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House Boom As 'predators' Take Avantage

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Property speculators are sparking a mini-property boom by snapping up cut-priced homes across Preston, Lancashire.

Estate agents in the city have reported a surge in the number of people buying up property as prices dropped by almost 20% in the past three months.

Phil Williamson, manager of Jones Cameron, said landlords had started to "buy heavily" in areas such as Plungington, Ashton and Deepdale with a view to cashing in on rising rents and to sell them at a profit when prices recover.

He believes the situation is set to return to where it was before the property boom, when investors were snapping up homes all over the city.

He said: "Five years ago I was stood in a terraced house in Plungington which was £60,000 and the people looking at it told me prices could not keep rising and now that same house is nearer £100,000.

"It ended up with the landlords being the winners because they were the ones who bought these properties cheaper and then were able to rent them out.

"The thing is that these kind of investors do not put money in if they do not think they will get it back, so long-term the smart money is on this only being a blip."

He added that some landlords who had been unable to rent out properties were also looking to offload homes, creating further movement in the market.

Fellow estate agent Richard Garside, of Garside Waddingham, said the drop in prices in Preston had been caused by an oversupply of cheap flats.

The average price of a home in Preston is £130,704, a drop of 7.3% on last year. South Ribble dropped 10.5% in the last quarter to £160,084 with Chorley rising 0.2% to £172,919 and Wyre down 2.4% to £170,568.

A study released by the Royal Institute of Chartered Accountants (RICS) showed an increase in the numbers of "predatory buyers", with buy-to-let investors taking advantage of rising rents.

Spavin,

Deepdale 16/07/2008 10:02:37

Beware the Bull trap fools!!!!!!!

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2

barnfarm,

16/07/2008 11:43:52

Jackals. New Labour's legacy. The housing of those unable to keep their heads above water sold-off as an investment opportunity.

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3

Prestonian Through and Through,

16/07/2008 12:09:35

Looks like a desperate ploy to ensure the LEP's Property Post keeps running.

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4

NH,

16/07/2008 12:41:40

Why don't the government look at taxing 2nd properties instead of their constant persecution of motorists. I am sure they could make more revenue here. Maybe it is because most of the government officials own 2nd properties!!

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5

Spavin,

Deepdale 16/07/2008 12:52:46

Forget post #1 Now is a great time to buy, so many bargains out there to be snapped up. Properdee only ever goes up innit. Safe as houses, you can't go wrong with bricks and mortar. Buy now or you will get left behind FOR EVER!!!!!! If I go to ASDA on a Sunday afternoon and buy a loaf of bread with a whoops 20p off sticker on it. Am I a predatory grocery buyer? Five years ago I was stood in ASDA and a loaf of bread was 60p, people told me it was expensive then, and now it costs over a pound. So 80p seems a bargain to me.

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Do the comments accurately reflect the mood amongst the general population?

:lol:

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[...]

...a view to cashing in on rising rents...

[...]

He added that some landlords who had been unable to rent out properties were also looking to offload homes, creating further movement in the market.

[...]

So - some landlords have been unable to rent properties out and are thus selling them to other landlords who, presumably, can - as they are "cashing in on rising rents". It all makes perfect sense.

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The metro today had a small paragraph on the business section claiming the market in London was recovering... because lots of properties were being put up for sale, while fewer people were buying. I assume they thought this was hilarious.

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havent the owners of this festering rag lost 90% of recent share value ?

this is why.

they have refused to report NEWS for the last 8 years, choosing instead to ramp property for their own gains.

they deserve to go tits.

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Guest An Bearin Bui
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Do the comments accurately reflect the mood amongst the general population?

:lol:

Phil Williamson, manager of Jones Cameron, said landlords had started to "buy heavily" in areas such as Plungington, Ashton and Deepdale with a view to cashing in on rising rents and to sell them at a profit when prices recover

If I were going to walk blind into a bull trap, I'd hope I wouldn't pick locations with such ominous names... values plunging into the deep as profits turn to ash... :lol:

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Do the comments accurately reflect the mood amongst the general population?

:lol:

I love the emotive language "predatory" - in reality a property is for sale at some asking price and a buyer (who may be a private landlord) decides to offer to buy it for a price, possibly below the asking price. This is predatory? surely that means that shoppers who buy the BOGOF offers are also predatory as they are unfairly waiting for the impoverished supermarket to discount their products before buying.

How can people be so cruel as to negotiate a discount ? Shame on them :lol:

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I love the emotive language "predatory" - in reality a property is for sale at some asking price and a buyer (who may be a private landlord) decides to offer to buy it for a price, possibly below the asking price. This is predatory? surely that means that shoppers who buy the BOGOF offers are also predatory as they are unfairly waiting for the impoverished supermarket to discount their products before buying.

How can people be so cruel as to negotiate a discount ? Shame on them :lol:

That phrase has been around for a while now and is laughable. 'Predatory' lending, 'Predatory' selling and now 'Predatory' buying. Makes no sense - none of them exist.

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So it's 20% off a £100,000 property for these predatory buyers.

You pay £80,000 and will look, in these credit crunching times, at a gross yield of 8% on your rent.

That's £6,400 for the year, or a monthly rent of £533.

Since for £80K in Preston, you are probably looking at a run down 2up/2 down in a crap part of town (a matter of degrees in Preston .....) I somehow doubt you can get that sort of rent level.

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Guest Shedfish
...so long-term the smart stupid money is on this only being a blip.

corrected for the hard of thinking

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preston:

makes me laugh.

going back only to 1978. it had a thriving port. a massive GEC factory. a massive BaE factory. HUGE mills. huge rail infrastructure. a refinery. nuclear plants. agricultural land and lots of important history.

now its just got a handful of BTL idiots, egged on by a corrupt local rag to lose £££s of our tax money pricing out the young of the town. a couple of garages and 229 kebab shops.

WHAT has been going on in preston ?

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Guest DissipatedYouthIsValuable
preston:

makes me laugh.

going back only to 1978. it had a thriving port. a massive GEC factory. a massive BaE factory. HUGE mills. huge rail infrastructure. a refinery. nuclear plants. agricultural land and lots of important history.

now its just got a handful of BTL idiots, egged on by a corrupt local rag to lose £££s of our tax money pricing out the young of the town. a couple of garages and 229 kebab shops.

WHAT has been going on in preston ?

Northerners. No work ethic.

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if you check the queens lancashire regiments tiger skin mascot at the fulwood barracks you will find it has no real front teeth in its skull.

someone stole them.

says it all. a toothless tiger.

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Northerners. No work ethic.

in the ikea magazine for the north west the 'WAG' couples are portrayed by sitting on a dusty old couch in curlers pointing to a luxury whippet kennel catalogue.

the man in a donkey jacket and woodbine then beats her into shape with bare fists before settling down to a plate of sausages for getting ides above her station.

they all pook to camera and say "Eeeeeeh"

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The metro today had a small paragraph on the business section claiming the market in London was recovering... because lots of properties were being put up for sale, while fewer people were buying. I assume they thought this was hilarious.

There has been a very noticeable trend in contemporary media reports to replace logic and consistency with outright deception and illogicality - and to masquerade it as harmless chumminess when infact it's the very opposite.

Think Estate Agents, Ant & Dec's Saturday Night Fraud and

character, Liar Loans, Politicians, the list is endless.

Its a symptom a new age we have entered in which outright in-your-face dishonesty has permeated through so many levels of society.

And that's why the crash is going to the bigger than anything in history.

Edited by Dave Spart

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So it's 20% off a £100,000 property for these predatory buyers.

You pay £80,000 and will look, in these credit crunching times, at a gross yield of 8% on your rent.

That's £6,400 for the year, or a monthly rent of £533.

Since for £80K in Preston, you are probably looking at a run down 2up/2 down in a crap part of town (a matter of degrees in Preston .....) I somehow doubt you can get that sort of rent level.

One of my friends rents a terraced house in Plungington. Not a particularly nice part of the city. He pays £350 pcm in rent. So splash out £80 - 100k to buy a rapidly depreciating asset in a rough area for the handsome return of £4200 per annum.

:lol:

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One of my friends rents a terraced house in Plungington. Not a particularly nice part of the city. He pays £350 pcm in rent. So splash out £80 - 100k to buy a rapidly depreciating asset in a rough area for the handsome return of £4200 per annum.

:lol:

£350 rent pcm. A gross yield of 8% (minimum required for investment in the new HPC market) would give a value to the property of £52,500, ie a 50% drop on 'current' prices.

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£350 rent pcm. A gross yield of 8% (minimum required for investment in the new HPC market) would give a value to the property of £52,500, ie a 50% drop on 'current' prices.

We know that, but do the last throes of BTL know that. A 50% drop is needed in this area as the 2 up 2 down typical terraced houses were selling for £30 - 50k in 2000

2001 house prices PR2

The average wage for the area is £19k, I know plenty of people earning £12 - 18k, in my age range and a few earning £20 - 40k. The average asking price according to property snake is £156k.

Property snake PR2

So I think 50% minimum crash to return terraced property (and the rest) to a affordable level 3.5 times average salary.

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"A study released by the Royal Institute of Chartered Accountants (RICS) showed an increase in the numbers of "predatory buyers", with buy-to-let investors taking advantage of rising rents."

That should be "Royal Institute of Chartered Surveyors"? Certainly no VI spin! Of course, the market's awash with cheap BTL mortages...

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"A study released by the Royal Institute of Chartered Accountants (RICS) showed an increase in the numbers of "predatory buyers", with buy-to-let investors taking advantage of rising rents."

That should be "Royal Institute of Chartered Surveyors"? Certainly no VI spin! Of course, the market's awash with cheap BTL mortages...

Take anything said by the RICS on residential property with half a hundred weight of salt, I do and I will be a member soon :ph34r: I suppose if they rock the boat too much residential property surveyors will begin to question what value they receive from the close to £500 p/a membership fee. :ph34r:

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The metro today had a small paragraph on the business section claiming the market in London was recovering... because lots of properties were being put up for sale, while fewer people were buying. I assume they thought this was hilarious.

Yes, I saw that and laughed out loud on the tube. Tourists on my carriage turned and smiled while other Londoners looked away as they thought I was a nutter. ;)

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  • 401 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% +
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      • Even
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      • up 5%



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