How much reduction would tempt you to buy now?

TD5

Gentle_Flo wrote: »

A question for the STRs and others who are watching "the market" down - if you saw a property you liked, how much discount on peak valuation would tempt you to buy it now?

And how would you expect to get there - via a reduced or low asking price, or a realistic offer to a realistic seller?

At the moment, if we could actually find what we wanted I would entertain a year 2000 price (maybe taking the risk that Land Registry prices were stated correctly).

How much 'discount' this equates to will depend on how inflated the current asking price is and having followed price fluctuations using Property Bee for the last few months, jumping in at a 40% reduction you may still end up paying well over the odds.

johnny_storm

50%, 40% as a minimum. Above this wont buy as still not worth it.

(No horrible terraces thanks)

mr.broderick

Gentle_Flo wrote: »

A question for the STRs and others who are watching "the market" down - if you saw a property you liked, how much discount on peak valuation would tempt you to buy it now?

And how would you expect to get there - via a reduced or low asking price, or a realistic offer to a realistic seller?

One thing putting an offer in but i fear the str's who've waited and waited might have missed the mortgage boat...

amcluesent

Of course, in some parts of USA the decline is 100% as whole streets are abandoned and the houses are worthless and let go to ruin.
As always, good houses in decent locations will hold up best, esp. in the home counties and SW were earnings will hold up.
I suppose we could return to the days when back-to-backs in the Northern towns could be bought for £500 cash in the local pub.

jamtart6

i;d be majorly happy with a 25% drop! ie. that would entice me to snap it up. A reduction of 10% would make me consider it...thats only on properties in my budget which is 10-40k drop in price.

TD5

jamtart6 wrote: »

i;d be majorly happy with a 25% drop!

You must be quite happy already then. Definitely some evidence of 25% reductions on asking prices already. If you could track this through to sale prices I'd bet you'd be nothing short of delighted.

And plenty of scope for continued reductions.

jamtart6

i think it depends on what houses really TD5...on the properties I've been tracking on property bee (not actual sale prices) have seen a few drops 2-7% , on houses over £200k are about 7-14%

LillyJ

also a massive number of drops have been new build apartments, which you wouldn't get me to live in if you actually paid me.

MrDT

TD5 wrote: »

You must be quite happy already then. Definitely some evidence of 25% reductions on asking prices already. If you could track this through to sale prices I'd bet you'd be nothing short of delighted.

And plenty of scope for continued reductions.

I suppose a simple percentage isn't enough to go on really. If a supposed million pound house were reduced to 750k I can't say I'd be tempted to buy, bit out of my reach...

Similarly, huge reductions on worthless crap doesn't interest me. Chalets round here are dropping fast, down from asking prices of 30k to 20k. I'm not paying 20k for a 10yr lease on a shed, 33% reduction or not.

Realistically, if nice 3 bed terraces in decent areas round here were to drop from ~100k-110k to ~75-80k (equates to about 25% reduction in asking price) in the next year or so I'd be tempted. If I were looking at different kinds of property or in a different area I'm sure the percentage reduction I'd be looking for would be subject to change.

meester

mr.broderick wrote: »

One thing putting an offer in but i fear the str's who've waited and waited might have missed the mortgage boat...

What on earth?

STRs will have a LARGE deposit, and will have absolutely no trouble getting a mortgage as a result, because low LTV lending is seen as essentially riskf-ree by the banks.

The FTBs who are waiting of course might have missed the mortgage boat to an extent, assuming they have no deposit, but that will just mean prices will fall further, because if the FTBs can't get the credit, who one earth is going to buy all those 1-bed flats and starter homes?

The only one who is going to lose out is the homebuilders and BTLers.