BBC - RICS say prices down.

IveSeenTheLight

Doc_N wrote: »

Try this for size: http://www.propertysnake.co.uk/

This site does not answer the question I posed.
Merely it may show properties which were placed on the market at an incorrect price.
All the properties I looked at on the site only showed listed prices and no actual valuations.
All the properties only showed the listed price over a couple of months.

To clarify, show me a property that was valued a X before the house price crash of the early nineties which dropped to Y price and is now currently at Z price.

I am not holding my breath for you to find a property now at price Z which is below price X even though it suffers a price decrease Y

Is this clearer?

P.S. checked out my area and there were 0 listings.
This clearly shows house prices are not uniformly raised or lowered

Doc_N

IveSeenTheLight wrote: »

This site does not answer the question I posed.
All the properties I looked at on the site only showed listed prices and no actual valuations.
All the properties only showed the listed price over a couple of months.

To clarify, show me a property that was valued a X before the house price crash of the early nineties which dropped to Y price and is now currently at Z price.

I am not holding my breath for you to find a property now at price Z which is below price X even though it suffers a price decrease Y

Is this clearer?

Ahhhhh.......if we're talking about the last property crash, rather than the one that's going on now, then I agree with you. Prices have, of course more than recovered from that, and you won't find any examples of the type you mention.

However, what we're talking about here is the future, rather than the past, and whilst any falls may pick up in the longer term, a fall is still a fall if you have to sell now. Or, of course, if you're buying.

Whatever happens in the longer term, FTBs are going to hold back waiting for lower prices (which is already having exactly that effect) and no sensible BTL is going to buy in a falling market. Existing BTLs may choose to sit it out in a falling market and nurse their losses, but if they have to sell to cover their rental losses they're going to get hit twice over. The smart ones will sell up now, and buy back again at lower prices at some point in the future, putting their cash on deposit in between and making more than they would have done from the rents.

mystic_trev

IveSeenTheLight wrote: »

You say you only get a 2% nett yield, however my two properties are returning a 9.49% and 27.16% nett yields.
I would think that this shows your property choices may not have been the best.

Funny you've suddenly doubled your BTL's from one to two!

From your first post on MSE

At the beginning of this year, I had saved up a little money and was considering placing it all into my mortgage.
I realised though that I could make the money work harder for me, so I re-mortgaged my home to release some capital.
With the released equity and my savings I now had enough to put down a maximum benefit deposit on a buy to let property.

I'd be interested to know how you get a 27.16% yield, perhaps you've got your figures confused :rolleyes: or perhaps you're a Financial genius

beingjdc

IveSeenTheLight wrote: »

To clarify, show me a property that was valued a X before the house price crash of the early nineties which dropped to Y price and is now currently at Z price.

I can show you thousands, but they're all in Japan. The point is, not every crash is identical.

For me the big question when prices fall (they will, at least a bit) is how far they take the rest of the economy with them. If there's a serious little downturn, will our Eastern European colleagues take themselves home when jobs are harder to find.

If so the housing market loses both the 'high growth low unemployment' prop, and a fair chunk of the supply-demand prop. If not, well, rents will go up until the yield calculation comes back to a level that supports prices.

mystic_trev

Makes for interesting reading one year on

neverdespairgirl

nollag2006 wrote: »

Add to this the generous tax incentives given to landlords and those passing their homes onto family by Labour yesterday, and we won't see a house price crash for some time to come.

But keep clutching at those straws guys ....

:rotfl:

Oops. A for effort, but F for accuracy.....

Doc_N

neverdespairgirl wrote: »

Oops. A for effort, but F for accuracy.....

Very true. Some of the smaller BTL people in here a year ago trying to talk the market up are probably now losing their houses. And the bigger ones will have seen a huge chunk of their investment value wiped out, with more to come.

Oh dear...........