The Housing Market and Fossetts Funding

[Napster]

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? :)

I thought you already had a lodger?

ps we're nowhere near to buying. Another 2 years maybe..

 

[SUFC_Al]

I bought two years ago when the market was rising rapidly, quite glad I got in when I did.

Was just looking at house prices in my area (Southchurch "Village") and there's a place very like mine in my street up for over £10k more than I paid for my place. :)

 

[fatshrimp]

Banks will lend money to people with a good history, provided that they have sufficient cash for a deposit. I remember when I first got a mortgage, I have to stump up 10% of the property value. Banks ditched that policy for a while, but it seems to me that they are re-introducing it. Good thing too I think.

First time buyers may well struggle at the moment using that methodolgy, but ultimately they'll be better off as they won't be overstretched.

Naturally, this will impact the market and force an adjustment in pricing, not taking into account all of the other factors that come into play.

Wouldn't want to be a first time buyer at this time, nor would I want to have to sell my house in a hurry.

How will this whole thing impact Fossets Farm? My view is that it will at best, be delayed. Commercial developments seem to take a more long term view and lets face it, this isn't some small time developer looking to turn a quick profit on a couple of flats. Got a feeling that it will happen but I just don't think anyone will be in an immediate hurry (except us supporters that is!).

 

[Vange Shrimper]

If I start saving properly now, I might afford to buy a house if the prices continue to fall. Give it about 20 years or so, though! Can't believe how much the house prices have gone up over the past decade or so. A typical house in Vange was about £49k in 1994-1995. Now they are worth way over £161k.

 

[WickfordShrimper]

If I start saving properly now, I might afford to buy a house if the prices continue to fall. Give it about 20 years or so, though! Can't believe how much the house prices have gone up over the past decade or so. A typical house in Vange was about £49k in 1994-1995. Now they are worth way over £161k.

I have been looking at prices round the vange area 2/3 bedroom houses are going for as little as 120k to 140k now....

So get saving now I say..... maybe in a year or two good chance they will be selling below £100K nice little investment I see coming :-)

 

[DTS]

Property prices are affected by supply and demmand. However demmand can fluctuate with changing economic, financial and demogrpahic circusmtances.

However as an asset backed investment property is one of the only investments that can offer long term protection against inflation.

Therefore as long as you see your home/rental as a long term investment I would say you have very little to worry about.

 

[Firestorm]

If I start saving properly now, I might afford to buy a house if the prices continue to fall. Give it about 20 years or so, though! Can't believe how much the house prices have gone up over the past decade or so. A typical house in Vange was about £49k in 1994-1995. Now they are worth way over £161k.

But 94-95 was towards the bottom of a very big slump.

The place I am in know was first put on the market at the back end of 94 for 130k by the time I put in an offer in November 95 I got it for 90K !!

The place I was selling had gone from 80k in 1988 to 45k in Nov 95
(mind you it had gone from 37.5k in 1984 to 80k in 1988 !!)

 

[McNasty]

Property prices are affected by supply and demmand. However demmand can fluctuate with changing economic, financial and demogrpahic circusmtances.

However as an asset backed investment property is one of the only investments that can offer long term protection against inflation.

Therefore as long as you see your home/rental as a long term investment I would say you have very little to worry about.

Agreed, as long as you can ride out the short-term problems such as higher interest rates, affordability fluctuations, un-employment and any other temporary blips. If you have buy-to-let properties do forget any possible tenant-free period where you are liable to pay any mortgage yourself. Other than that it should be fine until you get divorced.

 

[DTS]

Agreed, as long as you can ride out the short-term problems such as higher interest rates, affordability fluctuations, un-employment and any other temporary blips. If you have buy-to-let properties do forget any possible tenant-free period where you are liable to pay any mortgage yourself. Other than that it should be fine until you get divorced.

Funny you should say that about tenants as one of mine has come free and its a lot harder that it used to be to get a decent tenant.....

 

[Hotman]

Funny you should say that about tenants as one of mine has come free and its a lot harder that it used to be to get a decent tenant.....

what i do for my tenants is advertise £50 below market rate, and keep the place pucker. That way you have a pick of tenants, build a semi-personal relationship with them, don't use an agent, instead take gas insurance etc, and let them treat it as their home. All that, and a 2 year agreement. :) haven't had a rent free month yet, and the £50 "loss" per month is repaid by not having a void every 6 months in my eyes

 

[DTS]

what i do for my tenants is advertise £50 below market rate, and keep the place pucker. That way you have a pick of tenants, build a semi-personal relationship with them, don't use an agent, instead take gas insurance etc, and let them treat it as their home. All that, and a 2 year agreement. :) haven't had a rent free month yet, and the £50 "loss" per month is repaid by not having a void every 6 months in my eyes

Not a bad idea.

Think it largley depends upon location. Have one just up from the seafront in Brighton and it lets at top whack without a void day.

My other one is in a small and pointless town. Only asking going rate but seem to keep getting loads of DSS type calls despite add saying no DSS.

 

[Hotman]

Not a bad idea.

Think it largley depends upon location. Have one just up from the seafront in Brighton and it lets at top whack without a void day.

My other one is in a small and pointless town. Only asking going rate but seem to keep getting loads of DSS type calls despite add saying no DSS.

Location is indeed the factor here - I considered where I'd like my kids to live, as ultimately thats what I hope my BTL's will become one day. Yield isn't so great as you cannot charge too much more for a nice area, but still get interest cover, which is all that matters.

 

[DTS]

Location is indeed the factor here - I considered where I'd like my kids to live, as ultimately thats what I hope my BTL's will become one day. Yield isn't so great as you cannot charge too much more for a nice area, but still get interest cover, which is all that matters.

Funny enough did a viewing tonight and all done and dusted. Deposit paid too.....Woooo...

ta for tips Carl

DtS

 

[Hotman]

great time to invest if you've got the balls for it!

 

[Xàbia Shrimper]

no houses are being built at the moment due to the credit crunch

Or stadiums?

 

[Hotman]

Funny enough did a viewing tonight and all done and dusted. Deposit paid too.....Woooo...

ta for tips Carl

DtS

no worries mate, i'm still starting out and learning in this game, but hoping to buy a few in the next year or two to build a true portfolio.

 

[Colchester and proud!]

My youngest sisters gaff is on the market at present if anyone is interested, the downsides are

1 Its in Suffolk

2 Its £1.75 million :O

 

[DTS]

My youngest sisters gaff is on the market at present if anyone is interested, the downsides are

1 Its in Suffolk

2 Its £1.75 million :O

That a lot for a farm?

 

[Colchester and proud!]

Funnily enough it used to be a farm many years ago, it still has 9 acres of land, and yes they need a tractor to cut the lawns :D

 

[Jam_Man]

Looks like my question regarding the reduction in house prices will be affecting the project according to Ron Martins last statement.

Obviously got it all in hand though.