Nearly £60k down-valuation by lender

Crashy_Time

MobileSaver said:

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

As of this morning there are just two properties available to buy within a three mile radius of the village I live in:

One came onto the market just a week ago.

The other has been on the market since late last year but I suspect that is because the Rightmove listing is a dog's dinner - inexplicably the main photo is of the lounge but, much worse, the address that is shown prominently before you choose to view the property states that it is in a town around 15 miles away. Imagine the real address was "Stevedore Place, Leith, Edinburgh" well for some bizarre reason they've listed the address as "Livingston, Edinburgh, Midlothian" - most people looking for somewhere in Leith would probably not bother clicking a link for a property apparently in Livingston - all very odd.

Your small village won`t be representative of the wider general market though, so not really a good example.

MobileSaver

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

Your small village won`t be representative of the wider general market though, so not really a good example.

It's 100% representative of the only market I care about (although as it doesn't affect me I don't particularly care that much anyway.)

The "wider general market" price trendline over the last ten years continues to point upwards while transaction levels are pretty constant at 1.1M a year, how is that a "mess"?

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

Your small village won`t be representative of the wider general market though, so not really a good example.

It's 100% representative of the only market I care about (although as it doesn't affect me I don't particularly care that much anyway.)

The "wider general market" price trendline over the last ten years continues to point upwards while transaction levels are pretty constant at 1.1M a year, how is that a "mess"?

It is a mess because it is all held together by the lowest interest rates on record, rates that will move up at some point, it is a mess because people are borrowing far too much for basic shelter at these rates, and it is a mess because expensive basic shelter (at interest) is the worst thing ever for ordinary working people. Changes in the wider market cause effects in your market, the SD question will be an interesting one, and any spike in mortgage rates and "down-valuations" will see less equity available for people in London to transfer to villages like yours.

Crashy_Time

What did you end up doing OP?

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

Your small village won`t be representative of the wider general market though, so not really a good example.

It's 100% representative of the only market I care about (although as it doesn't affect me I don't particularly care that much anyway.)

The "wider general market" price trendline over the last ten years continues to point upwards while transaction levels are pretty constant at 1.1M a year, how is that a "mess"?

Transactions have collapsed from their peak, less people are buying property.

MobileSaver

Crashy_Time said:

it is a mess because people are borrowing far too much for basic shelter at these rates

This is one of the reasons why you have been so wrong for so many years; people don't want basic shelter, they want a nice home in a nice area and they'll happily stretch themselves to achieve that.

Ironically your situation perfectly demonstrates this point - you live in a bedsit in an undesirable part of town where rents are falling, you cannot get more basic shelter than that and yet still you are surrounded by empty flats - most people simply don't want to live like that.

This isn't a dig at your lifestyle; we're all different and it's clear from your posts over the years that to you your home is just basic shelter made up of bricks and mortar - what I think you fail to appreciate is that for the vast majority of people their home is so much more and they would rather pay more for something better.

Crashy_Time said:

Transactions have collapsed from their peak, less people are buying property.

Are you referring to the "peak" of 2007? That's well over a decade ago! And during the last decade the number of people buying property has remained roughly constant at around a million or so transactions a year.

You really do seem to be scraping the barrel trying to imply the housing market is struggling because transactions fourteen years ago were higher! Of course one of the reasons transactions were higher all that time ago is because of "liar loans", if they were reintroduced and consequently transactions increased do you think that would be good for the housing market?

Crashy_Time

MobileSaver said:

Crashy_Time said:

it is a mess because people are borrowing far too much for basic shelter at these rates

This is one of the reasons why you have been so wrong for so many years; people don't want basic shelter, they want a nice home in a nice area and they'll happily stretch themselves to achieve that.

Ironically your situation perfectly demonstrates this point - you live in a bedsit in an undesirable part of town where rents are falling, you cannot get more basic shelter than that and yet still you are surrounded by empty flats - most people simply don't want to live like that.

This isn't a dig at your lifestyle; we're all different and it's clear from your posts over the years that to you your home is just basic shelter made up of bricks and mortar - what I think you fail to appreciate is that for the vast majority of people their home is so much more and they would rather pay more for something better.

Crashy_Time said:

Transactions have collapsed from their peak, less people are buying property.

Are you referring to the "peak" of 2007? That's well over a decade ago! And during the last decade the number of people buying property has remained roughly constant at around a million or so transactions a year.

You really do seem to be scraping the barrel trying to imply the housing market is struggling because transactions fourteen years ago were higher! Of course one of the reasons transactions were higher all that time ago is because of "liar loans", if they were reintroduced and consequently transactions increased do you think that would be good for the housing market?

It is obvious from your posting on this that you know very little about the areas here? I have never had a bedsit, why bother when there are decent well priced flats available? Ironically what lot`s of people  buy are tenement flats like mine or new builds, so they are aspiring to a mortgage over rent not a better area as in the blocks of flats they will have no control over neighbours etc. and I can`t see anyone being convinced that most new-builds are anything more than basic shelter?

No idea how you know the rent stats and number of empty flats for my area, even I don`t know that, but don`t you think there would be a contradiction in being "surrounded" by empty BTL in an "undesirable part of town", why would so many BTL landlords buy in that part of town? Don`t you think that the real reason might be a global pandemic and people going back to live at home until jobs start to reappear?

Without Liar Loans less people can buy at the prices that Liar Loans created, but the only thing holding it all up even at lower transaction levels is super low rates, when they rise expect the trend for "down-valuation" to kick up a gear as people are offered more realistic loans from the banks.

MobileSaver

Crashy_Time said:

I can`t see anyone being convinced that most new-builds are anything more than basic shelter?

On the contrary, a brand new new-build, never before lived in, low maintenance, double glazed, highly insulated with shiny new appliances, a ten year warranty and the buyer often having the luxury of choosing the finishing touches is anything but "basic shelter".

The very fact you think that is basic shelter explains an awful lot about your flawed reasoning as to why the property market is always just about to crash.

Crashy_Time said:

No idea how you know the rent stats and number of empty flats for my area, even I don`t know that, ... Don`t you think that the real reason might be a global pandemic

I only know what you have previously told us which is that there were loads of empty BTLs both in your block of flats and the surround blocks!

You were gloating at the time about landlords struggling, are you now saying those flats are no longer empty and the landlords are no longer struggling?

Crashy_Time said:

MobileSaver said:

Of course one of the reasons transactions were higher all that time ago is because of "liar loans", if they were reintroduced and consequently transactions increased do you think that would be good for the housing market?

Without Liar Loans less people can buy at the prices that Liar Loans created, but the only thing holding it all up even at lower transaction levels is super low rates,

So you accept that liar loans were a bad thing and so due to banning liar loans less property transactions are actually a good thing?

lisyloo

Crashy_Time said:

Crashy_Time said:

 and I can`t see anyone being convinced that most new-builds are anything more than basic shelter?

Totally disagree.
most of the new builds round my way are dream homes of varying sizes. Yes some are pokey but so are a lot of older terraced houses. Some are spacious.
having bought 2 new builds in my lifetime I can say that the amount of brand new stuff (not just white goods but electrics, plumbing, kitchens, bathrooms, fencing, patios, windows, doors, roof) means low maintenance for at least a decade or two and make them very easy to move in to for first time buyers. This overrides any snagging/finishing issues that have to be dealt with.

they are designed to be attractive to the majority. The only ones that might be basic are the few mandated “affordable” ones, which don’t always serve their purpose (for example in villages where there are no jobs for their target market).

I guess people have to decide who they want to take advice from. Clearly disgruntled people in flats praying beyond all logic for a crash so much that they make it into a name?

it’s evident which way prices are going and it’s evident why

interest rates are going nowhere for years/decades because we have a large public debt.

lisyloo

MobileSaver 

So you accept that liar loans were a bad thing and so due to banning liar loans less property transactions are actually a good thing?

Absolutely agree. 

Only affordable transactions can now go through that meet due dilligence. should always have been that way.