Will developers (or maybe buyers!) never learn

QTPie

socrates wrote: »

Why dont you do what most women do - dont speak to him just tell him - and whilst there tell him to stock up on pickled onions!

But I am lovely, socrates... anyway, I can barely remember my own name at the moment, let alone make important decisions by myself and etll someone what to do...

No, picklesdon't do it for me at the moment...

QT

silvercar

House near me dropped from 1.15m to 800k over the last 18 months. Similar house just gone on the market, has a loft conversion with bedrooms and a bathroom in the loft, gone on at 1.2m!

QTPie

silvercar wrote: »

House near me dropped from 1.15m to 800k over the last 18 months. Similar house just gone on the market, has a loft conversion with bedrooms and a bathroom in the loft, gone on at 1.2m!

Like a recession has never happened?

I don't know, just makes me a little weary... (not that I am looking at a £1m house to buy)... having just sold (for a reasonable amount, yet obviously not "height of the market" amount), will we be able to get on the coresponding rung of the ladder (i.e. if you sell at 2005 prices, would be nice to buy at 2005 prices...).

QT

bob79

Doesn't anybody else think that 1m for a house is obscene? That's about 40 times the average salary. So somebody buying it must earn 10 times the average salary and a lot more than the prime minister. An obscene amount.

lostinrates

bob79 wrote: »

Doesn't anybody else think that 1m for a house is obscene? That's about 40 times the average salary. So somebody buying it must earn 10 times the average salary and a lot more than the prime minister. An obscene amount.

It is a large amount. But not all people buy expensive property just as a home. My home will probably double as my work place. My background is in 'rural industry' and unfortunately large acrages do not come cheaply. Inevitable this means a high level of debt Many people also expect their houses to work for them as B and Bs etc etc. This used to be the preserve of farmers near me, but 'very smart' families do it now too.

Among those who would use their homes purely as houses we must include those who need to live in an area for work, I'll used the old example of London and the SE, but would, by choice, pay far less for a home...but everyone around them keeps pushing the prices up!

ETA: also, on earning more than the prime minister, possibly....or two people in a couple earning about half what he does?

QTPie

bob79 wrote: »

Doesn't anybody else think that 1m for a house is obscene? That's about 40 times the average salary. So somebody buying it must earn 10 times the average salary and a lot more than the prime minister. An obscene amount.

Depends on the house really... some are worth it. Quite a lot of people get paid £100ks (GPs spring to mind) or even £1ms a year. So those people are unlikely to like in a £100k house.

The one in the thread is obscenely priced I think. If it is worth £1.25m, then there are a LOT of houses in the city that I live that must be worth that or more (500, 1000, more?). And this is one small (although fairly wealthy) city. There are an AMAZING number of £1m+ properties in this country...

It is all very interesting.

QT

Geenie

I would assume that the developer has borrowed the money to build this place, so no skin off their teeth if they don't sell straight away, as long as they can cover interest rates and costs by renting.The problem arises when the creditors come calling.

Geenie

QTPie wrote: »

Depends on the house really... some are worth it. Quite a lot of people get paid £100ks (GPs spring to mind) or even £1ms a year. So those people are unlikely to like in a £100k house.

The one in the thread is obscenely priced I think. If it is worth £1.25m, then there are a LOT of houses in the city that I live that must be worth that or more (500, 1000, more?). And this is one small (although fairly wealthy) city. There are an AMAZING number of £1m+ properties in this country...

It is all very interesting.

QT

I had been shocked by properties being advertised here in Devon a year ago. The prices shot up and more and more were asking a million or over. They seem to be coming down now, but still quite high. There seems to be people around with a lot of money, but we have attracted a lot of Londoners in the past 10 years or so.

silvercar

bob79 wrote: »

Doesn't anybody else think that 1m for a house is obscene? That's about 40 times the average salary. So somebody buying it must earn 10 times the average salary and a lot more than the prime minister. An obscene amount.

I doubt their are buying it on a 90% mortgage. So they may earn little more than an average salary but always lived frugally and their one luxury is their home. Or they may have bought when house prices were really low and benefitted that way or an inheritance etc.

franklee

QTPie,

Your thread raises some interesting points. I have started to think that if I see a house I would like to buy that is up for both sale and rent then the sensible thing to do is to rent it preferably on a one year contract. This prevents any sale for a year thus giving prices time to fall. It also allows a test of the property to see if it's liked. It locks other tenants out so the property doesn't get spoilt.

Finally should the developer go under and a sale be needed you would be the sitting tenant putting everyone else off at least till the end of your contract.

Seems a fine idea to rent it if you are really serious in buying in a year or so.