House prices up? But asking prices are falling!

pop_gun

p1212 wrote: »

Literally EVERYONE jumped on the wagon in the last few years, even uneducated people on very low wages seem to have a few BTLs.

Also after the stamp duty changes transactions fall 50%. As genuine buyers buying their own home are unaffected by the stamp duty, that 50% is mainly investors.

I don't think there are a lot of foreign buyers in zone 5-6 plus further out in Greater London. The "foreign buyers" there are british people doing what I've just explained - trying to make a profit from tight planning - people does not have a choice, they have to compete on the existing stock with everyone.

Once planning changes - which will at some point - the pressure will be releived instantly and you can say goodbye for rising house prices for a decade at least...

The first paragraph of your post is the pure, unvarnished truth.

Although I believe the central planners will ensure property prices keep rising.
I work with a fella who has a house in Glasgow and one in Dagenham. He said he brought the property (in Dagenham) for £300,000. But it's now worth £500,000. If anyone here has been to Dagenham, they know no house, in that locale, is worth that amount of money.

westernpromise

wotsthat wrote: »

I read on HPC

I would ignore anything you read there, frankly.

Filo25

Was chatting to a good local EA last week about the Brexit impact around here (Zone 4 London).

She was saying it really hadn't impacted them greatly at all, a few transactions they had people wanting reductions, usually where they were in a chain and selling elsewhere in London in areas of the market with more BTL/Investor activity (its heavily Owner Occupied round here), and they were getting pressure on the price on their sale.

Generally though very little impact for them and they basically have nothing left on the market to sell at present, what they had listed is basically all SSTC or Sold now.

Obviously only one tiny area of London though.

ukcarper

pop_gun wrote: »

The first paragraph of your post is the pure, unvarnished truth.

Although I believe the central planners will ensure property prices keep rising.
I work with a fella who has a house in Glasgow and one in Dagenham. He said he brought the property (in Dagenham) for £300,000. But it's now worth £500,000. If anyone here has been to Dagenham, they know no house, in that locale, is worth that amount of money.

So you also think everyone owns a BTL?

I do wonder what planet you two are on.

adindas

p1212 wrote: »

.........
In the best case you have max. 3-5 years having fun with property, until the first few generation comes out from the uni with 30K student debt, 30K salary and 2K london rent.

Student loan should not be used as an excuse for not be able to be in the property ladder. It is called loan but it is not actually a loan more likely like a tax. Earn 30K, just need to pay (30k-20k)x9% pa = £810 equivalent to £76 a month. After 30 years it will be wiped out.

The main problem with young people I have seen here is because they like to borrow even for secondary need. Just need to see in this forum you will notice almost everyday people complaining about not be able to get a loan for a new car ...

Young people take contract, credit for the most expensive gadget they could not effort such as iPhone, Mac, tabs and later get default. I think the mindset will not to change.

Student loan (not a loan) should not be blamed. Students have the choice to study or not to study at uni. Take the loan or not to take the loan ....

westernpromise

Student loans are an irrelevance - all they do is add about as much back to a graduate's tax bill as a graduate like me would have paid in the 80s.

I thought student loans were a bearish factor in 2001. Didn't happen.

Another bit of anecdata is that someone I know is doing a probate sale of a house worth at most £1.45 million. She has been suckered into instructing the agent who told her it was worth £1.85 million, and six months later, there is of course no chance of a sale at that price, because it is £400,000 overpriced. Nobody is going to put in a bid £400,000 below asking price.

A rational seller (which she's not) would mark the asking price down by £350,000 and consider offers. This would not connote that the house's price has fallen £350,000 since last year. It just means that the seller was thick and delusional but has now got slightly more real.

It now seems likely that either HMRC or the equity release firm will force a sale and at auction the place will of course go for quite a lot less than £1.45 million.

Crashy_Time

westernpromise wrote: »

I would ignore anything you read there, frankly.

https://www.property118.com/buy-let-properties-undervalued/89691/comment-page-3/#comments



:rotfl:Try another source.....

Crashy_Time

Filo25 wrote: »

Was chatting to a good local EA last week about the Brexit impact around here (Zone 4 London).

She was saying it really hadn't impacted them greatly at all, a few transactions they had people wanting reductions, usually where they were in a chain and selling elsewhere in London in areas of the market with more BTL/Investor activity (its heavily Owner Occupied round here), and they were getting pressure on the price on their sale.

Generally though very little impact for them and they basically have nothing left on the market to sell at present, what they had listed is basically all SSTC or Sold now.

Obviously only one tiny area of London though.

Brexit saga has not even started yet, lots of drama yet to come, and the political currents are shifting in the EZ/US, should be fun to watch.

westernpromise

Crashy_Time wrote: »

https://www.property118.com/buy-let-properties-undervalued/89691/comment-page-3/#comments



:rotfl:Try another source.....

Read your own link, :rotfl:
"The banks that my firm act for provide us with very limited information; these are high street well know banks. As valuers we undertake our own investigations into the property. We certainly do not get told any information about agreed terms, interest rates, maximum LTV, etc. Perhaps some banks do tell their valuers but having been doing the job for 25+ years I have never know it to happen."

westernpromise

Crashy_Time wrote: »

Brexit saga has not even started yet, lots of drama yet to come, and the political currents are shifting in the EZ/US, should be fun to watch.

But will it be enough to send house prices down by the 130% you need them to fall for your decision to rent for 20 years to look smart?

That is the question.