How far will house prices fall [volume 4]
Discussion
drainbrain said:
okgo said:
Grim.
What will that rent for?
I really don't know why you think it's 'grim'. It's not grim at all. With the external refurb it's actually quite nice. What will that rent for?
If my circumstances were (or become) different I'd be happy to live in it myself.Currently occupied at £350pcm but with luck the next tenant'll be DSS which'll bring £400pcm.
ElectricSoup said:
That is amazing investment value, I have a mate who owns a similar place in Glasgow and has let it out to the same bloke for about 20 years. Good as gold. Are there any areas of Glasgow you simply wouldn't buy a place in, even for rental purposes? I'm thinking about getting a couple myself in the fullness of time.
Well, if you're talking residentials there are some areas where you'd need a bit of specialised local knowledge to make a success of it, but areas to avoid tend to change over time. It's mostly lower end commercials I'm into nowadays, but my role's confined to buying them and handing them over to the agency I sold when I retired.
Letting's changed massively over the last few years and is continuing to change. I'd say currently the main 'skill' the landlord needs is finding a 'real' 'proper' 'effective' management agent.
drainbrain said:
I bought this last Friday:
http://www.rightmove.co.uk/property-for-sale/prope...
Didn't seem any 1st time buyers were interested, tho it was hardly unaffordable.
Was a bit miffed at not getting it for £18k.
20 years ago it would have cost £15k and in the last 3 months (since the picture) the exterior's had a major renovation plus posh new entrance door and door entry system installed.
Says it's tenanted? How is that suitable for a FTBer?http://www.rightmove.co.uk/property-for-sale/prope...
Didn't seem any 1st time buyers were interested, tho it was hardly unaffordable.
Was a bit miffed at not getting it for £18k.
20 years ago it would have cost £15k and in the last 3 months (since the picture) the exterior's had a major renovation plus posh new entrance door and door entry system installed.
drainbrain said:
okgo said:
Grim.
What will that rent for?
I really don't know why you think it's 'grim'. It's not grim at all. With the external refurb it's actually quite nice. What will that rent for?
If my circumstances were (or become) different I'd be happy to live in it myself.Currently occupied at £350pcm but with luck the next tenant'll be DSS which'll bring £400pcm.
hyphen said:
drainbrain said:
okgo said:
Grim.
What will that rent for?
I really don't know why you think it's 'grim'. It's not grim at all. With the external refurb it's actually quite nice. What will that rent for?
If my circumstances were (or become) different I'd be happy to live in it myself.Currently occupied at £350pcm but with luck the next tenant'll be DSS which'll bring £400pcm.
I think I know where my £160k goes.
Edited by ElectricSoup on Friday 22 September 14:12
hyphen said:
drainbrain said:
okgo said:
Grim.
What will that rent for?
I really don't know why you think it's 'grim'. It's not grim at all. With the external refurb it's actually quite nice. What will that rent for?
If my circumstances were (or become) different I'd be happy to live in it myself.Currently occupied at £350pcm but with luck the next tenant'll be DSS which'll bring £400pcm.
The reason it's £20k is probably because the seller recently bought it for £18k or £19k. BMV property is highly liquid. You buy it cheap and to sell it quick you sell it cheap.
What would typical transaction costs be? I'm not suggesting your explanation is untrue or unlikely as I can understand someone in that sort of trade may have need to offload such a property at quick notice but just wonder how costly such a decision might be.
What would a more typical owner occupier sale achieve? Or is that not the sort of place commonly owner occupied.
You must admit £20k or even £30k is cheap. That can't be much more than 1, 1.5, 2 X local salary. Compared to estates in say Redhill (not London, guys) where a similar flat would be in the order of £150,000 - or 5+ local earnings.
I'm sure other less affluent British regions might show similar affordability but £20ish thousands is startling.
What would a more typical owner occupier sale achieve? Or is that not the sort of place commonly owner occupied.
You must admit £20k or even £30k is cheap. That can't be much more than 1, 1.5, 2 X local salary. Compared to estates in say Redhill (not London, guys) where a similar flat would be in the order of £150,000 - or 5+ local earnings.
I'm sure other less affluent British regions might show similar affordability but £20ish thousands is startling.
scenario8 said:
What would typical transaction costs be? I'm not suggesting your explanation is untrue or unlikely as I can understand someone in that sort of trade may have need to offload such a property at quick notice but just wonder how costly such a decision might be.
What would a more typical owner occupier sale achieve? Or is that not the sort of place commonly owner occupied.
You must admit £20k or even £30k is cheap. That can't be much more than 1, 1.5, 2 X local salary. Compared to estates in say Redhill (not London, guys) where a similar flat would be in the order of £150,000 - or 5+ local earnings.
I'm sure other less affluent British regions might show similar affordability but £20ish thousands is startling.
Transaction costs? Hmm. He'll owe the auction house anything from £500 - £2k depending how much he does with them. Legals? Well my (buyer) legals will be £500 + vat + disbursements. So maybe £650-£750. What would a more typical owner occupier sale achieve? Or is that not the sort of place commonly owner occupied.
You must admit £20k or even £30k is cheap. That can't be much more than 1, 1.5, 2 X local salary. Compared to estates in say Redhill (not London, guys) where a similar flat would be in the order of £150,000 - or 5+ local earnings.
I'm sure other less affluent British regions might show similar affordability but £20ish thousands is startling.
Just for you I had a quick look. Seller bought it in May for £18k. Probably just getting his money back for some other purchase or reason.
In recent years this ex-Barratt development of 2 or 3 streets started going downhill and became predominantly tenanted. Then owner-occupiers, landlords and local authorities decided to put a stop to that by embarking on a determined programme of re-development and regeneration. This has just ended, so owner-occupation will probably start increasing again and no doubt prices will rise a bit too.
£20k is cheap-ish, but not uniquely so. Some of the real cheap stuff has issues which require a bit of expertise to address. Some of it is in areas, or even micro-areas which are becoming rundown as this one was. But I bought this one because it's just the right time to get it. Wouldn't have bought it 18 months ago. My friend has one in the next street which I can have for £30k. Thinking about it because there's plenty of other off-market stock around at £30k. But right now £35k's probably the limit of what a well presented 1 bed would attract.
Obviously properties like these are easily obtainable by people on minimum wage salaries. And once upon a time the first timer and low-wage market would have been all over them. Not nowadays tho. They don't want them. They want to start on rung 3 of the property ladder these days. Leaving these easily rented units to the landlords.
O and if you think 20-ish is cheap, have a look at Port Glasgow. £5k's cheap there. £20's DEAR!! lol.
e.g.: http://www.rightmove.co.uk/property-for-sale/prope...
That's 5 units btw.
Edited by drainbrain on Friday 22 September 15:38
matrignano said:
Unfortunately that's the going price (currently) for decent 2 beds in the area I want to live in.
Nothing particularly fancy at all.
I just don't won't to compromise, I'm 34 and been renting all my life, I don't care about getting a "better deal" by buying in an up and coming area (read: s
t area with potential to become super expensive), I just want somewhere where I know I'll be happy for a few years. And get on the ladder and stop paying somebody else's mortgage.
I can wait no probs, I just fear that I might lose potentially the only viable buying window I have given my budget. If prices go up by even just 10% I'll be priced out and who knows when I'll ever be able to afford to buy in south ken again.
Re: London salaries - plenty of people include myself who make a good wage.
What I really struggled with was putting together 100k+ in savings to put a deposit down. Even with high London salaries it's not that easy to save that kind of cash in a reasonable time frame.
On the run up to the 2008 recession we were house hunting and me and my wife were split. I was saying it's madness and not sustainable. She was panicking and saying if we don't buy now it'll just keep on rising and we'll be locked out. I said it's going to crash, it must at the prices etc. I can see a similar thing happening locally to me now. It's heating up. We've held off looking for our next move for a year. I think the interest rates will spike due to some sort of side event. It's a gut feel but I had the same feeling as 06-08.Nothing particularly fancy at all.
I just don't won't to compromise, I'm 34 and been renting all my life, I don't care about getting a "better deal" by buying in an up and coming area (read: s
t area with potential to become super expensive), I just want somewhere where I know I'll be happy for a few years. And get on the ladder and stop paying somebody else's mortgage. I can wait no probs, I just fear that I might lose potentially the only viable buying window I have given my budget. If prices go up by even just 10% I'll be priced out and who knows when I'll ever be able to afford to buy in south ken again.
Re: London salaries - plenty of people include myself who make a good wage.
What I really struggled with was putting together 100k+ in savings to put a deposit down. Even with high London salaries it's not that easy to save that kind of cash in a reasonable time frame.
drainbrain said:
And once upon a time the first timer and low-wage market would have been all over them. Not nowadays tho. They don't want them. They want to start on rung 3 of the property ladder these days. Leaving these easily rented units to the landlords.
Society does seem to be perpetuating this kind of 'entitled to' attitude these days - everyone seems to think they're better than minimum wage, starter homes, second hand cars, and a phone lower than the latest top model. Low interest rates have fuelled a lot of that over the last 10 years. And it's difficult to break the situation, because nearly everyone feels that they have to "keep up with the Jones'".drainbrain said:
Congratulations on what appears to be a very impressive deal.This pours a lot of cold water on the suggestion that property is out of FTBs' reach.
Rovinghawk said:
drainbrain said:
Congratulations on what appears to be a very impressive deal.This pours a lot of cold water on the suggestion that property is out of FTBs' reach.
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