stephen emery

Mike

The Lakes have gone Feckin Mad.

3 bed farm house 5 miles south of Caldbeck was up for 'offers in the region of' £325k has gone for £425k needing 90-120k to make it ok

OK it had 15 acres


Steve


[Edited by stephen emery - 11/3/2003 10:12:44 PM]

pslewis

I've been looking about buying a second home somewhere nice, like North Yorkshire/Pembrokeshire ..... 2 years ago I could have bought a farm with about 20 Acres for around £150k in both places.

NOW I look and we are talking £350k .......... Complete and utter madness!!

Its cheap money that is fuelling this, I mean - £100k mortgage costs only £400/month to service (about 10% of the average take-home pay!!) - ie. NOTHING!

BUT ......

Consider this,

When interest rates were 15%, an increase of 1% on a £100k mortgage was an extra £100/month

Now, a hike of 1% will mean the SAME £100/month extra if interest rates are 4%

BUT, and this is what no-one has realised yet:-

When the interest paid is 15% that £100 represents only a 6.6% INCREASE .............. that same 1% hike - at 4% is a 25% INCREASE!

The result will be disaster for many - for myself I think that for each 1% hike in rates house prices will drop 20%

Pete

[Edited by pslewis - 11/3/2003 11:47:34 PM]

pslewis

Its paper money my man - NONE of it actually exsists!!

Those who sit in their homes thinking how rich they are have forgotten one simple fact .................. the money doesn't EVER actually exsist!!

If ALL the houses were sold tomorrow there is not enough money to buy them at their current prices, this is a fact .... they would have to be about the price of their rebuild cost to actually sell!! ie. a £300k house in the south would only sell for about £50k!!!

Pete

[Edited by pslewis - 11/4/2003 12:35:51 AM]

gareth123

House values in the UK have gone nuts.

I'm in the process of cashing out on my UK property, nothing special - a regular 4 bed detatched in the SE, and the profit I'm realising after owning the place for a little over 4 years is insane.

http://www.realtor.com/Prop/1029617952 with 55 acres in Vermont for about 220 grand? Which is 4 year's profit from owning a house in the UK? Something's not right and it *has* to give.

[Edited by gareth123 - 11/4/2003 8:24:37 PM]

unclebuck

These people who are putting in these huge offers are stupid beyond belief. They WILL end up with negative equity. Only a matter of time now.

The same thing has happened with land prices. Plots that have OPP or detailed PP have also doubled in price. There is just *no point* buying anything ATM. We are at the very *top* of the market. Keep your powder dry and wait....(IMO of course)

UB

[Edited by unclebuck - 11/6/2003 4:27:39 PM]

Andrew Dixon

A £100k mortgage will cost about £550pm to service (based on repayment). Cheapest deal I can find on my £90000 mortgage is slightly under £500 reverting to about £520 after the discount period.

And £4000 is pretty generous for 'average' take home pay? Works out about £72k a year .. not bad even as a combined income for a couple!

A

[Edited by Andrew Dixon - 11/6/2003 4:30:35 PM]

stephen emery

What the ****.

Put an offer, 4 days ago, matching the asking price.

For property in Cumbria.

I got a call today, to find out that the property has gone way over asking price, 60k feckin ( second time this has happened to me) feckin again.

I have been looking at 400k plus.

This has to go BANG.. If not, I am off to live in a caravan

Steve

P.S why are peeps paying so much for houses Idiots or what .

FASTER MIKE!!

stephen what the **** you looking at? carlisle castle £400k. is the lakes that bad

FASTER MIKE!!

workshy_fopp

That's mad for England. Somebody paid way too much for it, so they're welcome to it
That's par for the course in Scotland, but it's the accepted system here. My best was bidding £350k on a house on at offers over £255k. It went for £430k and needed easily 40k spent on it.

stephen emery

Not sure if agent was trying to reel peeps in but 'hay ho' thats a fair bit of cash for a 3 bed house with limited access in the winter

Steve

imlach

Don't worry - interest rates are going up by either 0.25% or 0.5% on Thursday, so in the short term, it should curb some of the ridiculous offers.....

workshy_fopp

Imlach old chap! Just mention house prices and you're in there like a ferret (or something).

imlach

I am - dunno why, just kinda interested in the whole house price/interest rate/economy thing......

The record levels of household debt are going to cause us big problems, so an interesting issue.

imlach

Yes - there was some survey in the papers last week that showed that some ridiculously high percentage of mortgage-payers thought that a 1% rise in interest rates only meant a 1% rise in their monthly payments....

Now, if a large amount of people are that stupid, then they deserve bankruptcy and all it brings.....

Low interest rates have been well & good, but it HAS fuelled a surge in consumer debt which is going to come back and bite the economies of the world sometime SOON!

imlach

I'm also amazed at the number of peers who are paying std rate on their mortgage and have been doing for years.....

They don't seem bothered/interested to know that they could have been paying MUCH less (or the same and paying the mortgage off early) instead of sticking with what they had...

Still, each to their own.

I also watched Watchdog on BBC1 last week - only to find there were people on there who were moaning about pyramid selling scams - where have these people been over the last 10-20 years? I reckon good on the pyramid sellers who organise these scams as there are obviously plenty of gullible people in the UK who are so easily fleeced of their hard-earned cash at the prospect of an easy ££££. Nothing in this world is handed to you on a plate. If it was, the rich would be very very much richer, and the poor would also be richer.....

Err....and now I'll shut up....

imlach

Actually, I won't shut up.

I reckon me & the missis earn a decent crust - FAR above the national average by all accounts.

Yet, I don't have a shiny BMW X5 on the drive, nor 3 foreign holidays a year, but I have an average house (4 bed detached - nothing special). However, what I don't have is a HUGE debt owed to the bank.

However, I look at some peers and/or other people in neighbourhood who have shiny new cars, lots of kids, etc etc.....

I reckon a lot of those peeps have remortgaged a bit too far to pay for all that stuff, and I reckon we'll see a lot of evidence of their wealth (or lack of it) in the coming 2-3 years.....

I will be happy with my low-debt levels for now, and grin in the next 2-3 years. We shall see....

workshy_fopp

I reckon it comes in waves. It's the end of this boom, but when rates come down again (not that they are up yet) ,it will all take off again. I pity the fool who has over-extended himself though
Is a 1% base rate rise something like another £200 a month for the average mortgage? How does that work then?
Big up de Euro.

pslewis

I'm with you here - there is going to be one almighty bang soon and those who have borrowed and borrowed will get a hell of a shock when they find rates have gone up and their pay only goes up by 2% a year!!

I remember the 70's when the inflation rate at 12% meant that your pay went up 12% or thereabouts, your mortgage was a minor debt in a few years .......... inflation took care of the debt mountain then ..... no such rescue this time around!! a £100k mortgage is £100k milstone for years!!!

I have no debt, no loans, no nothing so am sitting fine BUT do NOT spend excessively, why? - cos its all got to be paid for in the end!! One way or another!!

Beware the end of the world is nigh!!!

Pete

imlach

Yes....all the economists keep saying that interest rates CANNOT go up to late 80's levels again (12-15%) , but like all economists/analysts, this is ONLY their opinion.

No-one can say that for sure.....

One thing I have never figured out - when there is a worldwide recession, where does all the money go that was sloshing about pre-recession?

ie, we are in good times and companies & consumers are cash-rich and spend like mad, so everyone is making loads of money.
We go into worldwide recession, and everyone is hard-up. Where did the money go? Is there not a fixed amount of cash in the world at all times? If so, who gets it when in recession?

[Edited by imlach - 11/4/2003 12:36:22 AM]

imlach

Yes - I often walk past houses in my street and think in my head that all the houses in my street (let's say 100) must be worth around £30m.

In my area, there must be 100 streets, so that's £3 billion.

In my city (Edinburgh), there must be 10 areas, so that's £30 billion.

In the UK, there must be a hundred worth of Edinburgh (population 500,000) and UK is 50 million people).

So....that's £3000 billion of property value.......(£3 trillion?)

Hmm......as you say, the bricks & mortar are not worth that......

Without exponentials, that would be :

£3,000,000,000,000



[Edited by imlach - 11/4/2003 12:44:10 AM]

MooseRacer

Know anyone who'll do a 100% mortgage on that?

LeeMac

iTrader: (1)

Sod England, ive took redundancy and i'm off to the south of France, prices have gone off its head and France is catching up, UK is miserable anyway, both in weather and people. There is more to life than working for an Impreza.

NACRO

Already done Lee, I've been living here in the south of france for a while- €200,000 buys you a 6 bedroom villa with a swimming pool overlooking the mountains not far from town, €350,000 buys you one with a nice little vineyard to give you a hobby.

I've sold everything other than my pension plan peoperties in the UK, I'd advise anyone who can, to take the money and run, it's like winning the lottery. The problem with peoples notion of wealth tied up in their property is that it will NEVER be realised. There will be rude awakening for them when they realise the whole house of cards is going to collapse.

Corgi

200,000 euro's = £ 137650.0.....thats a bargain!

Prices will calm down and maybe drop a little short term but it's a fact that house prices double approx every 10 years, they always have and always will.

Like most of Europe the UK may end up with more people renting than owning because while house prices have rised, rents haven't.

Dream Weaver

Same frustrating problem down here.

Terraced houses in the next town from me can be had for £10k, where I live the same style house is £90k (4 miles away), simply due to supply and demand.

Folk want to live here, and very few houses come up for sale.

We are looking to move next summer and have been looking at pre-war semi's, 3 bedroomed pebble dashed things with wooden garages set miles back, you know the sort.

2 years ago one near me was £69k, they are now £180-£200k, a similar price to housing that I've been looking at in Bromley, Kent (though the missus wont let us move down there )

The North/South divide is closing

Corgi

@Dream Weaver.....you should buy a few of those £10k houses m8 and wait a few years

davegtt

lmao at all you ramblers who are HOPING there will be a big crash. sure some of us are hoping prices will hold etc. but I think the way some of you guys have been speaking is with your head up ya ar$es *** if you KNOW this is whats gonna happen. fact is interest rates aint gonna rise too quickly due to being inline with the rest of europe and whilst interest rates are so low prices will still rise.

that is basic information.

Dont really care anyhow. as long as I can affor dmy house thats all that matters, should be OK even with a rise in interest rates

NACRO

Keep hoping...we'll see what happens in the fullness of time.

TelBoy

Dave, just for my benefit, why are UK rates not going to go up very quickly just because of Europe?

Conversion trades were the order of the day six months ago, not now.

But if you have more of this "basic information", i'd be happy to hear it.