Property crash, just maybe it really is different this time (Part 3)

[spygirl]

4 minutes ago, HousePriceMania said:

Dont worry, the red tories are on it.

 

 

https://guidetofloatingoffshorewind.com/fixed-versus-floating-offshore-wind/#:~:text=Higher costs&text=This means floating offshore wind,and insurance costs for developers.

Higher costs

• At present the cost per MWh of floating offshore wind energy is higher than the costs for fixed offshore wind projects. This means floating offshore wind farms are reliant on price support schemes run by governments.
• One of the drivers of higher costs is the fact that floating offshore wind is a new and largely unproven technology which increases project finance and insurance costs for developers.

UK has Dgger Bank - shallow water.

[spunko]

Couple of hotels coming on the market in the past few days, here's one:

https://www.rightmove.co.uk/properties/132359651#/?channel=RES_BUY

 

[HousePriceMania]

5 minutes ago, spunko said:

Couple of hotels coming on the market in the past few days, here's one:

https://www.rightmove.co.uk/properties/132359651#/?channel=RES_BUY

 

Nice place.

The flood gates seem to have open round me now, just price drop after price drop.

Seeing some 4 bed detached new builds type places back at 2019 prices, which were quite frankly ridiculous anyway

[spunko]

53 minutes ago, AWW said:

PH is basically Mumsnet with cars now. The journalistic content crap too.

Hasn't it always been crap?

I never really got the hype with that forum. It seems to be divided into two groups.

Half the forums are populated by a bunch of left-wing, insecure men spending an inordinate amount of time mocking others on how they spend their money, and telling everyone how exciting it is to drive an old rust heap.

And the other half seems to be a load of PCP debt junkies ogling cars they cannot afford and salivating over the latest torque ratio of some £400k Porsche that'll just get hoovered up by some scammer Chink as an 'investment'.

Cars are a mugs game,  whether new or old, but if you want to hang around with a bunch of delusional sorts and convince yourself otherwise then head to PH

[Frank Hovis]

1 hour ago, spunko said:

Half the forums are populated by a bunch of left-wing, insecure men spending an inordinate amount of time mocking others on how they spend their money, and telling everyone how exciting it is to drive an old rust heap.

 

That's Autoshite surely!

I don't qualify to join as whilst I don't want a flash car I do want a reliable one.

[AWW]

10 hours ago, spunko said:

Hasn't it always been crap?

I never really got the hype with that forum. It seems to be divided into two groups.

Half the forums are populated by a bunch of left-wing, insecure men spending an inordinate amount of time mocking others on how they spend their money, and telling everyone how exciting it is to drive an old rust heap.

And the other half seems to be a load of PCP debt junkies ogling cars they cannot afford and salivating over the latest torque ratio of some £400k Porsche that'll just get hoovered up by some scammer Chink as an 'investment'.

Cars are a mugs game,  whether new or old, but if you want to hang around with a bunch of delusional sorts and convince yourself otherwise then head to PH

It wasn't always like this. Chris Harris used to put out some good stuff on it before he went mainstream and turned into a walking advert for his auction site. But like most popular forums it is a victim of its own success. As soon as you've got a lot of users, you've got a lot of fuckwits mixed in with them.  I don't know how it keeps people coming back.

[AWW]

By the way I'm still about £20k up on my weekend toy car even after a decade of running costs. They're not always a mug's game. But you have to buy the right thing at the right time.

[HousePriceMania]

[sancho panza]

On 26/03/2024 at 10:17, spunko said:

Couple of hotels coming on the market in the past few days, here's one:

https://www.rightmove.co.uk/properties/132359651#/?channel=RES_BUY

 

fascianting thanks for psoting.I'd be really interested in the views of @With a crooked smile whos probably got the most experience/best insight into the sector.

I've checked online and the rooms are roughly £250 a night for a B&B.Not sure how many rooms they have as the website is a bit clunky.

they spent £1.7mn refurbing it in 2017 according to the blurb,not sure what they spent.they've got to be in the hole for £3 mn or so.

to my untrained eye,it looks like a beautiful hosue but probably not viable as a B&B due to costs and its run by relative amateurs in the trade but WACS best to assess that.they say no kids on the site.I wouldnt stay at a place like that out of principle.

I wouldnt mind buying an ex B&B

all in all lookslike a marginal player giving up.

 

[Lightscribe]

Wrong thread

 

Edited March 27 by Lightscribe

[sancho panza]

On 26/03/2024 at 10:17, spunko said:

Couple of hotels coming on the market in the past few days, here's one:

https://www.rightmove.co.uk/properties/132359651#/?channel=RES_BUY

 

this post has made me have a quick check on Leics.Dont know when I last looked but some big gaffs have hit the market recently

all in all on the first page of RMV for leics 14 out of 22 were lsited after jan this year,and a few of those otehr in late 23.Top end has defo started to lsit more heaavily imoh.

the last one isnt a recent listng but I've psoted it purely because of its proximity to the M1 and the Serivces at Leicester Forest East you could live somewehre much nicer for half that not far away.

I suppose theyre jsut pinning their hopes on a blind and finacially illiterate chinese millionaire falling in love with the place.

[sancho panza]

if you nkow how to manage you moeny then renting has been a fincaially viable alternative to owning hosues for some time imho

https://uk.finance.yahoo.com/news/renting-cheaper-owning-high-mortgage-costs-060050966.html

Renting now cheaper than owning amid high UK mortgage costs

First-time buyers might be better holding off as renting can be up to over £2,000 per annum cheaper in certain parts of the UK amid high mortgage costs.

Renters are making the biggest savings compared to first-time buyers in the East of England, where they are an average £2,325 better off each year, according to the Halifax Owning vs Renting Review.

Prospective homeowners are being hit by higher mortgage rates and a lack of homes available in the market, which is driving up prices.

Renting in the South East (£1,859), East Midlands (£1,741) and Yorkshire & the Humber (£1,731) also saw significant yearly savings when compared to owning a first home.

[Noallegiance]

Anybody got experience of putting houses into trust to stop them being reemed for care fees?

[sancho panza]

2 hours ago, Noallegiance said:

Anybody got experience of putting houses into trust to stop them being reemed for care fees?

Im not sure it's that easy.the councils have people aiui who look for these type of avoidacne schemes.

the otehr side is that Trusts are a pretty poor way of hiding anything from tax/the govt.

it depends on the type you use as to the rate of incoem tax/CGT that applies

id take proper legal advice because once done it may be ahard to unwind.

also there may be ineritance tax issues that need considering as well.I have run a couple of trusts for under 18s in my time and they're a bit of a nightmare tbh.pm me if you need NA

good starter for ten here from the Law Society

https://www.lawsociety.org.uk/public/for-public-visitors/common-legal-issues/trusts

Long-term care

If you need long-term care and you benefit from a trust, your local authority will take this into account when assessing your circumstances.

If you’re entitled to the income of a trust only, the capital (lump sum) will not be considered

You may be able to put your property in trust before going into care, so it’s not considered to be owned by you and is not used to fund your care. However, your local authority may challenge this if it can show that your main reason for putting the property in trust was to avoid care costs.

 

Edited March 28 by sancho panza

[Democorruptcy]

Tory MPs who are landlords managing to scupper the Renter's Reform Bill

 

Quote

 

"The government's flagship legislation to help renters is fast becoming a Landlord's Charter," he said.

Without significant changes he said the legislation "will hardly be an improvement on the status quo, and in some case it will make things worse".

https://www.bbc.co.uk/news/uk-politics-68686660

 

 

[sancho panza]

[Formerly]

No need to worry. The politicians will just increase the retirement age again.

[sancho panza]

 

https://www.propertyreporter.co.uk/which-areas-of-the-uk-are-seeing-the-biggest-auction-buyer-discounts.html

 

Edited March 28 by sancho panza

[Plan-b]

The Yorkshire BS is helping first time buyers with a new mortgage, what they are actually doing is helping themselves to more of first time buyers money with a 5.99% fixed rate.

https://news.sky.com/story/first-time-buyers-mortgage-with-5-000-deposit-and-500k-limit-launched-but-there-are-some-restrictions-13102343

[spygirl]

'I took out a mortgage 17 years ago and owe £15,000 more than I borrowed'

Amanda Wilson is one of around 200,000 'mortgage prisoners' stuck on sky-high rates through no fault of her own.

https://uk.news.yahoo.com/mortgage-prisoners-debt-amanda-wilson-145751795.html

A mother-of-three who took out a £335,000 mortgage in 2007 says she currently owes nearly £15,000 more than she borrowed, despite keeping up with her payments.

Amanda Wilson, 59, is one of around 200,000 so-called "mortgage prisoners", who were prevented from switching providers or applying for more favourable rates due to the fallout of the 2007 financial crisis.

When she bought her home with the now-collapsed Northern Rock in May 2007, she followed her brokers' advice and put down a 15% deposit for the home in Redhill, Surrey, valued at £395,000 at the time, leaving her with a mortgage of £335,750.

...

It was an interest-only mortgage, at a rate of 5.2%, but Amanda says the general consensus at the time was that rates were going to come down.

Sure enough, they did, with the Bank of England base rate falling to 3% in November 2008, and 0.5% in 2017. However, as a mortgage prisoner, Amanda had no way to take advantage of this and now finds herself in more even more debt.

...

It was an interest-only mortgage, at a rate of 5.2%, but Amanda says the general consensus at the time was that rates were going to come down.

Sure enough, they did, with the Bank of England base rate falling to 3% in November 2008, and 0.5% in 2017. However, as a mortgage prisoner, Amanda had no way to take advantage of this and now finds herself in more even more debt.

..

At a time when the base rate was reaching historic lows, the lowest Wilson's rate ever went was 4.04%, and she says she's had 14 rate rises, the last of which, in August 2023, took her up to 9.29%.

Amanda's payments went up from £1,200 per month to £2,700 per month in just over a year and a half. "The mortgage has just gone up and up and up," she said. "It was incredibly hard keeping up with the increases. I just don’t have the ability to pay extra."

 

The self-employed beauty therapist also took a six-month payment holiday when she was left unable to work due to the COVID-19 pandemic, and over the Christmas period between 2010 and 2011, which was the last chance she had to have a holiday with her family.

"It's been 17 years – all I've really done is work to pay the mortgage," she added.

[spygirl]

Sometimes, looking back on it, I think, 'why didn't I just sell the house?' But I don't want to sell it, I bought it because I love the house and wanted it to be our family home. I wanted it to be somewhere where the kids could come back with their kids and stay for the weekend."

Wilson, who has been working less recently due to health reasons, says her 27-year-old daughter is paying rent to help with the repayments, and she feels like she is "burdening" her youngest.

She's got a big  surprise in 8 years, if she makes it that far.

[spygirl]

"I've actually got a fair bit of equity, but it's not enough to buy another house, or even a flat, and I can't get another mortgage because my circumstances have changed and I will fail the affordability.

"Eventually I will have to sell and go into rented accommodation. All I really wanted was something to leave my children and not going to have anything to leave them, and this is the situation so many mortgage prisoners are in."

If she ends up a forced seller she might find that fair but if equity disappears.

[Mandalorian]

24 minutes ago, sancho panza said:

 

https://www.propertyreporter.co.uk/which-areas-of-the-uk-are-seeing-the-biggest-auction-buyer-discounts.html

 

"Auction" or that "modern method of auction" nonsense?

[One percent]

12 minutes ago, spygirl said:

'I took out a mortgage 17 years ago and owe £15,000 more than I borrowed'

Amanda Wilson is one of around 200,000 'mortgage prisoners' stuck on sky-high rates through no fault of her own.

https://uk.news.yahoo.com/mortgage-prisoners-debt-amanda-wilson-145751795.html

A mother-of-three who took out a £335,000 mortgage in 2007 says she currently owes nearly £15,000 more than she borrowed, despite keeping up with her payments.

Amanda Wilson, 59, is one of around 200,000 so-called "mortgage prisoners", who were prevented from switching providers or applying for more favourable rates due to the fallout of the 2007 financial crisis.

When she bought her home with the now-collapsed Northern Rock in May 2007, she followed her brokers' advice and put down a 15% deposit for the home in Redhill, Surrey, valued at £395,000 at the time, leaving her with a mortgage of £335,750.

...

It was an interest-only mortgage, at a rate of 5.2%, but Amanda says the general consensus at the time was that rates were going to come down.

Sure enough, they did, with the Bank of England base rate falling to 3% in November 2008, and 0.5% in 2017. However, as a mortgage prisoner, Amanda had no way to take advantage of this and now finds herself in more even more debt.

...

It was an interest-only mortgage, at a rate of 5.2%, but Amanda says the general consensus at the time was that rates were going to come down.

Sure enough, they did, with the Bank of England base rate falling to 3% in November 2008, and 0.5% in 2017. However, as a mortgage prisoner, Amanda had no way to take advantage of this and now finds herself in more even more debt.

..

At a time when the base rate was reaching historic lows, the lowest Wilson's rate ever went was 4.04%, and she says she's had 14 rate rises, the last of which, in August 2023, took her up to 9.29%.

Amanda's payments went up from £1,200 per month to £2,700 per month in just over a year and a half. "The mortgage has just gone up and up and up," she said. "It was incredibly hard keeping up with the increases. I just don’t have the ability to pay extra."

 

The self-employed beauty therapist also took a six-month payment holiday when she was left unable to work due to the COVID-19 pandemic, and over the Christmas period between 2010 and 2011, which was the last chance she had to have a holiday with her family.

"It's been 17 years – all I've really done is work to pay the mortgage," she added.

I gave up at the second sentence, ‘no fault of her own’. Ffs, didn’t she read the contract?   I guess that’s a ‘no’ 

[spygirl]

2 minutes ago, One percent said:

I gave up at the second sentence, ‘no fault of her own’. Ffs, didn’t she read the contract?   I guess that’s a ‘no’ 

Mortgage 'prisoners' are a small subset of the much larger IO only mortgage lot, who are now reaching the end of thier term at a rapid rate.

99-07 - 75%+ of resi mortgages were  IO.