Sticking Their Head In The Sand

Paul_N_4

moanymoany wrote: »

So, we worked like stink to get the house to 'show home' standard and put it on the market end of feb. In four weeks the market hardened so we decided to pre-empt the inevitable price reductions. We were also selling with no chain. Result was a cash buyer who had sold six months before and waited for the prices to drop 10%.

Seems some more experienced people (yourself and your buyer) saw this coming some time ago.

WTF?_2

moanymoany wrote: »

My advice to anyone intending to downsize for whatever reason is to do it now, the last time things went pear shaped it lasted a long time. I know the circumstances were different, but people tend to react in the same way to the same stimuli. House prices will be no different.

Good advice - and well done on taking the steps to get your house sold at a good price in a tricky market.

moanymoany

Thank you. I am not a professional in the property market, the last time we moved was 19 years ago. What I did was record and watch over and over the 'Selling Houses' programmes.

One thing I noticed was that when he gave the sellers advice to drop their price and they wouldn't take it they got offers of his suggested selling price and if they didn't take the offers they didn't sell.

I also watched Right Move. I noticed how many houses in my area and the same type were on with more than one agent - back in January. One house was shown on a photo taken in the summer and another in the winter. It seemed to me that there was only one reason these houses weren't selling and that was the price, which they would have got in 2006.

In my own road there were three houses unsold after months and it seemed to me that they were very overpriced. People get into the 'but my house is worth this much' mindset. It always reminds me of carbooters who take most of their stuff home because they think it is worth SO much more than what anyone will pay.

My friend looked around the finished house. She and her OH are into the property market. She said that in the current market we hadn't increased the price, but we had made it 'best of breed'. I thought that was very funny and I hadn't heard it in relation to a house before. I have, however, heard it since.

My Oh needed some convincing that we should go ahead at the beginning of this year. He is now convinced!

Catbells

snarffie wrote: »

Downsizers are one of the groups that may be hit hardest in their pockets.

Say their house is worth £300k and it drops by 10%, the house would be sold for £270k.

If the smaller house that they intend to buy is worth £150k and it drops by 10%, the house would be bought for £135k

So they lose £30k on the sale, and only gain £15k on the next house, a net loss of £15k.

Am new here and thinking of downsizing myself from a large family home to flat or small house to release my pension. What s the best thing to do everyone:- stay put or sell and rent for a while?

mr.broderick

divadee wrote: »

At work we were chatting about recession and house price crash scenarios over the next few years.

My bosses (husband and wife team) were adament that the only reason property prices were falling is because we are talking ourselves into a recession and its all rubbish and that house prices will always stay at this level. What also transpired from this conversation is that they are hoping to downsize for retirement in a few years (they live in a 5 bed home and its only the 2 of them). I think personally they want to think that they are going to get ££££££s for there house, and hate to think of prices crashing.

When I countered that people cant afford houses anymore, esp first time buyers etc.. and every market needs first time buyers. I also countered that banks are not giving mortgages out like they used to so people cant get the finance.

There arguments were well they should only give 90% mortgages anyway, to again which i countered by saying, how can someone earning average wage of £20k get a house round here for £66k (mortgage + 10% deposit) (you cant even get a studio for that).

I also argued that i dont know why they are worrying, if downsizing the house they want to downsize to would be cheaper as well so they wouldnt be losing much anyway!!

They just ummed and ahhed and concluded that we are talking ourselves into a recession.

Why are people sticking there head in the sand, is it greed, stupidity or are they just scared?

More anecdotal untruths ?

WTF?_2

Catbells wrote: »

Am new here and thinking of downsizing myself from a large family home to flat or small house to release my pension. What s the best thing to do everyone:- stay put or sell and rent for a while?

If you are in an area where sales are stangnant and prices are falling (even if slowly) then if you can afford to wait five to six years before selling, do so and look at the market then.

Otherwise cut your losses and put your house on at at least 5% (10% would be better) below current comparable local asking prices for a quick sale. Be prepared to take at least 10% below 'market value'.


If your area appears to be holding up well then get your house on the market ASAP and get it tarted up 'House Doctor' stylee. If you don't get interest in 2-3 weeks then take measures as above.


See this post by Moanymoany for tips.

http://forums.moneysavingexpert.com/showpost.html?p=11057887&postcount=31

Annpan

dopester wrote: »

Yeah but those close to retirement should, if having been prudent, be amongst the best insulated against the carnage - and get no sympathy from me if in a mess or if having relied on their house to give them a pension.

Yeah, they should've put their money in a good pension and lost it that way eh? Get real. You only wish you had some good equity in property don't you?
Where are you investing for retirement - Iclandic Banks?

fc123

Annpan wrote: »

Yeah, they should've put their money in a good pension and lost it that way eh? Get real. You only wish you had some good equity in property don't you?
Where are you investing for retirement - Iclandic Banks?

Annpann..the Icelandic Banks? I have an interest in Mosaic (Bauger owned) as I am in retail and half my strip is Bauger leased.
I have a rent review coming up again.
They were able to pay top rent...though they showed losses of £40 million recently. I read a lot about the Russian / Icelandic link and there were fraud trials at Johanesson but they got thrown out.
I know the links are little but it will affect my life A LOT if I lose the next review (which, currently, looks likely)

Original Poster...your story gives me confidence.;)

Sorry to hijack the thread

Captain_Mainwaring_2

hostman wrote: »

But of course you cannot attribute your gain to hard work. Its blind luck.

By the same token our mates on the "why should I pay my bills" forum think that enjoying £50's worth of credit et al and then not paying for it also think it is not an issue. Having been there and done it, I don't feel in the least bit guilty at gloating slightly at the clowns who are being hoisted by their own greed.

Because of what happened to me I only took one chance last crash, now it's my turn.

melancholly

Captain_Mainwaring wrote: »

By the same token our mates on the "why should I pay my bills" forum think that enjoying £50's worth of credit et al and then not paying for it also think it is not an issue.

i'm sorry, which forum exactly do you mean by that statement?