Experts say wait 5 years to buy back into property

[Deleted User]

:rotfl: :rotfl: experts!!! :rotfl: :rotfl:

Two more sold boards up this week, in my locality. Trouble is there is not enough choice for buyers

Dan:_4

kittie wrote: »

Trouble is there is not enough choice for buyers

Because people are reluctant to sell in the current maket. You would only sell if you really had to.

ad9898_3

Dan: wrote: »

Only through a lot of hard work.

Why do poeple assume it is a god given right to own a house?

If you don't earn enough, you can't buy a house, simple - This is not something new, it has always been the case.

'Tis true, although things have gotten a little out of hand even for a 'boom' period. I do agree though, if you're a muppet with money you're never likely to own, as I'm sure people will find out, when they think they can afford somewhere but get refused due to credit ratings.

Martinslovechild

I moved here in '96. 2001 was simply the point when I started to make overpayments and a concerted effort to pay some of it down. £129K was still a lot of money then, albeit it may seem small compared to the mortgages that some people have, especially in recent years.

In 2003, I went full-throttle to clear the mortgage as I work in I.T. and 2002-03 wasn't a particularly good time for I.T. Many of my colleagues were made redundant and my department became a skeleton of its former self.

I certainly forgive your eagerness, Abuse, but my point is really aimed at those individuals who appear to poke fun at those suffering as a result of the downturn.

If I was interested in buying a holiday home or villa abroad, it would be very easy for me to publish my excitement on these threads, but that's not much fun for somebody who's just lost their job in a car manufacturing plant who's now wondering how to keep the roof over his head is it?

mewbie_2

kittie wrote: »

:rotfl: :rotfl: experts!!! :rotfl: :rotfl:

Two more sold boards up this week, in my locality. Trouble is there is not enough choice for buyers

Rightmove link? It's nice to be able to see these things.

SingleSue

Martinslovechild wrote: »

My goodness - it seems to me that there's quite a lot of bitterness and resentment on some of these threads.

Some people almost can't wait for others less fortunate than themselves to be made redundant, be repossessed and ship out so that they can buy their nice 4-bed detached with a juicy 40% saving compared to its peak value a couple of years ago.

Not only that, they'll gladly give them a hand with the packing, endeavouring to throw their stuff on the lawn.

I wish these people would display some sympathy and respect - not everybody is a 'greedy buy-to-letter' or 'greedy banker' or greedy anything.

Whilst we all appreciate that the economy is in a spin and that there will be many casualties, not least the people whose careers are ended abrubtly or those whose relationships will unfortunately not be able to withstand the stress of the downturn, it's worth considering for a moment that a little humanity and a little care goes a long way. After all, there's a chance that all of us, at some point in our lives, may face a struggle of some description. That others should choose to ridicule you for your 'greediness' is inconsiderate at best and displaying a complete lack of compassion at worst.

I would agree with this.

Too many times it seems that people forget about the ones losing their homes, often through no fault of their own.

Yes you do get the occasional one who mewed their way to implosion but the majority are through other factors...a job loss, a spouse loss (either through death or divorce), an illness etc.

Being repossessed is horrible, it is not a dust yourself off and start again scenario, the impact of it can continue for years and years..not just financially but mentally too.

I suppose I could be accused of having the upper ground as I live in social housing and have no worries re housing but I have been there, done it and got the T shirt (and the nervous breakdown that came with it)

It made me a better person, one more able to empathise with others going through similar circumstances now. I am a totally different person to the one who purchased a property, who was earning way in excess of the average salary (back then), who had the world at her feet.....but I am a nicer one.

Dan:_4

ad9898 wrote: »

'Tis true, although things have gotten a little out of hand even for a 'boom' period. I do agree though, if you're a muppet with money you're never likely to own.

I agree, the recent HPI has been ridiculous. But with 20% - 30% down I think we're back to a point of affordability.

mewbie_2

SingleSue wrote: »

you do get the occasional one who mewed their way to implosion

If that were true then we wouldn't be in quite such a pickle. Bubbles encourage risky behaviour. Everyone accepts housing has been in a bubble. The difference with this bubble and others is gearing. Borrow 10k to make 50k. Sounded too good to miss. Take equity plus savings and blow the lot, er sorry, invest in housing.

Lots of people did it. Do you think everyone could suddenly actually afford to buy a 4 x 4? Borrowed money.

Now the gearing kicks in the other way. Borrow 10k to lose 50k.

For those who say "be fair, think of the poor unfortunates" let me say this isn't an Agony column or Homes and Gardens forum. It's about cold hard investment decisions, the state of the economy, and from the roots of this board it's about house prices.

bo_drinker

Property Green Shoot Peeps Through Stats


//
An almost daily blizzard of house price figures makes it impossible to get a clear picture of things, but a trip to a leading auction house can help put things into perspective.



Since the middle of 2008 interest has been high at property auctions


So I found when I visited Bigwood Chartered Surveyors - one of Birmingham’s leading commercial property firms, which holds regular auctions of small businesses and houses.
Ian Tudor, a director of the company, tells me that on average they hold five auctions a year, with up to a hundred properties being individually auctioned at a time.
Since the wheels came off the housing market in 2007, some of the poorly attended sales have only achieved a success rate of some 40%. There has been a stand-off, with on the one hand, buyers seeking the lowest possible prices, and vendors grossly overvaluing their properties.
However, since the middle of 2008, there has been more positive interest. At the last sale held at the Aston Villa football ground at the beginning of March, complete sales had grown to some 70%. So it a consensus of realistic valuation is taking place.
In some cases the bidding has gone well beyond the guide price, with one abandoned church more than doubling the expected figure. Properties were located throughout the West Midlands and Derbyshire.

The current withdrawal of many specialist, small and foreign lenders from new lending has created a huge gap in the capacity to fund mortgages to match consumer demand.

Michael Coogan, Council of Mortgage Lenders


Mr Tudor firmly believes that there are a lot of keen buyers about, with interest shown by the number of inspections taking place prior to the day of sale. The problem deterring so many bidders, is arranging a mortgage.
At auction, 10% has to be put on the table immediately after the hammer falls, with completion 28 days thereafter. The price bid sets the benchmark for that type of property on offer.
It is becoming evident however that a degree of private financing is coming into the equation. Families, with money lying in the bank earning virtually no interest, can achieve a return of some 6% by buying, and either renting, or alternatively funding younger members of the family to take the first step on the ladder.

Estate agent David Stuart-Smith


David Stuart-Smith of Worcester estate agent Andrew Grant, which covers the whole of the West Midlands, confirms this belief. His company has just received instructions from a family trust to invest £1 million in “buy to let” houses. A similar return will be achieved, which is why interest is gaining pace as we move from winter to spring.
Both housing experts indicated that property inspections were at a level only 5% below 2007 figures. Families are desperate to move, with many down marketing, due to lost jobs and couples seeking homes in which to start new lives.
The big problem is the shortage of available affordable mortgages, despite the Government constantly reminding us about the amount of money that Building Societies and Banks have to lend.
Deposits these days have to be anything from 25-40%. What a far cry from the zero deposit and 125% mortgages so freely on offer a couple of years ago. With this in mind, it makes a lot of sense for families to join together to help fund purchases.


Jeff Randall Live

Britain's most authoritative and insightful business coverage.
Weeknights at 7.30pm







There will never be an announcement stating that the bottom of the market has been reached, and as in previous cycles, it will be manifested in a “sector by sector” revival.
I believe that for properties up to £250,000, the market may have turned the corner. If the Bigwood sales are anything to go by, then now is the time to buy, and in two to three years time you may be able to smile.
In the long term, property is a very good investment, all the buyers need is the ability to obtain funding.
Russell Luckock is chairman of A E Harris & Co, a company serving the engineering sector based in Birmingham

mewbie_2

bo_drinker wrote: »

Property Green Shoot Peeps Through Stats

Is it time for Inside Track to come back?