Property crash, just maybe it really is different this time

[Hancock]

2 hours ago, HousePriceMania said:

If you want a laugh, got to this listing and toggle between the two garden pictures.

 

 

 

if someone can explain why the fook an EA would go to that  effort then leave the original picture listed then please explain it to me.  Maybe they're just thick as shit in the neck of a bottle.

It relates to the joke about EA's as they sit around doing sweet FA all day.

Q. why didn't the EA look out of the window in the morning?

A. Because it would give them nothing to do in the afternoon.

[Long time lurking]

Coming here soon ?

 

[spygirl]

On 11/12/2020 at 21:03, spygirl said:

House prices in NE have gone nowhere in 15 years.

Theres two types of market crashes - prices n number of  transactions

UK has the latter.

https://www.bbc.co.uk/news/uk-58747051

From the balcony of his one-bed flat there are glimpses of local landmarks on the horizon - the town hall clock and Tees Transporter Bridge. Fourteen years after he bought the property - and a decade on from the lightning strike - it is barely worth half of what he paid for it.

"I definitely wish I hadn't bought this place," he says.

The electrician, now 35, bought at the end of 2007 for £96,000 - when the housing market was peaking ahead of a massive crash and global recession. He had been living at his mum's on a council estate, when one day he spotted a sign for a new-build estate where developers were offering to pay purchasers' deposits for them - 5% of the purchase price.

....

Now, more than a decade on, Steve is back in the flat on his own. His story of negative equity - where the mortgage debt owed on his property is more than its value - is not so common these days. House prices have not taken sharp falls recently and interest rates are low.

But Steve has other problems too

...

"The British housing market is notorious for booms and busts, but the cheaper sector in Middlesbrough was one of the most volatile of all."

Prices went up by 50% in just two years, then fell off a cliff - says the professor - with Steve buying at the very top of that boom, having been drawn in by the developer's offer to pay his deposit.

"He then got caught in a market collapse and was lumbered with an escalating service charge."

And in the years after the worst financial crisis, Middlesbrough's housing market has not seen strong rising demand - says the professor - so prices haven't risen as fast as in other parts of the country.

 

Same will go for London/South as wages n houses adjust to loss of well paying jobs.

[BoSon]

The property trap:

https://www.bbc.co.uk/news/uk-58747051

In need of modernisation? The UK’s housing crisis close up

[spygirl]

23 hours ago, HousePriceMania said:

If you want a laugh, got to this listing and toggle between the two garden pictures.

 

 

 

if someone can explain why the fook an EA would go to that  effort then leave the original picture listed then please explain it to me.  Maybe they're just thick as shit in the neck of a bottle.

Bored. Nothing to do. Filling time.

 

[spygirl]

On 30/09/2021 at 10:09, Hancock said:

I bid on this house last year via an online auction, it went for just over 200k ... if memory serves it was for £205,000 plus fees, of about 6k, so i stopped. (£199,000 is incorrect, unless the auction winner didn't purchase it)

They've clearly spent a bit doing it up and extending it (£20-30k at a guess), but some mug has paid £310,000 for it.
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=73643556&sale=12531013&country=england

Good location, but from June 2020 the price of such places such have imploded. Sunak is an utter cunt

Yawk will be up like a rocket, down like a stick.

There are not the wage to support those prices.

In fact, yawk employment is even worse than ~15 years ago.

 

[Hancock]

27 minutes ago, spygirl said:

Yawk will be up like a rocket, down like a stick.

There are not the wage to support those prices.

In fact, yawk employment is even worse than ~15 years ago.

Its by the town centre and hospital, plus there seems plenty of Chinese students who invariably can snap such places up.

Apart from some shite flat with cladding issues, i've not seen anywhere with prices falling, since the blip in 09.

[King Penda]

1 hour ago, spygirl said:

Yawk will be up like a rocket, down like a stick.

There are not the wage to support those prices.

In fact, yawk employment is even worse than ~15 years ago.

 

Meanwhile in stoke you can get this for 110k ok not perfect but it looks easy to build a garage where the car port it or put up and over doors and reinforce the roof and just breeze block the end off I’d guess that would make a 25ft garage easily.I also think the satalite maps got the wrong side of the road so an option there for access to the fields behind https://www.rightmove.co.uk/properties/114288092?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

[HousePriceMania]

1 hour ago, spygirl said:

Yawk will be up like a rocket, down like a stick.

There are not the wage to support those prices.

In fact, yawk employment is even worse than ~15 years ago.

 

Same all over the UK.

Got a get Londoners moving out with their ill gotten gains and paying well over the odds for a house that the local area cant support.

Given the London buyer will never make those gains and the local wages can't buy the house the London idiot bought....who do they sell to when push comes to shove ?

These people are screwed and they think they're winning, would lose less on their london pads.

[spygirl]

13 minutes ago, HousePriceMania said:

Same all over the UK.

Got a get Londoners moving out with their ill gotten gains and paying well over the odds for a house that the local area cant support.

Given the London buyer will never make those gains and the local wages can't buy the house the London idiot bought....who do they sell to when push comes to shove ?

These people are screwed and they think they're winning, would lose less on their london pads.

Lond0ns been falling for ~ 5years.

The number of people with mad gainz to splurge elsewhere is rapidly shrink, if not over.

Noones buying in London now.

[HousePriceMania]

22 minutes ago, spygirl said:

Lond0ns been falling for ~ 5years.

The number of people with mad gainz to splurge elsewhere is rapidly shrink, if not over.

Noones buying in London now.

The transactions figures will be interesting going forward.  I'd bet they have brought forward a lot of sales and now there will be a hole just as we enter an almighty s**tstorm.

It'll get to the point the agents will need to drive down the prices to get sales.

Something that must be alien to most of them.

 

[Noallegiance]

49 minutes ago, spygirl said:

Lond0ns been falling for ~ 5years.

The number of people with mad gainz to splurge elsewhere is rapidly shrink, if not over.

Noones buying in London now.

The demographic has noticeably changed in our commuter town 30 miles from London on the last 3 years.

London's definitely emptied out a bit.

 

Edited October 1, 2021 by Noallegiance

[sancho panza]

lines 1 thru 6 could be worth following.I'm not sure where the data comes from.

Do Rightmove carry this data?

https://www.home.co.uk/company/stats.htm

 

[sancho panza]

Posterity

https://www.zoopla.co.uk/for-sale/

[AWW]

London anecdata:

A wealthy friend is looking for a rental in Central London. He has a big budget - we're talking five figures per month. The high-end estate agent he's using is unable to find him anything to let.  The reason?  Apparently, houses in this price bracket have been empty for so long that they have all been put up for sale, but at asking prices that nobody wants to pay.

This sort of situation only ever resolves one way, and it's not with house prices going up.

[Hardhat]

A friend had an offer accepted on a 400k flat at a £60k discount in Zone 2, so 340k. It needs a complete refurb (~30k), but still. Listed at 400k, sold for 340.

[Bobthebuilder]

46 minutes ago, Hardhat said:

A friend had an offer accepted on a 400k flat at a £60k discount in Zone 2, so 340k. It needs a complete refurb (~30k), but still. Listed at 400k, sold for 340.

Houses in my area of London were marketed around £420k 2 years ago, I see them now listed around £360k.

[Hancock]

17 hours ago, AWW said:

London anecdata:

A wealthy friend is looking for a rental in Central London. He has a big budget - we're talking five figures per month. The high-end estate agent he's using is unable to find him anything to let.  The reason?  Apparently, houses in this price bracket have been empty for so long that they have all been put up for sale, but at asking prices that nobody wants to pay.

This sort of situation only ever resolves one way, and it's not with house prices going up.

I just wish the boe would raise interest rates to get that resolution, the fuckers have had their fun since Brown let them run riot and destroy society, time to act like grown ups.

Though Bailey is by some distance the most corrupt governor the BOE have had since they became household names.

[Castlevania]

5 hours ago, Hardhat said:

A friend had an offer accepted on a 400k flat at a £60k discount in Zone 2, so 340k. It needs a complete refurb (~30k), but still. Listed at 400k, sold for 340.

Where in Zone 2?

[spunko]

On 30/09/2021 at 14:47, Boon said:

One of the funny things is Rightmove basically have been squeezing the agents every year for more fees, and will continue to do it while they are pretty much the main portal.

Their business is akin to a cash machine for investors, no real ambition to chase market share in other countries (either organically or buying someone), just return cash.

There is nothing very special about Rightmove, and also little in the way of switching cost. If the EA's were a bit more organised they could fund their own platform, stop using Rightmove and make the new platform the more popular one.

But the dog-eat-dog attitude of them means that nobody would be willing to forgo short-term profit loss for a long-term benefit.

 

The agents did create one, called On The Market. It's run by the industry or was. The problem is you need a USP for people to switch from the market leader to you, and they don't have one. Plus there's Zoopla too who actually do have a gimmicky USP.

What they should have done is made it free for all agents for the first year or something like that.

Edited October 2, 2021 by spunko

[Wight Flight]

My on the market alerts are always half an hour after rightmove.

In the current situation, that makes them pointless. The property has already gone by the time you hear about it.

 

[sleepwello'nights]

On 30/09/2021 at 13:10, reformed nice guy said:

Painting everything grey always adds 20% to a property dont you know! 

Thanks for the tip 

[sleepwello'nights]

On 01/10/2021 at 09:07, spygirl said:

 

Now, more than a decade on, Steve is back in the flat on his own. His story of negative equity - where the mortgage debt owed on his property is more than its value - is not so common these days. House prices have not taken sharp falls recently and interest rates are low.

But Steve has other problems too

 

The other part of the equation is how much would he have paid in rent in his 14 years of occupation? It isn't as simple as the fall in value apportioned over his period of ownership. It may turn out that when he sells it the price attained may be higher than the current market price. Time will tell. 

There are also non financial considerations like security of tenure to consider.

[sleepwello'nights]

18 hours ago, Bobthebuilder said:

Houses in my area of London were marketed around £420k 2 years ago, I see them now listed around £360k.

Someone I know sold their house in SW London outskirts for £1.8 million, completed in July. They had lived in it for three years or so. Paid £1.4 million for it.

 

[Hardhat]

16 hours ago, Castlevania said:

Where in Zone 2?

Sort of between Stoke Newington and Finsbury park