UK housing market slump
Jun 24th 2008, 1:33 pm
#16
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Re: UK housing market slump
I'm worried about selling the house. What we are currently doing is "adding value" to the house, decorating, decluttering, carpets cleaning, upgrading lighting and curtains and so on so that it is attractive to a potential buyer. We are also going to put it on the market for less that the other houses around the area in order to expediate a quicker sale.
I think this is likely to be one of our biggest challenges. It means we will have no spare cash to move over with us.
I think this is likely to be one of our biggest challenges. It means we will have no spare cash to move over with us.
Jun 24th 2008, 1:34 pm
#17
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Re: UK housing market slump
That's right - until we see a large amount of distressed selling, prices are not going to plummet overnight like the papers are saying. Quite simply, people will just stay put....
Jun 24th 2008, 1:36 pm
#18
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Re: UK housing market slump
What if mortgage rates go up a lot? What will the folks with 100% mortgages do? I remember the late 1980s. It got messy.
Jun 24th 2008, 1:39 pm
#19
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Re: UK housing market slump
Part of me wonders if Labour want the economy to be screwed up, so they can let the Tories in and blame them.... then they can swing back in as the saviours again in 4 years time....
Jun 24th 2008, 1:41 pm
#20
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Re: UK housing market slump
Well, I don't think it's a "what if" question, Souvenir. Inflation in the UK is getting harder to cover up in official figures and rates will rise several times this year to combat it. With the increase in oil prices (still going up despite the Saudis agreesing to pump more) we will only see further increases in inflation. A lot of people are going to come off favourable fixed rates and find themselves hit hard by rate rises. I know one person who renegotiated and found herself £400 a month worse off.
Jun 24th 2008, 1:45 pm
#22
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Re: UK housing market slump
I don't know the exact financial details because I don't know this person well enough, but she was a casualty of NR. I'm not sure her story is all that uncommon either. Rates are going to get higher as well so I guess it's smart to get a fixed rate asap in this economy.
Jun 24th 2008, 1:46 pm
#23
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Re: UK housing market slump
Largely down to luck as well - right place, right time and all that....
Contrary to the media, it seems to have picked up a little recently in our area, we had two viewings at the weekend and a viewing the week before that. Previous to that we had 6 weeks of no viewings....
I think people are starting to get a bit fed up of the "prices are dropping" mantra and can't be arsed to wait and see....
Probably come a little late for us though, we're going to have to switch to renting it out within the next month or so.
Contrary to the media, it seems to have picked up a little recently in our area, we had two viewings at the weekend and a viewing the week before that. Previous to that we had 6 weeks of no viewings....
I think people are starting to get a bit fed up of the "prices are dropping" mantra and can't be arsed to wait and see....
Probably come a little late for us though, we're going to have to switch to renting it out within the next month or so.
However, I was in Banbury/Bicester just before then and they were tearing their hair out and prices had come down. However, just trawling Rightmove & asking prices seem to be quite bullish and not that much lower than the peak last year. I don't know if this translates into the offers and what is then accepted. There are a lot more houses on the market up here than there would be normally.
All I know is that if I was investing now, I would want to mitigate my risk of the value falling by buying for a lower price. The position with the lenders is also making things very difficult as the cost of the mortgage is way more than the rental income. It's been this way for a few years but the rising prices hid that as the total return was still good. An investor cannot invest if their returns are negative and that takes away some potential buyers that have held the market up previously.
Jun 24th 2008, 1:49 pm
#24
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Re: UK housing market slump
I was in Wales a month ago and the agents there were saying they were getting good offers and were selling things, this is by the sea on the coast so possibly a different market??
However, I was in Banbury/Bicester just before then and they were tearing their hair out and prices had come down. However, just trawling Rightmove & asking prices seem to be quite bullish and not that much lower than the peak last year. I don't know if this translates into the offers and what is then accepted. There are a lot more houses on the market up here than there would be normally.
Jun 24th 2008, 1:52 pm
#26
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Re: UK housing market slump
Maybe she re-negotiated the term? We did that recently because we to get the thing paid off quickly. It's costing a fair bit but, mercifully, we've got a 5-year fixed rate at well below 6%.
Jun 24th 2008, 1:53 pm
#27
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Re: UK housing market slump
I was looking at asking prices.....and it's a market I know well so I can track prices pretty well.
Jun 24th 2008, 1:54 pm
#28
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Re: UK housing market slump
I think that the media have made people panic - yes the market is not as good as it was but now the media are terrifying people into not buying.
Also the greed of the estate agents can't be helping, we sold a house just under 4 years ago and the estate agents charged £500 plus vat to sell a £135k house. Now to sell a £175k house we have been quoted £3k plus vat. Surely the high cost has put people off moving and will now make do or extend?
Our house is about to go on the market - fingers crossed we can find a buyer, so we can get to Oz as soon as possible.
Also the greed of the estate agents can't be helping, we sold a house just under 4 years ago and the estate agents charged £500 plus vat to sell a £135k house. Now to sell a £175k house we have been quoted £3k plus vat. Surely the high cost has put people off moving and will now make do or extend?
Our house is about to go on the market - fingers crossed we can find a buyer, so we can get to Oz as soon as possible.
Jun 24th 2008, 1:57 pm
#30
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Re: UK housing market slump
There is so much more cost now to moving.....HIPS, Stamp Duty & agent's costs have all added to the inertia of the market.