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Has Coronavirus officially killed the housing market?


Post-Covid, what 3 changes are you going to try to make? (max 3)  

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BoSon
14 minutes ago, Frank Hovis said:

This is a good illustration of why sometimes you should simply take a step back and acknowledge that you have a great deal even if it isn't perfect; therefore you don't put it at risk.

Young family buying a house in Helston (average sized town in Cornwall) from a local developer with price informally agreed a year ago before the build started.

In that time the Covid "must buy a house somewhere nice" frenzy took off and the house's value / price had gone up £75k.

Instead of thinking what a great deal they had - essentially a one year call option on a house in an overheating market - they start to get stroppy with the developer because the garden fence is four foot high rather than six foot.

This then gives the developer the option of redoing the fence for the ungrateful whining provisional buyers at his own expense or pulling the sale and making a further £75k by selling to somebody else.

Tough one.

 

The lesson here is:

Know when you have a very good deal and learn to keep your mouth shut so that you don't lose it.

I have no sympathy at all; generation me me me.

https://www.cornwalllive.com/news/cornwall-news/family-lose-10000-forever-home-5498921

Story reads that the developer backed by the estate agent pulled the deal to chase bigger profit after being awarded an excuse over the fence. :ph34r:

 

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I've just spent a while browsing the 118 forums since my previous post.  Tenants not paying, tenants already fucked off, not a registered business, mortgage company doesnt want to know, how will

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Frank Hovis
1 minute ago, BoSon said:

Story reads that the developer backed by the estate agent pulled the deal to chase bigger profit after being awarded an excuse over the fence. :ph34r:

 

Yes.

And the family, I would suggest the wife, put that idea in his head by moaning a lot.

If they had simply kept quiet and accepted the lower fence, which is easy enough to replace, then they would have been £75k up.

Their fault IMO; if they had simply nodded and accepted then the developer would likely have stuck to the agreed price.

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Democorruptcy
11 hours ago, JoeDavola said:

Now I don't think they'd agree to that!

Some people manage it. There was an house fo sale near me at auction for cash buyers only. In it lived an 80 year old with a lifetime tenancy at £300 a month.

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Don Coglione
20 minutes ago, Democorruptcy said:

Some people manage it. There was an house fo sale near me at auction for cash buyers only. In it lived an 80 year old with a lifetime tenancy at £300 a month.

Would the tenant not be subject to a biennial fair rent review?

My former neighbour had an irrevocable tenancy, in place for over 40 years; every 2 years, the (absent) landlord would request a 100% increase in the rent. The fair rent officer would attend the property, neighbour would make him a cup of tea, the landlord never turned up to argue the case so, after tea and a biscuit, the officer would approve an inflationary increase only.

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Democorruptcy
1 minute ago, Don Coglione said:

Would the tenant not be subject to a biennial fair rent review?

My former neighbour had an irrevocable tenancy, in place for over 40 years; every 2 years, the (absent) landlord would request a 100% increase in the rent. The fair rent officer would attend the property, neighbour would make him a cup of tea, the landlord never turned up to argue the case so, after tea and a biscuit, the officer would approve an inflationary increase only.

There was no mention of any rent reviews in the auction docs. It was a detached bungalow and £300 was dirt cheap, so I assumed the rent had been the same for years.

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JoeDavola

Interesting point made on the NI subforum of ToS that there's 44% less houses on the market in NI to buy and 55% less available to rent in than the same time about a year ago.

 

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Southmartin
1 hour ago, JoeDavola said:

Interesting point made on the NI subforum of ToS that there's 44% less houses on the market in NI to buy and 55% less available to rent in than the same time about a year ago.

 

And has anyone correct their grammar to say "fewer" yet?

If not, heathens!

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Bilbo
2 hours ago, JoeDavola said:

Interesting point made on the NI subforum of ToS that there's 44% less houses on the market in NI to buy and 55% less available to rent in than the same time about a year ago.

 

Does this mean more people purchasing their home and more people renting? Or have they all turned into holiday / air BnB? Or have these properties disappeared?

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Wight Flight
2 hours ago, Southmartin said:

And has anyone correct their grammar to say "fewer" yet?

If not, heathens!

No. They haven't corrected it either.

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Democorruptcy

Homeboosters now!

Quote

 

A new company will advise parents and grandparents on remortgaging homes to help children onto the housing ladder.

Tembo, which describes itself as a 'family lending platform,' enables first-time buyers to get on the housing ladder by brokering a small interest-only mortgage on their parents' - or another family member or friend's - home.    

The money from the benefactor - which Tembo refers to as the 'homebooster' - is then put towards the child's mortgage deposit, allowing them to buy their first property. 

https://www.thisismoney.co.uk/money/mortgageshome/article-9664987/New-firm-Tembo-help-parents-remortgage-children-housing-ladder.html

 

 

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Frank Hovis
42 minutes ago, sarahbell said:

Mid terrace on my street valued at 160k. That's insane. 

 

27 minutes ago, JoeDavola said:

 

<cough>

1_Padstow-home.jpg

£430k

<cough>

https://www.cornwalllive.com/news/cornwall-news/padstow-home-narrower-london-bus-5477247

 

If you want insanity come down yer me dears.

We do it rather well.

 

(I hate to think what has happened to house prices on the Isles of Scilly which always traded at a premium to the mainland owing to their shortage because the Duchy of Cornwall owns a lot of the land and won't sell it)

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23 minutes ago, sarahbell said:

30k so a shop worker can afford it.

Unless it's one of those places you can only live if you where born on the same street, then housing benefit for a 3 bed in that post code is. That's going to set the base price.
image.png.fefbc0fd9f78cfb25d33385f70a59ba7.png

 

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sarahbell
32 minutes ago, feed said:

Unless it's one of those places you can only live if you where born on the same street, then housing benefit for a 3 bed in that post code is. That's going to set the base price.
image.png.fefbc0fd9f78cfb25d33385f70a59ba7.png

 

So what does that translate into in terms of house prices? And what yield should landlords expect?

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BurntBread
2 hours ago, sarahbell said:

So what does that translate into in terms of house prices? And what yield should landlords expect?

From @feed's numbers, I make it that a 3 bed will rent for £6582 per annum, which at a price of £165k is a gross yield of just under 4%. I can imagine a prospective landlord thinking that 4% would cover the mortgage, and capital appreciation is free money on top: "sounds like a nice pension!". That is to say, if the landlord in question doesn't think too hard about S24 and CGT.

We have heard on here from @Wight Flight (I think) and a few others that, for some, reason, landlords are happy with gross yields in the range 3% to 4%. Having looked quickly at the numbers, the place I rent (PRS, "no pictures, no pets, no DHSS, no blacks, no Asians, no children...") is almost exactly at the LHA level (although a bit more than 4% yield), so I'm being screwed over in this way using my own taxes.

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