House prices..

Bug One said:
Who here has actually LOST money on a property. I dont mean selling it for less than a property agent has 'guestimated' the value at. I'm guessing no one.
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On average anyone who bought in 2005 and sold in this year lost money after stamp duty and fees are considered.
 
Bug One said:
To me it is all media rubbish.

Property agents are over valueing properties. So its no surprise that people are having to sell for less than what their agent has led them to beleive their property is for. Its well known that an agent around here always over values the houses they sell. They do it because it gets them more business. If you go round and value a house as being worth more than the other agents, then you'll probably get the job of selling it.

Who here has actually LOST money on a property. I dont mean selling it for less than a property agent has 'guestimated' the value at. I'm guessing no one.
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exactly! im not going to defend all agents as i know for sure that there are some around here that do the same! you can spot them a mile off. there the ones with lots of properties in the window!! yet none are sale agreed or sold. etc

all the business we have (most) we get from word of mouth, or those people have used us before. they expect a true valuation which is what they get. the amount of people that we see that then go to another agent (you see it in the paper 2 weeks later on at £30,000 more than what you valued it at) that then come to use in 6 months and ask us to have ago at the price we said is amazing! and they then sell!

once you have a name of given true valuations you always have the business coming to you! we dont have to go and find it.

now i relise that this is due to me owrking in a small town where there are only 5 (total) agents that cover this area, but its down to the reputation of the agent that gets them the business ;)

maybe that is why we are still selling property!!
 
Stinky said:
i dont mean to sound arrogent or ignorant with this, but have you seen any proof of what you are writing about without using media speculation? Yes, i agree that fuel prices are on the up and this will slow things down, but shopping around for utilities such as gas and electric etc can work out cheaper than it has been in the last few years - IF you look around!
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Yes, from friends trying to sell houses and getting little or no interest. One of them has just sold after a year. The price was dropped from £295K to £245K on that one, the other still hasnt sold, and is very much a typical FTB house.

True about interest rates, although the 15% was only for a couple of days (I was working in financial services at the time) - 9% was more typical - but the prices weren't as far removed from salaries. I know lots of people that lost lots of money during the 90's, the worst of which ended up with £45K negative equity which they only finished paying back a couple of years ago (ie it took them 10 years to recover)

Put it this way, here you need £200k to get the most basic 3 bed house or a decent 2 bedroom one. Assuming 10% deposit, you need to be earning £60K per year to get a £180k mortgage. I know in the past lenders have been lax with the multiples, but that's coming to an end, and you should stick to it for your own good anyway.

There really aren't that many FTB's on £60k a year, and as mentioned if a BTL'r buys the house they will have a mortgage of over £1000 a month but will only be able to get about £700 a month in rent, so they arent going to be tempted either. Yes, you will always get the exception to the rule, but IMO not enough of them to keep the currently inflated market afloat
 
Sagalout said:
Yes, from friends trying to sell houses and getting little or no interest. One of them has just sold after a year. The price was dropped from £295K to £245K on that one, the other still hasnt sold, and is very much a typical FTB house.

True about interest rates, although the 15% was only for a couple of days (I was working in financial services at the time) - 9% was more typical - but the prices weren't as far removed from salaries. I know lots of people that lost lots of money during the 90's, the worst of which ended up with £45K negative equity which they only finished paying back a couple of years ago (ie it took them 10 years to recover)

Put it this way, here you need £200k to get the most basic 3 bed house or a decent 2 bedroom one. Assuming 10% deposit, you need to be earning £60K per year to get a £180k mortgage. I know in the past lenders have been lax with the multiples, but that's coming to an end, and you should stick to it for your own good anyway.

There really aren't that many FTB's on £60k a year, and as mentioned if a BTL'r buys the house they will have a mortgage of over £1000 a month but will only be able to get about £700 a month in rent, so they arent going to be tempted either. Yes, you will always get the exception to the rule, but IMO not enough of them to keep the currently inflated market afloat
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Jesus, where are you located? between £200,000 - £300,000 for a first time house? wow.

here the tipical 2/3 bed FTBuyer house would be £140,000 MAX! a lot can be had around that price!
 
Stinky said:
Jesus, where are you located? between £200,000 - £300,000 for a first time house? wow.

here the tipical 2/3 bed FTBuyer house would be £140,000 MAX! a lot can be had around that price!
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I think you're right in your comment about FTB prices. As has been debated in other threads, the trouble is that FTBs are wanting to get 2/3 bed places worth 200k and not willing to settle for anything less. People don't seem to be willing to get a slightly smaller house and work their way up the ladder.
 
Harrogate - one of the most expensive areas oop north (but apparently the 3rd best place in the country to live according to Phil and Kirstie ;))

You could get a 3 bed council house for about £160K, but nothing on a private estate.

Edit - with 2 kids (boy and girl) having 2 beds isn't an option.
 
Majago said:
I think you're right in your comment about FTB prices. As has been debated in other threads, the trouble is that FTBs are wanting to get 2/3 bed places worth 200k and not willing to settle for anything less. People don't seem to be willing to get a slightly smaller house and work their way up the ladder.
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Say you rent a 2bed house for £595 a month! that house is only worth £130,000 the BTL return from the landlords prespective is great. but you ask that tenent if they would BUY that house as there first house they would say no.

like you've said, if people settled for less to start they would get on the property ladder a lot quicker, but for some reason FTB dont like doing that.

i know when i look for my first place i will have to settle for something cheap as i will not be able to afford nor get a morgage of £200,000. not a chance

(speaking again for this area - i'll keep saying that because eventually someone will arrive from an area where the prices i am talking about are just not logical lol)

*edit* last time i checked you couldnt buy a 2 bed horse :p
 
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sr4470 said:
Thought second home owners had pushed up prices in Devon and Cornwall...?:confused:
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people from london etc that buy a holiday home down here tend to buy stuff around the £200,000 mark which is the middle of the market around here. the lower stuff is still available for FTB
 
Sagalout said:
Harrogate - one of the most expensive areas oop north (but apparently the 3rd best place in the country to live according to Phil and Kirstie ;))

You could get a 3 bed council house for about £160K, but nothing on a private estate.

Edit - with 2 kids (boy and girl) having 2 beds isn't an option.
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sorry for the third post i should have used to multi button :(

obvioulsy its hard for me to comment on Harrogate lol, but as im sure your aware that is very expensive. £160,000 for a 3bed council house :eek: that same price around here you could get a split level 3 bedroom place, linked by only the garage. lol and a drive way, on a very modern nice estate!
 
Stinky said:
sorry for the third post i should have used to multi button :(

obvioulsy its hard for me to comment on Harrogate lol, but as im sure your aware that is very expensive. £160,000 for a 3bed council house :eek: that same price around here you could get a split level 3 bedroom place, linked by only the garage. lol and a drive way, on a very modern nice estate!
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Yeah, Harrogate may not be typical, but then neither is Devon. You'll obviously get pockets that buck the trend. I think there was a place in Scotland that was seeing record increases still, but thats mostly where prices have been cheap and people are now looking to move there to escape high prices, thus driving demand and increasing prices themselves lol.
 
Sagalout said:
Yeah, Harrogate may not be typical, but then neither is Devon. You'll obviously get pockets that buck the trend. I think there was a place in Scotland that was seeing record increases still, but thats mostly where prices have been cheap and people are now looking to move there to escape high prices, thus driving demand and increasing prices themselves lol.
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exactly there always will be those pockets!

but with respect to the media hype and it being a load of ****. all the figures etc seem to be national avarges etc. they never seem to name locations etc? i wonder why that is?:rolleyes:
 
Well Splattered said:
My house is in Wakefield, not too far from harrogate ;) Come buy it... hehe. I have heard nothing from viewings yet :(
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When did you put it up for sale?
Is it on rightmove?

Depending on how long it has been on the market, it would be worthwhile revising the price. Generally, I find that anything will sell, providing its priced correctly. Another consideration is the property's proximity to amenities and transport - if you live in the middle of nowhere and the price is set too high, even in a sellers market, the house wont sell. You have to be realisitic.
 
sunama said:
When did you put it up for sale?
Is it on rightmove?

Depending on how long it has been on the market, it would be worthwhile revising the price. Generally, I find that anything will sell, providing its priced correctly. Another consideration is the property's proximity to amenities and transport - if you live in the middle of nowhere and the price is set too high, even in a sellers market, the house wont sell. You have to be realisitic.
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Feb @ 149,995
March @ 144,995 (1 viewer)
April house valued by indep valuer (not est agent) at £145k
May @ 135,995

Happily accept 130k

Its on rightmove. Properties in the surrounding area of this type are still at 149,995.

Might just rent it out again and try again in 6 months!
 
Stinky said:
i do put it all down to media pressure, only reason i feel that is due to seeing the effects first hand!
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The media generally only acts as a mirror for people's concerns. There is much, much, *much* more to the current situation than the media, and the reason for concentrating on it is that the world has never known a situation like it before. The credit crunch is very big news indeed, and isn't going away.

Now I know where you are, I understand your figures better. Devon & Cornwall's housing market is freaky thanks to external money blowing in from 2nd home owners. That effect may last quite a while, because much of that money comes from wealthy people or those who've already benefited from high house prices after a death in the family.

As I said before, it's early days yet. This thing has only just got into first gear.

Andrew McP
 
Well Splattered said:
Feb @ 149,995
March @ 144,995 (1 viewer)
April house valued by indep valuer (not est agent) at £145k
May @ 135,995

Happily accept 130k

Its on rightmove. Properties in the surrounding area of this type are still at 149,995.

Might just rent it out again and try again in 6 months!
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Can you possibly give a (rightmove) link to the property. Lets take a look at it and drum up some interest in the process.
 
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