Saturday, October 25, 2008

Is a 50% discount enough?

House price falls mean bargains for some

Brief video about a first time buyer getting a one bedroom flat for £78K instead of allegedly original price of £150K. New builds are a bit risky for build quality but even so, the repayment must be close to rentals at that price. Let's hope we see more of this soon.

Posted by quiet guy @ 10:52 AM (1536 views)
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15 thoughts on “Is a 50% discount enough?

  • I know some of you wil say this isn’t a good deal yet. But I paid about £80k for a 2 bed apmt. in 1999 and 78k for a 1 bed 9 years on seems to me to be approaching ‘fair’ price.

    I expect this will go lower though (depending on mortgage rates and availability).

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  • Unless you can buy an average UK house on your credit card (e.g less than about £10K) then you are not getting good value for money. This was possible not too long ago and should be the case again soon.

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  • sovietuk

    WTF

    You could never buy an average uk house on your credit card for less than £10k. As and when they were less than £10k probably mid seventies, credit cards had only just come in and the average credit limit would have been about £500.

    If you wait that long you will miss the bottom by a mile.

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  • @sovietuk

    Although it will be possible to buy properties on a credit card in the most deprived parts of the country, I don’t think that there will be anywhere I want to live in that price bracket unless I change career and move into drug dealing.

    Come to think of it, the drug dealing game might be a bit competitive – all those unemployed EAs will have find some way to pay the bills!

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  • Buying something because you think it may be cheap will always have a bad side to it.
    Investors will be picking up block of 10 flats in such blocks at £50,000 a unit if Miss first time buyer can pay £78,000.
    These investors will fill them with a mix of people (not caring about the neighbours)
    This will leave the blocks fall into a mess with many renters not caring to much as they will be in and out every six months.

    Owner occupiers will find if difficult to then get their money back out. This will cause further falls in such blocks.
    The desperation of owner-occupiers to get rid in a few years because of problems will lead to landlords picking up their £78,000 flats at a snip.

    If first time buyers feel it necessary to live in a flat why not rent?
    Lots available, cheap rents, ability to move quickly and better their living conditions without losing cash.

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  • Buyinginafewyears says:

    @1

    I think we’re not comparing the same things. For a start you’ve got to consider the shocking build quality of some of these places. I’ve lived in enough BTL new builds to know things are always breaking, and i’ve heard comment they’re put up for 20-30k a unit. Second we’re talking about northern ireland. Relative income is probably lower there, so relative house prices are as well. “Troubles” aside, I bet you could buy a flat in NI for a lot less than 78k back in 1999.

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  • @Quiet Guy

    Your being a tad silly there, drug dealers will all be living in high end properties. Drugs are always expensive, demand is going to surge as people try to escape reality.

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  • For an average house, 50% is getting towards the right discount, but definitely not for a new build in Northern Ireland. They will fall much much more than average.

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  • Quiet guy – “Come to think of it, the drug dealing game might be a bit competitive – all those unemployed EAs will have find some way to pay the bills!”

    Well, judging by the prices they’re asking they’re still using heavily, just a short move into dealing!

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  • If she is happy and can afford it, there isn’t really an issue or a story here.
    She hasn’t got a 50% discount, she has paid market price at the moment (which happens to be 50% less than it was).

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  • You mean there could be a time ahead when the true value and quality of a house/flat might be reflected in its price? You don’t pay more than for what you get? Value for money? Realistic prices? A life in which 1+1 is 2? I’m writing this with tears in my eyes. The thought is too good to be true. But I see trouble ahead. I just had a haunting vision of a huge crowd of ghostly bankers and estate agents led by a white-faced Gordon Brown clad in black, whispering over and over again: From our cold dead hands.. from our cold dead hands…

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  • I don’t think she has ‘saved’ £78k, because those flats were never worth 150k in the first place.

    £78k is heading towards normal, although NI is the most insanely overpriced areas on Earth. 1 bed box flats historically are c1.5x income. which would mean a target price of c£40k.

    She can expect a lot of housing association neighbours and DSS tenants living clsoe by.

    I see these flats as good quality cheap social housing if priced correctly (£40k).

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  • Renter Abroad says:

    Not everything you buy in a sale is necessarily a bargain!

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  • Good luck to her, but I still think that £78k is a too much for even a 2-bedroomed apartment.

    Personally I think that the Titanic Quarter in Belfast will live up to its name.

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  • @sovietuk – “This was possible not too long ago and should be the case again soon” – can you specify where and when? – I’ll be in the market to buy if you are correct

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