House price bubble set to burst?
- Thread starter looney
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Rougvie
Rising Damp
One of the problems also facing residents of our city is that the prices of many flats (particularly in Hove) are priced way over the figure the surveyers valuation comes back at.
We were stupidly advised (by a greedy estate agent, and with £ signs in our eyes) that our property was worth £20,000 more than any of the 4 valuations that have been carried out by prospective purchasers.
In hindsight, I would rather have paid a surveyor to do a valuation before it went on the market, as I dont think that Estate Agents coming to your house and taking a few snaps seem, well quailified.
Needless to say we have had to drop the asking price.
We were lucky we could do that as we bought the flat 10 years ago, but every single property we have been interested in has been valued below the asking price making it even harder to sort out mortgages etc etc.
It must really be a fuc*ing nightmare being a first time buyer at the moment here
I know estate agents have a lot of competition, and I am in no way slagging them off, but in the long run are they not just forcing the prices to crash themselves by inflating them ?
Interested to hear the views of others
We were stupidly advised (by a greedy estate agent, and with £ signs in our eyes) that our property was worth £20,000 more than any of the 4 valuations that have been carried out by prospective purchasers.
In hindsight, I would rather have paid a surveyor to do a valuation before it went on the market, as I dont think that Estate Agents coming to your house and taking a few snaps seem, well quailified.
Needless to say we have had to drop the asking price.
We were lucky we could do that as we bought the flat 10 years ago, but every single property we have been interested in has been valued below the asking price making it even harder to sort out mortgages etc etc.
It must really be a fuc*ing nightmare being a first time buyer at the moment here
I know estate agents have a lot of competition, and I am in no way slagging them off, but in the long run are they not just forcing the prices to crash themselves by inflating them ?
Interested to hear the views of others
define burst??
not that I'm overly worried anyhow - we've bought a house that we intend to live in for a long long time....
not that I'm overly worried anyhow - we've bought a house that we intend to live in for a long long time....
Lord Bracknell
On fire
I've lived in my house since 1975. It cost £10,500 then. It's got three bedrooms, it's semi-detached and it's miles from anywhere. The woman who lives in the next door property that's attached to mine has just put her place on the market for ....
.... £305,000 !!
Even allowing for odd bits of improvement fifteen years ago, that's just ridiculous.
I'm not at all sure that people who can afford that sort of money want to end up living next door to slobs like us.
.... £305,000 !!
Even allowing for odd bits of improvement fifteen years ago, that's just ridiculous.
I'm not at all sure that people who can afford that sort of money want to end up living next door to slobs like us.
Pavilionaire
Well-known member
- Jul 7, 2003
- 31,632
Rougvie, I had a scenario where I viewed a house 3 1/2 years ago on the market for £99,000, by the time I got there the woman said they had accepted an offer for the full asking price, I really liked it, spoke with the estate agent, then offered £99,500 and had the offer accepted.
The surveyor then went in and valued it at £95,000 and there was no structural work required at all.
The lesson here was that estate agents are more commercially sensitive than surveyors, and I suspect that the surveyor valuation will be the lowest of the lot. Will that help you decide which agent to go for?
The surveyor then went in and valued it at £95,000 and there was no structural work required at all.
The lesson here was that estate agents are more commercially sensitive than surveyors, and I suspect that the surveyor valuation will be the lowest of the lot. Will that help you decide which agent to go for?
sydney
tinky ****in winky
good time in australia gary....
Gary Nelson
New member
Rougvie said:
Good valid points Rougvie. Im an E/A and before anyone harps on, it really fucks me off that some other agents go completely over the top when valueing property. However, regarding your point on surveyors I find them even more stupid and annoying. The only way they price a property after surveying it is to ask agents in the area what they have sold and what they think this particular property is worth. Surveyors are no better than idiots who over price things. If I value someting I always say this is what I think its worth, if another agent says 10k more fine, come back tome in 4 weeks when it isnt sold and reduce to a realistic rate.
Goring Gull
New member
Gary Nelson said:
At the end of the day a property is worth what someone will pay for it. Hence supply and Demand if people are willing to pay it thyen it'll sell at that.
Lord Bracknell
On fire
House prices have two elements - the cost of the building and the cost of the land.
Theoretically, building prices rise in line with inflation (assuming bricks, mortar, pipes, wood, plasterboard, builders' wages, etc are just like other things). Land, on the other hand, is a pure commodity with no inherent costs associated with it.
It's land prices that are going through the roof. This can continue as long as there's a free market in land prices.
The only way to control the market is for the government to tax profits on land sales.
"Outrageous!" says the Daily Mail.
"The only way we'll ever be able to afford a house!" say first-time buyers everywhere.
"Couldn't care less!" say established home-owners.
This is a recipe for social unrest. Look forward to the house price riots of 2013.
Theoretically, building prices rise in line with inflation (assuming bricks, mortar, pipes, wood, plasterboard, builders' wages, etc are just like other things). Land, on the other hand, is a pure commodity with no inherent costs associated with it.
It's land prices that are going through the roof. This can continue as long as there's a free market in land prices.
The only way to control the market is for the government to tax profits on land sales.
"Outrageous!" says the Daily Mail.
"The only way we'll ever be able to afford a house!" say first-time buyers everywhere.
"Couldn't care less!" say established home-owners.
This is a recipe for social unrest. Look forward to the house price riots of 2013.
sydney
tinky ****in winky
the only people to benefit from property booms are the e/a's ...beleive me brothers after watching property prices in sydney increase by over 100% in the last three years it makes me vomit at the way your average estate agent carries on.....its even got to the stage now where the for sale board has no information about the house but instead has a full length picture of the agent involved in an incredibly tacky suit with an even more cheesy grin on his/her boat race,i deal with them daily at work and they are scum,scum,scum...
The only reason I am able to get back to Brighton is due to redundancy last year and paying off our present mortgage and being married to a much younger man who can still get a 25 year mortgage.
The house prices in Yorkshire have doubled in the last 18 months and slowly making up the gap. They'll never catch up with the south-east though as demand is still outsripping supply down there.
The house prices in Yorkshire have doubled in the last 18 months and slowly making up the gap. They'll never catch up with the south-east though as demand is still outsripping supply down there.
Uncle Spielberg
Well-known member
Looney
Your not a Daily Express reader by any chance are you ?.
The Daily Express have for some reason had an agenda of trying to precipitate a property value crash for about 2 years now and much to their frustrations prices have still gone up.
Whilst the economic conditions dictate very low mortgage rates they afforability factor will not allow property price crashes.
The property market would go tits up if interest rates and inflation started to spiral upwards which is unlikely.
Prices will remain steady for the next couple of years.
Your not a Daily Express reader by any chance are you ?.
The Daily Express have for some reason had an agenda of trying to precipitate a property value crash for about 2 years now and much to their frustrations prices have still gone up.
Whilst the economic conditions dictate very low mortgage rates they afforability factor will not allow property price crashes.
The property market would go tits up if interest rates and inflation started to spiral upwards which is unlikely.
Prices will remain steady for the next couple of years.
chip
Well-known member
Syndneys' not quite right about estate agents being the only ones who benefit. Most of us pay a large wadge in stamp duty when we move. Changes to the stamp duty rates mean that once we cross the £250K mark (seems like an average price for a family home) we give the government an extra 2%. So at £249K for a house the duty is £2.5K and at a £251K it is £7.5K. Its done nothing to calm the market - if anything it has actually fanned it.
looney
Banned
- Jul 7, 2003
- 15,652
- Thread starter
- #34
Gareth Glover said:
Daily Express!!!!
Now that is an insult, I only buy the Sunday Telegraph and thats mainly to do the Griddler in the Reveiw section, anyway I doubt the Expresss has enough readers to influence things.
The property market would go tits up if interest rates and inflation started to spiral upwards which is unlikely.
True unlikely, but your wrong in assuming high inflation would cause the market to go tits up. Inflation errodes debt. Deflation could have that effect like in Japan, savers love it, borrowers hate it and that is prolly more likley but still remote.
Gary Nelson
New member
Ahmen.
GG do you think interests will change much in that time? The experts that I ask say that wont as they are still above other european countries. Iv just agreed an interest only rate with my i.f.a-waiting for her to confirm which lender, but she is looking at getting me fixed for at least 3 years. Also the repayment is £525 whereby the flat reents for £800 per month
GG do you think interests will change much in that time? The experts that I ask say that wont as they are still above other european countries. Iv just agreed an interest only rate with my i.f.a-waiting for her to confirm which lender, but she is looking at getting me fixed for at least 3 years. Also the repayment is £525 whereby the flat reents for £800 per month
ben andrews' girlfriend
Nurse Laura
better burst i need a house soon!!!
BrightonBird
New member
I'm still living at home. Would love to own my own place but am not prepared to pay £110 + for a one bedroom flat in Brighton. Working out my pay, I could afford a place for £65k. Now does anyone know anywhere in Sussex for that little? No! You can't even get that amount if you lived in Newhaven!
Safeway
M0DERAT0R
BrightonBird said:
Some rundown estate in Hastings maybe?
Sorrel
Well-known member
With all you people waiting for it to fall, it won't. Cos the second it goes down a bit people will start buying again, and then it'll stop falling.
Uncle Spielberg
Well-known member
Gary - I think interest rates may edge up over the next couple of years but not by much. Our Bank base rate is 3.50%, whereas the Euro Bank Base Rate is 2.0%. If we are to try and join the Euro in the future we will have to have the same rate therefore we cannot afford for Bank rates to go up much.
The best 3 years fixed rate is at 4.39% with a free survey and a £ 199 fee added to the mortgage. That would be £ 365.84 pm per £ 100000 interest only.
The best 3 years fixed rate is at 4.39% with a free survey and a £ 199 fee added to the mortgage. That would be £ 365.84 pm per £ 100000 interest only.