House price fall "accelerating"

ianian99

spam reported

IveSeenTheLight

ianian99 wrote: »

spam reported

How do you report SPAM and what is the point really.
These guys still get on here and spam.

Why not ignore instead of bumping the thread back up as a result of the spam?

ianian99

IveSeenTheLight wrote: »

How do you report SPAM and what is the point really.
These guys still get on here and spam.

Why not ignore instead of bumping the thread back up as a result of the spam?

you report it by clicking the wee red triangle at the left hand side at the bottom of the post , but if you dont see the point then i dont see the point in you knowing .:rolleyes:
The point in reporting it is because the thread will go up anyway so if it gets reported it gets deleted and therefore less people see it.

Jonbvn

Badger_Lady wrote: »

Sorry, this is the best link I can find at the moment: http://icwales.icnetwork.co.uk/news/feature-news/2007/12/01/uk-property-facts-91466-20186764/. City of Newport, with massive redevelopment in progress (including 2 new shopping centres and a Uni campus) and hosting the Ryder Cup in 2010.

OT
BL,

I am from the city to the west of you and I have heard that Newport is up and coming as you say. In fact, a lot of people have been priced out here and look at Newport as the next alternative.

TBH, we are considering buying a property somewhere in NP, to let to students, given the Uni expansion.
/OT

Anyway given the above, I think it is somewhat dangerous to only consider "global" issues driving house prices, when it is clear that local issues may have more bearing.

JohnInDebt

Badger_Lady wrote: »

Hear-hear!



Sorry, this is the best link I can find at the moment: http://icwales.icnetwork.co.uk/news/feature-news/2007/12/01/uk-property-facts-91466-20186764/. City of Newport, with massive redevelopment in progress (including 2 new shopping centres and a Uni campus) and hosting the Ryder Cup in 2010.

I'd be delighted if you can find more information on this

Of course, this is far from a guarantee, but it's not a bad place to have moved to... particularly since I'm comfortably affording my 5-bed period townhouse here which, as a single lady, I'm very unlikely to outgrow any time soon (therefore no need to sell during this downturn, even if I get into valuation-based negative equity).

It's quite nice down there, they're starting to invest some decent money into the local economy. They seem to be investing a lot of money in Newport, Cardiff Bay (where I live) & Swansea Marina.

Generali

IveSeenTheLight wrote: »

I thought many on here was saying demand is falling because nobody will by in a falling market. How is it outstripping supply?

I think you must have meant supply is outstripping demand.

Supply and Demand

Supply = number of willing and able sellers at any given price.
Demand = number of will and able buyers at any given price.

Thus demand is not the number of people that fancy something. It's the number of people that want to buy and are able (e.g. have the money).

If demand > supply in a free market, prices will rise. If demand < supply, prices will fall in a free market. The idea is that the market will always seek an equilibrium where demand = supply.

Lots of people use the market in Ferraris as an example of supply and demand in action. Demand for Ferraris is low. That is because very few people can afford them. However, supply of Ferraris is also (deliberately) kept low and that keeps the price high.

Demand for housing is high by historic measures of real price and yield (another way to measure the price of a house). My feeling is that is for 2 reasons:

- Over the past 10 years they've been shown to be an excellent investment as they keep rising in price by vast amounts so people want to be able to buy one or more to make money.
- The amount of money banks have been willing to lend people to buy housing has increased rapidly so more people are able to buy. Low interest rates have kept the interest part of repayments down (although not so low that many buyers can afford to repay capital as well as service the debt).

It would appear that the credit crunch is reducing the amount of money available to buyers. Also, interest rate rises have increased the cost of servicing debt. Thus demand has fallen as the second part of the demand equation (the able rather than the willing bit) has fallen.

If supply has stayed constant or dropped by less than demand, we would expect prices to increase more slowly or fall.

epz_2

you forgot to add that the supply for houses is also controled by the goverment, basicly saying their isnt enough houses but hey we woulnt let you build more.

m00m00

I'd be wary about buying into an area for BTL thinking the students make it viable, and I'd very much look at any expansion plans for the university. In Nottingham many landlords have been caught out by the university's massive building program of it's own to provide student accommodation, and many traditional landlords are selling up, and BTL'ers are being badly burned with their newbuild 'appartments' struggling to sell at anything other than heavy discounts.

ianian99

m00m00 wrote: »

I'd be wary about buying into an area for BTL thinking the students make it viable, and I'd very much look at any expansion plans for the university. In Nottingham many landlords have been caught out by the university's massive building program of it's own to provide student accommodation, and many traditional landlords are selling up, and BTL'ers are being badly burned with their newbuild 'appartments' struggling to sell at anything other than heavy discounts.

Most universities are now having new student flats built from scratch and they are getting them built for nothing.
For instance in dundee some private firm has built a load of student flats and gave them to the uni to own/run for X amount of years then the flats are handed back to the developers after that period. So judging by the amount of these type of flats being built throughout the uk i'd say thats whats happening everywhere.
So getting a BTL for students would be a bad move.(imho)

paintpot

I am a buy to let landlord and I feel no panic whatsoever.

Firstly, I bought them as a long term investment and have no intention of selling them for many years to come.

Secondly, the rent more than covers the mortgage and the rental market is strong, where I am anyway. I have (hopefully) rented a house this week, it's only been on the market for two weeks and the tenant wants to be in before Xmas. I will have a void of maybe a couple of days! That's if they pass all the referencing checks. Oh and I've put the rent up from the previous tenant who is moving to one of my other houses as it's bigger so I'll have no void on that one as they are moving in the day the other tenant moves out so quids in. All despite it being nearly Xmas

And I'd buy another BTL tomorrow if I had the cash and it was the right deal.