House prices

The ftse is booming. They'll just keep going up

They'll go where they always go - that's up.

The ftse is booming.

Funny you should say that.
Today's price action has the hallmarks of the killer upthrust.
Most traders will be looking to short the index after that.

But don't let me spoil your tea.

Crippen should know.  He invests his tenants Housing Benefit wisely.

Well the housing market is like the stock market. In the long term they both go up but in the short term no-one knows what they're going to do. However if I had to make a guess I'd say they should go up simply because of the basic fundamental rule of economics which is supply and demand.
In this now ridiculously over crowded island there is simply not enough houses to meet the demand so as with any scarce commodity the price goes up.

Rebels are 12 miles from Mariopol, Ukraine.....massive industrial plant produces 30% of Ukraine's GDP

Will EU/Nato make a stand....if War starts then house prices will fall.

Will EU/Nato make a stand

Don't be silly. Nobody gives a toss about Ukraine why should we?

A housing site we were on last year have stopped building on there now due to lack of demand. They were probably £400k houses which is quite expensive for the Midlands.

Correction : about 30% of Donetsk Oblast region

T&C , they have nothing but good words for you.

meatloaf the barometer

it depends if the builders spirit level was south facing

The banks lend the money to inflate the price with money that is made from nothing
so the only way is up until the money system is changed..Sadly Young people will never
afford  a house unless they get jobs at the top of society..

Prices will keep rising, stand on my word.
If the Tories get in, it will be nirvana.
Anyone eligible will choose to convert their pension into a buy-to-let - it is an absolute no-brainer.
Here's what you should do:
1) Get a list of elderly house owners in the area in which you seek to operate and send each of them a "moonshot"
offer on their property. To make this list takes a bit of craft. Essentially, you are hoping to get a bite                 from bereaved, cash-poor or confused house owners.
2) Visit house-owner showing interest and make a realistic, generous offer. Often, the owner is looking to downsize or wishes to move nearer the more able members of a dispersed fasmily. Often the property has become too much for the owner to cope with. But once a sale is mooted, competition comes out of the woodwork. Be prepared to raise your offer. Get your offer accepted.
3)  Wait until the transaction is very well advanced, to the point where the vendor has heavy commitments pending on the sale, then revise your offer downward by 30%. Your Surveyor is your soldier. In property, you make a killing when you buy, not when you sell, so be prepared up to the last minute to walk away unless you get 85% of the deal.
4) Get a tenant in and claim the interest back on your mortgage.

making money out of elderly confused people?

UB Nicholas Van Hoogstraten.

you make a killing when you buy, not when you sell,

That's until you learn how to make a killing when you buy and when you sell.

That's until you learn how to make a killing when you buy and when you sell.

How can you make a killing when you sell? surely you'll just get whatever the market value is

Emden,
Please don't ask for free advice as refusal often offends.

It's ok Dr C, I've just worked it out.


You buy cheaply off the elderly who are mentally confused...


and then...


you sell the same house back to them for a massively inflated price

1)Buy a house in a suburban better off area with a safe conservative majority.
2) Put in planning permission for a mosque.
3) Take the inevitable highly inflated first offer from the locals who don't want it in the vicinity.
4) Retire gracefully.

I hope this is of assistance

THE HOUSES IN THE NICE PLACES WILL ALWAYS INCREASE TO KEEP THE WEALTHY IN MONEY ,THATS WHY  THEVE LET THE IMMIGRANTS IN SO THEM ,WITH MONEY WILL WANT TO MOVE TO A BETTER AREA ,DUMP THE IMMIGRANTS IN THE POOR DISTRICTS MAKING EVERYONE WHOS GOT MONEY TO MOVE WANT OUT SO INCREASING THE VALUE OF THE NICE AREAS,MONEY MONEY MONEY MONEY

YES I KNOW YOU NEED THEM IN TO MAKE LOTS OF PROFIT OFF THEM  BUT MAKE SURE YOU KEEP THE HOUSE PRICES UP  WE DONT WANT ANY OF THEM POOR IMMIGRANTS NEAR US ,YES SO LONG AS IT DOESNT AFFECT US LET ANY ONE IN ,

Further to my original post, the time between agreement and contract-exchange is - forgive the pun - absolutely key. It certainly helps to have an overbidder - one's partner? - make a superior offer that is later withdrawn. The optimum time to "seal the deal" on your own terms is about ten minutes after the vendor hears of this disappointment.
It all sounds a bit hard-nosed but remember, in relieving an older person of a property they can no longer manage, you are doing her a favour, and a favour to her neighbours (at least the front lawn will be tidy!) keeping up the values of the neighbourhood.

Puns on here are never forgiven

There is a niche market in properties protected by the Fair Rent Act. Depressed prices = eyes on stalks. Tenants clinging to this have to be sitting in their property for the last 30 years! Time to move the fossils on, but how to persuade a person renting a two-bed apartment for£500pcm in Mayfair? Not easy but, as landlord, you are legally entitled to take the roof off. Literally, but only effective if the Fair Rent tenants are left open to the elements.

London house prices are falling, overall prices will conti.ue to fall for at least 50 years.

You're 180 degrees facing in the wrong direction if you think house prices are going to fall. Revisit the thread in a year, I guarantee lfc 1971 is wrong.

UB the downside of your plan is that the Elderley person you refer to might have a younger family member who actually cares for them ,and on realising your scheme they may slice your head off Hope you have decent life insurance going into this venture

casemoney raises a pertinent issue: where there's an elderly property owner, a meddlesome "family member" can often appear out of nowhere Surprising how many are keen to cash in early, , and the sweetest deals are often sealed in tandem with interested family parties. But obviously, the more isolated the vendor, the greater the chance of a beneficial transaction.

Prices to go up in the short term

*From April over 55's will be able to cash out their pensions. With pathetic savings rates plus inflation eating away at any savings there really is few options if you want a return on your money, so a lot of people are buying properties to either rent out or refurb and sell on. 

*some of the best fixed rates are at record lows

* UK is one of the fastest growing economies

* Help to Buy and other schemes to help people on to the housing ladder are heavily promoted

* immigration adding to the housing shortage

* Lots of confused and elderly people selling up to get away from rogue landlords who are threatening to take their roofs off and ship them off to care homes

think you need to factor in what happening on the continent as well as the uk and work out where it would be best to buy.

if you look in spain right now you can get flats on the coast for anything from 38k euros to 60k euros.
varying from 1 to 3 beds.

they arent even bank repos.
bank repos are a bit more complex but you can get even lower than the market indicator.

when the economy picks up on the continent you seriously think immigrants will prop up the market in the uk?
when everything is cheaper over there ?

1 bed flat varies from 200 to 300 euros a months!!!!!
its that price a week surrounding london ....people need to wake up.

They're that price for a reason though G1 , many coastal resorts are almost derelict plus everybody wants to get into the UK all of a sudden , the Euro may crash etc ...


as for the UK every area has it's own market , there are still many bargains I see around the Midlands for sale for instance , most young people & immigrants have no interest in ever buying which makes the rental market very appealing imo

I'm still interested in buying another place to rent out although posters on here are enough to put anybody off buying to let , yes there are costs for void periods but if you buy cheap enough who cares as long as it rents often enough for a decent yield

They simply won't CRASH (if they didn't in 2008 they never will) they'll just continue to creep up gradually but beating most other sensible investments imo

The mother of all ponzi schemes; as long as all of us can rent out three/four properties, the party goes on.

After a lifetime in property as a Chartered Surveyor and estate agent the 2 most frequent questions I received.
Are prices going to go up or down? Answer: I don't know and neither does anyone else.
When's the best time to buy and sell? Answer: I don't know. Just do it and find out afterwards.

its a gamble.

its not a gamble on the costa....they have already bottomed out.
in the odd area prices are rising.

unemployment is falling slowly.

this wont be a boom recovery but it will be a steady and stable one.

where i go they have even started to build a new block....bit shocked meself but someone clearly thinks the good times are gonna be back not far down the road.

problem for the uk is if immigramts see other countries offering a better life they mr and mrs wojicjek will be offski.

Jaywick looks nice.

Get a bundle of cheap properties there.

Jaywick lol - know someone who has a flat close to there up for sale - same sort of lines - you can't give them away ,no one wants to know .

Total white elephant .

Just found out today my BTL mortgage has been accepted.  Interest is Less than £300 a month.  Will rent out for perhaps £800-£1000 per month.  This is in the Brighton area, 2 bed flat.  With margins like that I cannot see prices dropping.  The med does look cheap atm.  Lagos in the algarve places are going for around £40k Sterling.  Just seems really cheap to me, Lagos is a lovely place too, not like some of the chav holes you get in Spain, though admittedly a lot of people there do read the Daily Mail.

bix - there speaks a man who can charge £600 per hour for saying it sometimes rains in February. Why take unnecessary risks? Surprised to find you on a gambling site tbh.
I'm 95% sure that house prices will be higher in 12 months, and 99.75% sure they will be higher on May 7th. If the market shows any sign of cooling, the Tories will stoke it up, it's their first priority.

rob_dylan: yes the sums overwhelm every other consideration (£5 billion tax relief to BTL landlords). The country is embarked on the ultimate ponzi scheme. Nobody makes anything, no point in working hard or being creativ;, but we're all going to get rich as long as we can all find four tenants to live off.

Aren't we something like the sixth or seventh biggest manufacturer in the world?

Low interst rates, pensioners able to get hold of their pension pot....plenty more to jump on the BTL band wagon.

That seems the big one is the pensioners.  Seems mental they are just gonna let people take their pension pot in one big lump, then what?  An annuity at what 6 or 7% but doesn't that mean the money's gone when you die?  Who is gonna do that? They'll just buy property and get that much in yield anyway and the property can be passed on to their kids.  Well that is the way I understand it as working.  Would rather put the money in the bank and get 2% than get an annuity.

Yes it's an absolute no brainer.

The housing market can not be sustained by pensioners or buy to let or by foreign investers...this is just tinkering at the margins. The only way house prices rise is through safe and secure jobs and the prospect of wage rises and an increasing middle class...Britain no longer can provide this and it is inevitable prices will fall.

This is a very encouraging development.  lfc is one of the most consistently wrong person on here so I'm thinking HPs won't drop now.

The best thing is if they stagnate for over a decade.  This was what was happening too from about 2010 to 2013 then it all took off again.

Let me make it simple for you, it does not matter if one in every hundred people decide to use property as an investment, it is what the other 99 do and these are the people increasingly who will not buy houses for a number of reasons.

Pensioners are not going to be running around the country buying houses!

Pensioners are not going to be running around the country buying houses!

They already are, and have been for years.  And will do so even more if they get access to their pensions in full with no need to buy an annuity.  in the last ten years home ownership dropped for the first time in a century.  Who are these people paying their rent to?

Of course home ownership dropped and will continue to do so and this is what must lead to a fall in prices...people buying houses as a buy to let investment will not and never will sustain the housing market, it is simply not possible.

(£5 billion tax relief to BTL landlords).

That's wrong for a start.

It should read £5 billion pounds which is subject to tax relief.

Which is a least a fifth of that total even if the figure is correct to begin with.

The best thing is if they stagnate for over a decade.

Yes then nothing will get built for a decade either

Think amount of people renting has gone from 30% to 35% in the last decade.  I reckon it will continue to increase too.  That requires an awful lot of housing that is used as an investment by people.  This doesn't very much help the people who can't afford to buy but that is the way it is.

www.housepricecrash.co.uk is an interesting website.  A bit of a ghost town these days though, they don't even update the house price indices any more.

People who can't afford to buy their own homes have always been with us.
For most people it's never been easy to buy their own home .

There's nothing that says that it's a basic right to be able to afford to buy a house.
Yet in many cases it's cheaper to buy than to rent, so why don't they won't cut back and save for a deposit?

Hard to save, say, 20k for a deposit if you are a low earner.  And if you are bringing up a family forget it.  Cost of housing seems so expensive now.  Rents, council tax, services have surely gone up far more than inflation in the last fifty odd years whereas food, electronic goods, furniture etc has all become far more affordable.

After reading this thread I've googled the repayments (on exactly the same rates as I have on my mortgage) on an interest only mortgage out of curiosity. The repayments would only be about a third less than what I'm paying now, it seems an expensive way of buying to me after two minutes of research.

Aren't Interest only mortgages illegal in most countries?  No chance of that happening here, nothing will be done that could harm house prices.

rob,

It's never been much different for low wage earners. It's just that there are more of them now.
Which is what mass immigration brings to a mature country like the UK.

A young couple on fair wages shouldn't have much difficulty saving up for a deposit on a house before they started a family.

They should be able to live on one wage and save the rest.
They'd soon get the deposit at that rate.

So you're going ahead with an interest only mortgage Rob

Why interest only , will you be saving the rent up in a separate pot to pay the full sum off

What's the price of the flat you're buying , what are service charges etc ?

£75/monthish service charges.  £160k flat.

Yes, interest only, I want some extra income to help me save up money to do it again.

That's not bad I spose , I pay about the same but only paid 55k for my flat
Just be aware you have to pay all that plus council tax if it's unlet , much prefer to buy a house for 160k myself that's an expensive flat but our area's obv differ a lot


I can't see the point in interest only though , obv it'd give you money to try buy another one but how do you eventually plan to pay them off

Probably won't pay them off.  either keep them, with IO mortgages or one day sell them and I keep the difference between what I owe on them and what I sell them for.

Yep I gathered that was your approach

You're taking higher risks though & aren't exactly getting any kind of a Bargain buying wise

Banks / Estate agents just love buyers like you (no offence) as everybody gets paid , but I've learned the downsides of owning flats since buying mine , basically all you own is a Lease , which will also be shorter in the longterm , as will the condition when you try & sell , costs seem no problem on paper but is slightly different when you're tied in long term to them , but gl

is it a new style apartment or the big older types in Brighton ?

we need interest only mortgages for everyone

It is prob about 30-40 years old.  The newer ones cost a lot more and are often smaller.  Looking at sold prices in the area reckon it is 10-20k unders.

Has it got much left on the lease?

as a cheap form of renting & die penniless you mean Coach , sounds good to me !

Yes it may well be a good buy in your area I'm just going purely by the rental yield which is basic industry standard

To put it into perspective mine would rent out for 1/2 of what yours would but was just under 1/3rd cheaper

Over a hundred years.

sorry just over 1/3rd not just under

over 100 years is decent , you can always extend it but gets more expensive the shorter it goes

as a cheap form of renting & die penniless you mean Coach , sounds good to me !
____________________

this is it moony lad - we are fortunate to have our own place ,but  paying interest every week isn't much fun on the way ,was dearer back then too -  at least with IFO you're not crippled with debt while you're actually breathing 

renting isn't the answer as it's simply not secure enough and too many legalities  -unless youre lucky enough to be a council tenant

IFM even

lfc1971 06 Mar 15 11:09 Joined: 06 Nov 11 | Topic/replies: 4,287 | Blogger: lfc1971's blog

Pensioners are not going to be running around the country buying houses!

Pensioners / early retirees / and people on the cusp of retiring, are buying up property like you wouldn't believe.

People in that age group tend to be cash rich, so can easily afford the larger deposits to give them the best possible BTL mortgage deals.

Generally speaking, they are also a lot more financially savvy than their younger counterparts when it comes to investment.

Mcm.

Just under 2/3rds cheaper.

Or 1/3rd of the price.

The best thing is if they stagnate for over a decade.

thats the best case scenario.

its bad news if prices keep rising.
and also bad news if eu migrants head for a higher standard of living....which will happen at some point unless the government can tempt them to stay when the eu becomes more attractive.

Lots of parents are giving/lending money to their kids to enable to buy a house.  But if you don't have this help then it is quite difficult to get a decent place.  Especially in places like London and Brighton, unless you earn well.

Ohh .. Yes 1/3rd of the price .. but you get my point


He doesn't have to buy in Brighton if he has no interest in the property whatsoever ...

yes heard this before from young buyers ,but why do folk set their sights so high ?   whats wrong with nearby towns ?  or even move away from that area

and why a house and not a flat ? 

wish i could afford to live in Brighton .

They all want to aspire to the television lifestyle Coach

and in reality parents are not lending them huge deposits

when I lived at home all they wanted was my rent money

plus how do pensioners get BTL mortgages with no income but a pension

plus how do pensioners get BTL mortgages with no income but a pension

a lot of retired people (especially those who have worked in public sector jobs), have very healthy fixed incomes eg retired teachers, police officers, firefighters, nurses etc .

As far as banks issuing loans are concerned, these people are ideal - good, solid fixed incomes for life and are unlikely to default

Hmm yes that makes sense Emden
My Aunt & Uncle are exactly that , both retired teachers with hefty pensions , but they don't seem the slightest bit interested in getting any richer , all that interests them in their next Holiday

they'll lend to anyone on a BTL ,i call it a sandwich loan -   a bacon,lettuce tomato .


they scoop more interest

Do you reckon they'd lend to me then Coach

own my own flat outright

100k house with 35% Deposit 

No Fixed Income

But Rent would easily repay the loan

i'd imagine so = they were prepared to lend to a social failure like me even after i told them i gambled regularly  and had no hope of ever finding meaningful employment 

they seemed more interested in secured assets tbh

Sod it ... I'm In Then

buy a few - it's only money

May as well get a new car while I'm at it