Are we over priced??

dopester

SelbyJay wrote: »

That's a good question. But then who can really trust the banks considering the damage their decisions have made to our economy? Banks hardly deal with those with 5% or 10% deposits, does that mean that those with low deposits should be excluded from the property game also?

Anyone who calls it a 'game' should be excluded imo.

Many speculators, on the back of easy credit and ever higher borrowing thought it was a 'game' you could only win at. With their 'wisdom' that house prices 'double every 7 years.'

Wanting a home at a prices which doesn't leave you as a complete debt-slave is not a game. The speculators and the BTLers are more likely to consider it a game, but many will learn it's a game you can be bankrupted with.

I find it amusing the OP sings the praises of SO and schemes where you have to be an FTB. It is to be fully expected, given that it's vital they find a borrower/buyer from this narrow segment of the market for the property. Also any 'equity' is not yet quantifiable until the place is sold. I don't have anything to post about the property or the area - as I don't know it.

sammyjammy

Blacksheep1979 wrote: »

That's because you're only buying half the property

And its in Selby

poppy10_2

brit1234 wrote: »

Keep us updated on the sale news

She's dropped the price another three grand, from £56,495 to £53,500. That 'equity' is melting away fast....

http://www.rightmove.co.uk/property-for-sale/property-28778990.html

GDB2222

I see the photis have been changed. Why no photos of the view from the balcony? Surely that's a big selling point?

Blacksheep1979

poppy10 wrote: »

She's dropped the price another three grand, from £56,495 to £53,500. That 'equity' is melting away fast....

http://www.rightmove.co.uk/property-for-sale/property-28778990.html

Couldn't be anything to do with the property being overpriced when bought and buyers are now cottoning on to the fact that SO is a scam?

Cannon_Fodder

Eric1 wrote: »

Especially now, when the probability of 5-10% falls is very real.

Turnbull2000 wrote: »

Really? How do you suggest that will happen? Rates will remain low for a good few years yet, the mortgage support scheme to help struggling owners has been extended once more, and it would be political suicide to remove it. Forced sellers are also rare due to government pressure on banks.

Really? How do you know that ? Your statement is just as much a guess as Eric's.

As for repossessions, ok they have yet to hit the peak of the 90s crash, that doesn't mean they are rare.

UK home repossessions hit 14-year high
http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article7022929.ece


And the millions pumped into various support schemes will not be available indefinitely (in my opinion, just a guess, like most of what you have written).

Political suicide, would be not dealing with the debt before the following election, so pain in the first two years is on the cards.

Unless you think debt interest payments the size of the entire Defence budget is sustainable.

poppy10_2

C'mon guys, save the house price crash posts for the Debate forum.

dopester

SelbyJay wrote: »

If my property is currently over valued, i believe it's because A) i've mistakenly put trust in EAs or because of the wider troubles in the housing market. Not because it's part of a SO scheme.

I don't think we are going to convince the OP of the perils of Shared Ownership. Markets themselves are the best educators, even if some people manage to wriggle out of being impacted before the education is complete.

And markets eventually overcome all warped attempts to buck them, with attempts to keep asset prices inflated or propped up, whether it be with QE and 500 year low interest rates.

Those trying to buck markets begin to find their attempts to stop correction of their pumped up crazy high valuations which have little validity against economic conditions, leads to the creation of ever more new overwhelming problems coming in at them from all directions. Until they have no choice but to surrender their delusions and accept the reality. Else suffer even worse problems.

http://www.rightmove.co.uk/property-for-sale/property-28778990.html?premiumA=true
01 July 2010 10:16:40
* Price changed: from '£53,500' to 'Offers in Excess of £49,950'

I've got incredible difficulty in seeing how a 2 bed flat like this, is worth £50K for a 50% share, when you can buy 100% of fairly good comparable 2 bed houses from £80K within a 1/4 mile radius of the flat. And I think those houses are also very exposed to further value correction.

1) http://www.rightmove.co.uk/property-for-sale/property-25041931.html
2) http://www.rightmove.co.uk/property-for-sale/property-26551198.html
3) http://www.rightmove.co.uk/property-for-sale/property-27421799.html

Idiophreak

dopester wrote: »

I've got incredible difficulty in seeing how a 2 bed flat like this, is worth £50K for a 50% share, when you can buy 100% of fairly good comparable 2 bed houses from £80K within a 1/4 mile radius of the flat. And I think those houses are also very exposed to further value correction.

Bear in mind that there's intrinsic value in 50% of the property being cheaper - more people will be able to afford a 50% share in the place, ie there's more demand, so the price for 50% of the property should naturally be more than 50% of the cost of 100% of the property. Probably not 25% more, as in your example, but you can't forget about it altogether.

brit1234

Idiophreak wrote: »

Bear in mind that there's intrinsic value in 50% of the property being cheaper - more people will be able to afford a 50% share in the place, ie there's more demand, so the price for 50% of the property should naturally be more than 50% of the cost of 100% of the property. Probably not 25% more, as in your example, but you can't forget about it altogether.

Really?

Sorry but I disagree. The bad points of shared ownership are well known especially all the extra costs and the higher rate they increase. they milk the owners money very effective and very off putting for a buyer.