Is it time to Buy property, bargains?

macaque_2

Sircharles

When it comes to house sales, it takes 3 to tango.

1. Property sellers are still holding out for bubble market prices
2. Would be buyers are sitting on their hands
3. Lenders are factoring in further falls of 40% in their offers (see below from a well know lender)

2-year fixed rate mortgage

Have the comfort of knowing, upfront, what your monthly repayments will be during the fixed rate period.

• There is a £995 application fee†
• Borrow up to 60% of the value of your home
• You're free to overpay up to 10% per year during the fixed rate period without incurring an early repayment charge otherwise an early repayment charge of 3% of the balance paid will apply if the mortgage is repaid in whole, part or transferred to another scheme until 30/04/2011

The market is only falling

Prices are falling slowly because sellers cannot accept what buyers and lenders are telling them. Time will solve this problem.

chucky

macaque wrote: »

Sircharles

When it comes to house sales, it takes 3 to tango.

1. Property sellers are still holding out for bubble market prices

If you're not forced or don't need to sell urgently why should you bother accepting a lower offer. May as well sit on their hands waiting for the market to pick up or for the right buyer to come along.

macaque wrote: »

2. Would be buyers are sitting on their hands

Is that really the case - Have you see this months mortgage approval numbers? This isn't an upturn in any way but shows that buyers are definitely not sitting on their hands.
http://news.sky.com/skynews/Home/Mortgage-Approvals-Rose-In-December-According-To-British-Bankers-Association/Article/200901415210300?lpos=Home_First_Home_Article_Teaser_Region_0&lid=ARTICLE_15210300_Mortgage_Approvals_Rose_In_December_According_To_British_Bankers_Association

macaque wrote: »

3. Lenders are factoring in further falls of 40% in their offers (see below from a well know lender)


[/list]The market is only falling slowly because sellers cannot accept what buyers and lenders are telling them. Time will solve this problem.
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this maybe the case but probably a regional thing rather than national - think that you're generalising a bit here or only reading and digesting what you want to hear. There will be many cities that will be impacted very little by the recession. http://uk.biz.yahoo.com/26012009/140/uk-cities-recession-red-alert.html

If you're in an area that won't be impacted I don't think you'll be getting yourself a bargain property - sorry to break the bad news.

Conrad

chucky wrote: »

If you're in an area that won't be impacted I don't think you'll be getting yourself a bargain property - sorry to break the bad news.

Even the best areas will be impacted to a degree, as they were last time round.
If you think you can disprove me, pick anywhere you like AND I'LL PROVE IT.

chucky

Conrad wrote: »

Even the best areas will be impacted to a degree, as they were last time round.
If you think you can disprove me, pick anywhere you like AND I'LL PROVE IT.

of course they will - to be clear, before you twist my post (did you not read the whole post) I have never said that they wouldn't be impacted at all, I'm referring to the cities in general economic terms. I am then highlighting the fact that bargains won't be had by all that are expecting to grab a bargain property in those cities.

sorry Conrad, I noticed the capitals - no need to prove or disprove anything, not into the male ego competion thing especially not on an internet forum.

have a good day

Wookster

macaque wrote: »

Sircharles
1. Property sellers are still holding out for bubble market prices

This is so true. You'd think some sellers haven't heard about the credit crunch judging by their pricing.

Our neighbours had their house on the market for £275k in March last year when we moved in. Now its advertised at £255k (relative to a reported average 16% drop in prices).

I wouldn't offer more than £160k for it as I suspect that house prices are a good 40% overvalued on their October 2007 peak. Certainly its common sense for buyers to rent now until they suspect the market has bottomed out - why pay for an asset that is falling in value when you can rent and buy the asset cheaper in 2-3 years?

There are exceptions though - people being forced to move or other purchasers who are driven by the desire to own a home or other intangible factors.

Wookster

chucky wrote: »

If you're in an area that won't be impacted I don't think you'll be getting yourself a bargain property - sorry to break the bad news.

My money says the only areas that won't be affected are those where property prices remain reasonable (<4X average salaries) to the area's salaries.

No community will be unaffected by the coming storm.

pandamonia

The west midlands has been claimed that house prices havent fallen as much as the national average, but me looking to buy here have found out that even the best areas have suffered a 17% fall from peak. prices are still to high and homes been on the market for 6-12 months.

Some advise is to find out what the propety was sold for then work out what equity they have in it from their asking price and then put an offer in to really kick them in the nuts. do this 10 times and u might get a bargain!

neverdespairgirl

Trust wrote: »

Houses valued at £150k are going for £80-100k or less,

If it's going for £80k to £100k, it's valued by the market at that price, not £150k

mitchaa

I thought i read 2032.

Must have been a typo

IveSeenTheLight

sircharles wrote: »

None of us know the precise DATE when properties will reach their minimum price (and they ALL have a minimum!) but already drops have eased up and they have been pretty much stagnant for a good few months. Only the previously very overpriced properties, the new builds apartments, and the frankly horrible ones (i.e. ex-council houses on sink estates) have dropped by a huge amount. In fact, it's those that will be the last to shift when the market picks up again.

Desirable properties are still selling - albeit much more slowly - but they're the only ones selling. And the reductions are far less on those than they are on the horribly awful dumps.

Whatever, no-one actually knows when they will level off (although some experts suggest they have already) but what WE ALL KNOW IS - PROPERTIES WILL RISE AND BE WORTH MUCH MORE IN 10 YEARS FROM NOW!

:T :T :T:T :T :T :T