username 34

but it works both ways - we've been held ransom by the market before the slump with people bargaining .... yet people are happy and laugh because they've got a good deal - its ripping off in the reverse.
When its a high market as before we landlords suffer (I mean landlords such as myself with one house, our old family home, trying to get rent to cover the mortgage, not landlords who own heaps of properties) as tennants play us off between other properties driving down the prices.

Now we get the true value of our property yet we are seen as unscrupulous but when someone comes on here excited about the fact they've beat someone down on prices and got a bargain its all high fives - yet they're profitting from their situation.

cant have it both ways I'm afraid.

Giantaxe

What I've observed is that the "silver lining" doesn't last anyway. Initially in a downturn rental prices get pushed up as people stop buying or get foreclosed on. Then a "tipping point" occurs where the previously owner-occupied foreclosures start getting snapped up by "investors" at fire sale prices and added to the rental market, and people start renting out properties instead of selling them because they "don't want to give it away" in a declining market. Also remember that rents cannot be fuelled by stupid loans as house prices have been - rents typically track incomes much more closely than house prices. And with the UK entering what looks like an extremely nasty recession, incomes aren't exactly going to be rising.

Giantaxe

Or, in reality, neither is "ripping off", but merely the actions of the free market in setting prices.

username 34

like you say its all swings and roundabouts, what benefits one person at one time benefits another at a different time.

For us this credit crunch is ensuring our rentees stay renting our property long term - which is great news for us as gives us stability in our rental income. Much different than when it came onto the rental market and it was hard to find anyone renting!

Petals

Yes I believe it is and I remember last year before the election on another forum I belong to people were worried about labour being elected and I posted at that time that the thing people should worry about was the US of A and its property market as it was declining then, how true my thought was.

I believe Australia will have a downturn but not as bad as other places because its service industries that suffer the most and London and other financial centres will suffer as they have built their economy on deregulation.
The lower dollar is always better for us and a high one is never desirable here. We get used to travelling and spending more but it is our exports that will gain. We can do without the rubbish imports and it will be better for us to pay more for white goods and computers etc.

INMHO Deregulation will become a dirty word now as happened after 29 and we will all be taking a step backwards in our standard of living.

People born in the 70's and 80's will feel it the most because they have always had the good times and do not know what it is like to have bad.

I will be interested to see if it strains relationships in the European Economic market. will all be rosy and friendly or will countries withdraw into themselves again. Interesting times. After all they will be expected to support one another through this.

I would rather have academics in gov than lawyers at this time, worked with lawyers all my working life.

Giantaxe

If you got them to sign a multi-year lease, that was very smart imo.

Charlie Paynter

Hi sfr09. I would not take much notice of the prices advertised as it is what price the seller is willing to sell for that matters!

I follow the local house prices closely and you are correct in that the advertised selling price is not that much different from a year ago, but what is different are that sellers (who genuinely wish to sell), are being more realistic in accepting lower offers (ie a year ago, even an offer that was just slightly below asking price may not have been accepted).

But I think the major problem at the moment is that the financial storm enveloping the banking market is mostly headlines for ordinary people - it is when people cannot service the debt is when you will see a marked reduction in advertised prices, and that will come with rising unemployment (which will very soon filter through).

If you are returning to the UK, I would suggest sell your house in Sydney asap (for a reasonable price), and rent back here in the UK, as the bargain basement wil be in about 12 months time, and probably lasting for about 3 years.

Reading fan

We are leaving our rental in 3 weeks time . The new tenants came round for a drink last night as they are new to the area thought we'd be welcoming. They said that had ben to look at a new build - lovely village setting, stream in village of thatched houses etc, 2800 sqft, it went on the market at the beginning of the summer for £750,000 they will now take offers between £500 - £550k - that is a huge whack off. The agent said the builders are desperate to sell A house !

username 34

3 years, which is a good result. They've already been there 4 years so this will make 7 by the time this contract ends. They were planning to move out this year and buy but they cannot get a mortgage offer at all now, they're polish and only he works, so renting is all they can do for the foreseeable future.

They were counting on getting a 100% mortgage deal as people were getting before to buy their house but since this crisis its become obvious that those mortgage deals are long gone and wont be coming back anytime soon.

Margaret3

Tootsie Frickensprinkles

They can give notice and get out anyway, should significantly cheaper properties become available in the vacinity. You cannot hold a tennant to more than 6 months payment on any original tennancy agreement.

Tootsie Frickensprinkles

Cash rich buyers wanting new builds are laughing all the way to front door right now!