Rosemary

Most of us try to give the correct information to help people make an informed decision and this will mean positives and negatives in order to maintain reality. However, as you say we tend to be castigated for providing people with this reality.

Rosemary

Nosherlot

Well we have been planning to make the move sometime next year, and we are buying the Spanish place at the moment. Intend to put our house on the market in early spring after painting it neutral, removing all signs of people actually living in it, scattering multiple matching cushions around, vases of dried twigs and putting in double glazing. Then intend to move over to Spain as soon as its sold, but we can't afford to accept silly offers as we need to pay off as much as possible from the 2 mortgages we have (Hubby will be working from Spain for his existing UK company and visiting the UK every month or two).

Renting UK house out isn't an option as rent won't cover the mortgage payments. Starting to worry that we will have to stay here for longer than we planned until the housing market picks up. We need both incomes to service both mortgages. Only good thing is that our current UK house is in the 'first home' price bracket and therefore we are hoping prices will remain stable and relatively affordable.

billgates

What do you mean by "first home price bracket" ?

From what I can see, the reason for the current property price collapse is because the price of a "first home" is so ridiculously out of reach for the average first-time-buyer. Without the FTBs there is no chain.

Now with banks starting to get sensible about mortgage lending multiples, i.e 3x salary plus 10% deposit instead of a stupid 7x salary plus extra loan on top, then maybe the price of a "first home" will drop to a realistic level.

You may not like it, but I believe you would be best to get rid of the house now, and if that means you have to accept that silly offer then you should take it. Hanging on and hoping for stability in the market will mean you stay put for years to come as you watch the "value" of your house drop.

El Capitan

What is the average income in the UK these days ? If a couple earn 40k between them then a "sensible" 3 times mortgage may be 120k which suggests a first time home around the 130 to 140k mark. Twice, when I did own a house in the UK I saw the price drop by 35% or so and now I dont see much priced at less than 150k which would be really affordable by first time buyers.

thefamilycook

Hi, my husband quit works 4 months ago and we put our house on the the market about 8 weeks ago and not a sniff yet. We were hoping be be away for Xmas 2008 but its looking more likely to be next year now. Still, we are more lucky than some, still able to carry on paying the morgtage on 1 wage.
We expect to be leaving within a month of selling our house, still a few finer things to sort out like where to live when we get there but ho hum!! I try Look on everything as a challenge/opportuninty rather than a problem and good luck

J

billgates

If we're talking FTBs then are they really likely to be earning 40K between them? And haven't banks traditionally used 3x highest salary plus 1x second?

Say average salary is about 25K. then FTB probably on a lot less. Still, using 25K as the main salary then say 15K as second salary - this makes a potential mortgage of 90K, plus 10% deposit. Looking at 100K max house price in my opinion.

El Capitan

You could be quote right at 100k billgates. Even less on offer for that princely sum. How many sellers with "first time buyers" in mind would accept an offer of around 100k I wonder.

billgates

I think even 100K is too high for a FTB.

Say a typical FTB couple in their late teens or early twenties might earn 15-20K each. They're looking at a mortgage that they can afford to pay of around 70-80K.

I think house sellers have to be realistic about the currenct financial situation. 70-80K is a realistic price for a FTB house.

SHERGAR

our agent in u.k has come up with an idea which i am interested.because most mortgage offers require a 10% deposit he has a cunning plan.instead of dropping the price of our house we are offering to pay 5%of the deposit reqired.this will probably encourage the buyer and save us money not having to drop the price.we hope to get some positive response.only signed up to it last week so we have to wait and see.

El Capitan

5% of the 10% deposit isnt much incentive.
House at 200k for example, 10% deposit = 20k
5% of 20k = 1k.

pjj

hi there the family cook it looks like there is a lot of us in the same boat on here , i just hope it all works out for all of us on here as are dreams are im limbo until we sell propertys

bil

Hell yes. Those who tell it like it is are seldom appreciated unless the news is totally good.

SHERGAR

10k is a lot of money if you cant raise the money.
not all rich like you

thefamilycook

We decided at the outset not to use estate agents, advertising through various online sources and taking out out own ads in local papers. Have only spent arounf 130 so far - far better than the quoted 4000 from the estate agents, however, we still may need to use them at later date if we get no joy. Our neighbour opposite put their house on the market in November from just inder 290K. sadly he has recently split from his wife and has dropped the price to 240 this week. No way we can compete with that but he is desperate to sell to pay off the wife so its not really a true reflection of whats happening here (i hope!!) Other properties are still selling albeit at a slower pace. After a chat with OH las night still cant decide whether we should take a drop to get out this year or wait it out. Obviously need as much dosh as possible to make things work out there but still things are becoming so expensive here and I feel like i am working 6 months notice at work! hard to swallow each morning.

J

Pugsy

Totally agree here, prices are not plummeting everywhere nor every price bracket. FTB's are, through no fault of their own stalling the market, they need finance deals to become more affordable and for mortgagers to come back to the table.