What’s wrong with this property

ReadySteadyPop

MeteredOut said:

Did the OP ever get an answer as to what was wrong with the property

There is nothing physically wrong with the property, it is just overpriced hence the 75k asking price drop so far.

ReadySteadyPop

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

But rent also went up to cover the landlords bills, and tenants were evicted if landlords lost the houses. No-one apart from the super rich is safe from them. 

It's all about timing which you can't predcit. If you buy right before a drop (like I did and ended up at about 110% LTV) then it can be brutal in the short term but it'll balance out over time. 

You still need to live somewhere, right?

It is a bit of an overgeneralization though, and verging a bit far into discussing the economy rather than houses. 

More likely now that they will just continue to pay rent to the bank or other new owner, much harder to evict now, and even back then this happened in lots of cases, many young people will just run back to parents if the rental goes bad so that means even more supply hitting the market.

Really? Can you cite something to support that?

Because everything I've looked up indicates that outside a few niche cases the lender is likely to start eviction immediately in order to auction the property off. You might get a few months but you're not secure.

And that's assuming the landlord doesn't start the eviction process themselves to try and sell before reposession. 

I`m not clear what point you are trying to make

I'm responding to what seems to be your claim that renting in a recession is safer than a mortgage because even if the house is reposessed you don't get evicted, but I can't find anything online to back that up and hoping you do. 

Another poster described their memories of the 80`s housing crash, you seem to disagree with this memory or don`t like their version of reality, II am not sure which it is?

I was responding to your claim of "More likely now that they will just continue to pay rent to the bank or other new owner" in relation to renting when the bank reposesses a rental property. 

I have no experience of the 1980's housing crash, or the boom that immediately followed, nor do I think it's particuarly relevant given it was over 40 years ago and the world is drastically different. I was talking about a hypothetical future crash and how renting isn't more stable than owning. 

I don`t believe repossessions or evictions are desirable now, for many reasons, the 80`s was a very different time in that respect, the PTB and banks will try to avoid this scenario at all costs because it would play really badly against the present political backdrop. The boom didn`t immediately follow, the real boom started to happen when interest rates started to be lowered in the early 2000`s and then really cut after 2008, we are now entering  a phase that is the complete opposite of that time.

 How people react in a crisis isn`t different to 40 years ago (well we don`t REALLY know because there hasn`t been a proper crisis for decades) the financial system may have evolved (for the worse many would say) but human emotions have not evolved in that time, fear and greed are the drivers in the stock and housing markets.

 If you were renting from a private landlord with no mortgage or who had borrowed sensibly and could afford their debt that would be much safer than buying one of these flats for 400k or 500k (!) and then hitting a job loss and possible higher interest rates. The OP is right to be cautious and I hope they will update us on their flat search?

ReadySteadyPop

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

ReadySteadyPop said:

Herzlos said:

But rent also went up to cover the landlords bills, and tenants were evicted if landlords lost the houses. No-one apart from the super rich is safe from them. 

It's all about timing which you can't predcit. If you buy right before a drop (like I did and ended up at about 110% LTV) then it can be brutal in the short term but it'll balance out over time. 

You still need to live somewhere, right?

It is a bit of an overgeneralization though, and verging a bit far into discussing the economy rather than houses. 

More likely now that they will just continue to pay rent to the bank or other new owner, much harder to evict now, and even back then this happened in lots of cases, many young people will just run back to parents if the rental goes bad so that means even more supply hitting the market.

Really? Can you cite something to support that?

Because everything I've looked up indicates that outside a few niche cases the lender is likely to start eviction immediately in order to auction the property off. You might get a few months but you're not secure.

And that's assuming the landlord doesn't start the eviction process themselves to try and sell before reposession. 

I`m not clear what point you are trying to make

I'm responding to what seems to be your claim that renting in a recession is safer than a mortgage because even if the house is reposessed you don't get evicted, but I can't find anything online to back that up and hoping you do. 

Another poster described their memories of the 80`s housing crash, you seem to disagree with this memory or don`t like their version of reality, II am not sure which it is?

I was responding to your claim of "More likely now that they will just continue to pay rent to the bank or other new owner" in relation to renting when the bank reposesses a rental property. 

I have no experience of the 1980's housing crash, or the boom that immediately followed, nor do I think it's particuarly relevant given it was over 40 years ago and the world is drastically different. I was talking about a hypothetical future crash and how renting isn't more stable than owning. 

"Owning" isn`t the same as having mortgage debt, someone who owns their property doesn`t care what happens in the bond/credit markets.

GDB2222

MeteredOut said:

Did the OP ever get an answer as to what was wrong with the property

Yes. In amongst the bickering, there have been some nuggets of advice.