House prices down 0.9% Nationwide report out

Strings

Generali wrote: »

It sounds unlikely. Yield = current rent / current price.

Are you comparing current rent to the purchase price by any chance? If you really are getting a yield of 40% where are you? I will quit my day job and become a landlord where you live!

Sorry, my mistake.

Depending which way you look at it , our figures are as follows

Recently valuation by the bank - 5.75% (250K)
or based on the valuation we could probably sell for 6.25% (230k)

However, in terms of money tied up in the property(65k), we are making 22%

But the above is largely irrelevant really, our mortgage is £575 pcm, with a rental income of £1175.

Generali

Dirk_Rambo wrote: »

0.9 per cent seems a bit low. are they sure its nor a typo. they definetely fell by more than that round near me

It's seasonally adjusted. Nominal house prices fell 1.7% according to the survey.

Generali

Strings wrote: »

Sorry, my mistake.

Depending which way you look at it , our figures are as follows

Recently valuation by the bank - 5.75% (250K)
or based on the valuation we could probably sell for 6.25% (230k)

However, in terms of money tied up in the property(65k), we are making 22%

But the above is largely irrelevant really, our mortgage is £575 pcm, with a rental income of £1175.

Yield is used to compare investments so you can compare returns across different assets.

The mortgage vs rental income is a very helpful too. It isn't yield but in your case is showing a healthy profit!

Strings

Generali wrote: »

Yield is used to compare investments so you can compare returns across different assets.

The mortgage vs rental income is a very helpful too. It isn't yield but in your case is showing a healthy profit!

yes we are very lucky actually

Graham_Devon

HAMISH_MCTAVISH wrote: »

Not looking good for the crashaholics.

Down 0.9% and you are still saying it aint good for the "crashaholics"?

LOL, admit it, this isn't what you wanted, or thought you would hear!

We've still got all the stuff that remains to hit the fan yet.

System

RenovationMan wrote: »

The value of my house is irrelevent. I'm repaying a mortgage and the value of that remains static.

I find the lack of financial awareness of some posters to be quite shocking.

You get used to it eventually.

Doctor_Gloom

sarkin1 wrote: »

http://www.nationwide.co.uk/hpi/historical/Aug_2010.pdf

:beer::rotfl::cool:

The 2nd leg of the housing price crash is well underway. Indeed the rate of decline is speeding up. It's downhill all the way from here. :j

HAMISH_MCTAVISH

Graham_Devon wrote: »

Down 0.9% and you are still saying it aint good for the "crashaholics"?
.

Sorry Graham, I hate to pick on your reading skills for the second time in two days.

But....

Perhaps you could enlighten us as to which part of this......

There is little evidence of distressed selling, however, with the Council of Mortgage Lenders’ second quarter figures showing another drop in mortgage arrears and possessions.

As such, the current period of price declines is likely to remain relatively modest.

Given that the price increases of the last year had gotten ahead of the recovery in the wider economy, the current correction is not an unhealthy development.

..... is good news for the crashaholics?

Graham_Devon

HAMISH_MCTAVISH wrote: »

..... is good news for the crashaholics?

It's hardly bad news is it.

Not when it's attached to a story where the headline is "house prices fall 0.9%".

One little paragraph by one man isn't the end of the world

I'll give you the october spending review, interest rates, possibility of more QE (which means more cr*p hitting the fan), falling mortgage approvals etc etc etc

Personally, I think all thats got more behind it than a paragraph from a bloke.

Strings

Graham_Devon wrote: »

Down 0.9% and you are still saying it aint good for the "crashaholics"?

LOL, admit it, this isn't what you wanted, or thought you would hear!

We've still got all the stuff that remains to hit the fan yet.

It certainly is better than an increase, as much as I want prices to soar for my own vested interest, a reduction in prices is good for the wider economy. As the prices reduce, we will see the turn over in sales increase as the reductions mean more people can buy.

we will see the cycle of drops and rises for the foreseeable future, peoples affordability is at its maximum.

Now, my guess is, is that in the next two weeks, we'll see a big drop in mortgage lending rates.