house prices

ginger_nuts

advent1122 wrote:

In todays Express it said house prices were going to increase by 40% in the next 5 years...... So it must be true.

newspapers like governments ,never lie .

Colin_Kee

Suppose I may put in my tupance.

My wife & I own a 3 bedroom Semi in England which we rent out. Let’s just say that the rent we get from it allows us to pay our monthly repayment mortgage and all our insurances, management charges etc and still we have some extra cash left over.
We live in Craigavon and a house in our development just up from us went for £155,000 for a three bedroom semi. (We bought our 4 bedroom detached just under a year ago for just over £100,000.
I could rent a 3 bedroom semi in our Development for £450 including rates. Can someone please tell me how people are buying these properties to rent out? I mean, they would have to be putting down serious amounts of a deposit to enable them to cover the mortgages. Or are they making up the remainder of the monies themselves and are just in it for the quick buck? (Sell when prices go up)
I cannot see how this increase can continue. People will have to wise up a bit. The only ones benefiting from this are the Estate Agents & Building companies. I don’t agree with this whole supply and demand. There are loads of houses in the papers for sale & rent.. I do think a lot of people getting carried away and are jumping on the bandwagon, buying houses to re-sell when prices go up, in turn increasing prices. It cannot continue. When water rates etc kick in & if Interest rates go up (Expected to hit 5% by end of year) people will suffer (repossessions etc)

seatzie

I reckon it has to be near the top but I don't think it will be a big crash I think it will be a stagnation, prices won't change much at all.......but I don't see that happening for maybe 2 years...............heres my recent experience in our street

house up the street from us went up in June at 155k, sold for 177k 4 weeks later, house across the way on market end of August 185k currently standing at over 220k and had first time buyers bidding!!!!

I think because of the boom in recent years a lot of people have equity to use and because theres a shortage of houses on the market the bidding is jumping so high that the equity is being used up for the next purchase, and because the over bidding is happening on the house they're selling as well as buying the rises in price sometimes match so while you may be paying 20k over asking price if you're getting 20k over the asking price for your house then it doesn't really matter to a degree what price you pay if the amount you're borrowing (i.e. between the equity and the new house price) remains within your spending limits. Obviously if a surveyor says your house isn't worth what you're paying its a different matter!!

Thriftylady

house buying seems to be the only type of purchase where peoples common sense goes way out the window and they want to pay over the odds for it. I used to work in the 'mortgage business' and every time one of the surveyors put on a report that someone had bid over the odds for the house the person invariably was furious. Instead of thinking, great, I got carried away, I'll use this to renogotiate the price, they took it as a personal insult. Didn't stop a lot of them coming back a few months later to complain that they might have paid over the odds after all, and why did we not refuse to lend them the money?:rolleyes: it honestly seemed like people wanted to pay more than their neighbours as it was seen as a status thing....

mirakl

It's completely bonkers! we bought a house 5 years ago, next door is going on the market for X2 1/4 what we paid.

NAR

mirakl wrote:

It's completely bonkers! we bought a house 5 years ago, next door is going on the market for X2 1/4 what we paid.

That's about right - property is doubling about every 4 years at present. Absolutely crazy isn't it!

leftieM

I think if anyone sees what happened in Ireland it will scare them into buying. To those of us fortunate enough to have bought more than a year ago it seems madness here but I have family in Ireland and the houses in Belfast are nothing compared with Dublin. I know it's not the same and prices there will crash but they had years of inflation (is it 7 now?) I don't want that, I hope it doesn't happen but if I was a FTB I'd be really anxious to get on the ladder.

talksalot81

NI is a bit of a special case. We are racing up as fast as London but dont have the finances to cover it. FTB here are just not going to get the huge salary potential and will not have big deposits. I am being told that rises of 5/10k a WEEK are currently order of the day... no one can think this will continue.

I believe that we are currently being driven by our proximity to christmas combined with panic buying. With christmas, the number of properties is dropping. Thus there are less properties with more potential buyers who are not thinking clearly and assume that the reason for the competition is an expected rise in value.

It will be interesting to see what happens when the market opens after christmas. I dont think you will see a drop in advertised prices, hopefully what will actually happen is the bidding to 40/50k above asking will be curtailed.

edit: As some form of support, check out property news. With Belfast keyword and under 175k, there are 253 pages of results. Now add the condition of 'for sale only' (i.e. includes 'under offer') and suddenly there are 60 pages. This is indicative of very little on the market and buyers desperate to clean off what is left. If more property comes onto the market, it is unavoidable that fewer bidders on the same property results in a slowing of growth. I believe that more property coming onto the market is inevitable and how soon and how rapidly will greatly influence the continuing trend.

leftieM

I'm really disturbed. I've seen a 3 bed house near me on the market for 245k and the current offer is......370!!!!!!
What is happening?? I assume it's developers with bulldozers at the ready fighting it out rather than real people.

talksalot81

leftieM wrote:

I'm really disturbed. I've seen a 3 bed house near me on the market for 245k and the current offer is......370!!!!!!
What is happening?? I assume it's developers with bulldozers at the ready fighting it out rather than real people.

The really disturbing thing is that this isnt that unusual. Everyone else in the UK is saying we are in a bit of a boom, that is life and we are just catching up. In general people will not believe you when you tell them about this sort of thing.

I have basically given up trying to purchase right now, my £20k deposit and £40k salary simply goes nowhere