House Price Crash Discussion Thread

brit1234

ATN wrote: »

Deanlr55 - FYI - Predicitions are that the market in 2009 is likely to drop by 8%, this is on top of the predicted 5% drop this year too. Still who really knows......

I reckon the drops are going to be far bigger. They are already 10% in the the majority of flats I'm watching in West London and that in under 3 months.

There is still huge amounts of hidden debt in the banking sector, a number of British Banks and lenders are on the verge of going bust, parts of the US already in recession with the UK likely to follow together with House prices 40-50% over valued. I can't see any chance of recovery for years.

Any way the big buty to let investor Paragon go bankrupt next month together with Alliance and Leicester looking like the next Northern Rock. The only difference is they are secretly borrowing massive amounts from the ECB rather than the BOE. They will be toast by the time it comes to their annual report.

Generali

FWIW the stock market seems to have made its prediction as to where the economy is headed. Markets down 5-8% today with the US closed (Martin Luther King Day).

The fear is that the US consumer is about to give up spending and start saving. As the US consumer spends 1/7th of all the money spent in the world, any drop in that is likely to have a major knock-on effect.

PS Paragon don't take deposits so it really doesn't matter if they go bust.

nelly_2

brit1234 wrote: »

.

Any way the big buty to let investor Paragon go bankrupt next month together with Alliance and Leicester looking like the next Northern Rock. The only difference is they are secretly borrowing massive amounts from the ECB rather than the BOE. They will be toast by the time it comes to their annual report.

I want to see where it is in Labours manefesto that says they will use my money to prop up some chav bank

And I was gonna say the same about the EU's manefesto except I dont ever remember voting for an EU

In fact if some modern day guy fawkes blowed them up right now would we notice??????????

[obviously apart from being less taxed and having less stupid rules to adhere too]

Nenen

brit1234 wrote: »

I reckon the drops are going to be far bigger. They are already 10% in the the majority of flats I'm watching in West London and that in under 3 months.
.

Please could you tell that to the vendors of houses we viewed last weekend? None of them are prepared to take less than asking price (or a couple of thousand under) despite being on the market for months!

We had a call back from EA late today to say that the vendor of a house that has been on the market for 8+ months with little/no interest will not take anything less than full asking price and is actually looking for 'offers over' asking price! :eek: This is actually a builder/developer who bought an ex-local authority house very cheaply (from an old man who had exercised his RTB years ago and hadn't done anything to it for 20+ years). Admitedly the builder has spent a fair bit doing it up but nothing like the additional price he is now asking (even with a decent profit plus his 'wages' for 4 months work). I can only think he is prepared to let it stand empty for years!

merlinthehappypig

Nenen wrote: »

Please could you tell that to the vendors of houses we viewed last weekend? None of them are prepared to take less than asking price (or a couple of thousand under) despite being on the market for months!

We had a call back from EA late today to say that the vendor of a house that has been on the market for 8+ months with little/no interest will not take anything less than full asking price and is actually looking for 'offers over' asking price! :eek: This is actually a builder/developer who bought an ex-local authority house very cheaply (from an old man who had exercised his RTB years ago and hadn't done anything to it for 20+ years). Admitedly the builder has spent a fair bit doing it up but nothing like the additional price he is now asking (even with a decent profit plus his 'wages' for 4 months work). I can only think he is prepared to let it stand empty for years!

There is something odd at work here as our experiences seem to be mirroring yours. A strange alternative universe I reckon.......

One house we were interested in has been on sale since April last year. It was on at 'offers around £450000'. Apparently was on 'Escape to the Country' in December ending up as the one picked by the 'buyers' (who never actually seem to buy anything).

As a result the owners put 'as seen on TV' on the details and priced it at 'offers in excess of £450000'. The agents reckon that all the TV programme did was increase pointless viewings and show any serious buyer that it's been on the market for ages, featured on TV and still not sold.

The agents say that, in their opinion, £420000 or so is the right price in the current market and have given the sellers notice as they won't take a sensible offer.

ESES

New to forum. Please be patient!!
Due to not yet recieving the money we'll use as a deposit, we have switched opinions from buying last week to renting this week.

One 3 bed we were looking at was on for £209000 but as unsold after over a year the vendors have dropped it to £170000.
So instead of putting in a mickey-take offer, I think that if we rent for 12 months (bearing in mind the current economy) the house will still be for sale in another 12 months, for a lot less!!
Any opinions?

ESES

Although the modern SPACIOUS house we viewed to let today wouldn't have room for my baby's cot in the master bedroom!

Nenen

merlinthehappypig wrote: »

There is something odd at work here as our experiences seem to be mirroring yours. A strange alternative universe I reckon.......

Just don't tell my dh that or he'll start worrying about the possibility of certain internal pipes rejoining and we're far too old to start all that malarcky again! :eek:... and as for him agreeing to live with my mother! :eek::eek::eek::eek::eek:

nelly_2

Nenen wrote: »

Admitedly the builder has spent a fair bit doing it up but nothing like the additional price he is now asking (even with a decent profit plus his 'wages' for 4 months work). I can only think he is prepared to let it stand empty for years!

No he's not he wants to flog it but builders like a lot of other people are greedy scum and over the last few years have got away with it......however that particular party is over. Only the extremly clever are gonna make money out of houses these days and even then they will strugle.

ManAtHome

Isn't plastering the provisional wing of builders...?