Sellers on strike

Really2

neverdespairgirl wrote: »

Yes, but that's not really buying at 3%. It is likely to go up significantly soon, I'd have thought.

But is the point that it would not be a new purchase but a remortgage so quiet a few SVR's are near that.
I can confirm that if you have a house at the moment it is cheaper than renting providing you have been clever when rates were coming down (switched to tracker or SVR).
The majority of houses would be able to get 75% LTV so the best rates.

GracieP

Really2 wrote: »

But is the point that it would not be a new purchase but a remortgage so quiet a few SVR's are near that.
I can confirm that if you have a house at the moment it is cheaper than renting providing you have been clever when rates were coming down (switched to tracker or SVR).
The majority of houses would be able to get 75% LTV so the best rates.

It certainly isn't in my neck of the woods. The cheapest house on the market is £550k, (down from a peak sale price of £725k last November) so lets assume it could currently sell for 90% of the asking, making it's valuation £495k. At 75% ltv, £371k, paying 3.5%IR over 20 years you'd have a monthly payment of £2175pm. The local rents are £1150-1600pm depending on decoration/size of extension and the rents are falling.

Also if you sold up and rented back you'd have a six figure sum to invest with. Even at today's crappy savings rates you'd have a few hundred a month.

chucky

GracieP wrote: »

It certainly isn't in my neck of the woods. The cheapest house on the market is £550k, (down from a peak sale price of £725k last November) so lets assume it could currently sell for 90% of the asking, making it's valuation £495k. At 75% ltv, £371k, paying 3.5%IR over 20 years you'd have a monthly payment of £2175pm. The local rents are £1150-1600pm depending on decoration/size of extension and the rents are falling.

Also if you sold up and rented back you'd have a six figure sum to invest with. Even at today's crappy savings rates you'd have a few hundred a month.

yes but looking at he number of transactions being processed selling to rent isn't currently an option.

sympatex

We're FTB and in our area (Camberley, SE) it is cheaper to buy than rent on the mortgage we've been offered by approx £400 p/m. Not sure why rent here is so expensive, i don't think there's much to it, on rightmove there's two pages of places rent in a 3mile radius.

However if the asset is depreciating by 1% p/m then although renting is more expensive in short term, we would save over a 1-2yr period, then i think buying would be more cost effective, depending on what happens to interest rates of course. (mortgage is tracker).

So all in all a bi of a pickle. If the "must have" house comes up, we will do our research look at what it cost in 2002 and plump for that figure as an offer (regardless of what is asked).

Something to note is HPI is massively different region to region and infact road to road. Some places i heard in Glasow have incrased 4 fold since 2000. This is surely not supported by local wages. In our area, house prices have doubled however the ratio between earnings and house price is no where near as wide as in glasgow). This is just an example ive used i suspect all over the country there are equal examples.

The key is DYOR.

GracieP

chucky wrote: »

yes but looking at he number of transactions being processed selling to rent isn't currently an option.

Houses do appear to be slowly selling in this area, at least they are going sale agreed. Whether they will actually sell or not is a different matter. But the fact remains that (on these two street anyway) those renting are financially better off than those who own.

chucky

GracieP wrote: »

Houses do appear to be slowly selling in this area, at least they are going sale agreed. Whether they will actually sell or not is a different matter. But the fact remains that (on these two street anyway) those renting are financially better off than those who own.

ok - can't say anything against that as it is your local area and will know it better than anyone

do you think that this will be the case in the short term or long term?

Really2

GracieP wrote: »

It certainly isn't in my neck of the woods. The cheapest house on the market is £550k, (down from a peak sale price of £725k last November) so lets assume it could currently sell for 90% of the asking, making it's valuation £495k. At 75% ltv, £371k, paying 3.5%IR over 20 years you'd have a monthly payment of £2175pm. The local rents are £1150-1600pm depending on decoration/size of extension and the rents are falling.

Also if you sold up and rented back you'd have a six figure sum to invest with. Even at today's crappy savings rates you'd have a few hundred a month.

Like for like would be interest only mortgage , so it would be cheaper like for like. Also if you are renting planing to buy you would need to save for a deposit as well as paying the rent.
Not saying buy now, but for most it makes sense to stay put and pay their mortgage at below rental costs untill transactions increase at the earliest.

baileysbattlebus

sympatex wrote: »

We're FTB and in our area (Camberley, SE) it is cheaper to buy than rent on the mortgage we've been offered by approx £400 p/m. Not sure why rent here is so expensive, i don't think there's much to it, on rightmove there's two pages of places rent in a 3mile radius.

However if the asset is depreciating by 1% p/m then although renting is more expensive in short term, we would save over a 1-2yr period, then i think buying would be more cost effective, depending on what happens to interest rates of course. (mortgage is tracker).

So all in all a bi of a pickle. If the "must have" house comes up, we will do our research look at what it cost in 2002 and plump for that figure as an offer (regardless of what is asked).

Something to note is HPI is massively different region to region and infact road to road. Some places i heard in Glasow have incrased 4 fold since 2000. This is surely not supported by local wages. In our area, house prices have doubled however the ratio between earnings and house price is no where near as wide as in glasgow). This is just an example ive used i suspect all over the country there are equal examples.

The key is DYOR.

My daughter bought in 2005 - despite being advised to rent first (by me), the logic behind buying was the cost of renting - she lives in Lower Earley - to rent a nice 2 bed semi with a driveway and garage was about £900 per month, it's still about the same now.

So she decided to buy, the mortgage was a bit less than paying rent, they remortgaged recently and according to the Nationwide valuation are still not in -ve equity, infact had enough equity to remortgage.

Does she have any regrets about buying when she did, we were discussing this at the weekend, no she doesn't. She has her house and is happy regardless of what happens to prices. She says every time she walks through the front door, she still can't believe it's her house.

She lived at home until she bought, it would have been very difficult to pay rent and try and save for a deposit here on an average salary. It would have taken her years.

handful

A slightly different angle on this, an EA I know has told me of a couple of clients who have been successful selling their property in recent weeks at significantly below the asking price but are now delaying buying, renting in the hope that prices will drop further to recoup some of the loss. Understandable but not much help in sparking the market into some kind of recovery.

Mr_Matey

I really don't see the point of the article.

Some sellers are deciding not to sell and wait. Big deal! Many buyers are doing the same thing. How about an article on first home buyers not rushing to buy in a falling market?

The fact is these people are looking to sell sometime (otherwise why list your property in the first place?), and are delaying the inevitable on the hope prices will recover.

As a young potential first home buyer it doesn't bother me in the slightest. I can choose not to purchase a property if it's unreasonably priced. Can they choose not to sell forever? I doubt it.

Let's hope a lot of young people have the sense not to mortgage their lives for the next 20 years to own a lease on a shoebox. Then this crash can work itself out quick smart.

Oh and btw you don't *own* your house until you've paid off the mortgage. Until then you're just renting from the bank.:rotfl: