House Price Crash Discussion Thread

sathyan

this is a good idea in order to prevent any duplication of the relevant topics and all the information related to house prices crash are collectively ordered here.
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sathyan

Make Money

harryhound

You can always search it though, both here and by using Google.

For example paste the following into Google::
“de-stickyfied" site:forums.moneysavingexpert.com

Sibella

Oh how I wished I found this board before! Anyway this is our disaster story. We were clever enough to buy a new build in November 2007 - this was our first purchase in the UK and we just bought it because there were issues with all other offers for other houses, i.e. we will offer the full asking price and then the seller will up their asking price. We are from South Africa and there it is a much simpler system - if you make an offer it is legally binding so there is none of this faffing around. Anyway I hated renting, we've always owned our own place and so we made a mistake by buying. Bells should have been ringing when the surveyor surveyed it at a much lower price but the agent nagged us to phone the surveyor and the redid it at the price we paid (probably don't have any recourse here as I phoned the surveyor to go again!)

Now it looks like we might go back to South Africa at the end of the year so what to do?

Try and sell privately through one of these websites at a lower price that we paid for it (£365 000)? I don't feel we can trust estate agents again - we've already asked one for a valuation and I'm sure he wants to push the price down as the price he told us to market it at is lower than what 2 bedroom flats go for in Guildford (we have a 3 bed semi detached eco friendly house).

Should we put it in the market now or wait until the weather is a bit better but then the prices might be even lower?

Any advise will be much appreciated.

chrisandanne

Hi Sibella

You may be better starting a new/seperate thread for your query.

Have you looked on www.rightmove.co.uk to see what similar properties are selling for in your area. This may give you some idea of what would be a good price to market it at.

A x

Turnbull2000

Turnbull2000 wrote: »

Board was taken down last week, now re-advertised with their THIRD estate agency. Asking prices have been:

First EA - 500K from end of summer 2007

Second EA - 450K, then 425K starting from January 2008

Third EA - 399K from this week

Post revival

This was a 5-bed detached sea front property in Tynemouth that was on the market for yonks, going through three different EAs.

Price achieved is now available. Sold for 360K.

codger

On the face of it, a 28% drop.

Assume the asking price, like all asking prices, had built-in headroom and never represented what a prospective buyer would be willing to pay, but even so, that still brings the 'original' price in at around £470,000 with a market value decline of £160,000 subsequently.

Obviously someone was keen to buy and move in (as in all cases) but I certainly wouldn't have wished to lock into a £360,000 purchase now with the prospect of it attaining a market value of £325,000 in a few months from now.

And £300,000 if the Government's mismanagement of the economy continues on to 2010.

Incidentally, did anyone ever establish what the estimated value of UK private housing stock was at the height of the bubble? Be interesting to compare that with now and future projections.

Turnbull2000

codger wrote: »

On the face of it, a 28% drop.

Assume the asking price, like all asking prices, had built-in headroom and never represented what a prospective buyer would be willing to pay, but even so, that still brings the 'original' price in at around £470,000 with a market value decline of £160,000 subsequently.

TBH, even when we were still in bubble territory £500,000 for that property was grossly optimistic But £360,000 is still too much IMO.

tripleblack

chrisandanne wrote: »

Hi Sibella

You may be better starting a new/seperate thread for your query.

Have you looked on www.rightmove.co.uk to see what similar properties are selling for in your area. This may give you some idea of what would be a good price to market it at.

A x

Not sure you can go by this, i personally don't think the majority of people selling at present have woken up to reality yet and still marketing their houses way too high, same goes for the estate agents! Just my opinion.

Yoshua

crazygaijin wrote: »

You are right 10% down is very reasonable, I think tenants can even negotiate up to 25% discount off the rent and in 6 months it will be down a lot lot more.

Rents are falling faster than HP drops at the moment, but HP drops will catch up with the falling rents and next year eventually they will overtake.

At the moment rents haven't fallen enough to make enough of the amateur BTLers not be able to afford their repayments. But soon we are going to see the market flooded with repossessions especially in London. Most of the buyers going to these auctions will be the buyers with enough cash to actually buy out right. Because getting a mortgage will be nigh on impossible, even more so the lower the Gov drops the base rate.

In Japan the base rate is 0.1% but that doesn't mean you can get a mortgage for that. They advertise mortgages for 2% in the bank of Japan but that's only for 2 yrs then it goes up to 7%.

It will be similar offers for those lucky few that can get a mortgage approved. The banks are in such a situation right now that to be able to stay afloat is going to be very difficult. They are going to get even more Ruthless on people who already borrowed and new mortgage applicants.

So if you have enough cash next year (like 100K) to buy out right, you are going to be in a lovely position. My wife and I are going to take out time looking at really nice places and putting in very low offers or going to auctions and not bidding too high until we get something that we can call a home for the first time.

With another one and a half million due to join the dole and unable to afford their mortgages,prices can only go one way for the next two years at least.

http://forums.moneysavingexpert.com/...&postcount=209

The government haven`t got a clue what to do next.
Anything as bad as this,has never happened before.
Property prices rose for the past eight years,there`s no reason they can`t fall for eight years.
There will be one or two false dawns but the trend is all the way down for the next year or two.

chucky

Yoshua wrote: »

With another one and a half million due to join the dole and unable to afford their mortgages,prices can only go one way for the next two years at least.

Where did you get the one and a half million to be made unemployed from?