Home buyers: be very careful!

jonewer

Bleh. Never one for entrepeneu...businessman stuff.

I'm a salaryman through and through! And yes, I could conceivably get the same job up there as I have down here (and almost the same money too!) but they are few and far between up there and a penny a pound down here. Same applies to the trouble&strife. Which means we are fairly well trapped in the South East!

macaque_2

Guy_Montag wrote: »

Crikey there's a place that didn't sell that I could buy for cash if it comes up again. Probably means it's in a really run down area.

Are you from the NE, Macaque?

No, I'm from down South.

macaque_2

CB1979 wrote: »

Auction results are a better indicator as committed buyers and sellers come together to determine a fair market price. If the property sells, it has been valued at a fair market price.

yeah righto, basically most are forced to sell, and auctions generally have a much lower proportion of buyers who are as mentioned in better positions than the average buyer (who needs a mortgage, etc) so not really going out the full market.

so hardly a true comparison to normal sales, but granted would be interesting to see what like for like is on auction sales though

I don't think I can agree with this. If it were true, houses would always sell at a discount in auctions. However, during housing booms it is not uncommon for houses at auction to fetch better prices than the open market.

Ron2256

You're all wrong Macaque. As CB1979 said, house prices always goes up.
Any reasons or facts going against this statement has been created by dangerous neo-communist aliens who manipulate the brains of stupid people like you and me. :rolleyes:

Generali

Houses aren't fungible like many other assets (shares, bonds etc) so it's harder to compare prices.

If it's true that houses get better prices in boom times at auctions, maybe that shows people getting carried away, maybe it's just building in inflationary expectations for the next few months.

Jonbvn

Some more Auction results for properties in S. Wales.

http://www.eigroup.co.uk/auctioneers/templates/results.asp?a=147&sl=1&r=2&c=see

56% sold, would seem to confirm macaques assertions.....

CB1979_2

Ron2256 wrote: »

You're all wrong Macaque. As CB1979 said, house prices always goes up.
Any reasons or facts going against this statement has been created by dangerous neo-communist aliens who manipulate the brains of stupid people like you and me. :rolleyes:

don't think i ever said that did i?

just saying it's a much smaller proportion than the open market, where generally people/mortgage companies are FORCED to sell and buyers are going to try and pick up a bargain/below open market price.

just don't think it's quite a true reflection of the property market.

Running_Horse

There were a couple of dozen properties for sale in our area at the start of the year, most of which had sold by Spring. A new crop of houses have recently gone on the market. If they have not sold when more join them in the new year, I can only see prices going down. We have reached a tipping point, and buyers can smell blood.

Generali

CB1979 wrote: »

don't think i ever said that did i?

just saying it's a much smaller proportion than the open market, where generally people/mortgage companies are FORCED to sell and buyers are going to try and pick up a bargain/below open market price.

just don't think it's quite a true reflection of the property market.

Forced sellers only set the market price in a falling market for assets (not just houses, any assets). At that point the forced sellers drive the market down, dragging in other investors that want to sell before their asset is 'worthless'.

That we have such a large number of BTL investors in the market now is the great imponderable if prices start to fall - will they hang in there or sell before they lose more of their profit/their losses mount? Nobody knows although it's fun to speculate. My guess is a lot would sell up.

We'll see.

Guy_Montag wrote: »

I presume if you can't do an identical job up here you can do something similar or, alternatively, start a business. If there's one thing the NE needs it's entrepreneurs.

Entrepreneurs are driven out of the NE by Govt money. What's the point in taking the risk of working for a low wage in a job with a possible (good?) future when you can earn more to sit on your aarrse and earn sick benefit or work for the civil service for rather more in a job that'll never take you anywhere?

macaque_2

Generali wrote: »

That we have such a large number of BTL investors in the market now is the great imponderable if prices start to fall - will they hang in there or sell before they lose more of their profit/their losses mount? Nobody knows although it's fun to speculate. My guess is a lot would sell up.

I agree with this. Despite their claims of 'being in it for the long term' few amateur BTLs would have much staying power in a stagnant or falling market.