A recession success story...

sabretoothtigger

I know someone else who also recently sold their scottish house for a profit, that was bought 2004 though I think

I think the OP wife is right, best to start looking now and all those properties look very grand but I'd choose the middle one because I think detached is worth a bit more and its a nice garden, space, etc

If you have good ltv then you can get a good fixed rate and take advantage of the timing

inspector_monkfish

mitchaa wrote: »

There are quite a few Aberdeen footballers though that live in the Kingswells/Westhill area so i suppose that says something about the area.

Chavvy ??

IveSeenTheLight

dopester wrote: »

http://www-q.aspc.co.uk/cgi-bin/public/LiveProperty/271799?ID=FOMAICPG#picture

You've had a great escape imo, and already you've sort of got £2.5K towards a year renting. You'll be better placed to to push other sellers on their asking prices when you come to buy in 12 months imo.

Are you suggesting mitchaa should pay almost double the rent that he would be paying on a C&I mortgage.

the C&I mortgage would be £900 while the rent is £1600.
An extra £700 per month or £8,400 for the year.
In that first year the mortgage capital would have reduced by £2,500.
therefore renting would cost him £10,500 for the first year.

If you look above, the average has been stagnating in this market for the last 14 months, and mitchaa appears to have sold a property that performed above this average and from the properties he showed, is likely to be looking at one of the more desireable properties available in the limited supply market

It's a bit of a risk in my opinion to wait out a year and need to see a reduction in the price of the property by £10,500 as a minimum not considering the other fact that he would be a year through his mortgage. This extra year of payments would mean a further £10,800 of payments, meaning in reality, the property would need to drop by £21,300 in that year

Renting for a year in this market in my opinion has more to lose than buying the property their family decides is best for them

dopester

IveSeenTheLight wrote: »

Are you suggesting mitchaa should pay almost double the rent that he would be paying on a C&I mortgage.

the C&I mortgage would be £900 while the rent is £1600.
An extra £700 per month or £8,400 for the year.

Yes I am. He said he could have been pushed down on price by another £2.5K. Other owners will be feeling inclined to accept bigger reductions in 12 months+ time imo.

By your calcs renting would cost him £10,500 extra for the first year. (I guessed £10K). I argue he could get this back and more through reductions from where we are now on his next home.

Also the big extra you add on as a cost in a years worth of mortgage repayments.. he could just put that into a savings account. He hasn't lost the money simply because he hasn't spent it.

£10K / £20K / £50K / £70K ... I've seen it knocked off asking prices of similar priced property in so many areas of the UK.

Also I'm mixing in all the difficulties ahead. The focus will be on to build financial assets from now on (imo).. away from living debt or buying over-valued property (imo).

The average has been stagnating for the last 14 months you say? Fine. I just don't believe in stagnation theories for property values holding into the future. So many pressures on oil company jobs, public sector. These come with unstoppable consequences.

600 more council jobs under threat

Published Date: 09 October 2009
By Frank Urquhart

CASH-STRAPPED Aberdeen City Council could be forced to axe up to 600 jobs – 5 per cent of its total workforce – in an attempt to balance its budget , it was revealed yesterday.

The authority has begun a 90-day consultation with staff and trade unions on reducing the size of its workforce to help balance its books next year.

The city authority shed 700 jobs last year as part of a series of cost-cutting measures.

http://news.scotsman.com/politics/600-more-council-jobs-under.5718441.jp

chucky

inspector_monkfish wrote: »

Chavvy ??

no it's spelt Xavi and he plays for Barcelona not Aberdeen!! :T

IveSeenTheLight

dopester wrote: »

By your calcs renting would cost him £10,500 extra for the first year. (I guessed £10K). I argue he could get this back and more through reductions from where we are now on his next home.

Also the big extra you add on as a cost in a years worth of mortgage repayments.. he could just put that into a savings account. He hasn't lost the money simply because he hasn't spent it.

I don't think you understand about the extra years mortgage repayments.
He wouldn't have that to put in to a savings account. It costs him that extra i.e. 26 years of property payments (1 year rent + 25 years mortgage) instead of just a 25 year mortgage.

In theory, he will be able to save less as your suggesting he takes an option in which he will have £700 per month less disposable income :eek:
Your theory is a gamble as he will have less actual money in the hope of securing a future property for a cheaper price than he can now.

As I said, this means that he would need to see prices drop £21,300 in a year on what he can negotiate presently.
That in a currently stagnating market which is historically strong and in the last house price correction, fully recovered any drops within a year.

P.S. how many council workers do you think would be buying a £400k property such as the highly trained professional mitchaa is? I doubt their job losses as unfortunate as it is will affect this transaction

mitchaa

Dopester, that is a nice rental property and to be fair isn't far off the £1500pm im paying into the mortgage at the moment. Im sure i'd be able to negotiate £1-200pm off that aswell.

Carol, the reason for considering rental is simple. Aberdeen has been left relatively untouched so far. Although we consider the peak of the market nationally as Q3 2007, it was indeed Q3 2008 before Aberdeen and its shire peaked. What does this mean? I have been studying the market closely and there are a lot of overpriced homes on the ASPC website (IMO anyway, ex council £230k for example) and there are some that i can remember from a long while back, I believe around xmas last year that have still not sold.

All the talk of a 2nd wave, not just by you guys but in the media too has knocked the confidence a little too. Has Aberdeen survived, or is it yet to fall? i.e It was a year later peaking than everywhere else, so are we a year behind with the falls? Aberdeen is not immune, my industry is not immune, we had 60-70 flights a day to offshore platforms this time last year, we have around half that now so things are scaling back, obviously not just for us guys throwing the Aircraft out, but for those flying to the oil platforms too. A few guys have recently retired and not been replaced and they are even on about breaking our paydeal next year for a freeze (Shock horror:shocked:) However, no lay offs so to speak and we've been assured by senior management that all of our jobs are safe and there are a couple of big contracts heading our way that should definitely pick things up a little. (1 a 25yr Search and rescue contract worth money in the billions)

I had a different opinion 6mths ago.

So is Aberdeen going to be left untouched or is it simply lagging behind? Who knows, there's still obviously a lot of money going round but its definitely not as it was this time last year. (Just like the financial industry of London, bankers bonuses etc)

Although im not in it for the money, i'd hate to buy a house now for £400k, and learn with hindsight later on that i could have bought it for £325-£350k in Summer 2010.

ISTL...2.5m is nothing from a school catchment area, I think i was around that to my secondary school and there's not a hope in hell i'd be able to afford anything on the Queens Rd, but i do get your point. I had a quick drive around the Hilton area last night and around the homes that i highligthed and although the streets they are situated on are very nice, the area itself as you say is well not as nice as Westhill, but then again it's no Mastrick either :rotfl:Additionally as i said previously, the ROS table you posted shows around a 20% rise in the time ive had my property, i was a little under that so not over performed as you have stated.

We have a couple of viewings booked in for tomorrow, the wife is all for rebuying, I think i just need a shake and some bull blood re-injected back into me. I should trust my initial instincts and stop the worrying.

IveSeenTheLight

mitchaa wrote: »

ISTL...2.5m is nothing from a school catchment area, I think i was around that to my secondary school and there's not a hope in hell i'd be able to afford anything on the Queens Rd, but i do get your point. I had a quick drive around the Hilton area last night and around the homes that i highligthed and although the streets they are situated on are very nice, the area itself as you say is well not as nice as Westhill, but then again it's no Mastrick either :rotfl:Additionally as i said previously, the ROS table you posted shows around a 20% rise in the time ive had my property, i was a little under that so not over performed as you have stated.

I didn't mean about school catchment areas when referring to the local area. On saying that, I think out of the local catchment area schools, I know which one I would prefer to send my kids

http://www.cornhill.aberdeen.sch.uk/

http://www.albynschool.co.uk/

My reference to your property doing well was hard to put down to specifics as you stated you bought in the first half of 2007. this ranges between 7% and 21% for the first 6 months of 2007 till the latest release

mitchaa wrote: »

Although im not in it for the money, i'd hate to buy a house now for £400k, and learn with hindsight later on that i could have bought it for £325-£350k in Summer 2010.

You yourself believe that house prices will not drop from your first post, so
why now the suddent thoughts that it might?
I'd agree that you might be better placed buying in Jan / Feb 2010, before the market picks up again but I too am going for another year of stagnation. The next few months some declines, pick up again next year.

mitchaa wrote: »

We have a couple of viewings booked in for tomorrow, the wife is all for rebuying, I think i just need a shake and some bull blood re-injected back into me. I should trust my initial instincts and stop the worrying.

You should trust your instincts and ensure you do your market research (even more local now you are looking at buying

Good luck tomorrow, don't let you or your wifes emotions show.
Play it sombre and try to get the best deal if you see the house of your wife's dreams

lostinrates

IveSeenTheLight wrote: »

Good luck tomorrow, don't let you or your wifes emotions show.
Play it sombre and try to get the best deal if you see the house of your wife's dreams

Can I ask, does that really work? I mean, my guess is if you ar prepared to hand oer a lot of money and take on ebt to buy somewher the vendors are going to guess you might at least quite like it? I have always gone on the assumption that people will know when we offer, we want it.

IveSeenTheLight

lostinrates wrote: »

Can I ask, does that really work? I mean, my guess is if you ar prepared to hand oer a lot of money and take on ebt to buy somewher the vendors are going to guess you might at least quite like it? I have always gone on the assumption that people will know when we offer, we want it.

Well put yourself in the sellers shoes.
You receive an (under price) offer from: -

a) A couple who were very enthusistic and keep going on about how wonderful a house it is, how perfect it would be, what they can see themselves doing once they move in

or

b) A couple who keep their thoughts to themselves, be polite, maybe say they have a nice house but they have others to view.

For a) you might reject the under price offer thinking they were so keen they will come back with a better offer

For b) You might be less likely to reject as they could go elsewhere.

It all depends on how many offers received or if the property is going to closing, but it's never a good option to show your cards before you play them