There will not be a crash

dannyboycey

meanmachine wrote: »

Do people still drive porsches?

I used to have a 911 turbo (not a spanking new one). I defy anyone to say that's not cool. I must admit I did lose count of people saying that I must have a small manhood! Now drive a top of the range Skoda Octavia and absoluetly love it - also a very cool car despite what people say.

geoffky

The_Dangerman wrote: »

Wow I didn't know that website existed, thanks for that

But the biggest reduction I can find in my area of the type of houses I look to buy is 7%

Still, a cheeky bid might be in order after a bit of research

Only 2 houses above 5% though , hardly the 40% off homes in the North West.

you are being greedy this has only just began and you want it all now...
if you search north west you will see plenty of 30%
and if you did not know about the site try a search for propertybee and work out what that does

SquatNow

The_Dangerman wrote: »

I'll let you into a secret on how it works.

You have 20k, in a top rate savings account paying 6.5%. In 5 years you make £5769 after tax.

I put £20k as a deposit, into a house worth £100k with the rent covering the £80k mortgage. Even at 2.7%, the I will make £14,248 Over the longer term, 4% is easily achievable making it more like £21,665 over 5 years, compared to £5769 in a savings account. And then, before the 5 years is up, the rent is turning a profit, so add that into the mix, too.

You haven't accounted for the fact that the property you bought for £100k is now only worth £40k.

Nor have you accounted for the fact that as soon as the value of the property drops, your bank will ask you maintain the LTV. You're on 80%LTV so if the proprety drops £10k in value the bank will send you a demand for £8000, payable within 30 days, or they'll reposess the proprety.

geoffky

Triple whammy for homebuyers as three experts deliver devastating verdict on housing market

By NICOLA BODEN - More by this author » Last updated at 14:57pm on 20th March 2008 Comments (62)
• Bank of England policy-maker predicts Britons will find it harder to buy homes despite price drop

• Council of Mortage Lenders says banks are struggling to meet loan demands

• Economists warn UK house price crash could be worse than in U.S.



A series of leading experts have delivered dire warnings on Britain's housing market as the credit crisis takes its toll on lenders and leaves first-time buyers struggling to get on the property ladder.

Bank of England policy maker Kate Barker predicted that falling house prices would do little to help would-be buyers because affordability was unlikely to improve.
Meanwhile, analysts from consultancy group Capital Economics claimed the UK is now more vulnerable than the U.S. to a sharp price correction and would also take longer to recover.
And the Council of Mortgage Lenders (CML) called for action to offset the effect of the credit crunch on lenders as new figures revealed mortgage approvals fell yet again last month.

Ms Barker, a member of the Monetary Policy Committee, told a planning event: "We may see prices adjust downwards but there is no clear evidence that affordability will improve.
"Mortgages, particularly for first-time buyers, have become more difficult to get as a result of the credit crunch."


Kate Barker: 'Mortgages, particularly for first-time buyers, have become more difficult to get as a result of the credit crunch'

Her prediction was immediately borne out as figures were published, showing the rate of mortgage approvals - already at their lowest level for more than 10 years - has fallen further.
Some £24 billion was advanced by lenders during February, seven per cent down on the previous month and six per cent lower than the same period last year, according to the CML.
Despite house price growth cooling markedly, mortgages are becoming less and less attainable because banks can no longer access cheap cash.
They are being forced to restrict their home products, leaving first-time buyers priced out of the market.
CML director-general Michael Coogan warned that banks will continue to reduce their product ranges and increase prices unless the Bank of England acts to improve liquidity levels.
He said: "We have entered a substantially slower phase in the housing market and there will be ongoing problems in the mortgage funding markets unless the Bank of England makes new, broader-based attempts to improve levels of liquidity in the UK.
"Demand for mortgages remains strong but cannot be fully met from existing funding. This has led many lenders to reduce their product ranges, increase their mortgage prices and, in some cases, to reduce their lending capacity.
"As credit conditions change markedly from day to day, lenders will continue to rapidly adapt their products and pricing to match. This is a vital response to the uncertain conditions."
Howard Archer, chief UK and European economist at Global Insight, said: "The credit crunch and sub-prime mortgage concerns have made lenders much more careful about whom they lend to, and on what terms.
"The current escalation of the credit crunch is deepening these problems, with the number of mortgages on offer being slashed and the terms available becoming increasingly less favourable.
"First-time buyers are being particularly hard hit as mortgage lenders reduce the amount that they are prepared to lend to them and demand increased deposits."


Under pressure: Bank of England governor Mervyn King

Bank chiefs were today meeting the Bank of England's governor Mervyn King, where he is expected to be put under pressure to pump more cash into money markets to help ease the ongoing crisis.
Until now, experts have always looked at the key differences between the U.S. and UK economies, outlining the features they believe could protect Britain from a similar house price crisis.
Britain has not seen the same big surge in "sub-prime" borrowing, under which many US lenders have handed mortgages to people whose financial situation means they would be turned down by mainstream banks.
But Capital Economics are warning that as mortgages lenders in Britain tighten their lending criteria, house prices here are likely to follow US ones downwards, and could even fall more sharply.
Analysts pointed out that falling house prices - now being seen in the UK too - had been a key driver of a wider slump in the US.
Vicky Redwood, UK economist at Capital Economics, added that consumer spending in Britain had recently been more closely related to property prices than it was in the States, and so it could suffer a more severe knock-on effect as the housing market here dips.
Ms Redwood said: "We expect UK consumer spending to rise by just 1.5 per cent or so in real terms this year, a slightly bigger rise than is likely in the US.
"But whereas US spending growth could start to recover next year, UK spending growth looks likely to slow further. With both countries the main risks lie to the downside."
At the same time, the consultancy added, the British are currently more indebted than their American counterparts, with total household debt here now standing at the equivalent of 175 per cent of household disposable income, compared with only 128 per cent in the US.
The group said household assets had risen more sharply in the UK than in the US, with the key driver behind this the sharp rise in house prices.
UK consumers are also unlikely to enjoy the same fiscal and monetary boosts as in the US, where consumers are benefiting from tax cuts and where interest rates were last night cut to just 2.25 per cent.

mr.broderick

adr0ck wrote: »

where in the north west are house's with 40% off?

Lucky to get 4% off i was going to ask the same question i'd be buying a couple.

mr.broderick

SquatNow wrote: »

You haven't accounted for the fact that the property you bought for £100k is now only worth £40k.

Nor have you accounted for the fact that as soon as the value of the property drops, your bank will ask you maintain the LTV. You're on 80%LTV so if the proprety drops £10k in value the bank will send you a demand for £8000, payable within 30 days, or they'll reposess the proprety.

Would the property be surveyed to ascertain value squatty?

mr.broderick

meanmachine wrote: »

Do people still drive porsches?

To be honest, the only people I've seen in them are men in their 60s.

Hardly a cool car.

I'd think much more of you if you went around in a Nissan Micra and scruffy clothes, but were still worth a fortune.

why? cos that would show *confidence*

You just give off the air of flash desperation.

Sorry.

Any reason you picked on the good reliable nissan micra meanie, i do admit the new bubble version not as reliable as previous models.

Generali

Forum Posters In 'Copyright Infringment' Shocka!

Frankly I couldn't be bothered to extract the interesting bits so I put in the whole lot says stunned poster.

geoffky

mr broderick if you read i have told you where to look..

mr.broderick

geoffky wrote: »

try property snake all is there

Just be careful here. Estate agents are on to this tool. You might notice the larger drops were only at the higher price for a day or two so that property snake freaks might show an interest thinking there's a desperate seller.