Surveryor undervalued house

scope

Tiger_greeneyes wrote: »

Estate agents don't overvalue to get more commission

They overvalue to get the house on their books...

lypsey

Tigers , thanks for that

I am sorry but as I posted on another thread , average house price 200k , average person earns 23k . That means average mortgage is 8.5x earning. We have never ever ever been this high . We have traditionally ran closer to 4x salary.
I don't know about you but the average salary only rises by3% ish . How is this going to be re-dressed... yes a bloody big crash. Its not sensationalism , it is reality . This market CANNOT be sustained.

I have posted this before
http://www.in2perspective.com/nr/stats/house-price-to-earnings-ratio.jsp
and I am sorry if it is boring , it is also out of date , but my 3 year old could tell you what is going to happen after the 3rd and BIGGEST peak ... yes you guessed it the 3rd and biggest trough

mystic_trev

lypsey wrote: »

This market CANNOT be sustained.

Maybe it can? Certainly in London and the South East - but only short term. It does, however, feel like 1988 all over again.

irnbru_2

littlesos wrote:

The floor seems "soft" in the upstairs rooms and he has mentioned that the joists may not be sufficient to hold the load of the conversion.

Any serious purchaser is going to investigate this and engage a structural engineer to do the load calculation.

littlesos wrote:

our buyers want to be in here by the 13th April!!!!

littlesos wrote:

we'll go into rented.

Good decision. Keep your buyer and don't be rushed into purchasing something.

Tiger_greeneyes

lypsey wrote: »

Tigers , thanks for that

I am sorry but as I posted on another thread , average house price 200k , average person earns 23k . That means average mortgage is 8.5x earning. We have never ever ever been this high . We have traditionally ran closer to 4x salary.
I don't know about you but the average salary only rises by3% ish . How is this going to be re-dressed... yes a bloody big crash. Its not sensationalism , it is reality . This market CANNOT be sustained.

I have posted this before
http://www.in2perspective.com/nr/stats/house-price-to-earnings-ratio.jsp
and I am sorry if it is boring , it is also out of date , but my 3 year old could tell you what is going to happen after the 3rd and BIGGEST peak ... yes you guessed it the 3rd and biggest trough

I'm sure we can agree to disagree if we need to!

The big difference these days is that the government have learned by 1988 and can control the economy far better. If they can avoid a big crash then they will. If all goes well, then a crash could well be avoided.

Who knows what will happen? Big crash, small crash, correction, prices plateau for a few years - anything could happen.

I just prefer to wait and see what happens, make sure I'm protected if the worst happens - I'm not one of those people who buy into all the "there's 100% going to be a massive price crash and we'll all lose thousands of pounds and our homes will be repossessed" hype because the truth is nobody knows what's going to happen until it happens. IF it happens!!

Amitoocautious

Tiger Green Eyes - the government don't control the economy - when it comes to interest rates and managing inflation which go hand in hand with house prices that is left to the BOE that are independent

surfcat

Amitoocautious wrote: »

Tiger Green Eyes - the government don't control the economy - when it comes to interest rates and managing inflation which go hand in hand with house prices that is left to the BOE that are independent

And former governor Eddie George admitted last week that the BoE have ramped up property prices to protect the short-term economy, but the current level of the housing market is unsustainable....

Amitoocautious

Yep, i read that too SurfCat, they have got everyone into a right old mess! I am traditionally a bear though we are looking for houses but we are skippingthe 1st rung so whatever we buy we can stay in long term as i do think there will be a crash but i don't know if we can risk waiting! Just gonna try and get ourselves a bargain!

mystic_trev

Tiger_greeneyes wrote: »

The big difference these days is that the government have learned by 1988 and can control the economy far better. If they can avoid a big crash then they will. If all goes well, then a crash could well be avoided.

That's what they said in the USA Now their Real estate markets tanking due to sub-prime lending. Our situation (here) re sub-prime is much worse just lacking behind the US - but it'll happen.

keeperbear

mystic_trev wrote: »

That's what they said in the USA Now their Real estate markets tanking due to sub-prime lending. Our situation (here) re sub-prime is much worse just lacking behind the US - but it'll happen.

I visit friends in Colorado, USA six times a year, and see no sign of the real estate market "tanking". Just because there are problems in the sub-prime sector, does not mean that the whole USA real estate market is collapsing. There are huge differences state-wide, with many states experiencing rises and other falls.