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

danothy

Crashy_Time wrote: »

Where can you buy a decent house for 100k?

Do you own research, and while you do, keep in mind that if you had an interest rate of 4.8% (which is much more realistic than a massive 7%) the break even point would be more like £120k with the same 25 year mortgage and £15k deposit.

wotsthat

Crashy_Time wrote: »

You mean they don`t rush for the exits when unprecedented emergency measures are put in place to bail out banks, and "homeowners" believe (with a little encouragement from the likes of Call Me Dave) that it was done to protect them? When foreign and investor money exits prices are coming down, doesn`t matter if Joe Average has a For Sale board in his garden or not.

They didn't rush for the exits in 2008 and neither did they at all the other times when prices fell in recent history.

If prices fall then so will transactions. Owners will just sit put and ride it out just like always. You seem to agree - if Joe Average can't find a buyer then he'll have no choice.

Bubble_and_Squeak

danothy wrote: »

the value of owning a house will never drop below the sum of all the rent you could expect to pay for the rest of your life if you didn't own it. You could buy a house for £100k with a 25 year mortgage at 7% and a £15k deposit, and still break even on a £600/month rent over the 25 years. even if the resale value of the house dropped to zero. Every day after that you're in profit regardless of the house price. Every month you live in that house after that is £600 the house is actually worth to you, regardless of the resale value. If you live there for another 25 years that's another £180k that house has been worth to you, even if you'd genuinely get absolutely nothing for it when selling it.

yay!
Dannys back!

danothy

Bubble_and_Squeak wrote: »

yay!
Dannys back!

My name is not 'Danny', you missed an apostrophe, and I was never away. Three errors in a three word post, a new record for incompetence?

Bubble_and_Squeak

danothy wrote: »

My name is not 'Danny', you missed an apostrophe, and I was never away. Three errors in a three word post, a new record for incompetence?

actually, 4 errors.
can you spot the one you missed?

eezyrider7

Crashy_Time wrote: »

Where can you buy a decent house for 100k?

You can find quite a few in Scotland all within commuting distance of major towns and cities.


http://www.rightmove.co.uk/property-for-sale/property-46096594.html
http://www.rightmove.co.uk/property-for-sale/property-48632798.html
http://www.rightmove.co.uk/property-for-sale/property-32357580.html
http://www.rightmove.co.uk/property-for-sale/property-30305136.html



EZ

Mummy100

Good afternoon,

I am contacting you to see if you are still actively looking for property in the Brighton and Hove area.

As you may have read in the press or seen on the news, the property market has rather gone off the boil lately, and I suspect it is unlikely to change back before next year. What with fewer new properties coming on to the market at the moment; plus the uncertainty in the financial markets of Europe; and the general election due in May there is a degree of hesitation in the market at present. This is therefore an appropriate time for us to be contacting all those people who have registered their details and checking whether or not they have found somewhere, or are still looking, or have decided to wait and see what next year brings.

I would therefore be obliged if you could let me know your situation so that I can update my records. If I haven’t heard from you within 10 days I will assume you are no longer looking and therefore remove you from the register.

Kind regards


Received this today from local agent Unheard of even a few weeks ago

Crashy_Time

wotsthat wrote: »

They didn't rush for the exits in 2008 and neither did they at all the other times when prices fell in recent history.

If prices fall then so will transactions. Owners will just sit put and ride it out just like always. You seem to agree - if Joe Average can't find a buyer then he'll have no choice.

People who "ride it out" don`t make the market.

Crashy_Time

Mummy100 wrote: »

Good afternoon,

I am contacting you to see if you are still actively looking for property in the Brighton and Hove area.

As you may have read in the press or seen on the news, the property market has rather gone off the boil lately, and I suspect it is unlikely to change back before next year. What with fewer new properties coming on to the market at the moment; plus the uncertainty in the financial markets of Europe; and the general election due in May there is a degree of hesitation in the market at present. This is therefore an appropriate time for us to be contacting all those people who have registered their details and checking whether or not they have found somewhere, or are still looking, or have decided to wait and see what next year brings.

I would therefore be obliged if you could let me know your situation so that I can update my records. If I haven’t heard from you within 10 days I will assume you are no longer looking and therefore remove you from the register.

Kind regards


Received this today from local agent Unheard of even a few weeks ago

Dear Mister EA, I am very sorry (not) to hear that lack of sales is pushing you out of business. Do yourself a favour and start telling people who really want to sell property that they need to start cutting their prices by large amounts, much larger than they are doing at the moment.

Bubble_and_Squeak

yay!
crashys back!