House price fall "accelerating"

DreamBreaker

boinging wrote: »

Looking at the bbc website, it doesn't look so positive:

Newport
Average Cost: £165,212
Detached: £279,377
Semi-detached: £156,265
Terraced: £122,351
Flat: £127,305


Change in last quarter: -0.6%

Change in last year: 6.5%

Sales: 602


However, if you are happy with your situation, then fair play you won't lose out long term I have no doubt of that.

The point that always seems to get shouted down on this website is that it would have been better to buy a house now than 3 months ago and also better still in 3 months than now...

Still missing the point boinging, many people don't care whether the house they bought 3 months ago is worth less now as they bought it as a long term investment - as a family home. If they can comfortably afford the mortage payments as badger lady obviously can then why risk loosing the house of their dreams just because it may go down in price in the short term. Many people listened that the price rises had come to an end in 2005 and held out hoping for falls which obviously now did not materialise, many of them are kicking themselves that they missed out on that property they wanted by being.........well greedy really!

DreamBreaker

dannyboycey wrote: »

With regards to new-build housing developments - many of these large scale projects are in danger of becoming the derelict slums of tomorrow. Their current value has plummeted in recent months, and add this to the fact that they are a lot, lot less marketable once they have been lived in and you have a disaster waiting to happen! Still, it'll be somewhere for the local government to temporarily rehouse people if we get bad flooding again.

Bear in mind that these are the bottom rung of the ladder for many people starting out, and that a significant drop in prices on these can't happen in isolation (that is, without affecting property further up the ladder). Just look what happened to Barrat Homes yesterday.

I absolutely agree, city centre apartments are falling in value, thus driving the average house prices down. Perhaps that’s why many people are not actually seeing a fall in the value of their "house" and are perplexed by the suggestion that prices in their area are falling, when all they can see is sales for normal levels?

Apartments are a mess at the moment, I know in my city half of them at least are sitting empty, but I also know that has been the case since 2002, nothing has bitten yet and I wonder when it will and how if will?

In fact in my city the local council has actually stopped a couple of apartment developments which had been granted planning permission because they fear the market is at saturation point. All this said, I believe that it will have relatively little affect on the sale prices of “houses” no one wants an apartment, many want a house and the fight is still on between buyers for that first, second and third time home!

DreamBreaker

paintpot wrote: »

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.

I am a buy to let landlord too and what people fail to acknowledge is that if FTB are not buying through choice or affordability they have to live somewhere, I know most of my tenants do NOT want to live with parents, in fact their parents probably don't want them living with them either .

Whatever happens, as a property investor, as long as you can cover the mortgage repayments, like you say it is a long term investment for your long term future, in the short term it makes no odds what happens to house prices!

In essence as a landlord, if prices fall = more available tenants and less voids, if prices rise = more equity to buy more properties.

I have never had a problem letting out my properties in either situation, however, I choose quality properites and do not touch city centre apartments with a barge pole!!!!;)

DreamBreaker

Microstar wrote: »

I think it very much depends upon where you are. In the East Midlands the rental market appears to be rather weak and getting weaker unfortunately...

Why would the rental market be geting weaker if property prices are falling? I presume people are buying there rather than renting? What do you see is the driver of a falling rental market in your city?

DreamBreaker

tomstickland wrote: »

But you're changing your argument. You originally said that only a fool would pay rent "money that would never be seen again".
Paying interest on a mortgage is also money they will never be seen again.

BUT you are also paying off the capital presumably, I agree, I often do not see the point in getting an interest only mortgage, however, there are benefits. Firstly, you own the house and if the situation changes you change your mortgage, thus don't have to fight to buy a house with all those other people who have noticed the positive change in the market. Secondly, quite often because of low interest rates the interest repayment on a mortgage is lower than the rent you would have to pay for an equivalent property. Thirdly, if the property market rises, you get to take advantage of the equity you begin to build in your property.

DreamBreaker

nelly wrote: »

Are you a glue sniffer?

Sensible well structured argument, hear, hear!

I think not!

DreamBreaker

nelly wrote: »

people in this cuntry are so guliblby led by those that seek to extort them

Wow, I didn't know we lived there, I am surprised house prices are not falling dramatically as people bail out in panic! :rotfl:I am off to sell quickly!

m00m00

DreamBreaker wrote: »

BUT you are also paying off the capital presumably, I agree, I often do not see the point in getting an interest only mortgage, however, there are benefits. Firstly, you own the house and if the situation changes you change your mortgage, thus don't have to fight to buy a house with all those other people who have noticed the positive change in the market. Secondly, quite often because of low interest rates the interest repayment on a mortgage is lower than the rent you would have to pay for an equivalent property. Thirdly, if the property market rises, you get to take advantage of the equity you begin to build in your property.

wrong.

how about a real example

property I've been in for the past 3 years. Value at moving in date £100k, Identical property for sale at the moment (since april with no takers 90k) so capital appreciation -10k

difference between INTEREST on mortgage and rent = -100 a month

so in 3 years I'd have lost 10k capital and 3.6k in extra expenses, not to mention with all legal costs involved with actual buying, plus mortage 'application fee' etc, so round it all up to a nice -15k for the pleasure of actually owning this place over the past 3 years.

buying is not always the correct thing to do, people need to take account of their individual circumstances, and this utter nonsense about renting being 'dead money' is out of date. The panglossian attitude towards house prices/HPI from some people really shocks me, they need to take off their blinkers and think about what will happen if things carry on the way they have been doing with an ever increasing debt bubble growing daily, and an every increasing tendency to push more and more assets into fewer and fewer hands.

tomstickland

DreamBreaker wrote: »

BUT you are also paying off the capital presumably, I agree, I often do not see the point in getting an interest only mortgage, however, there are benefits. Firstly, you own the house and if the situation changes you change your mortgage, thus don't have to fight to buy a house with all those other people who have noticed the positive change in the market. Secondly, quite often because of low interest rates the interest repayment on a mortgage is lower than the rent you would have to pay for an equivalent property. Thirdly, if the property market rises, you get to take advantage of the equity you begin to build in your property.

Oh yes, I happen to have bought my flat 18 months ago and pay a repayment mortgage. In my case the sums made sense because I bought for a good price and got a good deal on my mortgage. However, calling rent "dead money" that only a "simpleton" would pay is missing the point.

DreamBreaker

m00m00 wrote: »

wrong.

how about a real example

property I've been in for the past 3 years. Value at moving in date £100k, Identical property for sale at the moment (since april with no takers 90k) so capital appreciation -10k

difference between INTEREST on mortgage and rent = -100 a month

so in 3 years I'd have lost 10k capital and 3.6k in extra expenses, not to mention with all legal costs involved with actual buying, plus mortage 'application fee' etc, so round it all up to a nice -15k for the pleasure of actually owning this place over the past 3 years.

buying is not always the correct thing to do, people need to take account of their individual circumstances, and this utter nonsense about renting being 'dead money' is out of date. The panglossian attitude towards house prices/HPI from some people really shocks me, they need to take off their blinkers and think about what will happen if things carry on the way they have been doing with an ever increasing debt bubble growing daily, and an every increasing tendency to push more and more assets into fewer and fewer hands.

Where on earth do you live? Your telling me that in 3 years when prices have risen dramatically that your price has fallen? Not meaning to sound patronising, rude, or funny in any way but perhaps you bought a dud? Or perhaps that house on your street is not as good as yours? Poor garden, a lot of work required, etc, etc, not all houses on the same street can be compared simply because they are the same style and have the same number of bedrooms, etc?

If you put your house on the market you may be surprised that you would get offers for 100k plus. Just because the house down the street is not getting those offers does not mean yours wouldn't? It all depends on condition as you know. If they are of the same condition then perhaps you paid over the odds for your house in the first place? But people have done that for many years only in stronger markets not to have seen any consequence.

I know in my street there is a house that has been for sale for a year. I began to wonder myself why the house was not selling and started looking at the pictures on the internet. It was well over-priced, even though it is the same style property as mine on the same street there were varying factors which made it very unappealing, for example, the garden was horribly overlooked, it had no garage, it was in dire need of redecorating, the gutters were rotting, etc, etc. It was obviously worth much less than other houses in the neighbourhood, but they were being greedy and asking the same amount, thus, it was not selling and still is not selling, even though they have dropped the price quite considerably. It did concern me for a while but then 2 other houses came up on my street and surrounding streets and sold for just under the asking price both within 3 months (summer this year).

In essence it is unlikely that in 3 years you will find many people in the same boat as you, sounds like you have been very unfortunate and unlucky to me or did you have a lucky escape and not buy that dud house?