UK housing market slump
Jun 24th 2008, 2:28 pm
#46
Joined: May 2008
Posts: 407
Re: UK housing market slump
We had our house on the market two years ago and in 15 months only had two viewings. Brand new housing estate too. Half our estate seems to be up for sale (500 houses on the estate).
Problem is that nobody is getting mortgages right now several of our friends and colleagues have had real issues with getting a mortgage or a remortgage, I believe that is the real underlying issue.
Problem is that nobody is getting mortgages right now several of our friends and colleagues have had real issues with getting a mortgage or a remortgage, I believe that is the real underlying issue.
Jun 24th 2008, 2:30 pm
#48
Banned
Joined: Mar 2008
Location: Winnipeg
Posts: 1,252
Re: UK housing market slump
didn't you hear Honda have released there hydrogen powered car (it's being trialed in LA i believe) it'll be ready in 2 years...Just have to bite the bullet until then.
Jun 24th 2008, 2:34 pm
#49
BE Forum Addict
Joined: Aug 2005
Posts: 1,999
Re: UK housing market slump
Yes they are trialling them. Early days though with hydrogen power, and they will be expensive and will have a limited range. It will be many years before hydrogen is used as the default power option on the roads. Until then, it's black gold, I'm afraid.
Jun 24th 2008, 2:38 pm
#50
Banned
Joined: Mar 2008
Location: Winnipeg
Posts: 1,252
Re: UK housing market slump
To be fair this is what people need. I try to carpool people to save on the amount of cars on the road but people don't want to do it...Maybe if they can't afford it they might share 1 car between 4/5 people...I have noticed a lot more cyclist as well. which i will be trialing this summer (can't really do this when it's winter though)
Jun 24th 2008, 2:42 pm
#52
BE Forum Addict
Joined: Feb 2007
Location: Okotoks, Alberta
Posts: 1,639
Re: UK housing market slump
We agree with this. Although we were fortunate to sell in the UK before the market went quiet, we were leaving nothing to chance. When we went on the market, we had spent a considerable period scrubbing and cleaning and touching up paint and decluttering and presenting and the estate agents we interviewed with regard to listing were all of the view that we had knocked the place into show-home condition. In any market conditions, it is obviously helpful to minimise the possible points that someone interested might use to argue you down on price - our goal was to be the best little house in our price range.
Eamonn & Janet
Eamonn & Janet
The thing is while some houses are on the market for years, some go in weeks. There are some people on the Aussie forums who (IIRC) sold in under six weeks, even in this market, so it is still happening. I think a lot depends on whether your property has a "unique selling point" etc.
Jun 24th 2008, 3:07 pm
#53
Just Joined
Joined: May 2007
Posts: 10
Re: UK housing market slump
All the indications are that the current fall in UK property prices will be every bit as bad as the one last time (1989 to 1994 ish).
There's a lot more debt now (other than mortgages) and back then people earn't £10k pa and had £30k mortgages, now they earn £30k pa and have £200k mortgages, it hasn't stacked up for a good few years now.
The argument that I/R won't go upto 14/15% this time also is irelevent, back then we were used to paying 8% mortgage rates and when they went up to about 12/13% that was an increase of circa 50% (and they soon fell).
Wind forward to today and two years ago many people were used to paying only (an artificially low) 4.5%, now that rate is circa 7% again, a 50% increase. However as mentioned earlier people have chosen to take on much bigger mortgages (relative to earnings than back then) so the exposure is greater today. Add to this the fact that the credit crunch is really only just beginning, when it gets hold of the corporate sector all the forecasts for unemployment are set to rise dramatically. So you could say that 2009 is going to be the new 1990!
There are tough times ahead for all by the looks of it, good luck.
There's a lot more debt now (other than mortgages) and back then people earn't £10k pa and had £30k mortgages, now they earn £30k pa and have £200k mortgages, it hasn't stacked up for a good few years now.
The argument that I/R won't go upto 14/15% this time also is irelevent, back then we were used to paying 8% mortgage rates and when they went up to about 12/13% that was an increase of circa 50% (and they soon fell).
Wind forward to today and two years ago many people were used to paying only (an artificially low) 4.5%, now that rate is circa 7% again, a 50% increase. However as mentioned earlier people have chosen to take on much bigger mortgages (relative to earnings than back then) so the exposure is greater today. Add to this the fact that the credit crunch is really only just beginning, when it gets hold of the corporate sector all the forecasts for unemployment are set to rise dramatically. So you could say that 2009 is going to be the new 1990!
There are tough times ahead for all by the looks of it, good luck.
Last edited by Pablo1; Jun 24th 2008 at 3:28 pm.
Jun 24th 2008, 4:07 pm
#54
No time for muppets!
Joined: Jun 2008
Location: Alliston, ON
Posts: 585
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, 5:08 pm
#55
Born again atheist
Joined: Jul 2005
Location: Europe (to be specified).
Posts: 30,259
Re: UK housing market slump
Originally Posted by dbd33;
No immediate plans but the ex is gone for the summer to the house she's just bought in France, they have to be thinking about staying there.
Jun 24th 2008, 5:13 pm
#57
Born again atheist
Joined: Jul 2005
Location: Europe (to be specified).
Posts: 30,259
Re: UK housing market slump
Originally Posted by dbd33;
I'm not suggesting that we were once married, I think I would have remembered that.
Jun 24th 2008, 5:17 pm
#58
Assimilated Pauper
Joined: Mar 2005
Location: Ontario
Posts: 40,018
Re: UK housing market slump
It's wherever Souvenir lives but I make the effort to know very little about it. The thought that one's ex has the equity to buy a second property while one struggles to fund donkey castration is not one to dwell upon.
Jun 24th 2008, 5:21 pm
#59
Born again atheist
Joined: Jul 2005
Location: Europe (to be specified).
Posts: 30,259
Re: UK housing market slump
Originally Posted by dbd33;
It's wherever Souvenir lives but I make the effort to know very little about it. The thought that one's ex has the equity to buy a second property while one struggles to fund donkey castration is not one to dwell upon.
