House Price Crash Discussion Thread

DreamBreaker

dunnomate wrote: »

I would put the cash in the bank instead !

ITS OBVIOUS FROM YOUR SHORT POSTS WHAT YOUR PURPOSE IS, bit of marketing for your site eh in the form of your signiture, which apparently is not allowed on this site? :T I AM VERY SURPRISED NO ONE HAS REPORTED YOU YET!

m00m00

DreamBreaker wrote: »

I looked at possible rental properties in the Yorkshire Area and if your talking about a 2 bed town/terrace house then I don't know where your looking but I know many areas where you can get one for £110,000 - £130,000 and these are very good areas!!

Is this for a semi detached property I presume? If so I would say rents are usually charged at at least £650 pcm. Still lower than an interest only mortage granted but not as bigger difference as you are trying to portray

yorkshire is a very big area with great disparity in property prices. You wouldn't for example get anything very nice in York for that amount of money, would get laughed at in Harrogate, would struggle to find a nice area of Leeds etc.

whereas in Barnsley you could get something very nice.

DreamBreaker

m00m00 wrote: »

yorkshire is a very big area with great disparity in property prices. You wouldn't for example get anything very nice in York for that amount of money, would get laughed at in Harrogate, would struggle to find a nice area of Leeds etc.

whereas in Barnsley you could get something very nice.

I agree with everything but the Leeds bit!
Harrogate, yes, very expensive, but that always has been.
York, yes, very expensive, but again always has been.
But Leeds NO you can easily get something for the price range I suggested below 130,000 for a nice 2 bed townhouse / terrace in many good areas. It's still an inflated price but you can get properties in nice areas for that. the reason I stopped looking was the figures did not really add up for rental properties though.

Want me to post some links?

m00m00

we will get into a semantic argument about what we consider a nice area of leeds, so we should call it a draw.

Leeds rental market has been hammered by the absolute flood of new build city centre 'luxury apartments' built in the past 5-10 years.


one thing is clear though in Yorkshire, the average wages do not in any way tie in with the average prices. In Wakefield for example, you are looking at 100k+ for an ex council house in a not nice area, and I know empirically from data modelling I've done for a big financial company what the average wages are in many areas, and there's no way wakefield can support 100k + prices for long in the grotty areas, added in with the inevitable flood of new builds now starting to come onto the market, it's a ticking time bomb just waiting to go off.

DreamBreaker

m00m00 wrote: »

we will get into a semantic argument about what we consider a nice area of leeds, so we should call it a draw.

Leeds rental market has been hammered by the absolute flood of new build city centre 'luxury apartments' built in the past 5-10 years.


one thing is clear though in Yorkshire, the average wages do not in any way tie in with the average prices. In Wakefield for example, you are looking at 100k+ for an ex council house in a not nice area, and I know empirically from data modelling I've done for a big financial company what the average wages are in many areas, and there's no way wakefield can support 100k + prices for long in the grotty areas, added in with the inevitable flood of new builds now starting to come onto the market, it's a ticking time bomb just waiting to go off.

DRAW - Agree to Disagree
I do agree with the rubbish new builds in city centres thats the same in many cities across the country and that is where I think people will get bitten, but not with houses in the long term. Simply not enough houses for people who want them i.e. 2 bed town house in nice area, and glut of crap apartments that no one in their right mind wants and thats why we have seen drastic falls in apartments whereas housing thus far has held price pretty much

tr3mor

DreamBreaker wrote: »

I will say once more, London is not comparable to the rest of the country and it does sound like you have made the right decison to rent there. It is unusual to find the same case elsewhere in the country though!

I would still argue that even though the rent you are paying is by the sounds of it your most sensible option, it is still "dead money". To explain, it is not buying you more than a roof over your head for one month, just as renting a car only buy's you a car to get you from A-B and has to be returned to it's owner in the end, with you getting nothing!

I pay £800 per month rent. The exact same house two doors down is for sale at £245k. You do the maths.

:money:

Generali

m00m00 wrote: »

one thing is clear though in Yorkshire, the average wages do not in any way tie in with the average prices. In Wakefield for example, you are looking at 100k+ for an ex council house in a not nice area, and I know empirically from data modelling I've done for a big financial company what the average wages are in many areas, and there's no way wakefield can support 100k + prices for long in the grotty areas, added in with the inevitable flood of new builds now starting to come onto the market, it's a ticking time bomb just waiting to go off.

Just out of interest, exactly who is buying these places?

Mates in London and the home counties get new, better paid jobs or leave full time work to start consultancy work to afford the £4-500k place when they start a family.

My guess is that in Wakefield that isn't an option open to the majority or even to a significant minority. So who exactly is paying these crazy prices? Are people that would be buying in Posh Crescent, buying in Chav Close instead? And if so, who is buying in Posh Crescent?

spark1

£950 a month to rent a 3 bed semi in my road. 3 bed semi sold approx 6 weeks ago, went for £299,999 the asking price, on the market 2 weeks, there will always be certain area's where house's hold up imo

m00m00

Generali wrote: »

Just out of interest, exactly who is buying these places?

Mates in London and the home counties get new, better paid jobs or leave full time work to start consultancy work to afford the £4-500k place when they start a family.

My guess is that in Wakefield that isn't an option open to the majority or even to a significant minority. So who exactly is paying these crazy prices? Are people that would be buying in Posh Crescent, buying in Chav Close instead? And if so, who is buying in Posh Crescent?

there's a hell of a lot of sub prime lie to buy type behaviour going on to get people on the ladder, far more than is generally thought. The Northern Rock 6x multiplier helped a lot too .

the Posh stuff in wakefield (Sandal) can touch the .5 million mark quite easily, and these tend to only change hands to people with significant equity already.

I sold a property in wakefield earlier this year for 101k (and that was one of thecheapest non ex council 3 beds on the market. The first 2 offers fell through due to the buyers not being able to secure finance. It finally sold to a buyer who on a sole income of just under 20k managed to secure a 95% mortgage. How, I didn't want to know.

the average wage in that area is somewhere between 17-18k with most of it weighted around the 12k mark.

Generali

m00m00 wrote: »

I sold a property in wakefield earlier this year for 101k (and that was one of thecheapest non ex council 3 beds on the market. The first 2 offers fell through due to the buyers not being able to secure finance. It finally sold to a buyer who on a sole income of just under 20k managed to secure a 95% mortgage. How, I didn't want to know.

the average wage in that area is somewhere between 17-18k with most of it weighted around the 12k mark.

So if you're a normal couple albeit relatively hard working you could pull in £30k between you without too much difficulty so maybe £40-45k if you really pulled your finger out.

How much is a 3 bed semi in a 'normal' area?