House Prices #4 Property market, buying and selling

[Folkevermore]

People have lost touch with personal responsibility - perhaps it was the Covid pay-outs and the winter fuel bill pay-outs that have changed our mindsets. Its no ones responsibility but your own to pay your mortgage. Rates go up, rates go down. If you had eyes too big for your wallet and took on a bigger house than you really needed when the going was good - well more fool you. Are there people truly foolish enough to believe that interest rates would have stayed that low for ever?

Whilst I agree that the government shouldn’t help, I don’t think it’s fair to judge people who maxed out their affordability too harshly.
Where I live the average house price is £290,000. The average salary is £30,000 (average household income I think is just short of (£50,000)
Most people I know either had to take out a large mortgage or pay even more in rent just to afford to put a roof over their heads.
I don’t know anyone who was overly greedy in their house selection, it’s just so expensive to get somewhere that’s half decent.

 

[thegirlscout]

We made an offer on a property but the vendors said no, it was too low and as they already have reduced so much they were didn’t want to go any lower. We asked what the original price was but the estate agent wouldn’t say. Is there a way to find an archive of the original listing when it went up to see what the original price was?

 

[Folkevermore]

We made an offer on a property but the vendors said no, it was too low and as they already have reduced so much they were didn’t want to go any lower. We asked what the original price was but the estate agent wouldn’t say. Is there a way to find an archive of the original listing when it went up to see what the original price was?

If it’s on right move there’s an add on you can install on your browser to see the price history, https://chrome.google.com/webstore/detail/property-tracker/abgkpdjomdmemeefdefalbeogkmlmand?hl=en-GB

 

[thegirlscout]

If it’s on right move there’s an add on you can install on your browser to see the price history, https://chrome.google.com/webstore/detail/property-tracker/abgkpdjomdmemeefdefalbeogkmlmand?hl=en-GB

Thank you. I downloaded it and there are blue arrows which I clicked on and it just shows the reduced price which rightmove already shows on the listing?

 

[Folkevermore]

Thank you. I downloaded it and there are blue arrows which I clicked on and it just shows the reduced price which rightmove already shows on the listing?

Oh, on mine it shows the price history, how weird.
Mayve try this one: https://chrome.google.com/webstore/detail/property-log/jccihedpilhidcbkconacnalppdeecno?hl=en-GB

 

[theweekend]

One thing that people don’t talk about is how LOUD it is living in London. The sound of construction is constant - specifically, the sound of flats being built or houses turned into flats.

At present there are 2 projects ongoing 2 doors down from me each way, one actually initially sought planning permission for 2 dwellings and has now applied for 3 - THREE flats in the square footage of a 3 bed semi To the rear there is a mahoosive project converting a business complex into 1.5-2 THOUSAND flats. So that’s construction noise from 8am on the dot Monday-Saturday from 3 different directions.

The disruption aside it’s just annoying - there is constantly trades shouting in the street, or knocking on your door asking you to move your car for their stupid little lorries. I walk down the surrounding residential streets, nothing but drilling and sawing and banging. I walk up to the high street, flats upon flats squeezed into every inch of available space. My next door neighbour is in her late 80s and when she pops her clogs that will be another 18 months of development

My advice to anyone moving to a London suburb (if this is literally even possible anymore) - choose a house that is already flanked by flat developments at least on both sides. Oh and for the love of god do not purchase anything that is situated next to any kind of open space or you will shortly find an adorable block of flats towering over you 🥲 I’ve seen it happen in multiple areas in my borough alone.

 

[Yel]

People have lost touch with personal responsibility - perhaps it was the Covid pay-outs and the winter fuel bill pay-outs that have changed our mindsets. Its no ones responsibility but your own to pay your mortgage. Rates go up, rates go down. If you had eyes too big for your wallet and took on a bigger house than you really needed when the going was good - well more fool you. Are there people truly foolish enough to believe that interest rates would have stayed that low for ever?

Lots of people need to be saved from themselves. But this should be done by regulation rather than bailouts when the tit hits the fan.

Anyone buying a house should be shown in large font that house prices can go up and down and that interest rates can go up and down. Also that people do not own a home until the debt is repaid and it will be sold if repayments can't be made.

So many have bonkers expectations that they can do whatever and someone will be there to bail them out. All of these bailouts have got us into this tit situation.

 

[epl000]

Lots of people need to be saved from themselves. But this should be done by regulation rather than bailouts when the tit hits the fan.

Anyone buying a house should be shown in large font that house prices can go up and down and that interest rates can go up and down. Also that people do not own a home until the debt is repaid and it will be sold if repayments can't be made.

So many have bonkers expectations that they can do whatever and someone will be there to bail them out. All of these bailouts have got us into this tit situation.

I thought that this was part of applying for a mortgage, I'm sure they went over things like this multiple times when we first took out ours. I do get that it is tough, but ultimately if the government bailed everyone out again that would just end up being paid for through more cuts to services or tax increases, it would come at a price.
On a separate note, anyone got any advice for buying a new build. The timing is terrible, but a site is being built out in our preferred area and a couple have just been put on the market that really fit the bill for us. We've had our house valued this morning and getting a second valuation done tomorrow so we have a better idea of what we'll get for ours and therefore what we'll need to borrow to afford the new build, but just wondered if anyone had any advice in reserving etc. I work in planning so know quite a bit about the technical side, but literally zero about the sales side!

 

[wideopenspace]

On a separate note, anyone got any advice for buying a new build. The timing is terrible, but a site is being built out in our preferred area and a couple have just been put on the market that really fit the bill for us. We've had our house valued this morning and getting a second valuation done tomorrow so we have a better idea of what we'll get for ours and therefore what we'll need to borrow to afford the new build, but just wondered if anyone had any advice in reserving etc. I work in planning so know quite a bit about the technical side, but literally zero about the sales side!

Who is the builder? Some will do part exchange and the offers are sometimes decent so that might be an option. Doing it that way can take the stress out of a chain.

 

[Folkevermore]

I thought that this was part of applying for a mortgage, I'm sure they went over things like this multiple times when we first took out ours. I do get that it is tough, but ultimately if the government bailed everyone out again that would just end up being paid for through more cuts to services or tax increases, it would come at a price.
On a separate note, anyone got any advice for buying a new build. The timing is terrible, but a site is being built out in our preferred area and a couple have just been put on the market that really fit the bill for us. We've had our house valued this morning and getting a second valuation done tomorrow so we have a better idea of what we'll get for ours and therefore what we'll need to borrow to afford the new build, but just wondered if anyone had any advice in reserving etc. I work in planning so know quite a bit about the technical side, but literally zero about the sales side!

I applied for a mortgage a few months ago and the document just said what my payment would be if interest rates were 3% higher than my current rate. Not much more detail.
I’ve bought a new build (currently about 3 months from completion) but I’m a first time buyer so my circumstances are a little different.
They’re unlikely to give you any discount on the property but make sure you negotiate hard for extras and look what offers they have for part exchange etc

 

[Yel]

I thought that this was part of applying for a mortgage, I'm sure they went over things like this multiple times when we first took out ours

It's part of the small print and all that I'm sure. But it should be in huge bold letters.

People should have been stress tested for the long term interest rate of about 6% +3%. That would have helped keep a lid on house prices.

 

[Notworthy]

People have lost touch with personal responsibility - perhaps it was the Covid pay-outs and the winter fuel bill pay-outs that have changed our mindsets. Its no ones responsibility but your own to pay your mortgage. Rates go up, rates go down. If you had eyes too big for your wallet and took on a bigger house than you really needed when the going was good - well more fool you. Are there people truly foolish enough to believe that interest rates would have stayed that low for ever?

No, it's been happening since New Labour came to power in 97
---

One thing that people don’t talk about is how LOUD it is living in London. The sound of construction is constant - specifically, the sound of flats being built or houses turned into flats.

At present there are 2 projects ongoing 2 doors down from me each way, one actually initially sought planning permission for 2 dwellings and has now applied for 3 - THREE flats in the square footage of a 3 bed semi To the rear there is a mahoosive project converting a business complex into 1.5-2 THOUSAND flats. So that’s construction noise from 8am on the dot Monday-Saturday from 3 different directions.

The disruption aside it’s just annoying - there is constantly trades shouting in the street, or knocking on your door asking you to move your car for their stupid little lorries. I walk down the surrounding residential streets, nothing but drilling and sawing and banging. I walk up to the high street, flats upon flats squeezed into every inch of available space. My next door neighbour is in her late 80s and when she pops her clogs that will be another 18 months of development

My advice to anyone moving to a London suburb (if this is literally even possible anymore) - choose a house that is already flanked by flat developments at least on both sides. Oh and for the love of god do not purchase anything that is situated next to any kind of open space or you will shortly find an adorable block of flats towering over you 🥲 I’ve seen it happen in multiple areas in my borough alone.

funny because I saw a house the other day and the 1st thing I said was atleast there is a house on one side and a graveyard on the other so no building next to it

 

[aidil]

I’m with Skipton Building Society and they had a whole page in the mortgage offer just about potential future interest rates. It went over what the highest interest rate was in the last 20 years and how much I’d be paying each month if it was that high again. Surprised to hear not every mortgage company is doing this so people can make informed decisions!

 

[Notworthy]

I’m with Skipton Building Society and they had a whole page in the mortgage offer just about potential future interest rates. It went over what the highest interest rate was in the last 20 years and how much I’d be paying each month if it was that high again. Surprised to hear not every mortgage company is doing this so people can make informed decisions!

There will still be people claiming to not know.

 

[Yel]

I imagine the offers will get lower as the people accepting it now often had the mortgage agreed quite a while ago and the new rates haven't filtered through yet.

High mortgage rates forcing sellers to accept lower offers on homes – Zoopla
Research shows 42% agreeing to discounts of 5% or more on asking price – the highest level for five years


Soaring mortgage rates and the cost of living crisis are forcing more sellers to accept lower offers to secure a property sale, according to Zoopla.
The property website latest house price index showed that 42% of sellers were accepting discounts of 5% or more on the asking price of their home in the week ending 18 June – the highest level since 2018 – as buyers are driving a harder bargain.

Meanwhile, 15% of those trying to sell their home were accepting discounts of more than 10% on the initial asking price in the same time period. Buyers are pushing for lower prices because of higher mortgage rates and the cost of living crisis. - https://www.theguardian.com/money/2...ellers-to-accept-lower-offers-on-homes-zoopla
---

I’m with Skipton Building Society and they had a whole page in the mortgage offer just about potential future interest rates. It went over what the highest interest rate was in the last 20 years and how much I’d be paying each month if it was that high again. Surprised to hear not every mortgage company is doing this so people can make informed decisions!

I bet loads of people that received the exact same will say they were never informed

 

[Folkevermore]

I wish my lender had provided a bunch of info at what I’d pay with each rise in interest rate. I just got the one figure that was 3% higher.
Would’ve saved me a lot of time on online calculators

 

[Notworthy]

I wish my lender had provided a bunch of info at what I’d pay with each rise in interest rate. I just got the one figure that was 3% higher.
Would’ve saved me a lot of time on online calculators

Atleast you had the smarts to check for yourself. I have been shocked by the level of ignorance that some of my colleagues have displayed. I think 10 years plus of super low interest rates have dulled their brains but even so you'd think borrowing in excess of £100k would trigger some kind of thought that it would be wise to do a bit of research.
Atleast one of them has realised that they can pay upto 10% off each year and has just done exactly that but he admitted he had no idea about mortgages and he borrowed over £150k.

 

[Yel]

I think 10 years plus of super low interest rates

I keep hearing about how long until interest rates go back down to normal

 

[epl000]

I keep hearing about how long until interest rates go back down to normal

Ugh this! On the one hand people complaining about how high inflation is, but on the other wanting interest rates to go down again so that their mortgage isn't so expensive, without acknowledging that the two are inter-related.

 

[Yel]

Ugh this! On the one hand people complaining about how high inflation is, but on the other wanting interest rates to go down again so that their mortgage isn't so expensive, without acknowledging that the two are inter-related.

Some people genuinely think the answer is to carry on printing a tit load of money and give it out to fix inflation . And some of those people were making the decisions high up. No wonder we are where we are.

It's like thinking heroin addiction can be solved by continually having more heroin.