House prices will be down for September...

DPJames

Blackpool won at the weekend so expect house prices to rise 0.8 - 1.3%. However the reverse may be true next week. Homes near the brothels Wayne Rooney frequents rose a dramatic 1.4% due to the increased exposure, but they later fell 1.4% due to the increased exposure.
House prices eh!?

stelaconcepts

Doozergirl wrote: »

I've just seen a place up for auction on Wednesday. Gonna drive down there now I think

What are the details? Can you let us know how much it went for?

Dont you think though that no matter how cheap these auctioned properties seem right now, they will be going down in price for years yet.

Doozergirl

stelaconcepts wrote: »

What are the details? Can you let us know how much it went for?

Dont you think though that no matter how cheap these auctioned properties seem right now, they will be going down in price for years yet.

a) Will tell you on Wednesday maybe.

b) No, not really, but it doesn't really matter a great deal to me. I don't plan to sit on something, for which I've paid market value, for several years to watch it go in any direction. I don't expect any favours from the market. When it comes to my own house, I don't really see it as an investment vehicle; it's the safe place where I keep my kids and nice wallpaper.

Doozergirl

Still bored.

Went to see about buying lot 63 but it went higher than I wanted to pay, but around what I was expecting. Went for £101k.
http://www.cottons.co.uk/docs/Web%20Sept%2010.pdf
The very rear extension was subsiding because a second storey had basically been built onto the original Victorian outbuildings. Would have no foundations to speak of! Next door sold for £175k in 2006 and is a house.

None of the industrial commercial lots seemed to sell - I watched from lot 28 to lot 64. Nothing tenanted went for anything under a 10% yield.

Thought lots 28 (£220k) and 45(£76k) were good prices though I haven't done any homework. Lot 37 as well; income of over £21,000 a year went for £194k. Not bad but I don't know the area.

Think people just go to that auction for bargains. Great place to pick up something reasonable.

lemonjelly

I like the anecdotal nature of your thread doozergirl.

I seem to find that as I walk/drive round the streets, I notice a number of growing for sale signs, it'll mke me think the market is picking up (& I am usually proved wrong). In the same way, when I notice less, official stats show more houses are coming on the market.

Whatever my eyes tell me, the opposite will be official stats....

Generali

Doozergirl wrote: »

Still bored.

Went to see about buying lot 63 but it went higher than I wanted to pay, but around what I was expecting. Went for £101k.
http://www.cottons.co.uk/docs/Web%20Sept%2010.pdf
The very rear extension was subsiding because a second storey had basically been built onto the original Victorian outbuildings. Would have no foundations to speak of! Next door sold for £175k in 2006 and is a house.

None of the industrial commercial lots seemed to sell - I watched from lot 28 to lot 64. Nothing tenanted went for anything under a 10% yield.

Thought lots 28 (£220k) and 45(£76k) were good prices though I haven't done any homework. Lot 37 as well; income of over £21,000 a year went for £194k. Not bad but I don't know the area.

Think people just go to that auction for bargains. Great place to pick up something reasonable.

10% yield is nice, it can cover a lot of falling capital value as long as you keep getting it!

Thrugelmir

Generali wrote: »

10% yield is nice, it can cover a lot of falling capital value as long as you keep getting it!

Begs the question why an auction lot?

As on the face of it a reasonable investment.

(Unless somebody's other BTL properties haven't proved so successful).

Generali

Thrugelmir wrote: »

Begs the question why an auction lot?

As on the face of it a reasonable investment.

(Unless somebody's other BTL properties haven't proved so successful).

Because banks aren't lending for these sorts of purchases.

On Wake up to Money they had an example a couple of weeks ago where someone was looking to buy a BTL. I forget the exact figures but it was something like mortgage payments covered 7x by the rent and LTV of less than 25%. They couldn't get financing.

My guess is that if you had existing premises you could raise money against them for the new purchase but that the banks won't lend to anyone starting out or that is a little pinched in equity terms. I think this is one of the few examples where banks really aren't lending any more. This and sub prime. The rest of the squeeze in the credit markets looks like a lack of demand rather than a lack of supply. Banks are making huge margins right now, why wouldn't they lend?!

Doozergirl

bullau wrote: »

so the plan would have been to restore to a house and resell asap?

what would the costs of the work been?

if you can do this cash then congrats and all well and good but otherwise how do you manage finance on auction and works?

Yes.

About £40k but allowing £50k. I wanted to convert downstairs to a flat. 2 flats being worth more than one house.

Business Loans are available to those who can show there is money to be made but you still need a hefty deposit and they will expect the house as security; plus additional security.

Put an offer in today of 68% of the asking price on a repossession. Not really expecting it to be accepted but for a simple fact it's overpriced and will never sell close to it's current asking price, even to a brave owner occupier with cash. I'm wondering even how they secured their mortgage on it for it to be repoed.