House prices - the truth

mbga9pgf

Pretty much the same as we got, except we are on capital repayment. Same about rennovations taking the lions share of the cash at the mo too;

14 50 ft+ trees to be felled.
Damp rot under living room floor (4.6 metres by 4 metres) meaning suspended floor out, precast concrete in.
Change from LPG to Oil

all add up! By this time next year however, all the big jobs will be done, it will be a simple case of painting rather than deep maintainance!

The_White_Horse

just back from the viewing - a tiny place, next to a pub (which means noise and chavs) and a stone's throw from the M1 so you can hear the traffic. if that is worth 500k I am a monkey's uncle.

that said, i am good at the vaulation game, and correctly valued a 750k home. even though it is 250K dearer, it represents better value.

the world has gone mad. 750k. should be 400K really. so someone on 100k could buy it. and the over valued tripe at 250k should be about 100k so the 25k-35k could buy it.

its all nuts. those that think otherwise are insane.

nollag2006

The_White_Horse wrote: »

just back from the viewing - a tiny place, next to a pub (which means noise and chavs) and a stone's throw from the M1 so you can hear the traffic. if that is worth 500k I am a monkey's uncle.

that said, i am good at the vaulation game, and correctly valued a 750k home. even though it is 250K dearer, it represents better value.

the world has gone mad. 750k. should be 400K really. so someone on 100k could buy it. and the over valued tripe at 250k should be about 100k so the 25k-35k could buy it.

its all nuts. those that think otherwise are insane.

Rightmove link?

Or would you rather not be proven to be a monkeys uncle?

Pete111

The_White_Horse wrote: »

just back from the viewing - a tiny place, next to a pub (which means noise and chavs) and a stone's throw from the M1 so you can hear the traffic. if that is worth 500k I am a monkey's uncle.

that said, i am good at the vaulation game, and correctly valued a 750k home. even though it is 250K dearer, it represents better value.

the world has gone mad. 750k. should be 400K really. so someone on 100k could buy it. and the over valued tripe at 250k should be about 100k so the 25k-35k could buy it.

its all nuts. those that think otherwise are insane.[/QUOTE]

Horsey we all love you dearly but, given your posting history, for you to accuse others of insanity is a little like Kenneth Williams deriding someone as being 'far too camp'

House prices will always be too high... for those who cannot afford them.

Same as it ever was peeps.

ILW

The_White_Horse wrote: »

I don't need evidence, graphs, reports or anything of that kind to say that house prices are too high. Not just too high, but massively overpriced.

I am looking at a house today. it is a small cottage. no room to extend or anything. it is on for 495k. yes, half a million.

If i pushed myself to the extreme, i could just afford it, but i wouldn't.

who can properly afford this small cottage at half a million? Lets say you have 100k as a deposit. you would need a 400k mortgage. So, at current levels you would need a salary of around 100k a year to buy a small semi detached cottage.

what about the people on 25k? on 35k or even 50k? they are well priced out of a tiny semi detached cottage?????

and even if the person on 100k was loaned the 400k - the repayments would be massive.

it is clear and obvious to anyone with even a quarter of a brain that house prices are ridiculously high.

I am not saying there will be a large or sudden crash, but the truth is, houses are completely unaffordable, except a few dumps in some iffy areas.

You know its true.

There are loads that are much cheaper than that. I would guess it is in a very plush area.

IveSeenTheLight

RenovationMan wrote: »

We have an interest only BoE tracker from Santander that tracks at 2.05% above base rate. Its a 3 year deal (hence the length of our equity challenge) and cost £995 to arrange. We can only OP by 10% per year, and have already met this year's target (£30k). Next year, we'll be allowed to OP by £27k (270,000 * 10%) which we have available. After that, the OPs are dependant on how much we have left from the renovations.

Do the calculations as it might be worth the ERP's.
I once worked out the ERP costs equated to four months of interest, thus if the mortgage had more than 4 months to go, the overpayment ERP was recouped in 4 months and the rest was savings.

RenovationMan

mbga9pgf wrote: »

Pretty much the same as we got, except we are on capital repayment. Same about rennovations taking the lions share of the cash at the mo too;

14 50 ft+ trees to be felled.
Damp rot under living room floor (4.6 metres by 4 metres) meaning suspended floor out, precast concrete in.
Change from LPG to Oil

all add up! By this time next year however, all the big jobs will be done, it will be a simple case of painting rather than deep maintainance!

With all those trees, have you thought of getting a wood burner with a back boiler? We've got one already but its not connected at the moment, but our plumber was round earlier to talk about fitting a new system that will include the wood burning stove. We've got a load of free wood, so space and water heating costs will be zero.

If you dont fancy a stove, any chance of letting me have that wood?

RenovationMan

IveSeenTheLight wrote: »

Do the calculations as it might be worth the ERP's.
I once worked out the ERP costs equated to four months of interest, thus if the mortgage had more than 4 months to go, the overpayment ERP was recouped in 4 months and the rest was savings.

Not at the moment but rest assured that if rates do start going north, I'll be monitoring the situation!

I think we have a 2% redemption clause and I have a lot of the cash on a 3.75% bond, so rates would have to climb quite a way for it to pay off to OP beyond the 10% free limit.

Running_Horse

I agree with the OP that houses are ridiculously overpriced.

I have yet to see any evidence of the crash some (including myself) have been predicting for years.

Maybe ridiculously overpriced houses are now just a fact of life.

phil_b_2

Running_Horse wrote: »

Maybe ridiculously overpriced houses are now just a fact of life.

At last!!
.