart doing it on the same building site as their newest customers- are they doign it already even..? :o

That is SICK

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Wow! Next Door Just Reduced Another 15k

OMG!!! How awful for you!! :Huggzzzzzz: :Clappy smiley:

Your neighbours are so selfish to make you poorer just because they want to sell their house! :Angry smiley:

Oh sorry I thought this was MSE.... ;)

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Guest KingCharles1st
OMG!!! How awful for you!! :Huggzzzzzz: :Clappy smiley:

Your neighbours are so selfish to make you poorer just because they want to sell their house! :Angry smiley:

Oh sorry I thought this was MSE.... ;)

Its OK- I'm renting :lol:

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Some of you might recall that the property adjacent to mine was previously privately owned, but the previous occupants did a "house swap" with a developer of a large site not too far away, so I would imagine that in the process, my ex next door neighbours ended up wit ha bigger house, but are currently living on an abandoned building site...

Anyhow- last Autumn it went up at 220K- stayed there, obviously the new owners (the developers) believed all the market hype) but a couple of months ago it was reduced to 210K.

This morning it is down to 175K!

Thats a drop of45K, so thats a 20% drop already, and we haven't even factored in the 10% reduction any buyer would now expect yet- taking it down to 157K .....ouch.

BUT- the developer almost certainly won't have a mortgage on this property as such, so can sell at whatever price they choose. Now lets assume that all builders are in trouble, so that means this lot too- so now they are having a fire sale and getting money in via any means available.

Therefore- can we now take as read the horrific scenario where large building companies are going to drastically undercut the prices of desperate sellers on like for like properties, who themselves cannot reduce their price anymore as their mortgage is too high... and how long before the ystart doing it on the same building site as their newest customers- are they doign it already even..? :o

That is SICK

Friend of mine did the same kind of thing during the last housing slump, it was around 1992-94 I think, he owned a 2 bed terrace property in a renowned bad part of town, bought some 6 years earlier for £25k.

There was a development around 6 miles away with one property left to sell and the developers from out the area were offering part exchange on the £63k 4 bed detached property, anyway they had a local estate to value my mates property and it came back as £30k.

The developers agreed to the price and he paid £33k difference to move home, the property he part exchanged remained on the market for 3 years until it finally sold for just under £18k.

His property today is worth £250k so not a bad deal, even as a homeowner during a slump you can still benefit by moving at the right time up the ladder

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Some of you might recall that the property adjacent to mine was previously privately owned, but the previous occupants did a "house swap" with a developer of a large site not too far away, so I would imagine that in the process, my ex next door neighbours ended up wit ha bigger house, but are currently living on an abandoned building site...

Anyhow- last Autumn it went up at 220K- stayed there, obviously the new owners (the developers) believed all the market hype) but a couple of months ago it was reduced to 210K.

This morning it is down to 175K!

Thats a drop of45K, so thats a 20% drop already, and we haven't even factored in the 10% reduction any buyer would now expect yet- taking it down to 157K .....ouch.

BUT- the developer almost certainly won't have a mortgage on this property as such, so can sell at whatever price they choose. Now lets assume that all builders are in trouble, so that means this lot too- so now they are having a fire sale and getting money in via any means available.

Therefore- can we now take as read the horrific scenario where large building companies are going to drastically undercut the prices of desperate sellers on like for like properties, who themselves cannot reduce their price anymore as their mortgage is too high... and how long before the ystart doing it on the same building site as their newest customers- are they doign it already even..? :o

That is SICK

Interesting post.

The property market is currently broken in that transactions are way below where they should be. The head of the CML recently said that in a smoothly functioning market we should expect about 100-130k transactions a month.

But to get back to this level of transactions something has to act as a catalyst to drive prices down in order to clear the market.

A year or two ago there was a lot of speculation that masive BTL sales following the change in captal gains tax might do the job, this didn't really happen. In the future it could be rising unemployment ,forcing property into auctions, will do the trick. Possible, but personally I don't think unemployement will rise to the levels we saw in the last crash, I think instead wages will adjust downward keeping more people in employment albeit at the terrible price of a growth of a new class of "working poor", such as we see in the US today.

But now there's a new trigger that could force prices down, distress sell-offs by builders.

I'm a STR'r, and I'm starting to take a more serious look at buying. But it's clear that despite some tiny reductions in prices there's a great deal of denial amongst vendors and amongst EA's. I've said that for a 30%+ price eduction I could offer a cash sale and early completion. But the response from sellers is generally that it's "an insult" and EA's have said they'd rather advise their clients to rents their properties out! Fair enough, it's their choice and I'm a patient guy.

What's really needed is hard evidence of significant declines in comparable properties. If builders start being driven to the wall then there'll be abundant evidence, which could be sufficient to re-calibrate seller expectations.

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Some of you might recall that the property adjacent to mine was previously privately owned, but the previous occupants did a "house swap" with a developer of a large site not too far away, so I would imagine that in the process, my ex next door neighbours ended up wit ha bigger house, but are currently living on an abandoned building site...

Anyhow- last Autumn it went up at 220K- stayed there, obviously the new owners (the developers) believed all the market hype) but a couple of months ago it was reduced to 210K.

This morning it is down to 175K!

Thats a drop of45K, so thats a 20% drop already, and we haven't even factored in the 10% reduction any buyer would now expect yet- taking it down to 157K .....ouch.

BUT- the developer almost certainly won't have a mortgage on this property as such, so can sell at whatever price they choose. Now lets assume that all builders are in trouble, so that means this lot too- so now they are having a fire sale and getting money in via any means available.

Therefore- can we now take as read the horrific scenario where large building companies are going to drastically undercut the prices of desperate sellers on like for like properties, who themselves cannot reduce their price anymore as their mortgage is too high... and how long before the ystart doing it on the same building site as their newest customers- are they doign it already even..? :o

That is SICK

Oldftb here, sending you lots of Karma!

:lol:

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Oldftb here, sending you lots of Karma!

:lol:

What is this karma sh!t ? Are MSE and Expats Forum full of old hippies spaced out on dope while they wait to move from UK to somewhere better ?

Vegetable rights and peace, that's my motto !

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OMG!!! How awful for you!! :Huggzzzzzz: :Clappy smiley:

Your neighbours are so selfish to make you poorer just because they want to sell their house! :Angry smiley:

Oh sorry I thought this was MSE.... ;)

:lol:

'Stop all this doom mongering and talking us into a recession! The house may not be selling because they have the wrong kind of pots in the front garden, and some childrens' toys were in the pictures on Rightmove, which were also a bit dark. Perhaps you could have a friendly word and get them to put their price up a bit?

Karma going out to you. Smiley Hugz.

I AM A FINANCIAL ADVISER'

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  • 399 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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