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The Housing Market and Fossetts Funding

Jam_Man

Life President
Joined
Apr 7, 2005
Messages
25,544
Location
Southend
Was talking today to a friend about prices of flats and how the market has turned.

Flats seem to be anywhere up to about 175,000 6 months ago but as we know due to global warming ( :) ) and the credit crunch house prices are finally dropping.

This is great news for the millions of under 30's who never managed to get on the property ladder when the market was in boom, but thinking about it this seems to have happened at exactly the wrong time for Southend United.

As we know funding for the whole project relies on a number of factors, one of them being the flats to be built at Roots Hall and Fossetts. However if over the next 2 years house prices fall by 20% then the money raised from the redevelopment is going to fall as well just at the time its needed.

This may have been discussed elsewhere, if not whats peoples' thoughts?
 
Was talking today to a friend about prices of flats and how the market has turned.

Flats seem to be anywhere up to about 175,000 6 months ago but as we know due to global warming ( :) ) and the credit crunch house prices are finally dropping.

This is great news for the millions of under 30's who never managed to get on the property ladder when the market was in boom, but thinking about it this seems to have happened at exactly the wrong time for Southend United.

As we know funding for the whole project relies on a number of factors, one of them being the flats to be built at Roots Hall and Fossetts. However if over the next 2 years house prices fall by 20% then the money raised from the redevelopment is going to fall as well just at the time its needed.

This may have been discussed elsewhere, if not whats peoples' thoughts?
I work in the trade, trust me the prices are only going one way and thats up
 
I work in the trade, trust me the prices are only going one way and thats up


House prices ?

Maybe in the long run but I cant see anything other than a large reduction over the next few years.

Once they start falling its unlikely they will stop for sometime and I read the predictions are they will continue to fall for 2 or 3 years before they begin to rise again.


Cant see any reason for them increasing as there are already too many people who cant afford £180,000 mortgages and with the current financial climate they have even less chance of doing so.
 
Tell me about it Jam man, Then again don't I have lost a fortune this year. .TB you are talking Bollix.. In the short term,which I guess is for the next 2-3 years House Prices will continue to fall.It is a World problem ..we have little or any control on what is happening at the moment .....it will take a major shift in the world economy to change things about and then another 3 years to catch up. China and the Middle East rules the world at the moment and you have seen the growth in India etc ...The West will need to have a dramatic rethink.we have been far to overpriced for years and lived on the back of credit , it was always going to end it tears as unfortunately what goes around comes around.
 
Tb is right on this one. A big bank (can remember who) said that house prices would go down in the very short term but that the general direction is up. It is a simple supply and demand situation and as no houses are being built at the moment due to the credit crunch, this problem will be exacerbated
 
Tb is right on this one. A big bank (can remember who) said that house prices would go down in the very short term but that the general direction is up. It is a simple supply and demand situation and as no houses are being built at the moment due to the credit crunch, this problem will be exacerbated

I did admittedly read that too. Though I failed to see how that worked when in the same piece they mentioned the potential for unemployment in the coming months (particularly amongst Foxton estate agents I hope), a lack of banks willing to offer mortgages and a general population who have been scared into not buying property.

But they did indeed predict further falls for the next 6 months, with steep rises and prices ending higher than when the slump began.

That last sentence sounds like a weather report
 
Yeah, a piece in one of the papers today said that house prices were expected to rise by 30% by 2011.
 
Tb is right on this one. A big bank (can remember who) said that house prices would go down in the very short term but that the general direction is up. It is a simple supply and demand situation and as no houses are being built at the moment due to the credit crunch, this problem will be exacerbated

That's exactly why I don't think Fossetts is a concern at all. I am very confident that these properties will be snapped up, the area that these are being earmarked for is a huge growth area in this part of the county.

It is frightening how much prices have dropped though, a neighbour's house has been on for about 8 months now and they've dropped about £50k in the last couple of months - mind you, it was hideously over priced to begin with.
 
You need to be able to borrow money to buy these places tho. As the banks have been reluctant to lend to each other, they arent as keen to lend to the general public. This is the other factor in this. If people cant get the lending even if they believe they can afford it, then you have that in the melting pot aswell.

Generally we look to the west for what is going to happen next, and I am not referring to Wales. I dont believe it will be as bad but for a few years there will be an increase in repossessions, less opportunity to get credit (loans and mortgages) and a lowering of house prices. If there is a repo available for £50,000 cheaper than Mr and Mrs Jones are selling for - which would you go for? Indeed and so would I, which means Mr and Mrs Jones need to drop their price. Also, if Mr and Mrs Jones cant afford to keep their house and want bail out before the bailiffs arrive then they are going to want to sell quickly which means generally at a lower price. So house prices would lower by default. People are now only able to buy what they can afford because banks wont lend them the money. Previously its been, here have as much as you want it doesnt matter if you cant pay it back.....

Its all about pricing tho. Build it for a decent price and it will sell.
 
P!ssed off that my post didn't appear, and is now lost, however...

"Housing market " doesn't affect this (except for RM's rick perception based on his own property portfolio)

Liquidity and availability of funds is main concern, and moreover, if considered a good risk the cost of this funding.

****ing hell, a half intelligent post from me, whats going on
 
Yeah, a piece in one of the papers today said that house prices were expected to rise by 30% by 2011.

You can always trust the Media to drag us up or down Eh Beefy.

Gary I refer to my earlier post.
 
I did mention this very point in the stadium approved thread, Will not be surprised if FF is put back even further, the prospect of selling hundreds of properties in such a cack market is quite frankly frightening, and more than enough to make the developers say bolox to that, remember the stadium is just a side issue to the money making of all the flats and sainsbury cash too
 
Guess who had to buy his other halves share of the house three months ago and is watching that particular valuation suddenly disappear!

Hang in there B, prices will come back eventually *crosses various parts of his anatomy*

Anyone want to rent a room? :)
 
Guess who had to buy his other halves share of the house three months ago and is watching that particular valuation suddenly disappear!

Hang in there B, prices will come back eventually *crosses various parts of his anatomy*

Anyone want to rent a room? :)

Did that a few years back.....and indeed am still paying (that was mortgage no 3).

Bricks and mortar will always go up in value.....is that except when nobody can afford them....:unsure:
 
You need to be able to borrow money to buy these places tho. As the banks have been reluctant to lend to each other, they arent as keen to lend to the general public. This is the other factor in this. If people cant get the lending even if they believe they can afford it, then you have that in the melting pot aswell

That's it mate. Me and the missus are currently ****ing 700 euro a month up the pan on an apartment - when we could go off and buy something similar and pay less than that in a mortgage. Only problem is no banks will even consider it here - so we're stuck really for another few years until we finish uni and are on better money than atm. By that time who knows how much we may have to pay.

Hopefully those bank details mrs i_s knicked off cricko's desk this morning will help sort us with enough for a deposit ;)
 
I did mention this very point in the stadium approved thread, Will not be surprised if FF is put back even further, the prospect of selling hundreds of properties in such a cack market is quite frankly frightening, and more than enough to make the developers say bolox to that, remember the stadium is just a side issue to the money making of all the flats and sainsbury cash too

Wasnt the proviso that the stadium had to be built and ready before the flats though ?

I wouldnt think that any 'potential' issue in selling the flats would delay the building as the stadium should already be finished. What could happen is an almighty big overdraft if they lost say 30% of what they expect to make on the flats.

If as others have said prices will rise by 30% by 2011 then it wont matter, but I dont see it happening. They have been saying for the last years the market wont crash and it is.

Im 38 and 15 years ago it was the norm to buy a house/flat in your early twenties, now I see the younger people I work with all living at home or having to rent as mortgages just arent viable. I really cant see how the housing market can continue to increase by such big amounts when most of the population cant afford to buy them. When I were lad we earnt about £10k a year and a flat was £30k. Now a person earns £20k and a flat is £150k, so a property has gone from 3 times your salary, to 7 times. Dont see how that can continue.

Then again I dropped out of my Economics A level course....

That's it mate. Me and the missus are currently ****ing 700 euro a month up the pan on an apartment - when we could go off and buy something similar and pay less than that in a mortgage.)


Had a discussion like this with a friend of mine. She is moving out of her house and wants to buy and when I suggested renting she said she didnt want to throw money away.

However if she spent £600 a month over a year would be £7,200, whereas if she bought a flat for say £150k she could lose £15k on the property in that time and have negative equity and be paying a £150k mortgage next year when she could be paying a £135 mortgage if she waited.

Very difficult to know what to do and glad for once Im older as it means I got in when houses were actually affordable.
 
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Guess who had to buy his other halves share of the house three months ago and is watching that particular valuation suddenly disappear!

Hang in there B, prices will come back eventually *crosses various parts of his anatomy*

Anyone want to rent a room? :)

Something my dad has just done.
 
You need to look long term as far as house prices go. We bought our new house last year and it may well fall in value in the next few years however over the long term it WILL rise in value. If you plan for what you can afford now and lose out in the short term you will still benefit in the long term
 
Got to be in it for the long term. I'm looking to move up the housing ladder next year so the more the prices fall the better the house I can buy.
 
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