House prices....

doire_2

pgilc1 wrote: »

From talking to many estate agents and many contract builders. Oh and from practical experience.

Some Estate Agent friends of mine are near at wits end because on the rare house that they can get the buyer and seller to agree a price on, the bank valuers come along and say, no its worth £40,000 less than that. Why? because we say so. They then only offer a 75% LTV mortgage, leaving the buyer to find a massive deposit and the extra £40K.

And, again, personal experience. I have receipts for £335K (which would be +VAT if we werent able to claim it all back as a new build) for this house and the site was maybe worth £150K. Bank valuation, oh its worth £300K. !!!!!!?

Just because YOU spent x amount building it does not mean its worth that now. The market has changed you know

x12yhp

doire wrote: »

Just because YOU spent x amount building it does not mean its worth that now. The market has changed you know

I spent all my money on a ferrari with shiny red paint. The white stripe cost £5k extra... what's the deal?! Apparently it is worth less than I bought it for... surely that cannot be right. Does someone have the chancellor's telephone number? I'm sure it's all a big mistake on their part...

Snoozle

I've been reading this thread with interest, and I was thinking......I don't really feel any sympathy for people who borrowed much more than they could realistically afford. But.....people had been predicting a house price crash for years, and I can understand why people panicked a few years ago and felt that they had to buy, and buy right now, or they would miss out forever.

I bought my first house in 1999, a 3 bed terrace, for the sum of £41,000, and I was warned by many older people that I was making a terrible mistake, that it was an unsustainable price and that the crash was coming. My parents were told the same thing in the 1960s when they bought their first home. When you have been hearing for what seems like forever that the crash is coming, I can understand why even though the signs were there, people panicked and bought anyway.....

x12yhp

You are right, Snoozle. A lot of people insisted you you had to get on now or miss forever. It was worrying, however, how many people were milling to make one of the biggest expenditures of their lives based primarily upon amateur opinions rather than actually look at the information available and decide for themselves. It confuses me greatly. It was a bit like seeing someone jump off a harbour wall into the sea and come up safely. Many assumed that meant that any jump into the sea was safe, so presumed to jump off some cliffs. The analogy is not far from what happened. Why did people not think a bit more? Were they too lazy? Were they unable? I just don't get it.

OCD

Snoozle wrote: »

I've been reading this thread with interest, and I was thinking......I don't really feel any sympathy for people who borrowed much more than they could realistically afford. But.....people had been predicting a house price crash for years, and I can understand why people panicked a few years ago and felt that they had to buy, and buy right now, or they would miss out forever.

I bought my first house in 1999, a 3 bed terrace, for the sum of £41,000, and I was warned by many older people that I was making a terrible mistake, that it was an unsustainable price and that the crash was coming. My parents were told the same thing in the 1960s when they bought their first home. When you have been hearing for what seems like forever that the crash is coming, I can understand why even though the signs were there, people panicked and bought anyway.....

I know what you mean. The difference now is that people can't save the deposits they need to get a mortgage. People can't get the mortgages to buy the houses.

That is assuming they want to. The price to earnings ratio is way above the average compared to the periods you mention.

Additionally, people now have much better access to information, largely due to the internet. They can see what people before them paid. They can compare prices and get advice much more easily.

motorguy

x12yhp wrote: »

You are right, Snoozle. A lot of people insisted you you had to get on now or miss forever. It was worrying, however, how many people were milling to make one of the biggest expenditures of their lives based primarily upon amateur opinions rather than actually look at the information available and decide for themselves. It confuses me greatly. It was a bit like seeing someone jump off a harbour wall into the sea and come up safely. Many assumed that meant that any jump into the sea was safe, so presumed to jump off some cliffs. The analogy is not far from what happened. Why did people not think a bit more? Were they too lazy? Were they unable? I just don't get it.

You mean people sitting around talking the market up, as opposed to people now sitting around talking the market down?

Easymoney

IMHO there are very few winners in the 2005 housing boom and 2010 property crash.

If you bought around 2005 and plan to sell now......you lost out. The average house price was rising by £600 a month back then, crazy to think what people were willing to pay.

Private tenants spent tens of thousands of £££ on rent because they couldn't afford to buy. Thats a serious amount of money with nothing to show for it, therefore, they too lost out.

As for the so-called shrude FTB'ers with hefty deposits, who say a house is only worth what 'they' will pay for it, dont kid yourselves, as it's not an exclusive offer from you alone.
In reality a house is only worth what the 'next person' will pay for it.


IMHO the property market is about to implode, it was never sustainable!

x12yhp

pgilc1 wrote: »

You mean people sitting around talking the market up, as opposed to people now sitting around talking the market down?

The difference is that, now, people are sitting about saying "we cannot afford that" where as, before, people were saying "lets buy that" (and not thinking about how affordable it was).

The mentality, now, is much better. This is a lot of money, people should think VERY hard before making this sort of commitment.

steveymp

Is it worth taking my house off the market or should I just leave it on, I don't have to move anymore as my (annoying) neighbour who is a tennant is being evicted next Monday:T:T:T

Eventually I would still like to move to a detached property to completely avoid the problem with A Hole neighbours in the future and I am willing to reduce my asking price by £30,000, however other houses for sale are still unrealistically priced and not willing to move as much on price as I am. I don't want to pay fees twice to an estate agent as they are the scum of the earth so I thinking of just leaving it on the market at the original price which should completely put off any expectant buyers ? Am I right to do this ?

I am in the fortunate situation of having a nice 3 bed semi in a quiet area handy for work, shopping and schools, which I got in 1996 for the amount which would be a years combined wages now for myself and OH now.

x12yhp

If leaving it on will cost you nothing - why not? You never know when someone might come along and love the place!