Mortgage Lending Rising Again

AndyGuil

Bubble_and_Squeak wrote: »

http://www.rightmove.co.uk/property-for-sale/property-30952581.html

this was listed with a different agency for £500k
STC at £400k after several price cuts
last one sold for £470k

That property has a commercial premises therefore it is isn't eligible for normal mortgages. Then there are also business rates to pay which may effect your council tax. That property won't be purchased by 99% of people looking at it.

Bubble_and_Squeak

AndyGuil wrote: »

That property has a commercial premises therefore it is isn't eligible for normal mortgages. Then there are also business rates to pay which may effect your council tax. That property won't be purchased by 99% of people looking at it.

VHAD???
i know that road
its residential

Jason74

HAMISH_MCTAVISH wrote: »

I guess it depends on your definition of speculator.

In my book, someone that buys only for capital gain and for no other reason = speculator.

Someone that buys to live in a house, or as a long term BTL = not a speculator.... even if they expect prices to rise... or are willing to pay more to get one of the few houses available before they're priced out, because they expect prices to rise.

That's not speculation... it's a rational response to a shortage.

And that is where we would differ. For me, anyone whosees capital growth as at least as important as the most important other factor (such as yield, or heaven forbid, liking the house and wanting to live in it) is effectively a speculative purcahser. That is quite different to your finition, where someone is a speculator only if capital growth is their only reason for buying.

Quite a lot of people buying would meet my definitition ofs a speculative purcahse, but not yours. In London, that would include
most BTL at current prices, as paying current prices to BTL makes little sense based on yield alone. Even someone who buys for OO in an area they don't actually want to live in on the basis that they think prices will go up more there than on average is making a largely speculative purchase. Anecdotally, the second group is larger than you might think, and is probably very much a London thing imho.

Bubble_and_Squeak

methinks walthamstow is heading DOWN!
if you can't sell if for more than the last one went for?
cut the price:
http://www.rightmove.co.uk/property-for-sale/property-44969281.html

if that doesn't work?
undercut the last one:
http://www.rightmove.co.uk/property-for-sale/property-31938366.html

of course, as we established earlier in the thread vendors reducing the asking price and asking prices lower than the previous one sold for does NOT mean asking prices are falling

Jason74

AndyGuil wrote: »

That property has a commercial premises therefore it is isn't eligible for normal mortgages. Then there are also business rates to pay which may effect your council tax. That property won't be purchased by 99% of people looking at it.

You are obviously seeing something there that I am missing,as the only "commercial" reference I can see is to the "garden office" , which appears to effectively an Estate Agent using a grand term for a glorified shed. I would be confident that the presense of that structure shouldn't have an impact on the ability to secure a normal mortgage (and I say that having spent several years working in mortgages both on lending and broking sides, although I've thankfully been away from it for some time).

So if you could enlighten me as to what else there is that makes this property "commercial" I'd be most interested. Otherwise, it appears that Bubble and Squeak is actually correct in his assertion in this isolated case at least, which surprises me. Like I say, I'm seeing plenty of properties failing to sell at lower than previous "sale agreed " prices for genuinely compatible properties near me, but nothing where properties are going significantly under previous actuual comparable sold prices.

Bubble_and_Squeak

Jason74 wrote: »

You are obviously seeing something there that I am missing,as the only "commercial" reference I can see is to the "garden office" , which appears to effectively an Estate Agent using a grand term for a glorified shed. I would be confident that the presense of that structure shouldn't have an impact on the ability to secure a normal mortgage (and I say that having spent several years working in mortgages both on lending and broking sides, although I've thankfully been away from it for some time).

So if you could enlighten me as to what else there is that makes this property "commercial" I'd be most interested. Otherwise, it appears that Bubble and Squeak is actually correct in his assertion in this isolated case at least, which surprises me. Like I say, I'm seeing plenty of properties failing to sell at lower than previous "sale agreed " prices for genuinely compatible properties near me, but nothing where properties are going significantly under previous actuual comparable sold prices.

i know walthamstow very well and i can assure you that this is not a commercial property

i've already posted a load of links on this thread demonstrating that this is not an isolated case (although i admit this is the most extreme)

Bubble_and_Squeak

Jason74 wrote: »

And that is where we would differ. For me, anyone whosees capital growth as at least as important as the most important other factor (such as yield, or heaven forbid, liking the house and wanting to live in it) is effectively a speculative purcahser. That is quite different to your finition, where someone is a speculator only if capital growth is their only reason for buying.

Quite a lot of people buying would meet my definitition ofs a speculative purcahse, but not yours. In London, that would include
most BTL at current prices, as paying current prices to BTL makes little sense based on yield alone. Even someone who buys for OO in an area they don't actually want to live in on the basis that they think prices will go up more there than on average is making a largely speculative purchase. Anecdotally, the second group is larger than you might think, and is probably very much a London thing imho.

a colleague of mine recently bought an overpriced flat in tottenham. when i suggested that he is buying at the peak he stated "i will make money on it". would you say that puts him in the spec category, despite the fact that he intends to live in it?

Graham_Devon

AndyGuil wrote: »

That property has a commercial premises

Blimey, you will come up with absolutely anything.

Commerical premises!? It's a wooden shed with a window.

Crashy_Time

Rota wrote: »

Walthamstow has gone up how many % in the last 12 months? I dont know what "crashy" looks like. Can you explain?

It means you will probably be able to sell more mortgages. Embrace it, run towards the light :money:

Bubble_and_Squeak

Crashy_Time wrote: »

It means you will probably be able to sell more mortgages. Embrace it, run towards the light :money:

OH NO!
CRASHY HAS GOT INVOLVED!
does this mean hamish is going to pummel us into submission with a load of pointless calculations about how a shed billed as a commercial enterprise raises the value of a victorian terrace in a rather mundane part of walthamstow?