House Depreciation....

[Swindon On Tour]

That's a very nice house as a starter home, and reasonably priced, I looked in an estate agents window yesterday at a similar terraced in Chelsea £2.6 million

Absolute madness Mate.
Houses are moving around here as people are moving out from the City and into the rural areas. My village idiot crown is under threat and I’m not happy about it.

 

[Edinburgh Black Cat]

A first house - £200k and 4 bedrooms???
Fuck me, they want it all straight away don't they?

If they can afford the deposit then it makes a lot of sense. Moving is expensive so they'd just be wasting time and money by getting a smaller place first.

 

[Leonard osbourne]

They only looked at this one as it was within their budget, everything else has been 3 bed semi's, but they really liked this one....

 

[The Truth]

A first house - £200k and 4 bedrooms???
Fuck me, they want it all straight away don't they?

Kinda this. No way i'd be signing up for a £200k house with someone i'd never lived with before

 

[Baloo]

If they like it, buy it. Houses shouldn't be seen as an investment but somewhere you want to live - a home. I find that way of thinking a bit depressing tbh. It's not like the thing is about to fall off a cliff.

All depends on their financial situation.

If you’re a cash buyer with no intention of selling, then aye, the future price of the house doesn’t matter.

If you’re a first time buyer getting a 2 year 95% LTV mortgage over 30 years and maxing your affordability with the payments, then a depreciating area plus uncertainty of post brexit/Covid market means there’s a reasonable chance of being in negative equity come the end of your fixed period and being stuck on a SVR that you can’t afford to (at best) overpay to keep the interest down, or (at worst) can’t afford to pay and up being repossessed.

While I was at uni for I worked in arrears/debt management when the work dried up for new mortgage applications in 2008. Over 18 months house prices dropped 20%. It’s very easy for a mortgage to become unaffordable for a first time buyer.

The second situation might not apply to @Leonard osbourne ‘s son and they might have a 20% deposit, but it is a real possibility for anyone only putting down 5/10%.

 

[r@mside]

Aye, that's the one....

Number 54?

According to Zoopla it sold for £135K in 2015. Number 60 on the other end of the block went for £167k last November. Doesn't suggest prices are falling to me but you might suggest to Rodney he starts chipping at the asking price.

 

[The]

Never buy a house that’s depreciating in value. Especially with a mortgage.

 

[Geronimo]

so did i, and another poster on here

CRU?

 

[stapler]

If you don't have to move and can afford the payments how would it affect you?

If you are on a fixed or discounted rate and the value drops too much, you'll end up stuck on the lender's ghastly standard rate when the deal ends.

 

[jackynutmeg]

CRU?

don't know what that means mate

 

[Black Dog]

Have the roads been adopted by the council?

 

[lurker]

The echo 24 would be the most dramatic example I can think of round these parts

 

[Geronimo]

don't know what that means mate

Then we didnt work together

 

[jackynutmeg]

Then we didnt work together

I started off as an apprentice on the shopfloor then moved into the Projects office on the MV stuff

 

[Geronimo]

I started off as an apprentice on the shopfloor then moved into the Projects office on the MV stuff

CRU was a govt IT project i set up on the 5th floor 1990. I think the building was called Reyrolles
7 ish story with a reddish / brick fascia?
Trying to think of the name of the pub abt 200 yds away. Dunno if it's still thete

 

[Tommasi]

The echo 24 would be the most dramatic example I can think of round these parts

My mate was looking at the duplex apartments just before the crash, he thankfully decided against going for it at the last minute!

 

[Leonard osbourne]

Number 54?

According to Zoopla it sold for £135K in 2015. Number 60 on the other end of the block went for £167k last November. Doesn't suggest prices are falling to me but you might suggest to Rodney he starts chipping at the asking price.

He was going to offer around 175k, as the price say offers around 200k

 

[r@mside]

He was going to offer around 175k, as the price say offers around 200k

I think it also shows prices probably aren't declining around there.

 

[Mowgli]

A first house - £200k and 4 bedrooms???
Fuck me, they want it all straight away don't they?

If they can afford it, what's the issue? Mine will be over that.

 

[Sleepy]

If its a new development then you do pay a premium so will drop in value for a couple of years.

Also if its an area that's a bit rough & getting worse then demand drops so value drops.

It’s the opposite to this, isn’t it?

New houses are always bought then sell at a higher price shortly after completion before settling again a few years later.