Crash Crash Crash !!!!!!!!!!!!!!!!!!!!!!!!!!!

crazygaijin

RDB wrote: »

It seems to me we are back to 1990s prices already.

Admitedly these prices of about 30 grand are not yet widespread.

But the question remains why didnt these sell for more?

Its because these are fair prices. About 30,000 for one of these flats in Wales is about right now. Yes we are back to 1990`s prices in some areas already.

If any seller wants to get a buyer they have have to drop by this much.

It will take longer for the rest of the country to fall that much but I think we will get there. This is the only way to start things moving again and recovery.

novazombie

carolt wrote: »

Wow, that's so cheap!

Putting the holiday home on the credit card is now an option.

Thats what got us into this mess, and why its such a big mess now.

Its a worrying %age of people paying off their mortgage with credit cards.

As the last post said yes its going to delay recovery.

The sooner prices come down to realistic levels the soon things can start recovering again.

All those 30K flats in Wales are about right. We just need London to fall that much and things will start to pick up.

john539

RDB wrote: »

It seems to me we are back to 1990s prices already.

Admitedly these prices of about 30 grand are not yet widespread.

But the question remains why didnt these sell for more?

It's Wales, there are no jobs.

These are probably realistic prices for the economy in that area.

Cheap 2nd home, if you want to spend 4+ hours travelling each way or you can spend the money on something nearby you will use all the time, not on the occasional weekend.

Britain needs a reality check & needs to bin the property hype programs.

Yoshua

Actualy with globalisation its the nicer places that are worth more.

If Wales are back to 90`s prices then the rest of the country wont be that far behind.

Yoshua

With another one and a half million due to join the dole and unable to afford their mortgages,prices can only go one way for the next two years at least.

http://forums.moneysavingexpert.com/...&postcount=209

The government haven`t got a clue what to do next.
Anything as bad as this,has never happened before.
Property prices rose for the past eight years,there`s no reason they can`t fall for eight years.
There will be one or two false dawns but the trend is all the way down for the next year or two.

whathavewedone

IT'S WALES.

Did they ever actually recover from the 80s recession? As I understood it, mining towns never recovered and miners' sons who would have followed their fathers down the pit went straight on the dole after leaving school.

I don't know how much prices were at the peak but I dont' think they were rivalling the south of England. I know BTLS were coming in and doing cheap renovations to let homes out to people on housing benefit but I don't know that it was ever as chi chi to have a second home there as it was in Devon etc.

So I wouldn't have too many wet dreams about 35k flats in London just yet. If it does happen though I'll be buying one for cash

sabretoothtigger

A 1935 flashback movie showing a building decline of 92% in 7 years. :

http://in.youtube.com/watch?v=O_DxaEFGSDM

The turn around was apparently from subsidised housing giving mortgage payments lower then rents

MrDT

john539 wrote: »

It's Wales, there are no jobs.

These are probably realistic prices for the economy in that area.

Hahaha you have no idea There are some pretty unremarkable houses round here that were selling for half a million plus not long ago. Nothing compared to London prices, but a hefty sum in my (and, I suspect, any sane persons) eyes.

A flat for 30k is pretty much unheard of until recently, I'd guess ~75k would have been a realistic price just one year ago. Selling at auction, priced at the margin, this is the new reality here. I'm not a paid up member of the 70% club, in fact, I thoguht 25% drops average to be the limit of reality a few short months ago - it's now clear to me that 70% drops from peak valuation in some instances will/do happen.

Oh, and I disagree with your point that there are "no jobs". I have worked part time since the age of 14. Full time since graduation. Of course there are jobs

There will be less soon enough though - http://news.bbc.co.uk/1/hi/wales/7829478.stm and this isn't even a recession doom and gloom story, Rio Tinto aren't exactly short of a bob or two. There's another factory in the area where 300 jobs were lost, ousourcing production to China, not a recessionary doom and gloomer either.

When the recessionary doom and gloom really hits home and the highstreet dies, THEN we'll have no !!!!ing jobs here

john539

MrDT wrote: »

Hahaha you have no idea There are some pretty unremarkable houses round here that were selling for half a million plus not long ago. Nothing compared to London prices, but a hefty sum in my (and, I suspect, any sane persons) eyes.

A flat for 30k is pretty much unheard of until recently, I'd guess ~75k would have been a realistic price just one year ago. Selling at auction, priced at the margin, this is the new reality here. I'm not a paid up member of the 70% club, in fact, I thoguht 25% drops average to be the limit of reality a few short months ago - it's now clear to me that 70% drops from peak valuation in some instances will/do happen.

Oh, and I disagree with your point that there are "no jobs". I have worked part time since the age of 14. Full time since graduation. Of course there are jobs

There will be less soon enough though - http://news.bbc.co.uk/1/hi/wales/7829478.stm and this isn't even a recession doom and gloom story, Rio Tinto aren't exactly short of a bob or two. There's another factory in the area where 300 jobs were lost, ousourcing production to China, not a recessionary doom and gloomer either.

When the recessionary doom and gloom really hits home and the highstreet dies, THEN we'll have no !!!!ing jobs here

Something doesn't tally.
I'm talking about decent, stable, reasonably well paid jobs, not part-time, or temporary jobs.

Yours is just one opinion & situation.
Of course there are plenty of people who are alright & houses which sell for loads of money everywhere.

Thinking that way, you would hardly know we are in recession, but many of the consequences are not visible.

Your analysis that there are jobs does not match the house prices.
If the jobs were there, house prices would not have fallen to that level.

You can use macro economic analysis to say something isn't right & there are deeper underlying problems.

MrDT

john539 wrote: »

If the jobs were there, house prices would not have fallen to that level.

Remember that I never said these drops were accross the board here, I just posted one seemingly cheap flat that sold at a recent auction.

There are jobs here, "proper" grownup ones too believe it or not :rotfl: My point about being in work was just pedantry, I found your assertion that there are "no jobs" in wales kinda funny, I can see the bigger picture, don't worry The good jobs here are few in comparison to the minimum wage type ones, so the region is 'poor' on average.

I just don't see there being any demand for one bed flats. Cash rich investors would likely only be interested in the flat as a BTL investment, not to live in themselves. There are probably more attractive investment opportunities available to them right now.

I don't think many people would consider buying one of these as a home. Not even as a short term "first step on the ladder" these days, I mean, where's the rush? If you qualify for a mortgage you'd probably look for something a bit better, a bit more future friendly.

The flat sold for a pittance due to the lack of appetite for such properties here. It's not a home. It's not a one-way pwoperdeee bet. What is it? Who would want to buy it? Well, an investor so long as he can get it beneath half price I guess