Kingman Posted July 11, 2017 Share Posted July 11, 2017 19 minutes ago, rodders0223 said: I am looking to purchase a house as soon as possible and have been looking at a few the past week. If this 40% drop could happen some time this week then that would be smashing. Be patient and wait for the low hanging fruit. Link to comment Share on other sites More sharing options...
zak Posted July 11, 2017 Share Posted July 11, 2017 3 hours ago, omariqy said: You only need to apply basic economics of supply and demand to know that prices won't fall 40% across the board. There are more willing and able buyers then there are houses. Until that changes you won't see a rapid shift in prices. Maybe a stabilisation. This! People predict a housing crash every year but until supply outgrows demand, how and why would prices drop? To reduce demand, you would have to change the British viewpoint that one needs to own a house, which iif it does happen it wont be in a year. This would also lead to a higher demand and thus prices for rent. are peoples beliefs still going to be you dont need to own a house if rent goes up and house prices go down? Link to comment Share on other sites More sharing options...
RimmyJimmer Posted July 11, 2017 Share Posted July 11, 2017 5 hours ago, Kingman said: Yeah, Ive been looking for a while now but have decided to to sit on the sides for the next 12 months and see what happens. I would be surprised if they fell 40% however there will be a significant correction, whether it will be to that extent only time will tell. Ive been on sites like right move and zoopla almost daily for the last 12 months so have seen whats been slowly developing, Ive a property in my saved searches with an asking price of £230k around xmas, over the weekend its now £175k and a pattern is slowly emerging with many others. I read an article recently from The National Association of Estate Agents stating that only 23 per cent of the homes sold in May fetched their initial asking price. I should be moving into my new house within a month so for the last year I've been looking daily at houses near to me and monitoring prices etc. What I have noticed is sellers trying to make a quick buck by asking inflated prices. Original asking prices and what the property is actually worth are quite different. We paid 20k under asking price for ours. Agents said they were looking for 200k so they just lump on a fair bit extra which I can understand i suppose. Another one by me....200k for small 3 bed detached...and i mean small. Its now down to 160k....deluded idiot probably hasn't heard of zoopla. It was bought for 150k 5 years ago. Link to comment Share on other sites More sharing options...
TrentVilla Posted July 11, 2017 Moderator Share Posted July 11, 2017 9 hours ago, Kingman said: House prices are 50% overpriced . They are killing the economy and ruining young peoples lives. The crash is coming and it's going to be big. Try not to sound so gleeful. The housing market is a huge part of what drives the economy so I'm struggling with that logic. House prices aren't ruining young people's lives, that's just a little silly. They are making it hard for first time buyers but the two things are not the same. 1 Link to comment Share on other sites More sharing options...
TrentVilla Posted July 11, 2017 Moderator Share Posted July 11, 2017 9 hours ago, Kingman said: Yeah, Ive been looking for a while now but have decided to to sit on the sides for the next 12 months and see what happens. I would be surprised if they fell 40% however there will be a significant correction, whether it will be to that extent only time will tell. Ive been on sites like right move and zoopla almost daily for the last 12 months so have seen whats been slowly developing, Ive a property in my saved searches with an asking price of £230k around xmas, over the weekend its now £175k and a pattern is slowly emerging with many others. I read an article recently from The National Association of Estate Agents stating that only 23 per cent of the homes sold in May fetched their initial asking price. Perhaps it was over priced, perhaps the vendors are getting divorced and need to sell, perhaps it's a repo and the holders want a quick sale.... perhaps perhaps perhaps. There could be any number of reasons for that specific house being reduced, it is in isolation in no way indicative of the wider market any more than houses around me going for over asking price through sealed bids. If there is a 40% drop it would be more than a surprise it would mean the entire county was on its arse and you and anybody else would be struggling to get a mortgage. It's pure and simply not going to happen, not anything even remotely close to 40%, probably not even a quarter of that. Houses not selling at asking price isn't a marker of a slow down, it's a marker that agents still feel confident over pricing properties. I get why you are so keen for the crash, it would be very handy for you but you may well be in for a bit of a let down. Link to comment Share on other sites More sharing options...
Xela Posted July 11, 2017 Share Posted July 11, 2017 5 hours ago, Kingman said: 2018 will be 2008 all over again. How many years have they predicted a crash? A 40% drop won't happen, you don't need to be a genius to see that... a £400k house in Sutton eventually dropping down to £240k? Never. Houses in certain areas are still being snapped up within days for figures well above asking price. Areas like Solihull, Sutton and places close to good schools and railway stations. I do feel for first time buyers, I really do. It was a struggle for me to get on the ladder, especially when caught in the trap of renting so being unable to save. But a 'crash' of any sorts will only be beneficial for BTL investors. I'll be honest, I'm looking for a second property as it offers me the best return on my money. £100k into a property or a savings account which pays piss all? I'll go for bricks and mortar thank you. 2 Link to comment Share on other sites More sharing options...
Kingman Posted July 11, 2017 Share Posted July 11, 2017 1 hour ago, TrentVilla said: Try not to sound so gleeful. The housing market is a huge part of what drives the economy so I'm struggling with that logic. House prices aren't ruining young people's lives, that's just a little silly. They are making it hard for first time buyers but the two things are not the same. I use the term loosely as in a figure of speech. My old lady tells me next doors cat is ruining her life as it keeps shitin on her grass. I don't expect her to be throwing herself in front of the next 125mph Virgin Penderlino enroute to Preston Link to comment Share on other sites More sharing options...
Kingman Posted July 11, 2017 Share Posted July 11, 2017 (edited) 2 hours ago, Xela said: How many years have they predicted a crash? A 40% drop won't happen, you don't need to be a genius to see that... a £400k house in Sutton eventually dropping down to £240k? Never. Houses in certain areas are still being snapped up within days for figures well above asking price. Areas like Solihull, Sutton and places close to good schools and railway stations. I do feel for first time buyers, I really do. It was a struggle for me to get on the ladder, especially when caught in the trap of renting so being unable to save. But a 'crash' of any sorts will only be beneficial for BTL investors. I'll be honest, I'm looking for a second property as it offers me the best return on my money. £100k into a property or a savings account which pays piss all? I'll go for bricks and mortar thank you. Just to be clear its yesterdays article claiming 40% and not myself, Like i said last month a massive correction will be happening for a whole bunch of reasons I've explained over the last few pages not just Nationally but Global markets. With regards to BTL, Lets not forget many BTL landlords are not stupid, reptilian and evil yes. The bright ones who have made some good money, by that I mean doubling, trebling their money or better, I hope will now be thinking a 10-50% (Pending area) loss on highs will be still leave me quids in. This type of thinking will be the push of the tyre on the first few feet of the mountain, it then becomes unstoppable. Certainly going be interesting, the insanely low yields in the SE have been justified by "it'll go up in value by x by year xxxx, so it doesn't matter if I'm breaking even at the moment". This in in a rising market on record low interest rates, basically as good is it will ever be for them. Ive been involved in Construction and Civils for 25 years and the 2008 pattern is emerging, Now we're in a falling market with emerging market investors pulling out of yet-to-be finished new builds, BTL tax changes not even kicking in yet (if they understand them), falling rents, massive shift in HPI sentiment, greater stress testing, and talk of gradual IR rises. I suspect most people won't be willing to sell until its too late but those with far worse quality, location, twigs in vase than rental and will just keep the property rented out until its too late to escape... For most the time frame for disaster will be either:- 1) Tenant moves out and no one can't be found - leading to mortgage default and repossession. House is then sold at auction and the significant shortfall recovered from the BTLer by repossessing the BTLer's main house or 2) Discounted mortgage period comes to an end. Remortgage options are not available leading to the BTL being mortgage reverting to Standard Variable rate. BTLer attempts to keep the property going by paying the £xxx extra on the mortgage until he fails to do so. mortgage default and repossession. House is then sold at auction and the significant shortfall recovered from the BTLer by repossessing the BTLer's main house. Just an opinion Edited July 11, 2017 by Kingman 1 Link to comment Share on other sites More sharing options...
Xela Posted July 11, 2017 Share Posted July 11, 2017 @Kingman Oh I wasn't having a pop at you, i know it was the article that was talking bobbins 1 Link to comment Share on other sites More sharing options...
Kingman Posted July 11, 2017 Share Posted July 11, 2017 (edited) 1 hour ago, Xela said: @Kingman Oh I wasn't having a pop at you, i know it was the article that was talking bobbins No dramas sweet cheeks Edited July 11, 2017 by Kingman 1 Link to comment Share on other sites More sharing options...
Xela Posted July 11, 2017 Share Posted July 11, 2017 I'm going to sit by the sidelines for a bit and see how it pans out before I invest in a property. I'm in no desperate rush at the minute. 1 Link to comment Share on other sites More sharing options...
Rugeley Villa Posted July 11, 2017 Share Posted July 11, 2017 Can anyone give me any advice? Link to comment Share on other sites More sharing options...
Xela Posted July 11, 2017 Share Posted July 11, 2017 11 minutes ago, Rugeley Villa said: Can anyone give me any advice? Yeah. Don't eat yellow snow and always give them a false name. 1 Link to comment Share on other sites More sharing options...
TrentVilla Posted July 11, 2017 Moderator Share Posted July 11, 2017 6 minutes ago, Rugeley Villa said: Can anyone give me any advice? Don't use a knife to get toast out the toaster. Link to comment Share on other sites More sharing options...
Rugeley Villa Posted July 11, 2017 Share Posted July 11, 2017 clearings in the woods 1 Link to comment Share on other sites More sharing options...
TrentVilla Posted July 11, 2017 Moderator Share Posted July 11, 2017 1 minute ago, Rugeley Villa said: clearings in the woods I take it back, use the knife. 2 Link to comment Share on other sites More sharing options...
Kingman Posted July 11, 2017 Share Posted July 11, 2017 (edited) 1 hour ago, Rugeley Villa said: Can anyone give me any advice? Carravagio Edited July 11, 2017 by Kingman 1 Link to comment Share on other sites More sharing options...
Xela Posted July 11, 2017 Share Posted July 11, 2017 7 minutes ago, Kingman said: Carravagio Tin Man Link to comment Share on other sites More sharing options...
Rugeley Villa Posted July 11, 2017 Share Posted July 11, 2017 Ive just came into 20k. Live in council house and can buy for 50k. House is a tad small but we can sell or rent it out after 5 years of buying it. Also wife's brother wants us to go in shares with him on his mums bungalow which can be bought for 25k. Good idea or not, or are we best putting the 20k down on a bigger house. Want to invest it instead of leaving it in bank. Link to comment Share on other sites More sharing options...
itdoesntmatterwhatthissay Posted July 11, 2017 Share Posted July 11, 2017 (edited) 4 minutes ago, Rugeley Villa said: Ive just came into 20k. Live in council house and can buy for 50k. House is a tad small but we can sell or rent it out after 5 years of buying it. Also wife's brother wants us to go in shares with him on his mums bungalow which can be bought for 25k. Good idea or not, or are we best putting the 20k down on a bigger house. Want to invest it instead of leaving it in bank. If I had the chance of security for that sort of money I would go for it. Good luck to you whatever you decide. Ahhh housing policy. For the few, not the many. Edited July 11, 2017 by itdoesntmatterwhatthissay Link to comment Share on other sites More sharing options...
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