UK property prices on the up.

[zilnor]

My son is in the process of buying a house in Hertfordshire. He has his own business with three years full accounts (profits increasing each year),and so they want a 20% deposit, but if he was employed and his boss said what a good chap he was, he would only have to find 10% deposit !! :head

[webejamin]

In the future, I think it will be the interest rates that will hurt most, plus plenty more people will be jobless after buying a new home. :o People are already beginning to feel safe with the latest feelgood factor Just watch the unemployment figures drop. :o "My my my said the spider to the fly" ;D

[gus-lopez]

Gus i think it depends on area,ie the banks are assesing the loan to assett ratio area by area,so if the house prices in the banks estimation are 25% over valued in one area they will want a 25 % deposit to cover there A.

in my neck of the woods there are a lot of" Faded " for sale signs.

should be intresting to see how the new" price talk up " works in time for the next election  ;)

No, they aren't thinking that they are over-valued but requiring the 40% deposit so that if it all goes down the pan again & prices drop 30% they'll still be able to foreclose( if it came to it ) & knock it out without them having to bear any possibility of the risk whatsoever.
They are all pikey scum that really deserve a good kicking.
Whilst I was unfortunately in the UK recently,Son-in-laws sister finally decided on a house to buy after looking for months. Price 250k deposit 100k.
Bank did full survey & valuation & valued it at 285k !! Then asked for 40% deposit based on their valuation !!  :rofl: You couldn't make it up !
Her father soon put a stop to that .

[ramblarider]

I know for sure of one house (in Wales) that sold this week within 2 days of going on the market and virtually at the asking price.

Not something you'd see here much, I'd suspect....

[Tetley]

Very interesting  :tiphat:

this is my hobby subject,because wile decent hard working people are strapped to 30 / 50 % over priced housing/ banks / the machine /,it keeps the nations workforce focused,wile the top end fiddles away....... at leisure.


thats just 85k please Sir.... for the tax payered chefure UK  motor.  :o

right its 5,24 am and time ti play mi pink floyd tunes  ;)

morning all  :tiphat:

[laurence24]

Hi, Tetley, he is buying a repossession, but his mortgage is not with the same bank as the house seller,

actually, he has been outbid 3 times, the price has gone UP, hes not too pleased, but at least the market is moving

His mortgage rate is low, repayments are small. and the house was on the market about 3 weeks, its a little gem,

L24

[webejamin]

Yes Tetley, Only people with cast iron employment, good pay and 20% get a look in this end, that type are getting fewer and fewer.
I think it's all a talk up, ready for the next election, then we will really find out what cuts are :o Most people are working for peanuts this end, the new Tesco centre says it's taken on local people, yes, but they have only been local for a few months. A guy I was talking to about it says all the hundreds of job seekers were foreign but lived here already, so were counted as "local".
Houses can't be worth what they say and a bust is being created again, but this time it's intentional.
I'd better get the estate agents round and make a killing before it all goes wrong :o   

[Tetley]

Lawrence
just out of intrest

what type of property your lad buying ?

how long was the property on the market ?

what was the price and has he discounted it down for a deal ?

what rate has he got the morguage at ?

genuine question/ market research

:tiphat:

[Tetley]

Gus i think it depends on area,ie the banks are assesing the loan to assett ratio area by area,so if the house prices in the banks estimation are 25% over valued in one area they will want a 25 % deposit to cover there A.

in my neck of the woods there are a lot of" Faded " for sale signs.

should be intresting to see how the new" price talk up " works in time for the next election  ;)

[laurence24]

Where ?
They are asking for 40% in the south-west & most other places in London & south-east.

South Yorkshire, or indeed any area, my son is at present buying a house, completes next week, with 10% deposit, so they are available.

L24

[gus-lopez]

Tetley, banks only want 10%,

L24

Where ?
They are asking for 40% in the south-west & most other places in London & south-east.

[laurence24]

Tetley, banks only want 10%, but you have to have PROOF that you acn afford the mortgage, and with a lot of repossessions, this is good for them, they are at last being careful.

L24

[ramblarider]

The costs of letting are outrageous... crazy insurance... comply with this, that (and the other), test certificates, deposit holder's schemes... it adds up very fast, so not as profitable as it seems, and if you DO get some low-life in there who trashes the place. Good luck. You'll need it.

[webejamin]

A few years ago, maybe 3/4, I went into this renting out thing but decided against it. To do it all above board is as Tetley described it.
You never know who you're going to get in your property. The agents can't discriminate, the DHS get some nightmare's in, it can take forever to get them out, at great cost, you can never tell how your tenants will turn out. A mate of mine bought a new luxury flat on Southend sea front to live in, but before long all his neighbours were DHS, junkies, crackheads, the lot. He moved out but could not sell it, rented it out in the end and it was wrecked in weeks. Not for me :o

[Tetley]

With pension funds offering such poor returns now there is a definate move towards property portfolios for retirees on a buy to let basis, you only have to look at Homes Under the Hammer to see that many of the people purchasing at auction are doing up the properties themselves with a view to getting anywhere up to 10% return on investment once they are done up.
My daughter rents a room in a student house in Northampton which has four tenants each paying £75 per week plus bills, that equates to an income of £15600 per annum on a terraced property that you could buy for £115000 so a return on investment of 13.56%, no bank or pension fund will offer that sort of return in the current climate thats for sure.

Pens
what you say stacks up,but you still have to run it,maintain it,conform it,have it not fully let all the time wich can soon knock a hole in the 13 %,allthough it is a safer bet than money in the bank earning 1.25% with 2.7 % inflation. if a person can buy at the correct price and then do all there own building & maintance & letting work then its job done,if not,its complicated and a pain in the A.
:tiphat:

[Tetley]

I cut the grass the bloke at the bank said yev just increase yer value there..... :lol:

in the real world

as i see it and have seen it since 2003,befor the bank crash,you could pop down to the bank,5k down.... bosh  house.

now we have banks wanting 20% deposits plus in most cases so the govi has brought a new schem in were you lend people with no money,cheap money for a deposit HOWEVER ! they still have to pay it back,wich brings me to the next point... :o in real terms UK  wages are at best falling /stood still wich helped stagnate the housing market in the first place,then your still left befor the new boom with remnants of the old boom ie people now in neg equitry after the 2008 bule burst.
ive been intrested in property for quite a few years and have saved a few local property papers for price ref, houses in my area ie east yorks i would say are 25 /30%  off the 2006/7 asking prices and if your looking to sell to a dealer i recon 40% min down from the 2006 /7 boom.

personaly i dont think we will see any rise apart from the London comute area until the econamy lifts and people move of agency,zero hours work into stable work were they earn more money and have some stability.

i did think it had another 10 to 15 % to drop however the new government schem should boy the market,and help sure up over exposed UK  banks to neg eq /value house loans,but the bottom line the uk is a 6 to 15 quid an hour econamy for most,so senible lending has to reflect this or we will e back to the 2007 /8 bank crash.
and of course there is that other old chestnut to control,printed money,increase inflation,and the intrest rate brake to e applied any time soon.

:tiphat:

my money would be on a mini lemings over the housing cliff  gov & bank  instigated boom in readyness for the 2015 elections followed by what we have now.... faded sales boards & stagnate market for years after.

[webejamin]

UK property prices are really on the up :o I've been watching several houses that have been up for sale for a few months, one a year. Well they have all just been sold, they sold for more than they were priced at last year. The only thing is, they all have tenants moving in, so they were buy to rent.
I just wonder if that is causing a boom in house prices which I think are too dear anyway ??? I just hope the bust doesn't cause another crisis, you know, interest rates are nothing now, but I think they will rise before long :o then what :o