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

Bubble_and_Squeak

wotsthat wrote: »

That's my favourite thread on HPC. Damik has been excitedly posting evidence of a London crash nearly every day for the best part of a year and prices are significantly higher.

The rate of house price change is correlated to supply. If supply is increasing then, yes, that's suggestive of increasing prices. It's not a perfect correlation but better than watching, say, the share price of Foxtons.

Again, you're trying to create a diversion - if prices fall supply will drop as people ride it out and wait for the recovery. Steep price falls would be associated with economic shocks so there will less choice and less potential buyers. Supply would fall off a cliff.

not so.
asking prices in may and october are more or less the same.
10% of the rightmove entries where i'm looking had a price reduction in may compared to 28% in october.
also, the percentage of asking price achieved has decreased since may.

Bubble_and_Squeak

Crashy_Time wrote: »

chucknorris wrote: »

So how does charging under the market rent get you "better" tenants, or a "better choice of tenants", it isn`t a difficult question.

i wouldn't take chucky too seriously
everything he has invested in is currently declining in value (apart from the cash in the bank)

Jack_Johnson_the_acorn

Bubble_and_Squeak wrote: »

Crashy_Time wrote: »

i wouldn't take chucky too seriously
everything he has invested in is currently declining in value (apart from the cash in the bank)

Nobody takes you seriously........

P.S it really that difficult for you to use the caps lock or shift key?

Bubble_and_Squeak

Jack_Johnson_the_acorn wrote: »

Bubble_and_Squeak wrote: »

Nobody takes you seriously........

P.S it really that difficult for you to use the caps lock or shift key?

consider me a kind of comedy relief
this site must have been so dull before i came along

padington

What these nut jobs fail to understand is that 1% a month sh*ts on everything else after saving rent. X

Jack_Johnson_the_acorn

Bubble_and_Squeak wrote: »

Jack_Johnson_the_acorn wrote: »

consider me a kind of comedy relief
this site must have been so dull before i came along

I think of you as a "special" poster, sadly you're not very funny though. Plain ignorant and boring I'm afraid.

chucknorris

Crashy_Time wrote: »

chucknorris wrote: »

So how does charging under the market rent get you "better" tenants, or a "better choice of tenants", it isn`t a difficult question.

I would have thought that was obvious! If we marketed that house for £1,300/month (if our current tenants vacated that is what we would actually market the house at) we would get many more potential tenants interested than if I marketed it for £1,450/month (which is what I estimate the current full market value is). What usually happens is that the interested parties that aren't selected offer a higher rent. But we don't make our choice on the rent offered, we do it on who we believe is going to be a better tenant for us. Better would mean things like:


Do we think that they will look after the property
Is there going to be any communication problems
Do we think that they will stay for longer (longer = better)
Are they normal and function reasonably well
Are they employed (we don't accept tenants that are on HB)

chucknorris

Bubble_and_Squeak wrote: »

Crashy_Time wrote: »

i wouldn't take chucky too seriously
everything he has invested in is currently declining in value (apart from the cash in the bank)

You couldn't be more wrong, the small amount of cash that I hold has performed far less favourably than my other assets.

My other assets might be momentarily declining using your weird accountancy methods. But the fact is that the capital value of our properties have increased significantly in the last 2-3 years. So I don't really care if the value stagnates or even dips for a short period. What I care about is what can we sell them for in about 10-15 years time.

My shares haven't performed as well as the property, but much better than cash, storing your wealth in cash is a mugs game, unless you need it in the short term (I don't).

wotsthat

Bubble_and_Squeak wrote: »

not so.
asking prices in may and october are more or less the same.
10% of the rightmove entries where i'm looking had a price reduction in may compared to 28% in october.
also, the percentage of asking price achieved has decreased since may.

Ahh the old 'use asking prices as a past reference when sold prices exist' trick.

Anyway, the thread on HPC started on January 4th not May.

System

I will never understand what people find so difficult about quoting a post.