House prices..

Majago said:
I don't think they'll be scrapping it any time soon either.

If you were close to the threshold you could pay a few £k for fixtures and fittings to bring yourself below it but wouldn't get away with £20k worth!
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WRONG

http://news.bbc.co.uk/1/hi/uk_politics/7542393.stm

Likely to be a postponement on stamp duty. When who knows? The government are on holiday at the moment. (How can you go on holiday when you run a country?)

I'm looking at a property that is £285k. I reckon i can get it for £270k. but stamp duty...won't kill me, but will impact!

As for offering £249k when a property is priced at £285k...i suppose now is the time to be cheeky! but more than a 10% drop may be too much to ask.
 
rossyl said:
WRONG

http://news.bbc.co.uk/1/hi/uk_politics/7542393.stm

Likely to be a postponement on stamp duty. When who knows? The government are on holiday at the moment. (How can you go on holiday when you run a country?)

I'm looking at a property that is £285k. I reckon i can get it for £270k. but stamp duty...won't kill me, but will impact!

As for offering £249k when a property is priced at £285k...i suppose now is the time to be cheeky! but more than a 10% drop may be too much to ask.
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Sounds like a well thought out plan from the government - let people defer paying the stamp duty so they can buy more expensive houses and then come after them for the money when they're struggling with the mortgage they have now lumbered themselves with.
 
rossyl said:
WRONG

http://news.bbc.co.uk/1/hi/uk_politics/7542393.stm

Likely to be a postponement on stamp duty. When who knows? The government are on holiday at the moment. (How can you go on holiday when you run a country?)
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Had already seen this news and it's not exactly a case of being wrong as it hasn't actually been abolished yet - something which I don't think they will do. By all means tell me I'm wrong when the plans are actually put in place.

Anyway, they're thinking about deferring payments (i.e. giving the buyer extra time to pay stamp duty as opposed to writing it off) which would be different to a suspension of it as it would still be payable.
 
I still dont get why stamp duty isn't progressive. IE you pay 3% on anything above 250k, but still only 1% on the 250k itself.

Its created a stupid barrier in the market.
 
Many of the banks have already publicly stated there will not be a return to the lax lending criteria of the past. Even the current prices which are anything from 8% - 20% down from July 07 (the supposed peak) depending on who you believe, are still vastly inflated because of this previous lending. The air is slowly hissing out through repossessions etc and prices are falling fast, but there is a hell of a long way to go yet.

The demand argument some people cling to just doesn't wash. There will ALWAYS be demand from people wanting to buy houses, in the same way as there will always be demand from people wanting to buy Bugatti Veyrons. The key point is that they simply won't be able to borrow beyond their means to pay for houses anymore.

Good video here

http://www.channel4.com/news/articl...ince+nationwide+survey+began+in+1991+/2370067
 
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Desparate moves from a government who are screwed either way.

An economy is held BACK by highly priced housing, as we are finding right now in the west as our debt fuelled economies are more or less bankrupt at a time when the east is, rightfully, rising.

..... Unfortunately its been sold the masses that an overpriced home reflects some kind of aspirational goal - So much so that they stand to lose the next election (along with all their other shambolic decisions) because people cant continually buy and sell houses, and remortgage their homes to buy the latest gadget.

... On the flip side, a new generation has been handed a lifestyle expectation which is now out of its reach, and will cease to be unless things crash.
 
Jonny69 said:
Staines is alright. Recently had a load of money pumped into it, good high street, good transport connections, well maintained and low crime. I take it you've not actually been to Feltham yet or the likes of Southall round there. That IS a dump my man.
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Yes, have been to Feltham, was staying there for a short while. It is also a dump. Yes staines high street is ok, but thats about it. Went down to laleham the other day to see somewhere, local area seemed ok but otherwise wasnt anything too special.

Found somewhere in Slough instead, only a short drive (even in rush hour traffic) and with a 22 year old woman who can put her feet behind her head and likes wine! hehe
 
clv101 said:
Here's July's report from Nationwide (charts on page 3):
http://www.nationwide.co.uk/hpi/historical/July_2008.pdf

Down another 1.7% in July, down 4.5% in the last 3 months. There have been 9 consecutive months of falls now. The average price is now £16,728 or 9% lower that the peak in October 2007.
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Here's July’s report from Halifax:
http://www.hbosplc.com/economy/includes/07_08_08HousePriceIndexJuly2008.pdf

In agreement with Nationwide, showing another 1.7% from in July. According to Halifax the average price is now £22,249 or 11.1% lower than the peak 11 months ago in August 2007.

Also remember this -11.1% is nominal, in real terms it's more like 14% down.
 
Over the next year I'll be watching house prices like a hawk. I have a good deposit waiting and when the everything is a little less crazy (before they start offering 95%/100%) in about 18 months (est) then I'll buy.

This is the reason - if I put down (for example) 50K on a 200K property, a 10% drop will effectively take out 20K from the deposit (in real terms) as I'd still be forking out for 200K.
 
It really depends over what timeframe the 10% drop applies. People forget the added problem of inflation on house prices.

If you factor in Inflation at 5% - or possibly more like 7% - it will not be a 10% drop. And the inflation will also be eating away at those savings on the deposit too. So Even if you have £50,000 saved now and wait..... It will only really be worth £46,000 say in 2 years time.
 
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True - inflation does alter it, but _if_ your salary rises at least inline with inflation then it's countered.

Ahh I detect a nija edit: true - savings will drop over time if they're not linked to anything.. have to factor in that aspect too but a 4K drop is preferable to a 20-30K drop.
 
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divosuk said:
It really depends over what timeframe the 10% drop applies. People forget the added problem of inflation on house prices.

If you factor in Inflation at 5% - or possibly more like 7% - it will not be a 10% drop.
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No your right, it will seem like more than a 10% drop.
 
footman said:
We took a 10% hit on a much reduced asking price and we've just lost our buyer so I'm pretty depressed today:(
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Well

a) if you bought on the assumption that 'property only goes up' and you were always in it to make a profit ...... then it might be justified. If you bought as a way of putting a roof over your head, then whats the worry - since the equivalent jump 'up the ladder' (as some people, not me, say) is now LESS than it was when prices were higher.... remember, if everyones house goes down together then you can make horizontal moves with no other financial 'hit' than the transaction/moving costs.

b) If you bought a while ago, you may well be sitting on tens, or hundreds of pounds of 'profit' (a loose term) anyways ...... what exactly is the problem in that case.


If you separate the idea of the home you live in, as some kind of 'asset' or means of making money ...... you'll be a happier person.
 
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Morba said:
Yes, have been to Feltham, was staying there for a short while. It is also a dump. Yes staines high street is ok, but thats about it. Went down to laleham the other day to see somewhere, local area seemed ok but otherwise wasnt anything too special.
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You kidding? Its full of chavs...I'm about to go there now on business in fact :p
 
Solari said:
What are you doing these days, sr4470? Did you ever sort out the nightmare with Computeach or whoever they were? :) (hope I'm not confusing usernames)
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It was a similar company, I've been in different work since then. It looks like a healthcare company is going to offer me a job soon (or at least thats the vibe I got from the interviewer). Best take it to IM or something, since this is off topic :)
 
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