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quote: Originally posted by My Name is Luca:
You only neutralise the house to sell it.
To improve your chances of selling it. They are not recommending that is how you should decorate for yourself.
I appreciate that. It's just the awful lack of vision that's expected of buyers, like they can't see past a 70s kitchen door and some dodgy stencilling. Actually it's probably true. Three years ago I bought a nice 3 bed, bay window terrace in a decent spot for just over 50k. It had been let and cosmetically it was a horror story, really grim. Structurally it was sound as a pound. I couldn't believe young couples had turned their nose up at it, even when I viewed one turned up early, grimaced and left. Took me a month with a paint brush to fix it and I had it valued straight away- 80k, I swear. If I see Habitat everywhere and pebbles in the fire place I know I'm paying over the odds. |
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quote: Originally posted by cakehead: quote: Originally posted by queenstomper:
Cakehead your BiL can buy a £600K property with a 3x salary mortgage, not even considering his wife's income. You can't tell me that nice but modest houses in Surrex can't be bought for less than £600K. I know it's an affluent area, but that can't be right.
He lives in part of a barn conversion in an attractive area surrounded by open countryside. I asked him last year if he'd considered trading up to a detached house in a similar location, which is what I'd be doing on his salary and he reckoned there was no point, on a like-for-like basis that kind of thing would cost him well over a million. Even in my rural bit of Yorkshire period detached houses with a bit of land around them in nicer spots start at around 850k (honest, I checked three days ago) and one's that tick all the boxes begin at 1.1m.
Not my definition of nice but modest then - which would be a 3 bed detached 1930s or similar.
*It is not necessary to understand things in order to argue about them. -- Pierre De Beaumarchais
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Fair enough queenstomper but like many such places inside it's a 3/4 bed semi with a patch of gravel to park your car. Location is everything I suppose.
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quote: So essentially.
1. The Government should have regulations about the purchasing of houses, you should get the Government's permission to buy a house.
2. The Government should also regulate the banking market, determine what kinds of loans they are able to make to what people for what purpose.
3. The Government should censor what is on Television, i.e. programs like this that talk up the market, they should be banned.
Right, sounds like communism to me.
I wish I was deep not just macho
The Government sets the rules and rates of all taxes. Most of them are changed once in a while. They could just change one or some of them to help FTBs rather than multiple home owners. I don't think there is anything communist or extreme in any way about that. I'm not sure anyone is saying such programmes should not be allowed. We are just providing some feedback. I'd have thought feedback is highly valued by TV programme makers - even when it is negative. |
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Some of the sentiment on here is a little OTT.
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quote: Originally posted by My Name is Luca:
Some of the sentiment on here is a little OTT.
Off subject and probably asked a million times: Do you live on the second floor? |
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I live on the first floor, however, as it is an American song, I probably do from their point of view.
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quote: Originally posted by My Name is Luca:
I live on the first floor, however, as it is an American song, I probably do from their point of view.
OK, that's deep enough for me  |
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So I think its safe to assume that BTL is not a good idea at the moment. So what will keep the market alive if the BTL brigade move out?
It seems that FTB's are priced out, so where does this leave the housing market?
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Who knows, the housing market continues to defy reality though.
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Heard predictions last week that the population of London is to rise by 750k over the next ten years.
I don't see building keeping up so house prices will -supply and demand.
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quote: It seems that FTB's are priced out, so where does this leave the housing market?
In London and the South East the FTB is back!!! Yes, back and buying, took a couple of years but London Salaries seem to have caught up. "Hometrack's most recent report adds further weight to analysts' belief that the property market has regained momentum following a quiet 2005. Lenders and agents have reported that first-time buyers have returned to the market, especially in London and the South East, but many maintain the strong growth levels of early this year cannot be maintained." So, unlikely to push prices up, but very likely to maintain current property values. I am pleased that the FTB is back, cannot stand all these BTL "property millionaires" snapping up all the affordable housing. Particularly as when you have ever showed your house to one, all you get is a paltry offer with a caviat of "only if you move quickly". I had one offer 85% of asking price, on the proviso that I moved out within 4 weeks. Yeah Ok mate, Mugs R Us!! I would rather blow the house up than let a BTL leech buy it! Welcome back FTB'S.!! |
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quote: Originally posted by stateofplay: quote: It seems that FTB's are priced out, so where does this leave the housing market?
In London and the South East the FTB is back!!! Yes, back and buying, took a couple of years but London Salaries seem to have caught up. "Hometrack's most recent report adds further weight to analysts' belief that the property market has regained momentum following a quiet 2005. Lenders and agents have reported that first-time buyers have returned to the market, especially in London and the South East, but many maintain the strong growth levels of early this year cannot be maintained." So, unlikely to push prices up, but very likely to maintain current property values. I am pleased that the FTB is back, cannot stand all these BTL "property millionaires" snapping up all the affordable housing. Particularly as when you have ever showed your house to one, all you get is a paltry offer with a caviat of "only if you move quickly". I had one offer 85% of asking price, on the proviso that I moved out within 4 weeks. Yeah Ok mate, Mugs R Us!! I would rather blow the house up than let a BTL leech buy it! Welcome back FTB'S.!!
It is indeed baffling if FTB's are returning because prices are at an all time high. There is no way on earth wages have caught up. |
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Have to agree with your comments.
I dont believe that FTB's can suddenly find the money. I do recall a Rightmove index one month that calculated (when the average was £193K or something) that it would take 6-7 years for wages to catch up with the HPI. Well HPI since then has gone up more than wages.
Dont make sense to me. If Hometrack are saying FTB's are back I can only conclude that parents are helping, parents are MEW'ing or people are gettting very high multiples on their borrowing.
I have seen Hali/wide increasing multiples to over 5x salary.
This is the only reason why their back as there is NO WAY that wages alone have caught up in 1 year in my opinion.
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Well it could be that FTB's were holding back because the market looked rocky, and now it seems to have levelled out, well particularly in my part of the world.
Remember, over 1000 city workers got £1m bonuses in March/April.
I do think it is true, but remember it is spring, and the market always looks bouyant in spring!
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SOP I think this thing with the city bonuses IS propping up the market, this is not FTB's. As an FTB myself I can ASSURE you that HPI has increased far quicker than we can save. I find it hard to believe that any FTB would save for so long and then buy at the top of the market. It dont make sense. Seems I need a little more convincing from Hometrack. I am not having a go or disputing you  |
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Personally I can't see any reason why anyone would want to enter the BTL market at this particular time. The figures just don't add up to make it a viable proposition on financial returns. As for looking ahead by 4/5 years who the heck knows what is going to happen next year let alone 5 years time.
Mel.
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I think BTL still adds up if the yield is good, and the area has the potential for growth.
A property investor I read about treats his properties like fixed-interest securities; the capital sum can fluctuate, but if the return is consistently good and in an area of high demand, then it could be a good investment.
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quote: Originally posted by Anaglypta:
I think BTL still adds up if the yield is good, and the area has the potential for growth.
.....If you can find a good yield and obviously dependent on your definition of "good". Phil & Kirsty stated that yield should be above 5%. I would say that is not enough. Personaly I would consider anything less than 10% in todays market to be barely worth it unless there was some strong guarantee that prices would remain firm to good. My share portfolio (managed funds) made over 30% last year and I know nothing about shares nor did I need to do any intervention/management. Sure those managed funds have a high element of risk but 5% for a Buy to Let sounds a lot of hassle for very little return and a heap load of risk. |
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I would say about 10% would be good. Difficult, but not impossible.
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quote: Originally posted by BTLOptingOut:
My share portfolio (managed funds) made over 30% last year and I know nothing about shares nor did I need to do any intervention/management. Sure those managed funds have a high element of risk but 5% for a Buy to Let sounds a lot of hassle for very little return and a heap load of risk.
Agreed! I've got a fund (managed by myself) and have seen it increase in 2 months to around 7% up). I also have shares of which have climbed 7% since the markets closed last night!!! |
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Just helped a couple of investors who are new to property investment to make £12,000 in equity profit through a Buy to Let investment in 7 months. Original outlay was £7,000 including costs.
There is still money to be made in property, if you know where to look.
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quote: Originally posted by Bletsoe:
Just helped a couple of investors who are new to property investment to make £12,000 in equity profit through a Buy to Let investment in 7 months. Original outlay was £7,000 including costs.
There is still money to be made in property, if you know where to look.
Equity profit is only realised when you sell. When you say helped. You didnt help them make a profit. This silly market is what has caused the rise. If anything I would say Journalists probably helped them make this VIRTUAL money, not you. Dont flatter yourself  |
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