Worried about valuation

Mickygg

goodwithsaving said:

Crashy_Time said:

Sunsaru said:

Mon2907 said:

Well, I’ve caused quite the debate! I still don’t know what it’s been valued at 🤣🤣

Well do let us know when you do.
My money is on it coming in as valued (fingers crossed)

I will go for down-valued.

DO YOU EVER STOP? All you do is trawl, hoping to spread doom and gloom, trying to make people feel stressed out of their minds whilst going through one of the biggest events and purchases in their lives. You are bitter, deluded and have nothing better to do it seems. A few transactions ago you suceeded in making me a nervous wreck but a few houses in, I see past it. If any FTB or less experienced buyers read Crashy's posts, please ignore them.

Just block his posts, really easy to do then you only see those quoted, but it blocks most of the garbage he writes.
I've had him blocked for years, plus a few other trolls. 

Crashy_Time

Mickygg said:

goodwithsaving said:

Crashy_Time said:

Sunsaru said:

Mon2907 said:

Well, I’ve caused quite the debate! I still don’t know what it’s been valued at 🤣🤣

Well do let us know when you do.
My money is on it coming in as valued (fingers crossed)

I will go for down-valued.

DO YOU EVER STOP? All you do is trawl, hoping to spread doom and gloom, trying to make people feel stressed out of their minds whilst going through one of the biggest events and purchases in their lives. You are bitter, deluded and have nothing better to do it seems. A few transactions ago you suceeded in making me a nervous wreck but a few houses in, I see past it. If any FTB or less experienced buyers read Crashy's posts, please ignore them.

Just block his posts, really easy to do then you only see those quoted, but it blocks most of the garbage he writes.
I've had him blocked for years, plus a few other trolls. 

But you still respond to nearly everything I post? LOL.

Crashy_Time

goodwithsaving said:

Crashy_Time said:

Sunsaru said:

Mon2907 said:

Well, I’ve caused quite the debate! I still don’t know what it’s been valued at 🤣🤣

Well do let us know when you do.
My money is on it coming in as valued (fingers crossed)

I will go for down-valued.

DO YOU EVER STOP? All you do is trawl, hoping to spread doom and gloom, trying to make people feel stressed out of their minds whilst going through one of the biggest events and purchases in their lives. You are bitter, deluded and have nothing better to do it seems. A few transactions ago you suceeded in making me a nervous wreck but a few houses in, I see past it. If any FTB or less experienced buyers read Crashy's posts, please ignore them.

A few transactions ago, are you serious? How many times do you move house? Trawl isn`t the spelling you are looking for BTW, that is a fishing reference. My advice to you would be to always DYOR, and stop getting overly influenced by the opinions of strangers on the internet.

Mickey666

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Getting_greyer said:

Fiesto88 said:

I’ll try and bring a little bit of positivity to counteract the gloom in this thread. 

I work for a mortgage lender. The surge in down-valuations that some people gleefully report here is complete fantasy. Now, as always, the vast majority of purchase valuations match the agreed sale price - the majority of reports coming back to us aren’t even reviewed by a person. Of the small number that are down-valued, there is usually a clearly stated reason and even then, we automatically accept them if they fall within a certain % tolerance of the agreed sale price. Most of the down-valuations we do see are remortgaging customers who’ve pushed their luck a little too much in their own estimation of how much their house is worth. They’re usually deliberately trying it on to get a better rate, expecting to be reined in. 

There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident. 

This is exactly what an operative of a clandestine global cartel would say.

. . . which is exactly how all this nonsense is promulgated, along with the web's unique ability to put all the world's loonies in touch with each other so they can reinforce each other's fantasies.

Regardless of who Fiesto88 might work for, their comment "There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident."  seems more rooted in reality than is convenient for the conspiracy theorists.

It's a bit like the moon landing deniers.  I suppose it's theoretically possible to have faked the entire thing but the reality is that it would be more difficult to keep such a thing secret than going to the moon in the first place!  But of course that's what THEY want you think, so what more proof do you need? 

? It`s not "secret" though is it? Plenty of people say it was faked, and plenty of people believe them.
There is no "conspiracy" about a bank reigning in lending, they see higher rates and possible job losses and want to minimise the potential for a borrower to default on their mortgage debt, seems pretty simple to me. Never mind faked moon landings the greatest "Conspiracy" of them all was getting large numbers of the public to believe that a basic house knocked up in a couple of weeks or less was worth decades of mortgage debt, LOL.

Well, compared with the alternative of paying a lifetime of rent, a couple of decades of mortgage seems like a bargain LOL

Many people are on 30 years+ mortgage debt, many will never pay it off.

. . . and many people are on 25 year mortgages (or less) and many pay it off early. I paid off my first mortgage in 9 years and my second one in 15 years. We can all cherry pick extreme examples, but extreme examples only extrapolate to extreme scenarios, which by definition are never likely to actually happen.

A bit like your prediction of a house price 'crash' for the past seven years . . . a scenario that has yet to happen.

Oh, and you still haven't answered my question about your definition of a 'crash' in percentage terms.  Come on, what is it going to be?  A 10% price reduction, 20%, 25%, 50%?  What would actually constitute a house price "crash"?

Crashy_Time

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Getting_greyer said:

Fiesto88 said:

I’ll try and bring a little bit of positivity to counteract the gloom in this thread. 

I work for a mortgage lender. The surge in down-valuations that some people gleefully report here is complete fantasy. Now, as always, the vast majority of purchase valuations match the agreed sale price - the majority of reports coming back to us aren’t even reviewed by a person. Of the small number that are down-valued, there is usually a clearly stated reason and even then, we automatically accept them if they fall within a certain % tolerance of the agreed sale price. Most of the down-valuations we do see are remortgaging customers who’ve pushed their luck a little too much in their own estimation of how much their house is worth. They’re usually deliberately trying it on to get a better rate, expecting to be reined in. 

There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident. 

This is exactly what an operative of a clandestine global cartel would say.

. . . which is exactly how all this nonsense is promulgated, along with the web's unique ability to put all the world's loonies in touch with each other so they can reinforce each other's fantasies.

Regardless of who Fiesto88 might work for, their comment "There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident."  seems more rooted in reality than is convenient for the conspiracy theorists.

It's a bit like the moon landing deniers.  I suppose it's theoretically possible to have faked the entire thing but the reality is that it would be more difficult to keep such a thing secret than going to the moon in the first place!  But of course that's what THEY want you think, so what more proof do you need? 

? It`s not "secret" though is it? Plenty of people say it was faked, and plenty of people believe them.
There is no "conspiracy" about a bank reigning in lending, they see higher rates and possible job losses and want to minimise the potential for a borrower to default on their mortgage debt, seems pretty simple to me. Never mind faked moon landings the greatest "Conspiracy" of them all was getting large numbers of the public to believe that a basic house knocked up in a couple of weeks or less was worth decades of mortgage debt, LOL.

Well, compared with the alternative of paying a lifetime of rent, a couple of decades of mortgage seems like a bargain LOL

Many people are on 30 years+ mortgage debt, many will never pay it off.

. . . and many people are on 25 year mortgages (or less) and many pay it off early. I paid off my first mortgage in 9 years and my second one in 15 years. We can all cherry pick extreme examples, but extreme examples only extrapolate to extreme scenarios, which by definition are never likely to actually happen.

A bit like your prediction of a house price 'crash' for the past seven years . . . a scenario that has yet to happen.

Oh, and you still haven't answered my question about your definition of a 'crash' in percentage terms.  Come on, what is it going to be?  A 10% price reduction, 20%, 25%, 50%?  What would actually constitute a house price "crash"?

Nobody seems to really know what a crash is, I suppose when everyone has glum faces when property gets mentioned might be a good definition?
https://www.msn.com/en-gb/money/other/is-the-uk-heading-towards-a-house-price-crash/ar-AAKbrMd?ocid=BingNewsSearch

Mickey666

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Getting_greyer said:

Fiesto88 said:

I’ll try and bring a little bit of positivity to counteract the gloom in this thread. 

I work for a mortgage lender. The surge in down-valuations that some people gleefully report here is complete fantasy. Now, as always, the vast majority of purchase valuations match the agreed sale price - the majority of reports coming back to us aren’t even reviewed by a person. Of the small number that are down-valued, there is usually a clearly stated reason and even then, we automatically accept them if they fall within a certain % tolerance of the agreed sale price. Most of the down-valuations we do see are remortgaging customers who’ve pushed their luck a little too much in their own estimation of how much their house is worth. They’re usually deliberately trying it on to get a better rate, expecting to be reined in. 

There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident. 

This is exactly what an operative of a clandestine global cartel would say.

. . . which is exactly how all this nonsense is promulgated, along with the web's unique ability to put all the world's loonies in touch with each other so they can reinforce each other's fantasies.

Regardless of who Fiesto88 might work for, their comment "There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident."  seems more rooted in reality than is convenient for the conspiracy theorists.

It's a bit like the moon landing deniers.  I suppose it's theoretically possible to have faked the entire thing but the reality is that it would be more difficult to keep such a thing secret than going to the moon in the first place!  But of course that's what THEY want you think, so what more proof do you need? 

? It`s not "secret" though is it? Plenty of people say it was faked, and plenty of people believe them.
There is no "conspiracy" about a bank reigning in lending, they see higher rates and possible job losses and want to minimise the potential for a borrower to default on their mortgage debt, seems pretty simple to me. Never mind faked moon landings the greatest "Conspiracy" of them all was getting large numbers of the public to believe that a basic house knocked up in a couple of weeks or less was worth decades of mortgage debt, LOL.

Well, compared with the alternative of paying a lifetime of rent, a couple of decades of mortgage seems like a bargain LOL

Many people are on 30 years+ mortgage debt, many will never pay it off.

. . . and many people are on 25 year mortgages (or less) and many pay it off early. I paid off my first mortgage in 9 years and my second one in 15 years. We can all cherry pick extreme examples, but extreme examples only extrapolate to extreme scenarios, which by definition are never likely to actually happen.

A bit like your prediction of a house price 'crash' for the past seven years . . . a scenario that has yet to happen.

Oh, and you still haven't answered my question about your definition of a 'crash' in percentage terms.  Come on, what is it going to be?  A 10% price reduction, 20%, 25%, 50%?  What would actually constitute a house price "crash"?

Nobody seems to really know what a crash is, I suppose when everyone has glum faces when property gets mentioned might be a good definition?
https://www.msn.com/en-gb/money/other/is-the-uk-heading-towards-a-house-price-crash/ar-AAKbrMd?ocid=BingNewsSearch

Brilliant!
So you're advocating timing the market by waiting for a coming 'crash' that you can't even define so won't be able to recognise.

OK, let me ask the question in a different way.  What percentage do house prices need to fall by before YOU would consider buying a property instead of continuing to rent?

mrlegend123

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Crashy_Time said:

Mickey666 said:

Getting_greyer said:

Fiesto88 said:

I’ll try and bring a little bit of positivity to counteract the gloom in this thread. 

I work for a mortgage lender. The surge in down-valuations that some people gleefully report here is complete fantasy. Now, as always, the vast majority of purchase valuations match the agreed sale price - the majority of reports coming back to us aren’t even reviewed by a person. Of the small number that are down-valued, there is usually a clearly stated reason and even then, we automatically accept them if they fall within a certain % tolerance of the agreed sale price. Most of the down-valuations we do see are remortgaging customers who’ve pushed their luck a little too much in their own estimation of how much their house is worth. They’re usually deliberately trying it on to get a better rate, expecting to be reined in. 

There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident. 

This is exactly what an operative of a clandestine global cartel would say.

. . . which is exactly how all this nonsense is promulgated, along with the web's unique ability to put all the world's loonies in touch with each other so they can reinforce each other's fantasies.

Regardless of who Fiesto88 might work for, their comment "There really isn’t a grand conspiracy. Nobody’s actively trying to derail legitimate purchase transactions. Of course, it happens - but we’re talking about a handful of instances against vast numbers that pass without incident."  seems more rooted in reality than is convenient for the conspiracy theorists.

It's a bit like the moon landing deniers.  I suppose it's theoretically possible to have faked the entire thing but the reality is that it would be more difficult to keep such a thing secret than going to the moon in the first place!  But of course that's what THEY want you think, so what more proof do you need? 

? It`s not "secret" though is it? Plenty of people say it was faked, and plenty of people believe them.
There is no "conspiracy" about a bank reigning in lending, they see higher rates and possible job losses and want to minimise the potential for a borrower to default on their mortgage debt, seems pretty simple to me. Never mind faked moon landings the greatest "Conspiracy" of them all was getting large numbers of the public to believe that a basic house knocked up in a couple of weeks or less was worth decades of mortgage debt, LOL.

Well, compared with the alternative of paying a lifetime of rent, a couple of decades of mortgage seems like a bargain LOL

Many people are on 30 years+ mortgage debt, many will never pay it off.

. . . and many people are on 25 year mortgages (or less) and many pay it off early. I paid off my first mortgage in 9 years and my second one in 15 years. We can all cherry pick extreme examples, but extreme examples only extrapolate to extreme scenarios, which by definition are never likely to actually happen.

A bit like your prediction of a house price 'crash' for the past seven years . . . a scenario that has yet to happen.

Oh, and you still haven't answered my question about your definition of a 'crash' in percentage terms.  Come on, what is it going to be?  A 10% price reduction, 20%, 25%, 50%?  What would actually constitute a house price "crash"?

you props paid your mortgage off when house prices were x 3.5 times salary not x 8 plus times salary now..... 

Mickey666

My first house cost about 6x my salary and was only affordable because we combined two salaries to pay for it.  I couldn't have afforded it on my own.

I take your general point that house prices are relatively more expensive than they were in the 1980s, but I paid most of my mortgages at around 8-12% interest, not the more affordable 3-4% today, so the salary multiples don't tell the whole story.

Also, average house price today is about £250k and median salary is £38k, which is a salary multiple of about 6.5x or about the same as when I bought my first house.  Obviously there are a wide range of circumstances within those figures and perhaps more relevant figures would be the average salary of FTBs and the average price of a FTB house.

This article https://www.thisismoney.co.uk/money/mortgageshome/article-7187909/Zoopla-reveals-average-income-needed-step-housing-ladder.html gives a figure of £54k income for a FTB buying their first house.  This is obviously well above average salary but I'd guess is well within the joint income of a young couple of FTBs and probably explains why I know of many young couples (mid-late 20s) who have managed to buy their first home.

So yes, it's very difficult for a single person to buy their first house . . . but I suspect it always has been.  It certainly was for me and I couldn't have done it without a second income.

Thrugelmir

Mickey666 said:

I take your general point that house prices are relatively more expensive than they were in the 1980s, but I paid most of my mortgages at around 8-12% interest, not the more affordable 3-4% today, so the salary multiples don't tell the whole story.

Mortgage repayment terms have grown longer and longer to compensate.  Nor has the interest only era totally unwound yet. The number of people heading into retirement with a mortgage has grown considerably. 

mrlegend123

Thrugelmir said:

Mickey666 said:

I take your general point that house prices are relatively more expensive than they were in the 1980s, but I paid most of my mortgages at around 8-12% interest, not the more affordable 3-4% today, so the salary multiples don't tell the whole story.

Mortgage repayment terms have grown longer and longer to compensate.  Nor has the interest only era totally unwound yet. The number of people heading into retirement with a mortgage has grown considerably. 

agree, house prices compensating for lack of wage growth. Exciting times when furlough ends.....