Sellers drop prices as extra homes flood property market

carolt

Interesting - seems unfair that those who've contributed to their benefits are entitled to less support than those who haven't.

silvercar

MissMoneypenny wrote: »

Did he tell the DWP about his extra income?

I read on the benefits board that those on contribution based JSA don't get their mortgage interest paid, so your friend must have been on income based JSA - which is means tested. All income must be reported to the DWP as it will affect the JSA payments he receives.

All declared, plus they knew about it as they were paying it. Technically it was savings withdrawal not income, so perfectly allowable - so they said.

It might be better for him if he did find a job again.

He did, there is only so long you can live on £1000 a week;) and daytime TV gets boring. Plus I don't think mortgage interest help lasts forever.

Batchy

Seriously people, you have to stop arguing about house price trends and track REAL prices in the area, YOU want to buy in, if you REALLY want to buy, you will already be doing this, if you have knowledge of your local area, you will be well placed to spot a bargain immediately when it becomes available and take most advantage of the market as it stands today.

Fact is, even if prices dropped 40% (ad hoc houses) for example, in my particular area, there are still more than 80% of area's/houses where I wouldn't buy a house. So out of the 40 or so houses that fulfill the initial area criteria that I would like, only about 35% of them fulfill my affordability criteria (due to my tight criteria). This leaves about 14 or so houses. 25% of them are already SSTC because those buyers left their details with estate agents who rang them before the propertys hit the market as it fitted their criteria, motivated seller, right area, right price. the other 75% ie 10 houses are just testing the market and are not interested in a quick sale or my position as a FTB, who is motivated with a big enough deposit. They too have been scanning the market and nothing actually takes their fancy either with the right price in the right area, and dont feel rushed into making a bad decision. So they keep marketing the house, at a price they would be prepared to sell at, which in my opinion is just too much.

In the meantime, you just have to do everything possible, befriend estate agents, get to be first on their 'A' list... yes they do have them. And make sure you are the first call when "premium" motivated sellers market their property ready to be snapped up... or repossessions, or probate etc.

wolvoman

The phrase 'swings and roundabouts' comes to mind.

I was a first time buyer and bought a flat at the height of the market in 2007 for £450k. I've since lost at least £60k+ in equity since then.

BUT I got in at the time of cheap tracker mortgages and the interest on my mortgage now is only £200 a month. I'm saving some £1.5k a month compared to a fixed rate. Add that to my income from a lodger and In a few months I will have saved that £60k back.

Not to mention I had some £25k of my deposit saved in RBS shares - that would only be worth a couple of grand now.

No decisions are as clear cut as some would lead you to believe.

carolt

wolvoman wrote: »

The phrase 'swings and roundabouts' comes to mind.

I was a first time buyer and bought a flat at the height of the market in 2007 for £450k. I've since lost at least £60k+ in equity since then.

BUT I got in at the time of cheap tracker mortgages and the interest on my mortgage now is only £200 a month. I'm saving some £1.5k a month compared to a fixed rate. Add that to my income from a lodger and In a few months I will have saved that £60k back.

Not to mention I had some £25k of my deposit saved in RBS shares - that would only be worth a couple of grand now.

No decisions are as clear cut as some would lead you to believe.

Excellent post.

And an example of why I don't feel in any way bad that house prices falling may make it easier for me to buy in due course - as your post shows, a dramatic fall in equity need not be a problem at all for a canny owner.

RenovationMan

carolt wrote: »

Excellent post.

And an example of why I don't feel in any way bad that house prices falling may make it easier for me to buy in due course - as your post shows, a dramatic fall in equity need not be a problem at all for a canny owner.

I dont see why anyone should feel bad about buying a house during a crash. They didnt cause the crash, they are just benefitting from the situation. Its a shame when people get into financial difficulties and lose their homes, or have to sell at a loss, but the buyer of that house wasnt to blame for the sellers problems, the buyer is just looking out for him or herself and family if they have one.

I have no animosity towards anyone who gains or loses in life and I find it difficult to understand those who do. Life is hard enough without worrying what other people are up to.

harz99

Batchy wrote: »

, the other 75% ie 10 houses are just testing the market and are not interested in a quick sale or my position as a FTB, who is motivated with a big enough deposit. They too have been scanning the market and nothing actually takes their fancy either with the right price in the right area, and dont feel rushed into making a bad decision. So they keep marketing the house, at a price they would be prepared to sell at, which in my opinion is just too much.

Which is an unfortunate effect from the scrapping of HIPS! And why the market is being flooded in certain areas.

We are back in the realms of speculative sellers wasting buyers time and money - the opposite of the "tyre kickers" who spend a pleasant afternoon viewing with no real intention of buying - and it seems that the uncertainties that these ghost sellers are creating will be with us for the foreseeable future.

doire_2

Strings wrote: »

A few points,
- why are people selling?
- Do they have to sell or just taking a punt?
- Where will they move to next, will they buy again?
- If prices drop, perhaps some of those who sold will buy again?
- If they dont, they will rent, perhaps pushing demand up for rental properties?

Summary - who knows, but I think the over supply will push prices down for a while and then you'll see it bounce back again as those who sold re buy at lower prices. However in the mean time, those who dont need to sell wont, because prices are falling.

The fear is setting in. The overhyped spring bounce was in fact......crap. People know the game is up.

FTBFun

doire wrote: »

The fear is setting in. The overhyped spring bounce was in fact......crap. People know the game is up.

We're all DOOMED. :eek: