Debate House Prices


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Property prices should not really matter

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  • I think you are probably right gg, my 3 year old daughter asked me to paint her bedroom pink last year when we were renting i said i couldn't as it wasn't our house really. She now has her lovely pink bedroom, b.ugger it if our house is worth less tomorrow.


    Good point. I have never rented (i.e., lived in somebody else's house - except my parents'). Therefore, I have never suffered the experience of an inexperienced landlord (worse still, the experience of an experienced landlord).

    Owning a house (even if you owe money to your lender) does carry a premium. I doubt the premium is worth the losses currently being experienced by home'owners'.

    I'm happy that I own a home that I want to live in forever (despite wishing I'd STR'd) and a BTL that would need to fall 120% in value for me to make a loss.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    a BTL that would need to fall 120% in value for me to make a loss.
    OK, I'll ask. How can it fall 120% and still be in profit?
  • mewbie wrote: »
    OK, I'll ask. How can it fall 120% and still be in profit?

    I actually thought the same but didn't want to look thick by asking.
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    I actually thought the same but didn't want to look thick by asking.
    I hope the answer doesn't make us look any thicker.
  • I paid £15,500 for it in 2001.

    Rental income has been more than £25,000 over the 6.5 years that it has been let. It's currently worth >£80K so, if it falls 120% I will get -£16K for it (yes, I'll pay £16,000 to get rid of it) but I'll still be up on the deal.

    Fortunately for my tenant, I will not be selling and rent can remain competitive even with the major improvements that I make.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    dopester wrote: »
    :p

    OK.. I'll have a quick look-see (but keep in mind I only viewed these properties as research, not with any intention to ever buy anything within this range even after the crash).

    Property 1
    : -£500,000 reduction, but from perhaps a start point which was absolute peak and then some. (right around the corner.. well a few minutes from where I live), and seemingly belonging to an EA. (assuming you have property-bee installed)

    Actually... it is more hundreds of thousands here for the most "desirable properties" around here - and not millions (although I think I saw that when monitoring W1... try searching Rightmove with PB to confirm on W1).

    Search my general local area on Rightmove with PB, (Hale, Alderley Edge, Prestbury, Wilmslow = all Cheshire) at the top to middle end, and it will confirm these desirable areas are seeing houses reduced by hundreds of thousands, and many tens of thousands. And the same really for houses at the bottom end seeing lots of instances of being reduced by tens of thousands. ;)

    That looks just about right for Berby to knock down an build a decent house.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • tomstickland
    tomstickland Posts: 19,538 Forumite
    10,000 Posts Combo Breaker
    rumbaba wrote: »
    We all know that house prices soared over the last few years and many properties are now falling. But as I pointed out in another post it does seem to be the less desirable places which are falling by double figures. And quite rightly too.

    However, the better properties are only falling marginally, and even if they fall some more they will still be way above their 1990's prices.
    This is the "this is a desirable area so we'll be alright" argument. It's a fallacy though - the whole market is linked. There've been countless threads on here where buyers have offered less on a house and the person selling it then offers less on the house that they wish to buy.

    Or do you think there's a magical price/location point where people say "oh well, this house that we're selling isn't that desireable, so it's worth £100K less now, however we're happy to pay the 2007 prices for our new house because it's in a great area"?
    Happy chappy
  • tomstickland
    tomstickland Posts: 19,538 Forumite
    10,000 Posts Combo Breaker
    Dan: wrote: »
    It makes me a laugh when you here young FTBers complaining they can't afford a 4 bed semi with double garage.....
    The "FTB's cannot afford a house because their expectations are too high" argument.
    Well, the cheapest 1 bed flats in my area are still £80K and that's more than 3 times a typical £20K income.
    Happy chappy
  • wolfman
    wolfman Posts: 3,225 Forumite
    Heavens have you actually got any deposit at all?
    I think there are a lot of potential ftb'ers out there with little or no deposit, think the lack of 100% mortgages is more to do with the lack of sales than i first anticipated.

    Oops of course, no I wouldn't. Although if I put down 30k-50k first payment, I'd hate to see that disappear by the end of the drop.

    I should have said negative in terms of value of the house. I'd have invested in something that within a month was worth less. The rate it's dropping too, is more than I can save in a month too.
    "Boonowa tweepi, ha, ha."
  • GDB2222 wrote: »
    What's wrong with Hale, or just too expensive?

    Just way too expensive and as Linz says, not great public transport (all need is a way to get to and from Manchester for nights out, so altrincham and sale are ideal due to the tram).

    Lovely place though Hale, but then so is Alty, and they have a non-league footie team I can watch.
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
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