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

Sibley

Below is the actual post.

There are some points that outline for me why the bears need a crash.

1. A 3 bedroom detached with conservatory and garage is not a first time buy.

Bears are always saying how greedy bulls are. Sounds to me like they are out of the same mold.

2. £5000 is nothing when you speak about house buying.

That amount on a mortgage is what??? £5 a month extra. Admittedly the seller is driving a tough and maybe stupid bargain but they may have their reasons. As they already dropped the price they have probably decided unless they get £££ they won't sell. At the end of the day to lose a house you like over a paltry £5000 is crazy. It will make no difference to anything.

3. The renter speaks like he's saving £100 a month by not having a mortgage.

In reality he's losing the whole lot of his rent money. Say he's paying £600 a month. All £600 is dead. If he paid his say £700 a month mortgage then maybe £250 would be going off the debt and he would be closer to owning something.


If I was him I'd go back and offer the full asking price before he loses the house.

situation:

FTB with approx 33% deposit for house I want to buy.

The house is a 3 bed detached with conservatory and garage inbuilt to the house. Big driveway. House is built in early 90's. Has been a rental property and the owners now want to sell up. They bought it in mid 2000 for 100k. Has been on since November for 185k. Was reduced on friday to OIEO 175k.

I think it is quite keenly priced, so bid 2.5% under asking price as I actually want this house.

Got rejected as the sellers have another interested party who has yet to bid on it. But this interested party have their house on the market for 135k and have not sold it. I told the agents , well if I was selling i'd snap the hand off a FTB who is 2.5% under the asking price... but there we go.

Ah well, they obviously want to hold out for another 5k or so... I can't just throw money at houses... took me ages to save up what I have (for it to get rinsed by a crapola interest rate on savings...)

Guess i'll just wait for the next reduction... or for someone to just offer 175k... with the banks adding in their own interest rate rises it makes things quite tricky. Many fixes have had almost 1% added on them. That effectively reduces my buying ''power'' by at least 5k.

Starting to get depressed now... The rent on my 2 bed flat is about £100 less than this 3 bed detached house would be...

padington

There's nothing like having dry rot, hole in the roof, flood, boiler breaking down or broken sink and not having to worry one iota and getting your landlord to fix it.

http://www.moneysavingexpert.com/news/mortgages/2011/02/property-prices-set-to-fall-this-year?utm_source=forum&utm_medium=sidebar&utm_campaign=box

blisk3

UK mortgage lending falls by 13%

Ingsy

!!!!!_face wrote: »

If the vendor is offended, take your business to someone with a more businesslike mind. Too many vendors entrench emotion in these big, big decisions and it's slowing the whole market down...

Yup, I'm looking to move up the chain from my FTB place to somehting larger. Have looked at a few houses, and the number of sellers who have the attitude of:

1. "Well, I paid X for it, so I'm not going to sell it for less. I'm in no rush so why would I give it away?"

Or

2. "But my house is so much nicer than all the others round here."

To which I would say:

1. If you're in no hurry to move, why bother marketing your property in the first place? And thanks for wasting my time.

2. You love your house, of course, but to me it's the same as all the others in the street. And you'll take all your furniture with you when you move, and the first thing I'll do on moving in is redecorate anyway. Thanks for wasting my time.

abaxas

House prices and debt have sucked the life force out of the young. If you bite that hand that feeds you, they may turn around and let you starve.

I'm fully expecting pension default and vast OAP poverty in 10-15 years time. People will have simply decided self preservation is more important than socialism.

blisk3

Don't be a mug, the game is over.

House prices to fall '20% in two years': Joblessness and spending cuts stifle demand

Property market faces 'paralysis'

House prices will slump by 20 per cent over the next two years, experts have warned.

The property market is heading for a ‘double-dip’ as rising unemployment and spending cuts strangle demand, according to the analysis.

Interest rates are likely to be increased in the coming months to keep rising inflation in check and higher mortgage costs seem certain to add momentum to plunging property prices.

Paul Diggle, property specialist at research consultants Capital Economics, said: ‘Prices are trending slowly downwards at the moment, but our view is that this is really the start of the second leg of the correction, and we expect prices to fall significantly further.’

Get out now, while you can, while you still have the shirt on your back.

anjb

blisk3 wrote: »

Don't be a mug, the game is over.

Get out now, while you can, while you still have the shirt on your back.

Actually it's not as black and white as that.

Lets say I sell my house and buy it back after 2 years at 20% less. I've worked out that after mortgage redemption fees, sales fees, legal and moving costs it will be around 10% of the value of the house.

Now I have to rent for 2 years in an equivalent house. The yield on the equivalent house is 6%.

At the end of year one I have paid out 16% of my house value for a 10% drop in my house price.

Year 2:
Assuming my landlord hasn't put the price up.......
Another 6%

So at the end of year 2, I have lost 24% of the value of the original house.

Now I am ready to buy my house back. I need to pay stamp duty and legal and moving costs and mortgage arrangement costs, which I calculate a 2% of the original purchase price before I sold.

I am now 26% down on my original sale after buying back my house.

So after 2 years thats a 6% loss vs staying there. But I havent included interest on the mortgage should i stay in the house. My interest on my mortgage is half that of the rental equivalent. So after 2 years I've paid 6% of the houses worth in interest.

So after all's said and done. I'm not better off, but I've had to sort out all my change of address twice. My rented house came full of problems, the landlord took my deposit and the people who bought my house off me have redecorated it, not to my taste, and I have had the stress of 2 moves with everything that comes with it.

Not sure ill take your advice, I think ill stay where i am thanks. Ok its a broadbrush approach, but you get my point.

geneer

HAMISH_MCTAVISH wrote: »

Here's your crash crash crash!!!!!!!!!!!!!

Offer rejected at 2.5% below asking. :rotfl::rotfl::rotfl:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=159486

:rotfl: gosh. time to get to the estate agents lads. The tide has clearly turned.

blisk3

Property market faces 'paralysis'

Most of the UK property market faces "paralysis" this year, says the estate agency website Rightmove.

The company claims to advertise 90% of all properties for sale on behalf of local estate agents.

It says many sellers are refusing to drop their prices, with the price of newly-advertised properties in fact rising by 3% in January to £230,000.

Rightmove said the seizing up of the market was mainly due to a lack of mortgage finance for would-be buyers, and the erosion of equity in their homes due to falling prices.

But Miles Shipside, Rightmove spokesman, said another factor was the reluctance of sellers to drop their prices, despite the lack of demand for their homes.

"Unwilling or unable to drop their asking prices to bargain basement levels - this helps explain why new sellers' average asking prices remain broadly static year-on-year," Mr Shipside said.

blisk3

All property types 'dip in value'

Every property type in England and Wales fell in value in January compared with a year earlier, according to the latest Land Registry figures.

The prices of semi-detached homes fell the most, dropping by 1.6% year-on-year to an average of £153,663.

In general, house prices dipped by 0.9% in January compared with January 2010, but rose 0.2% compared with December.