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Debate House Prices
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. We asked why if homebuyers are having difficulty paying higher mortgage repayments, won’t tenants suffer the same difficulties finding the money for rent?
What does that mean? so interest rates have not fallen after all.'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 Thatcher0 -
IveSeenTheLight wrote: »I wonder if the likelyhood is that the news would be welcomed more by proffessional landlords rather than young families.
Times have changed and credit is harder to get so the question in the short term is who can get the available credit first. Young families or Professional Landlords
There is no shortage of money to lend, quite the opposite in fact, banks are awash with money. We have a credit crunch because banks will not lend £400k on properties which may only be worth £100k in 5 years time. As for professional landlords, they won't come back into the market until yields are back in double figures. Apart from this, there will always be a few wealthy amateurs who overbid and then rationlize their puchase decisions with the old mantra 'I'm in it for the long run'. Their influence in market pricing however has been neutralised by the lenders.0 -
You can laugh how FTBs need a stonking deposit, but that deposit becomes more
managable the more prices crash.
You seem to think I am laughing at FTB needing a higher and higher deposit.
Far from it.
I was simply making a serious comment of womething that could happen
Having a larger deposit is actually a good thing.
The more you can put in a reduce the mortgage, the better.
If FTBers also benefit from falling house prices then that is also good for them as they then have an even lower mortgage debt to manage.
At some point the house price will bottom out, when I don't know, neither do you, but someone must be be buying in order to see a bottom in the graph.
Who will those buyers be and when, we don't know.
One question as a glimpse of who they could be is who will be in a position to buy.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
There is no shortage of money to lend, quite the opposite in fact, banks are awash with money. We have a credit crunch because banks will not lend £400k on properties which may only be worth £100k in 5 years time. As for professional landlords, they won't come back into the market until yields are back in double figures. Apart from this, there will always be a few wealthy amateurs who overbid and then rationlize their puchase decisions with the old mantra 'I'm in it for the long run'. Their influence in market pricing however has been neutralised by the lenders.
That's why the Govt has had to bail out banks and many have had Rights Issues to raise cash to deal with their problems. It's because their awash with cash that they've had to do this. :rotfl: :rotfl: :rotfl:0 -
There is no shortage of money to lend, quite the opposite in fact, banks are awash with money. We have a credit crunch because banks will not lend £400k on properties which may only be worth £100k in 5 years time. As for professional landlords, they won't come back into the market until yields are back in double figures. Apart from this, there will always be a few wealthy amateurs who overbid and then rationlize their puchase decisions with the old mantra 'I'm in it for the long run'. Their influence in market pricing however has been neutralised by the lenders.
You will also need to have a very good credit rating, which may not have been considered so important in the last 10 years
You should start up a 75% camp thread£400k on properties which may only be worth £100k in 5 years time
:rotfl: :rotfl: :rotfl: :rotfl::wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Only investors have been buying so anything which isn't a sound investment opportunity won't sell. Even with massive price cuts
This is spot on. I'm very cautiously looking for an investment, and have pretty much honed and distilled my thoughts into shape.
I will not even consider a property unless its 50% cheaper than at peak and the longer this is taking the fussier I'm getting.
Even found a 2 bed newbuild this morning for £79950, but I said my top offer is £60,000 and these sold for around £130k 1 year ago.
Investors are just so cautious now, and see no need whatsoever to pay really anything above 50%.
I had some fun conversations with certain EAs this morning who still dont get what the new landscape entails.
Take Stevenage in Herts - a fairly grotty new town. Still..... owners of 1 beds typically expect around £100k+ - they just have not a clue. After costs your yield is about 5%!!, just not worth the bother. Those flats are worth £70k tops.0 -
Won't be welcome news for young families not in a position to buy their own homes. The expansion of the lettings market gave them more choice and kept a downward pressure on rents.
Rents are on the downward path at the moment, though....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
FoxtonsRIP wrote: »You might not be willing to report Chucky for tax evasion but I certainly would!
Don't be so silly. You know nothing about Chucky's business interests, or practices....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
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PasturesNew wrote: »Don't forget hard-working older singles!!!
The overlooked group
From what you have said, you aren't at the moment hard-working.........much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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