'We've reached a tipping point' Signs of house price weakness

gallygirl

wotsthat wrote: »

Oh the old 'supply and demand gambit' - I don't know what it means but it seems to be some sort of crasher's catchphrase.

According to the in-depth analysis in your link frightened Londoners are selling up and heading to Maidstone like refugees.

Total on market for all postcodes round me (East Mids) show very steady over the last 2 years. Slight drop in some followed by slight rise but less than 10% either way. New to market following same trend. So, that makes things clearer......

Over the last few months I've been quite involved in the 2-3 bed property market. Reasonably new houses in good nick are selling very quickly, to btl landlords and first time buyers. Some of the ones not sold are now lowering prices - in 5 out of 6 in the area I've been watching I felt they were incorrectly priced when they first came on.

The same put up for rent are going very quickly - 13 up in last 14 days, 8 already let. I know of 2 properties let on the day the agent was given the keys.

Market still buoyant on both sides - though an agent told me mortgage companies are being v careful, asking for more additional info than usual on points raised on surveys. Maybe they are aware of something or just exercising more caution?

Speaking of moving out of London - we sold a 3 bed house to a ftb from London, for less than 10% of the price of a 3 bed where he lived :eek:.

Bubble_and_Squeak

chucknorris wrote: »

My biggest fear is that the daleks will take over the Earth, and ban houses and flats with stairs in them. Or enforce lifts/escalators to be retro-fitted, not to mention being exterminated of course.


But on a serious note, we are finished with buying more property now, I'm looking at shares (funds, not single company (too risky)) as I approach retirement.

stock markets look a bit toppy at the mo
although, i would say that wouldn't i

chucknorris

Bubble_and_Squeak wrote: »

stock markets look a bit toppy at the mo
although, i would say that wouldn't i

I know it is but I'm getting dividend income much higher than (below inflation) savings rates, it is when I sell the shares that the price really matters. Where is your money?

Bubble_and_Squeak

chucknorris wrote: »

I know it is but I'm getting dividend income much higher than (below inflation) savings rates, it is when I sell the shares that the price really matters. Where is your money?

only put £6k in (now worth £5500- bet big on blinkx but it didn't work out)
gonna start cashing in the ones that are up, though
eurozone deflation, several wars, russia
i assume there is a forum for shares on mse?

chucknorris

Bubble_and_Squeak wrote: »

only put £6k in (now worth £5500- bet big on blinkx but it didn't work out)
gonna start cashing in the ones that are up, though
eurozone deflation, several wars, russia
i assume there is a forum for shares on mse?

Yes it is called the 'savings and investments' forum board.


The problem is that substantial amounts cannot currently be deposited into a savings account that pays a (net of higher rate tax) rate above the rate of inflation, which means locking in a guaranteed 'real term' loss. That is why I think it is acceptable (for me) to take on some investment risk. Obviously for much smaller amounts you could place it in one of these current accounts that pays 4-5%, but only for small amounts.

Blooloo

Crashy_Time wrote: »

You bought in `05, you might have done so comfortably for cash, or paid down a lot of your mortgage, but the eventual value of your investment depends on sentiment, credit, the behaviour of the other market participants, and even more worryingly, the government. If you had bought in 1995, then unless you had borrowed heavily against your house (many did it seems) you would not be troubled too much by a big correction. `05 is a bit close to Ponzi Ground Zero for my tastes.

Looking at the posted purchase history for chucknorris, then he has little to fear from any reduction in prices in any part of the UK.

UNLESS, he is mewed, hewed,holidayed on the equity, whatever, borrowed against the equity in large amounts.

I know one person who has done this...

Not all BTL and purchasers are losers.

Bubble_and_Squeak

chucknorris wrote: »

Yes it is called the 'savings and investments' forum board.


The problem is that substantial amounts cannot currently be deposited into a savings account that pays a (net of higher rate tax) rate above the rate of inflation, which means locking in a guaranteed 'real term' loss. That is why I think it is acceptable (for me) to take on some investment risk. Obviously for much smaller amounts you could place it in one of these current accounts that pays 4-5%, but only for small amounts.

had a little look at that board but looks like its all about cash savings
as i need instant access to my savings (to buy a house if this correction ever comes) shares are too risky so i take the hit on real loss
i stuck a few grand in shares for a bit of fun

Bubble_and_Squeak

Blooloo wrote: »

Looking at the posted purchase history for chucknorris, then he has little to fear from any reduction in prices in any part of the UK.

UNLESS, he is mewed, hewed,holidayed on the equity, whatever, borrowed against the equity in large amounts.

I know one person who has done this...

Not all BTL and purchasers are losers.

i know someone who has done this on their main (and only) home and attempted to downsize in order to release the equity but couldn't get a mortgage (mmr) and now lives with his mum

chucknorris

Bubble_and_Squeak wrote: »

had a little look at that board but looks like its all about cash savings
as i need instant access to my savings (to buy a house if this correction ever comes) shares are too risky so i take the hit on real loss
i stuck a few grand in shares for a bit of fun

Yes that is a insurmountable problem, if you need possible short term access to cash, then you are taking on too much risk. It is different for someone who can sit out a dip in value in the short term, and can wait for a future recovery and in the meantime receive dividend income in excess of savings rates. I'm not saying that it is ideal, I am saying it is the lesser evil, rather than accepting (losing real term) savings rates or buying another investment property when you have one eye on eventually getting out of the market (or reducing your investment) and are fed up with managing properties.

Blooloo

Bubble_and_Squeak wrote: »

i know someone who has done this on their main (and only) home and attempted to downsize in order to release the equity but couldn't get a mortgage (mmr) and now lives with his mum

Yes, I was thinking of a BTL guy, but yes, MEW(HEW) was a major factor of the BOOM up to 2008, and people encouraged by moneylenders to "monetise" their new found wealth...houses only ever going up of course and repayment a doddle when they cash out.