'50% drops'

T4i

stevetodd wrote: »

What you are not taking into account is people like me (and I am not alone) when prices have fallen by 30% I intend to buy 3 more houses.

:mad: :mad: :mad:

Greed! God I hate it! Isn't that part of the problem?

Dithering_Dad

!!!!!!? wrote: »

You're only 'rich' if you own the asset outright.

Having a huge mortgage on a falling asset puts you in debt. If the mortgage isn't covered by selling the asset, you're not just in debt, you're in s**t.

I don't follow the logic here...

If you own the asset outright, then you're rich. Not if the asset is only worth £50k - I'd hardly class that as being rich. By the same logic, if one has a 50k mortgage on a house worth £600k, I'd hardly class that as poor.

Having a huge mortgage on a falling asset puts you in debt. Surely having any mortgage (large or small) on any asset (falling or rising) puts you in debt?

Max_Headroom_3

pickledpink wrote: »

You're dreaming!:rotfl:

ALREADY properties have only dropped at an average of just 14% this year - and IF they drop at the same rate next year, until they stabilise and pick up again -you're looking at an AVERAGE of 28%.

But as we all know, averages are skewed.

If you look on PropertyBee or PropertySnake it's only the really-hard-to-sell properties (some of which went on the market prior to the boom!) that have fallen furthest.

Most properties have only dropped by as much as 10 to 15%.

The horrible overpriced c*appy places have dropped a lot more - but no-one really wanted them in the first place!!

Only!!??? :eek: 14% in a year and you say only..??

The NICE properties are becoming even further out of reach for FTB's or those on a salary of, say, £25k a year - you'll not buy much for £75K - even if it's a repo in a s*hithole.

The gap between rich and poor is widening at an alarming rate.:money:

How are the "nice" properties getting further out of reach? You think they're going up..?

Max_Headroom_3

T4i wrote: »

:mad: :mad: :mad:

Greed! God I hate it! Isn't that part of the problem?

I'm not sure greed is quite the right word when someone offers to buy after only a 30% drop.

Charity maybe?

ess0two

Max_Headroom wrote: »

Only!!??? :eek: 14% in a year and you say only..??



How are the "nice" properties getting further out of reach? You think they're going up..?

The 'nice' properties are being pulled or are not taking inflated drops,at least the one's i'm interested in.
The two i've viewed have people in their 50's in,reduced offers from me,aint swayed them.

Dithering_Dad

Max_Headroom wrote: »

How are the "nice" properties getting further out of reach? You think they're going up..?

I think PP needs to attend DD's basic arithmetic course.

Lesson 1. Percentages.

If house prices drop by 10%, then a more expensive house will have a greater drop in price than a less expensive one.

For example, House A was valued at £500,000 at peak and House B was valued at £250,000 at peak. The difference between the value of the two properties at peak was £250,000.

The market drops by 10%...

House A is now worth £450000 (i.e. it has lost £50,000 in value).
House B is now worth £225000 (i.e. it has lost £25,000 in value).
The difference between the value of the two properties after a 10% drop is now £225,000.

Therefore, the owner of house B needs to find £25k less to buy the more expensive house than he did before the crash. So as we can see the gap between the rich and poor, in this respect, is actually reducing not increasing. QED.

chucky

In the 11 months that I've been looking around, I've found between 10 and 15 decent flats (no new builds).

Only 2 have accepted my offers, the rest have resisted all temptation to sell at reduced prices - they obviously don't need to.

ad9898_3

T4i wrote: »

:mad: :mad: :mad:

Greed! God I hate it! Isn't that part of the problem?

Don't be too upset T4i, he was going to buy when prices drop by 30%, that means a year or so later he will be down another 20%, with a face like this -

ad9898_3

ess0two wrote: »

The 'nice' properties are being pulled or are not taking inflated drops,at least the one's i'm interested in.
The two i've viewed have people in their 50's in,reduced offers from me,aint swayed them.

It doesn't really matter whether nice properties are being pulled or not. It only takes a couple of forced sales in a street and when these 'nice properties' eventually come up for sale, they may have a shock at the valuation they are given.

I'm pretty certain surveyors check what others have sold for and value accordingly.

Max_Headroom_3

ess0two wrote: »

The 'nice' properties are being pulled or are not taking inflated drops,at least the one's i'm interested in.
The two i've viewed have people in their 50's in,reduced offers from me,aint swayed them.

If I buy a new Range Rover for £50K and a year later it's worth £25K cos no one will pay more (or can afford more), then I can refuse to sell for £25K, but it's still worth £25K...

And if I want to sell it I'm going to have to take £25K.