Gone very quiet
Discussion
Aventador 700 said:
Again, finding more affluent development areas doing well, the gap will widen further i think with whats going on, same as top end car sales, still strong.
Development sites pur sae arent your usual affluent purchaser but when in a strong holiday let area? be interesting to hear on the target audience for these development areas in devon / cornwall?
As we drive around the area, she points out developments that her employer is involved with. Pretty much all of them are your standard edge of town greenfield suburban estates, mix of identikit semis and "executive" detached on very small plots.Development sites pur sae arent your usual affluent purchaser but when in a strong holiday let area? be interesting to hear on the target audience for these development areas in devon / cornwall?
A sister company does small industrial estates, and "infill" residential plots, where they do the complete build, not just the groundworks for other developers.
The housing market in Cornwall is distorted by incomers buying up existing property in "pretty" locations, either for relocation or holiday homes. The locals then move outwards into the new-builds. Possibly quite different to most areas on the country?
House prices are high, compared to average local incomes. I used to live in Milton Keynes, and house prices here are similar, while wages in general are a lot lower.
clockworks said:
Aventador 700 said:
Again, finding more affluent development areas doing well, the gap will widen further i think with whats going on, same as top end car sales, still strong.
Development sites pur sae arent your usual affluent purchaser but when in a strong holiday let area? be interesting to hear on the target audience for these development areas in devon / cornwall?
As we drive around the area, she points out developments that her employer is involved with. Pretty much all of them are your standard edge of town greenfield suburban estates, mix of identikit semis and "executive" detached on very small plots.Development sites pur sae arent your usual affluent purchaser but when in a strong holiday let area? be interesting to hear on the target audience for these development areas in devon / cornwall?
A sister company does small industrial estates, and "infill" residential plots, where they do the complete build, not just the groundworks for other developers.
The housing market in Cornwall is distorted by incomers buying up existing property in "pretty" locations, either for relocation or holiday homes. The locals then move outwards into the new-builds. Possibly quite different to most areas on the country?
House prices are high, compared to average local incomes. I used to live in Milton Keynes, and house prices here are similar, while wages in general are a lot lower.
I can only assume foreign investors are buying up the DFLs properties in London, because I can't remember the last time I heard about anyone moving from one of the Kent towns up to London.
jammy-git said:
I think we have the same happening here in Kent. DFLs come in and buy the more expensive spots in the seaside towns or beautiful countryside villages. Then those local people and families move into the new identi-kit estates being built on greenfield sites.
I can only assume foreign investors are buying up the DFLs properties in London, because I can't remember the last time I heard about anyone moving from one of the Kent towns up to London.
One of my friends lives in Kent and last year he was being outbid on 3 bed terraced houses in average/ slightly below average areas, one example was a house was advertised for £245k, my mate put a bid in for £265k. Some investor from London buys the property for close to £300k CASH. I can only assume foreign investors are buying up the DFLs properties in London, because I can't remember the last time I heard about anyone moving from one of the Kent towns up to London.
The same thing happened to him 4 times, think he gave up in the end.
MrManual said:
One of my friends lives in Kent and last year he was being outbid on 3 bed terraced houses in average/ slightly below average areas, one example was a house was advertised for £245k, my mate put a bid in for £265k. Some investor from London buys the property for close to £300k CASH.
The same thing happened to him 4 times, think he gave up in the end.
Same happened to us a few times. One place - a tip - we bid over ask for 455 (I think) it sold for 565 (I think) ask was maybe 425 (I think). Just mental. The same thing happened to him 4 times, think he gave up in the end.
We overbid by 5k on the place we ended up buying and got it because we were no chain. There were other bids higher than ours but our seller wanted a fast transaction - which it wasn't as her tenants wouldn't leave and had to be evicted!!
I have just offered £700k no chain or mortgage agaisnt a £760k house that has been on the market a few months.
These house sales are weird everywhere which is why i belive "nothing is making sense" some are flat out and some are genuinly dead.
Construction is one of the first hit in a down turn, the hire firms are feeling it and the auctions are absolutly full, its a reasonable sign but maybe a kneejerk. I doubt it though i think this is just servre inrest rate rises slowly comming home. Intresting "weird" times. Check out the banking issues
These house sales are weird everywhere which is why i belive "nothing is making sense" some are flat out and some are genuinly dead.
Construction is one of the first hit in a down turn, the hire firms are feeling it and the auctions are absolutly full, its a reasonable sign but maybe a kneejerk. I doubt it though i think this is just servre inrest rate rises slowly comming home. Intresting "weird" times. Check out the banking issues
I saw this on Reddit yesterday - sub-prime car loan delinquencies in the US are soaring: https://www.axios.com/2023/03/01/low-income-househ...
Regy53 said:
I have just offered £700k no chain or mortgage agaisnt a £760k house that has been on the market a few months.
These house sales are weird everywhere which is why i belive "nothing is making sense" some are flat out and some are genuinly dead.
Construction is one of the first hit in a down turn, the hire firms are feeling it and the auctions are absolutly full, its a reasonable sign but maybe a kneejerk. I doubt it though i think this is just servre inrest rate rises slowly comming home. Intresting "weird" times. Check out the banking issues
Perhaps the bigger question is why we think "asking price" is a useful metric at all?These house sales are weird everywhere which is why i belive "nothing is making sense" some are flat out and some are genuinly dead.
Construction is one of the first hit in a down turn, the hire firms are feeling it and the auctions are absolutly full, its a reasonable sign but maybe a kneejerk. I doubt it though i think this is just servre inrest rate rises slowly comming home. Intresting "weird" times. Check out the banking issues
jammy-git said:
I saw this on Reddit yesterday - sub-prime car loan delinquencies in the US are soaring: https://www.axios.com/2023/03/01/low-income-househ...
Car companies are banks with a small sideline in making stuff. This could be the next big bomb in the economy. skwdenyer said:
Perhaps the bigger question is why we think "asking price" is a useful metric at all?
i only use it as its been for sale for a while so the asking price isnt acheiving a sale and infact there is the ability to negotiate and not a little bit edit on reflection perhaps its not relevent i was really showing deals are out there houses are not flying out
Regy53 said:
skwdenyer said:
Perhaps the bigger question is why we think "asking price" is a useful metric at all?
i only use it as its been for sale for a while so the asking price isnt acheiving a sale and infact there is the ability to negotiate and not a little bit edit on reflection perhaps its not relevent i was really showing deals are out there houses are not flying out
SpeckledJim said:
jammy-git said:
I saw this on Reddit yesterday - sub-prime car loan delinquencies in the US are soaring: https://www.axios.com/2023/03/01/low-income-househ...
Car companies are banks with a small sideline in making stuff. This could be the next big bomb in the economy. jammy-git said:
SpeckledJim said:
jammy-git said:
I saw this on Reddit yesterday - sub-prime car loan delinquencies in the US are soaring: https://www.axios.com/2023/03/01/low-income-househ...
Car companies are banks with a small sideline in making stuff. This could be the next big bomb in the economy. ben5575 said:
Does it matter though if VW finance for example goes tits up? Genuine question. Will that impact on wider banking/investment? Is it (for example) underwritten by something that would have a wider economic impact?
100% yes it would matter a lot.The credit that VW finance extends to its customers comes from elsewhere in the financial world. For example VW finance issue bonds to raise capital, investment banks underwrite those bond issues before selling the tranches on to pension funds etc.
22 said:
Posh (& not cheap) garden maintenance company here and demand is strong. Customers are usually comfortably off, but clearly happy to spend on luxury services. Existing customers are accepting RPI increases as part of their contracts (lost a very small number last year - none this year so far). If we lost any we'd fill the window in a flash.
Seemingly hundreds of one-man-band gardeners putting their names forward for every sniff of a job on social media and we're in a different world completely.
I follow this thread quite closely, as it resonates quite a bit for me.Seemingly hundreds of one-man-band gardeners putting their names forward for every sniff of a job on social media and we're in a different world completely.
22, I was wondering if you would mind if I dropped you a DM please. I also own a "home services" business tailored to the more affluent. It's a domestic cleaning company but would like to assume there is a broad corrolation between our business types.
I would be really keen to ask what advertising methods you are finding work best for you, and how you are best pitching to your particular customer demographic.
I've noticed a significant uplift in enquiry numbers, but the conversion rates are way down. I can only attribute this to people shopping around when their existing providers are putting prices up.
Just so I am contributing to this thread, we are continuing to grow, as almost all our work is recurring, so we are fairly solid like that. We have just put prices up for April 1st, for new and existing customers - on average 10%. We have lost 3% of clients due to this, so it would appear that when people are settled in, they are willing to accept the unavoidable price rises. As the majority of our cost is wages, and we pair our wages to a fixed amount above NMW, we are somewhat beholden to the whims of the government increasing the NMW etc.
Overall, I am feeling reasonably confident about 2023, as we are becoming ever more efficient with our expenses, operations etc, but that can only go so far, and I console myself that at least others in the same industry will be under the same pressure.
Thanks everyone - keep the insights coming
Wing Commander said:
22, I was wondering if you would mind if I dropped you a DM please. I also own a "home services" business tailored to the more affluent. It's a domestic cleaning company but would like to assume there is a broad corrolation between our business types.
I would be really keen to ask what advertising methods you are finding work best for you, and how you are best pitching to your particular customer demographic.
I've noticed a significant uplift in enquiry numbers, but the conversion rates are way down. I can only attribute this to people shopping around when their existing providers are putting prices up.
Garbled, caffeine-fuelled DM sent. I would be really keen to ask what advertising methods you are finding work best for you, and how you are best pitching to your particular customer demographic.
I've noticed a significant uplift in enquiry numbers, but the conversion rates are way down. I can only attribute this to people shopping around when their existing providers are putting prices up.
rival38 said:
ben5575 said:
Does it matter though if VW finance for example goes tits up? Genuine question. Will that impact on wider banking/investment? Is it (for example) underwritten by something that would have a wider economic impact?
100% yes it would matter a lot.The credit that VW finance extends to its customers comes from elsewhere in the financial world. For example VW finance issue bonds to raise capital, investment banks underwrite those bond issues before selling the tranches on to pension funds etc.
Many millions of people are a long way under water. If a lot of them were to give up and just hand back the keys, the banks don't have an easy way of recovering their losses.
SpeckledJim said:
The good people of the USA owe a gigantic amount of money on cars that are not worth anywhere near as much. The system has encouraged them to keep 'upgrading' and rolling-over (and increasing) their debt each time.
Many millions of people are a long way under water. If a lot of them were to give up and just hand back the keys, the banks don't have an easy way of recovering their losses.
The banks don’t own the risk, as the poster above says.Many millions of people are a long way under water. If a lot of them were to give up and just hand back the keys, the banks don't have an easy way of recovering their losses.
No one particularly cares if the investment banks lose whilst warehousing the next issue, either, as they have to be much more careful about how much risk they take on at any one time nowadays.
Your pension might lose money on the previously issued bonds if they are low risk, or a hedge fund you don’t realise you are invested in almost certainly would if the risk is higher.
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