Wake up...... IT'S OVER

baileysbattlebus

The age of borrowing unrealistic amounts is over. People can now only borrow reasonable amounts, and this will go on for quite some time. Because of this, house prices will continue to drop until they reach an affordable level

Would that were true - a family friend has just been offered a mortgage, which she has accepted of £115k, arranged through a broker, she is a nanny and her salary is £17.5k, she also gets £500 per month maintenance for a child. Obviously the maintenance is at the whim of her child's father, so I would not look on it as guaranteed income. But there you go.

So even if you include the maintenance it is still a large multiple loan.

She completes on her house in April the vendors are moving into a new build.

We also live in a fairly high priced area and she is paying £215k for her 2 bed house, her mortgage payments are about £500 - which she can easily afford - she is currently renting a 3 bed terrace for £950.

She had no problems at all getting a mortgage for the amount she wanted, the fact that she has a £100k deposit may have helped.

beingjdc

Flat down the road from me has sold after nearly a year on the market, but the asking price had been reduced to 54% of peak, so even if they got the full asking price....

chucky

PasturesNew wrote: »

At the moment, cash buyers are finding their savings aren't generating an income and a lot decided "s0d it, we'll buy a house then, save all this rent money".

But it's a bulltrap.

When the market runs out of these cash buyers (soon) ... what then?

QE will have filtered down and they'll be house price inflation amongst other asset inflation - they'll be too much cash in the system that can't really be destroyed

SingleSue

Which area of Suffolk op?

I am finding the ones more likely to sell in my little area of Suffolk, are the ones priced closer to 100k than the 200k ones...also after some hefty discounts too.

In my recent research, the 3 bedroom houses in my area are the hardest hit with the most reductions...terraces are the least hit.

I did have all the figures but it's Sunday morning, I had 3 hours sleep, speedway season starts today and I am having a mare getting the team up and running and just couldn't be beggered finding them!

chucky

mp2 wrote: »

the companies that did make them - lehman brothers, bear stearns, morgan stanley, jp morgan, goldman sachs are all gone gone gone, (bankrupt)

i think that you could be wrong have you seen the comments out of Citigroup and Bank of America?? they may have been in trouble but not now is a different story...

Bank of Amwerica is predicting £36,000,000,000 profit this year - that doesn't sound bankrupt does it
http://uk.biz.yahoo.com/13032009/140/banking-giant-profits-spark-turnaround-hope.html

chucky

luvpump wrote: »

Whatever david ... Not really worthy of serious debate at the moment,"Its a buyers if the seller wants to sell" Market & will continue to be for the foreseeable future..End of !!!

just added to your statement - i think you missed a bit out

macaque_2

davidb881 wrote: »

I live in Suffolk and sold my house twice in less than two weeks (the first buyer found a better bargain).

Driving around, I would say at least two thirds of the estate agency boards up, say sold and there are a reasonable number up.

I have offered on 4 houses and been out bid on all of them. My offers have been about 90 to 95 % of the asking price.

What’s going on? The stress I am going through it unbearable. Anyone with an opinion tells you it’s a buyers market. That’s rubbish, if more people could get a mortgage there would be a stampede.
The media have done it again. I am afraid a massive over reaction has taken place and too much has been wiped of the market. I can tell you for a fact that investors are lapping it up. O joy, the rich getting richer.

This week we have heard from a respectable researcher that house prices could fall by another 55%. House sales have dropped to their lowest level since records began. Holiday rents are in freefall due to rocketing levels of unold properties. Estate agents and morgage brokers are closing down every week.

In the midst of this, david881 (presumably an estate agent) posts a yarn about how how properties are flying off the shelves in Suffolk. David881 where is your shred of evidence for the 'Suffold Miracle'? Lets face it 'dave' you made it all up didn't you.

Dan:_4

macaque wrote: »

This week we have heard from a respectable researcher that house prices could fall by another 55%.

Is this that article someone dug out from the Daily Mail, and no one had ever heard of this 'Respectable Researcher' oh, and he said Britain would be Bankrupt by next year? :rotfl:

chucky

as Macaque says a respected researcher - they were called Numis Securities, anyone ever heard of them???

here are details from the report from them
http://www.metro.co.uk/news/article.html?Britain_heading_for_bankruptcy&in_article_id=577917&in_page_id=34
and the Daily Mail version
http://www.dailymail.co.uk/news/article-1161317/House-prices-drop-55-leave-Britain-bankrupt.html?ITO=1490

you're probably safer taking advice from this forum than a company that no-one has ever heard of before or even from any newspaper connected to the Daily Mail

as for Macaque he has a vested interest in Numis Securities

macaque wrote: »

Chucky, forget Numis Securities. They are just getting their stories from me.
If you want to know who to trust you have to look at the face.

http://news.nationalgeographic.com/news/2008/10/photogalleries/best-animal-wildlife-photos/photo6.html

---lee---

macaque wrote: »

Estate agents and morgage brokers are closing down every week.

If you look hard enough, there's always a silver lining :rotfl: