30% house price falls....that's optimisitic

[King Penda]

8 minutes ago, Bobthebuilder said:

Dead Kennedys.

Efficiency and progress is ours once more
Now that we have the neutron bomb
It's nice and quick and clean and gets things done
Away with excess enemy
But no less value to property
No sense in war but perfect sense at home
The sun beams down on a brand new day
No more welfare tax to pay
Unsightly slums gone up in flashing light
Jobless millions whisked away
At last we have more room to play
All systems go to kill the poor tonight

I knew you would get my joke

[Formerly]

2 minutes ago, King Penda said:

I knew you would get my joke

Lol. I couldn't make out your "art'” until @Bobthebuilder posted the lyrics. Must be proper modern art.

[Frank Hovis]

12 minutes ago, Bobthebuilder said:

Dead Kennedys.

Efficiency and progress is ours once more
Now that we have the neutron bomb
It's nice and quick and clean and gets things done
Away with excess enemy
But no less value to property
No sense in war but perfect sense at home
The sun beams down on a brand new day
No more welfare tax to pay
Unsightly slums gone up in flashing light
Jobless millions whisked away
At last we have more room to play
All systems go to kill the poor tonight

 

DKs were half of a good band IMHO.  Apart from California Uber Alles all of their songs sounded the same on the album I had.  They should have hired a better guitarist.

The album was "Fesh Fruit for Rotting Vegetables".

And that's not my typo, it was a cheap Italian cassette.

[Formerly]

1 minute ago, Frank Hovis said:

 

DKs were half of a good band IMHO.  Apart from California Uber Alles all of their songs sounded the same on the album I had.  They should have hired a better guitarist.

The album was "Fesh Fruit for Rotting Vegetables".

And that's not my typo, it was a cheap Italian cassette.

They're another Ramonified band. More people buy their t-shirts than their records.

[King Penda]

2 minutes ago, Formerly said:

Lol. I couldn't make out your "art'” until @Bobthebuilder posted the lyrics. Must be proper modern art.

He would have got it with just.   Kill and poor

[Phil]

38 minutes ago, Bobthebuilder said:

Dead Kennedys.

Efficiency and progress is ours once more
Now that we have the neutron bomb
It's nice and quick and clean and gets things done
Away with excess enemy
But no less value to property
No sense in war but perfect sense at home
The sun beams down on a brand new day
No more welfare tax to pay
Unsightly slums gone up in flashing light
Jobless millions whisked away
At last we have more room to play
All systems go to kill the poor tonight

Classic 

[MrXxxx]

9 hours ago, Option5 said:

I love the phrase "Dream home".

One day they'll wake up and the dream has gone.

Anyway it's just a house, home is wherever you lay your hat.

Very true...so take your pick...but don't admit to liking the last one!

https://www.youtube.com/results?search_query=wherever+i+lay+my+hat

https://www.youtube.com/watch?v=ju_a2-Pve4g

https://www.youtube.com/watch?v=PKGYFy0WtYo

 

[Formerly]

On 18/12/2022 at 18:51, MrXxxx said:

Very true...so take your pick...but don't admit to liking the last one!

https://www.youtube.com/results?search_query=wherever+i+lay+my+hat

https://www.youtube.com/watch?v=ju_a2-Pve4g

https://www.youtube.com/watch?v=PKGYFy0WtYo

 

Here's my choice.

https://www.youtube.com/watch?v=boo5PDjf1Es

They were fucked up in the 70's!

[logan]

Help to buy pain coming in April 2023 due to CPI:

https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/help-buy-soaring-inflation-buyers-government-equity-loans-1675693

“You don’t pay any interest on the loan for the first five years, but you start paying interest in year six, which is 1.75 per cent. Fine – but then from year seven, your interest rate is pegged to the Consumer Price Index plus two per cent on top.

Ouch”

unfortunatley me thinks the government will come up with a new scam to “help” these weasels.

 

[One percent]

34 minutes ago, logan said:

Help to buy pain coming in April 2023 due to CPI:

https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/help-buy-soaring-inflation-buyers-government-equity-loans-1675693

“You don’t pay any interest on the loan for the first five years, but you start paying interest in year six, which is 1.75 per cent. Fine – but then from year seven, your interest rate is pegged to the Consumer Price Index plus two per cent on top.

Ouch”

unfortunatley me thinks the government will come up with a new scam to “help” these weasels.

 

Can’t they just remortgage against the increased equity?  

[eek]

31 minutes ago, One percent said:

Can’t they just remortgage against the increased equity?  

Yes - if the valuation has increased enough to allow the equity to be part of a normal mortgage.

However most new build houses sell at an initial new build premium that takes years for the second hand market to reflect..

[Wight Flight]

1 minute ago, eek said:

Yes - if the valuation has increased enough to allow the equity to be part of a normal mortgage.

However most new build houses sell at an initial new build premium that takes years for the second hand market to reflect..

And their wages have gone up enough to cover the multiple.

And assuming they haven't taken out car loans, holiday loans etc.

So no, in most cases.

[eek]

On 18/12/2022 at 09:38, Wight Flight said:

Looking at a real life example near me.

There is a block of two bed apartments that were mainly snapped up by BTL types for £200k. That is peak price for that kind place here.

They have been trying to let them for £10k p.a. Again the absolute peak for the two bed market.

Ignoring deposits etc, they are on a 5% return. With a 5% interest rate they are on break even before any costs.

To add to the fun I doubt any tenant will stay for more than six months, so fees and voids will be huge.

To get a sensible gross 10% return they either need to double the rent, or the property is only really worth £100k.

To square this circle, to rent one of these places you need to evidence an income of £25k. Which will get you a £100k mortgage 

I do like things that balance.

BTW the sums get worse on higher value properties.

 

 

 

 

 

It will be worse than that - each flat probably has a £1500 to £2000 annual service charge that will need to come from the £10,000 they are seeking in rent. 

[dnb24]

Not uk- but Swedish prices down around 15%currently. Some on Twitter saying that it’s probably played out now and prices will stabilise- be interesting to see what the new year brings.

[Wight Flight]

41 minutes ago, eek said:

It will be worse than that - each flat probably has a £1500 to £2000 annual service charge that will need to come from the £10,000 they are seeking in rent. 

It's even worse.

The problem with those properties is that you cannot have broadband, can't get sky and can't get DAB radio reception.

I am not sure if you can get a mobile signal but I doubt it.

Good for a recluse I think.

The current tenants in the block didn't know this when they moved in. They will be moving out as soon as they can.

[haroldshand]

4 hours ago, logan said:

Help to buy pain coming in April 2023 due to CPI:

https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/help-buy-soaring-inflation-buyers-government-equity-loans-1675693

“You don’t pay any interest on the loan for the first five years, but you start paying interest in year six, which is 1.75 per cent. Fine – but then from year seven, your interest rate is pegged to the Consumer Price Index plus two per cent on top.

Ouch”

unfortunatley me thinks the government will come up with a new scam to “help” these weasels.

 

There is still a large part of me that is just waiting for the dumbest property ramping scheme that has ever or will ever exist but first they need to scare people with a slight fall in prices. Just look at the population numbers and you can see it will not be long before we are at 100 Million, some would say we are already there with illegals etc.

People soon are going to be willing to do anything to get a roof over their heads no matter how insane.

[reformed nice guy]

2 hours ago, dnb24 said:

Not uk- but Swedish prices down around 15%currently. Some on Twitter saying that it’s probably played out now and prices will stabilise- be interesting to see what the new year brings.

Is that inflation adjusted?

A quick google suggests that Swedish inflation is about 9.5%