How I intend to make £'000s

arkie

sm9ai wrote:

Well they have had rises of enourmous, unrealistic amounts so why should falls be any different?

supply and demand

sm9ai

a010454 wrote:

What a lot of rot ;-) House prices aint going to fall. They may stagnate or at the higher end drop slightly in certain areas, but overall in the long term property is a great investment. This is a small country with a population due for a massive increase over the next few years and they all need houses.

Need houses yes, but what are they going to pay for them with?

Immigration can be mostly ignored because they arn't the people who are going to buy the places.

B2L investers don't make enough money to cover their mortgage and hundreds of B2L flats are empty all over the country.

So why are prices so high? and why won't they fall?

However in my view houses are slightly over valued and will fall slightly say 10-20% over the next few years. Flats are massively overvalued and will be next to worthless over the next few years.

arkie

sm9ai wrote:

Need houses yes, but what are they going to pay for them with?

Immigration can be mostly ignored because they arn't the people who are going to buy the places.

B2L investers don't make enough money to cover their mortgage and hundreds of B2L flats are empty all over the country.

So why are prices so high? and why won't they fall?

However in my view houses are slightly over valued and will fall slightly say 10-20% over the next few years. Flats are massively overvalued and will be next to worthless over the next few years.

While we have the best and most generous benefit system in the world B2L investors will continue tro buy them and then B2L investors will then let their empty flats to people on benefits .. so its the tax payer that pays in the end.

as for flats being worthless in a few years.... get real,

Almost_Redundant

Keith,

I'm afraid i've already beaten you to it! Had similar thoughts back in 2003, heres a summary of how it went/is still going:

Sep 2003 - sold house for £220,000

Paid mortgage off - £80,000

Bought 2 cars outright with (real) equity

Net balance - £131,250.

Moved into rented accomodation - pay approx £220/month (subsidised by my employer due to location)

Invested equity in Isa's, Stocks and shares, OEIC's, savings accounts.

To date my overall worth is approx £193,000 with absolutely no debt.

Adding this to my original mortgage of £80k gives £273,000 - I doubt my house would be selling for that amount now.

Have saved approx. £15,600 in mortgage payments.

Have spent approx. £6,280 on rent.

Have spent nothing on home repairs.

Having had no debt I have been able to save/invest my monthly income like never before - a very satisfying feeling.

My goal is to buy a house again with no mortgage, i.e total lifetime spent paying a mortgage = approx. 8 years. I am slowly moving my riskier investments back into savings with a view to having around £200,000 sitting safe.

I now sit patiently awaiting a crash that in my opinion will happen. I dont know when exactly, but things cant continue as they are. Dont get me wrong, I dont really enjoy living in rented and do miss having a house - avid diy enthusiast! - but I believe a little pain now while I am still relativley young will reap rewards.

What triggered it for me was my property doubling in value in 3 years (including the work I did on it). This to me did not seem right or logical. I recall having a few sleepless nights worrying about the £80,000 mortgage I had taken on, I'd hate to be in a situation where I owed in excess of £100,000.

This of course is my own personal plan with my own thoughts and ideas. Always do your own research and think long and hard before acting on it.

cwcw

If a crash does happen (and by the time it does there are still further increases to come), a return to pre-2003 prices is highly unlikely.

82616

hi, been really interested to read all your opinions on this.

I currently live with my parents and im desperate to get my own place.

Basically ill be able to afford a deposit of approx 50% of the value of a house in my area (a 2 bed terrace is approw £100,000)

I just cant decide if i should rent, or buy.......any opinions???

btloptingout

arkie wrote:

as for flats being worthless in a few years.... get real,

:T

Well I feel it time to roll out my analysis of all resales from 2 of my local "city living new build apartment" developments:

Crown Heights
84 Alencon Link,
RG21 7TY
26-Sep-2003 £190,995
28-Jun-2005 £165,000

Crown Heights
139 Alencon Link,
RG21 7TW
28-Nov-2003 £213,995
29-Jun-2005 £183,000

Crown Heights
27 Alencon Link,
RG21 7TN
20-Apr-2004 £199,995
22-Dec-2005 £160,000

Crown Heights
123 Alencon Link,
RG21 7TW
31-Oct-2003 £211,995
22-Feb-2006 £168,000

Crown Heights
47 Alencon Link,
RG21 7TN
20-Apr-2004 £190,000
09-May-2006 £160,000

324 Winterthur Way,
RG21 7UQ
08-Dec-2004 £230,000
16-Jun-2006 £157,000

411 Winterthur Way,
RG21 7UN
30-Apr-2004 £170,953
13-Jan-2006 £137,500

Those are LR offical figures and are all publicly available via a number of websites.

arkie

btloptingout wrote:

:T

Well I feel it time to roll out my analysis of all resales from 2 of my local "city living new build apartment" developments:

Crown Heights
84 Alencon Link,
RG21 7TY
26-Sep-2003 £190,995
28-Jun-2005 £165,000

Crown Heights
139 Alencon Link,
RG21 7TW
28-Nov-2003 £213,995
29-Jun-2005 £183,000

Crown Heights
27 Alencon Link,
RG21 7TN
20-Apr-2004 £199,995
22-Dec-2005 £160,000

Crown Heights
123 Alencon Link,
RG21 7TW
31-Oct-2003 £211,995
22-Feb-2006 £168,000

Crown Heights
47 Alencon Link,
RG21 7TN
20-Apr-2004 £190,000
09-May-2006 £160,000

324 Winterthur Way,
RG21 7UQ
08-Dec-2004 £230,000
16-Jun-2006 £157,000

411 Winterthur Way,
RG21 7UN
30-Apr-2004 £170,953
13-Jan-2006 £137,500

Those are LR offical figures and are all publicly available via a number of websites.

Thanks for your examples unfortunatley I havent got the space/time to list properties that have made money, .... yes your examples have lost money ... but they are not worthless

welshuser

All of these are based on the assumption that the housing market will crash in the forseeable future. I'm not so sure. My strategy has been, I own 2 houses, 1 outright, value £130K the other valued £180K with £35K mortgage left on it. My strategy during 2007 is rent both out, that should give me an income of circa £800 a month for both (south wales). Spend a year in Bulgaria locating and building a 4 bedroom bungalow with stunning views. Price approximately £50K new. Live there and work for 12 months and watch my investment double in value in that time. Sell the large bungalow to Germans or Russians for a £40K profit (roughly) and decide whether to reinvest in another bungalow or not. NB: have 50K in a high interest account will take out peppercorn mortgage for rest if needbe.

May decide to live in bungalow permanently and pay off any small mortgage or subsidise income with £800/month. Always wanted a place with a hot tub and sauna attached

btloptingout

arkie wrote:

Thanks for your examples unfortunatley I havent got the space/time to list properties that have made money, .... yes your examples have lost money ... but they are not worthless

Well assuming the "investors" who bought these did so with a 15% deposit then they largely will be worthless as all those drops are greater than their deposits. The 32% drop one is worse than worthless, it's a debt!

But like you say it's supply and demand and the estate agents say "there's not enough houses/land"

:rotfl:

Whatever next? double glazing salesmen saying there's a shortage of sand to make glass?