House prices will recover this year

Gorgeous_George

Gorgeous_George wrote: »

I have one eye on a house (3 bedrooms and a garden) that has a tenant paying £425 per month and currently marketed at £75K. If I could get it for £50K the numbers will stack up for me and I'll buy it (making an offer if its asking price falls).

GG

Just looked on RM and it's up to £79,950. Why won't they risten?

GG

WTF?_2

ManAtHome wrote: »

Have noticed all btl-badger's one-liners have stated this is all about reducing mortgage rates - belated honesty (gasp!!), apparently the "re-balancing the economy" lie for lower-rates has finally been abandoned.

Actually, it's really to rescue the banking system from collapse but if he said that we'd have panic. Without the remarkable package of measures seen since the NR debacle (tens of billions of emergency central bank loans, the 50bn quid or more of extra liquidity provision, the lowering of interest rates against all inflation-controlling logic) we'd probably have seen a banking bust or two by now and everyone would be seriously thinking of keeping their savings in a shoebox under their bed.

If they have any savings that is. Many people have been greedily taking the cash that the banks have been doling out and spending it as fast as they can get it.


Telling the nation that handing over large amounts of public cash to banks, who only just paid out tens of billions of pounds in bonuses, is to prevent said banks from experiencing the consequences of the bets made by top employees in the banks to earn those massive bonuses isn't really a vote winner.

merlinthehappypig

Gorgeous_George wrote: »

Just looked on RM and it's up to £79,950. Why won't they risten?

GG

Strange, isn't it?

We are seeing reductions all around us yet I noticed this one yesterday on Rightmove that has increased from £435000 to £475000

http://www.rightmove.co.uk/viewdetails-20562923.rsp?pa_n=28&tr_t=buy

Davesnave

Strange, isn't it?

We are seeing reductions all around us yet I noticed this one yesterday on Rightmove that has increased from £435000 to £475000

http://www.rightmove.co.uk/viewdetai..._n=28&tr_t=buy

Well, if they want around £425k, better to market at £475k now that folk are offering 10% lower. At this price level, 'value' is harder to calculate with each property beig a one-off. People in the posh Exeter commuter enclave of West Hill may reckon their values will be holding up better than elsewhere too.

Ma77hew

Gorgeous_George wrote: »

Just looked on RM and it's up to £79,950. Why won't they risten?

GG

80k for a 3 bedroom house is a bargain from where i'm sitting. If the area is affordable already why are you expecting falls? Rental Yield is 6.4%, be lucky to get 4% where I am., I cant' see why you think the price will drop by 37.5%?

skap7309

Just noticed something.......in the first paragraph it states 'will bring the market back to normal by September'
Depending on how you look at it, i see a massive crash in the next 4 months to bring it down to the historic average. To me THATS normal.

10% falls a month till September anyone?

Thanks Assetz :beer: :j

WTF?_2

Ma77hew wrote: »

80k for a 3 bedroom house is a bargain from where i'm sitting. If the area is affordable already why are you expecting falls? Rental Yield is 6.4%, be lucky to get 4% where I am., I cant' see why you think the price will drop by 37.5%?

Agreed - the correction/crash is about prices returning to what is reasonable. If prices are already not too far deviated from the traditional 'norm' (3.5x salary) then they aren't going to be hit as hard by any crash. We certainly won't be seeing such properties taking massive hits.

It's the parts of the country where prices went through the roof where we will see the greatest falls.

That said, there's always an undershoot between the down and up cycles so it's quite likely that even reasonably priced properties will take a hit below their true value at some point over the coming years.

And of course, it there's a really severe long-lasting recession then that will depress prices too. But in that case, most people will be too busy making ends meet to worry about buying a house at a bargain price.