The property boom is well underway now.

Conrad

This is not some wind up thread, merely my observation that the next boom is well underway having it's origins in spring 2009.

I've been fairly quiet since mid 2007 and prior to that on this very forum urged people to sell thier B2Ls. I've been in business since 97 so have a fair feel for the market.

Business in 2010 thus far is back to levels I last saw in early 07. People are bored of recessionary talk - not my sentiment - thiers, and I am told again and again they simply pay the media no heed and are just getting on with life.

They don't trust pensions, and long term they plan to downsize at retirment and release Tax free main resi accumulation.

No one ever mentions public deficts or unemployment and most are aware borrowing is very cheap - for example 85% 3.99% or 75% 1.99%. Will it remian cheap - very doubtful but the body public dont let this concern them AFTERALL LESS THAN 1% WERE REPOSSESSED IN THE EARLY NINETIES WHEN RATES WERE HIGHER.

Parental assistance now plays a major role for buyers of all ages in my first hand experience, quite often where parents have released some of the 'free' equity they happen to have accumulated and which is not particularly missed.

Sure lending is still very tight but people are simply borrowing from other sources such as bosses and relatives.

To remain property bearish now is frankly shortsighted.

:A

Asheron

Property Boom?

lol

Don't Hood Wink

Conrad

Asheron wrote: »

Property Boom?

Fool me once, shame on you; fool me twice, shame on me

Wheres the fooling? Most benefit greatly from thier primary asset in the long run and then pass it on to a grateful family.

It's akin to those that mock capitalism when it was this very function that gave them thier childhood schooling, library and public swimming pool.

HAMISH_MCTAVISH

Asheron wrote: »

Property Boom?

lol

Don't Hood Wink

You're a wanted man........

http://forums.moneysavingexpert.com/showthread.html?t=2342589&page=2

post 24......;)

Graham_Devon

Conrad, do you meet people who cannot afford property?

People who are buying property, are always going to be optimistic. I'd imagine your clients are upper end too?

This is the thing for me. When you say that people are just borrowing from their bosse's, I have to admit, I don't see these people as run of the mill people.

HAMISH_MCTAVISH

Conrad wrote: »

my observation that the next boom is well underway having it's origins in spring 2009.

I can well believe it.

Aberdeen average price up 2% this month alone, and January 2010 price almost £20K higher than in January 2007.

lvader

You can't have a property boom without first time buyers, minimum deposit requirements are keeping them out at the moment. So no.

Conrad

Graham_Devon wrote: »

Conrad, do you meet people who cannot afford property?

People who are buying property, are always going to be optimistic. I'd imagine your clients are upper end too?

Graham, I never lie or fiddle. Here are my recent clients;

+ Miss utterly average, non to clever clothes shop supervisor on £19.5k buying 3 bed house in Kent for £94k. Deposit of 15%. Will turn the house into 2 flats and be left with a gross yield on total outlay of circa 10%.

+ Mr & Mrs self employed - salesman and hairdresser. 90%. Possibly borrowing some deposit on 0 card (shock horror - like I and mates did when young - we all survived - honest). Loan is £243k. 2 yr tracker 5.49% - well aware rates will rise but mindfull 99% of owners keep thier homes.

+ Police inspector £60k pa borrowing 85% at 3.99% from Accord. Recently divorced.

+ FTB accounts assistant - 90% offered by Scots Widows on a 2 yr fixed. Recently took a loan that happens to be 10% of property price - lender well aware but she signed a letter saying loan is for home improvements and parents supplying the deposit. I point out affordability and budgeting - she is perfectly happy to proceed. £15k income buying in Lancs.

+ Political speech writer - yes very middle class I'll grant you and inherited a £900k house recently:eek: Borrowing £200k to buy a development property to make money.

+ Builder with past credit probs following serious injury. Buying £430k home. Modest earnings but will do up home in 2 years and make it worth c£700k. Can always sell up if needs must. Had to put in Mums name (73) as a B2L. Lender is perfectly happy to lend to her even though she has no earnings. Sensible people - done things similar in past.


Majority of my clients have some challenging issues hence why they pay me juicey fees.

Conrad

HAMISH_MCTAVISH wrote: »

I can well believe it.

Aberdeen average price up 2% this month alone, and January 2010 price almost £20K higher than in January 2007.

The reason the 'experts' and even now Vince Cable will be wrong is that they fundamentally are not properly in tune with the great unwashed for whom Teutonic style traditional investing just is'nt a goer.

It really is as simple as this. No need for graphs, no need for complex stats.

Conrad

lvader wrote: »

You can't have a property boom without first time buyers, minimum deposit requirements are keeping them out at the moment. So no.

No true at all. Many many get parental help, a loan from work, a 0% card or even save up !

Shock horror - people borrow deposits:eek: oh yes, just as thier freinds did in the past, 99% of whom were not repossessed.

I recall my own first mortgage before I was a broker. My boss had to ermm, do a conducive income reference and my GF had to pretend she worked for her brother. Tis just life in all it's glory. Anita Rovberts got a 'car loan' to start the Bodyshop.

silvercar

+ Mr & Mrs self employed - salesman and hairdresser. 90%. Possibly borrowing some deposit on 0 card (shock horror - like I and mates did when young - we all survived - honest). Loan is £243k. 2 yr tracker 5.49% - well aware rates will rise but mindfull 99% of owners keep thier homes.

That's the one that looks the riskiest to me, not because they are borrowing the deposit (which looks savvy at 0%) but the sheer size of the loan.