Property crash soon???

BobProperty

F_T_Buyer wrote:

...Note: The money supply increased by 12.6% in 2005 compared to 2004.....

OH FLIP! - Isn't that what Maggie T did? Kept telling us that the money economics was sound while printing extra guilts to pay for everything.
Also note what sm9ai has posted, fed rate is now higher than BOE base. Double OH FLIP!

[Deleted User]

sorry I haven`t had time to read the whole thread and I might be duplicating posts.

I live on a brand new development and buyers are coming in very fast lately. 43 properties and last year was quiet, but steady, re sales. Properties have gone up 5.7% over the year and another two were sold three days ago and holding deposits put on another two

The permanent people here want a nice home, rather than the investment potential. 10 apartments have been sold to property speculators and only four are rented out at present. These speculators are the ones who will get their fingers burnt if there is a property `crash`

zag2me

kittie wrote:

10 apartments have been sold to property speculators and only four are rented out at present. These speculators are the ones who will get their fingers burnt if there is a property `crash`

I cant wait It seems so obvious to me that these will be the 1st people to see a crash. But it still hasnt happened yet.

[Deleted User]

zag2me
I have to say that I hope they do get their fingers burnt and then, just maybe, the first time buyers will be able to get a foothold

I personally don`t believe that property will stop rising but I do think that Brown will fix some high taxes on second home owners within a couple of years. Not sour grapes but I would be pleased because of the unfairness to the FTB

Doozergirl

Do you really think that people investing in full price new build apartments are clever enough to realise that it's only them sustaining the ridiculous prices at the bottom of the market and depriving FTBs in the process?

I'm living in and selling a really nice, spacious 2 bed end of terrace in a village for £155,000. Around the corner, you can buy a 2 bed flat with bedrooms 8' something wide from £161,500 - why? Who's buying them at that price when you can get a period house for less? Have they seen the development up the road where they're still trying to rent out at prices higher than a 3 bed semi a year later?

You have to feel sorry for them. Whether the whole market crashes, I don't know, but I've no doubt that people with BTL apartments are going to take a big hit anyway. Prices are stupid in comparison to even the local market.

tomstickland

There's some new 2 bed apartments near me that have only just been finished (sales office still has 9 to sell). There's a To Let sign up already. I saw the advert in the paper. Flats sell fo £145K and they're renting out for £650 pcm. Let's say they have a £125K BTL mortgage, then that's £690 per month on repayment mortgage. I don't see how it adds up.

Doozergirl

Similar prices to near me, though one has a pool downstairs, so they were selling for upwards of £200k for a 2 bed flat! Plus the service charge, which will be mammoth to support a pool. On a roundabout in Redditch of all places, I ask. More expensive than Birmingham city centre. WHY??

I've change my mind. I don't feel sorry for people who buy into that.

[Deleted User]

The two bed appartments here sold for £265k and have a service charge of £2k(security and lovely grounds)

They are asking rent of £650 pm
These speculators are living in cloud cuckoo land. After paying the £2k they have an annual yield of 2.2%

IMO they have well and truly missed the boat

Doozergirl

kittie wrote:

The two bed appartments here sold for £265k and have a service charge of £2k(security and lovely grounds). They are asking rent of £650 pm

Sounds great! Where is it? :j I might just leave my husband and kids and go and rent there (once I've got parent's evening out of the way tonight).

Tassotti

So many people get lured into buying these "luxury" 2 bed shoe boxes. From the example above, the cheapest interest only payments would come out at £880 per month. Rental asking figure £650, and even that probably won't be achieved.

Some people