what will the interest rate cut do to house prices?

Cannon_Fodder

#2 in the same week...wow!

can people please try not to paste MrB's filth so I don't have to read it secondhand.

withabix

StevieJ wrote: »

Actually he said he paid a deposit of 2.5k so I assumed his property was 52.5k is that not logical?
Or he paid a deposit of 5%, 5% of 50k =2.5k so could have been 50k. What do you suggest the price of the house was?

Correct.

Who have I been growling at by the way?

As you don't actually know where in the UK I live, putting price details into a website's standard calculator isn't going to tell you I'm wrong either.

Peak value was actually probably about £175k in June (still some demand round here and prices aren't doing the kamikaze thing yet) and yes, purchase price was £52.5k in June 2002.

£52.5k for a 3 bedroom detached house with garage on a corner plot in 2002...ANYWHERE in England...imagine that!!

Neighbour's identical house on worse plot and in same condition has just sold for £150k last month (in 8 weeks) and they have no conservatory, so conservatively I'm guessing a similar final value if I started selling it now.

To be fair, my house was 12 years old when I bought it, had never been decorated since it was built and the owner had completely slabbed over the back garden. It was in a pretty poor state and the tenant was a pig. Nice! I paid about £20k+ under the value it would have had at the time had it been clean and with a lawn :rolleyes:

baby_boomer

If the BofE thinks we need this sort of stimulus then the real economy, never mind house prices, is heading for the rocks.

So far we house prices haven't factored in big rises in unemployment - but a 1.5% cut suggests that the Bank thinks these are around the corner .

dopester wrote: »

We're still at the top part of a deflationary vortex.

If this is true, then the next stage is government reducing interest rates to next to nothing but if that doesn't work then it hasn't got any lead left in its pencil.

Jim_B_3

andys15 wrote: »

ouch. bit below the belt. still he has saved 3500 this month

I didn't buy a 500 000 pound house at the weekend, so I've saved half a million. Can anyone beat that?

mr.broderick

Cannon_Fodder wrote: »

#2 in the same week...wow!

can people please try not to paste MrB's filth so I don't have to read it secondhand.

What the hell are you on about?
You referring to my jovial banter with geoffky? It is all friendly.

StevieJ

withabix wrote: »

Correct.

Who have I been growling at by the way?

As you don't actually know where in the UK I live, putting price details into a website's standard calculator isn't going to tell you I'm wrong either.

Peak value was actually probably about £175k in June and yes, purchase price was £52.5k in June 2002.

Neighbour's identical house on worse plot and in same condition has just sold for £150k last month (in 8 weeks) and they have no conservatory, so conservatively I'm guessing a similar value if I started selling it now.

To be fair, my house was 12 years old when I bought it, had never been decorated since it was built and the owner had completely slabbed over the back garden. It was in a pretty poor state and the tenant was a pig. Nice! I paid about £20k+ under the value it would have had at the time had it been clean and with a lawn :rolleyes:

I actually checked every part of the country nowhere had doubled never mind trebled , if you bought 35% under market value, and live in top hpi area fair enough, well done.
Growling - allow me a little poetic licence.

baileysbattlebus

StevieJ wrote: »

I actually checked every part of the country nowhere had doubled never mind trebled , if you bought 35% under market value, and live in top hpi area fair enough, well done.
Growling - allow me a little poetic licence.

If you check HBOS site and take the average price for 2002 for postal towns and the average price for 2007 (last complete data set) you will see that about 100 towns saw Hpi of between 200 and 280%.

About 350 towns saw hpi of between 100 and 200%

Mind the high hpi areas - surprise, surprise were Northern Ireland, Northern England and Scotland - the increase in prices in some of these areas in the last few years has be phenominal.

And I'm sure areas within towns have seen different growth rates.

dopester

baileysbattlebus wrote: »

And I'm sure areas within towns have seen different growth rates.

I like this chart which tracks affordability all the way back from 1996 to 2007, and with it HPI.

UK: In 2007 the ratio is 8.19, which means that a household would require over 8 times the average earnings in order to afford a property. Thank Gordy's setup for lenders for dishing out the easy money.

chucky

mr.broderick wrote: »

Good for you I will not get personal as i know your wife left you for another man recently and you had to sell up against your wishes. Good luck for the future.

that was a bit harsh Brodders - you should apologise!!

chucky

ad9898 wrote: »

Paper money, that can be turned into real cash the moment I walked through and EA's door, with my offer, of course I'm not as next month my theoretical mortgage will be lower still as another month of falls kick in.

not sure about turning into real cash - from recent experience i've probably got lucky with 1 out of every 7 properties that have accepted my offer. others have just kicked back and stood firm.

some people just don't want to sell unfortunately. those that want to sell are very motivated or just don't care as they have made enough equity on the property.

i don't think it's as easy as people think as going out and finding a property that you like and then that vendor accepting your offer. you need them to be motivated and not everyone is.