House Depreciation....



Geronimo said:
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
Click to expand...
I know the building you mean.
The County....now a restaurant and a gym.
 
Leonard osbourne said:
Young Rodney is looking to buy his first house with his girlfriend, they have found on they like, 4-bed town house with offers in the region of 200k, they both really like it....

His girlfriends parents have looked at the area and done a bit research and have said that houses in that area are depreciating so they would not advise them to but the house....

Is this a thing, I may be naive but i thought house prices just went up and down with demand and interest rates meaning you can borrow more....

The house is in Hebburn on the old Reyrolles site (St Aloysius View)....

Any one set me straight on this?
Click to expand...
Check if the properties are leasehold. Seriously. That would explain it.
 
Leonard osbourne said:
They are freehold mate....


Aye, he lived the street behind, had a chat to him yesterday about the area....
Click to expand...
Check then if there are Estate Management fees and if the roads are going to be adopted by the Council (as someone else has already mentioned). That would make it a fake freehold or fleecehold which is incredibly common on new estates and would make your son liable for escalating and unlimited charges (unless he has a large brown envelope of cash he can donate to the Housing Minister Jenrick and the Conservative Party).

If it's not that then I haven't got a clue.
 
Sleepy said:
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.
Click to expand...

Might have been years ago or area with high demand. Round here it's very much the case now
 
joemcdokes said:
What should they do buy a 2 bedroom house that they don't want to stay in that may be a problem to shift in the future.
You buy a house on affordability, you don't even know what their income is.
Click to expand...
Who mentioned anything about a 2 bedroomed house?
I am just commenting that young'uns these days want everything straight away, and they want it now.
Never happened in my day - but hey, what do I know.
jsdftm04 said:
If they can afford it, what's the issue? Mine will be over that.
Click to expand...
Ditto.
No issue at all.
See above.
 
Last edited:
Butcher's Coat said:
Who mentioned anything about a 2 bedroomed house?
I am just commenting that young'uns these days want everything straight away, and they want it now.
Never happened in my day - but hey, what do I know.

Ditto.
No issue at all.
See above.
Click to expand...

I see where you're coming from, but I think such low interest rates these days, make very desirable properties, affordable.

I can't remember my first interest rate but I do remember that it was a 100% interest only mortgage as I couldn't afford the extra outlay for capital repayment. Having checked the historical BoE base rates, it was around 7.5% at that time, so I assume my mortgage rate was a point or two above that.

My progression was a 1 bed, 2nd floor flat as a first purchase, to a 2 bed ground floor masionette, to a 3 bed semi, then a 4 bed detached. There's very young families on our estate moving into much bigger, grander houses than my modest 4 bed.
 
Stevie said:
Check then if there are Estate Management fees and if the roads are going to be adopted by the Council (as someone else has already mentioned). That would make it a fake freehold or fleecehold which is incredibly common on new estates and would make your son liable for escalating and unlimited charges (unless he has a large brown envelope of cash he can donate to the Housing Minister Jenrick and the Conservative Party).

If it's not that then I haven't got a clue.
Click to expand...

Cheers for the advice, its appreciated....
 
Jimmy Smash said:
I see where you're coming from, but I think such low interest rates these days, make very desirable properties, affordable.

I can't remember my first interest rate but I do remember that it was a 100% interest only mortgage as I couldn't afford the extra outlay for capital repayment. Having checked the historical BoE base rates, it was around 7.5% at that time, so I assume my mortgage rate was a point or two above that.

My progression was a 1 bed, 2nd floor flat as a first purchase, to a 2 bed ground floor masionette, to a 3 bed semi, then a 4 bed detached. There's very young families on our estate moving into much bigger, grander houses than my modest 4 bed.
Click to expand...
Totally agree.
When I first got on the housing ladder back in the early 80's - there was only 2 types of mortgage - an endowment and and a repayment.
The interest rate was no way near what it is these days.
I do remember moving to my present house over 30 year ago in 1989 when the interest rate was 15% around that time.
f***ing nightmare.
 
Butcher's Coat said:
Who mentioned anything about a 2 bedroomed house?
I am just commenting that young'uns these days want everything straight away, and they want it now.
Never happened in my day - but hey, what do I know.

Ditto.
No issue at all.
See above.
Click to expand...

TBF they have saved hard for a number of years now, both have very good jobs after completing their degree's, they looked at what they could afford, knocked a bit off and decided that around £200k was what they wanted to spend....The 4 bed thing is only because it's in their price range, some of the new ones are £250k - £300k....
 
Leonard osbourne said:
TBF they have saved hard for a number of years now, both have very good jobs after completing their degree's, they looked at what they could afford, knocked a bit off and decided that around £200k was what they wanted to spend....The 4 bed thing is only because it's in their price range, some of the new ones are £250k - £300k....
Click to expand...
Fair do's marra.
One bit of advice would be if young Rodney can keep up the running costs of the home on his own single wages, all well and good, but be aware that IF his lass has to give up her work to start off and raise a family etc, then things will be tight.
Just that I am from the old school where you don't live above your means, and getting fully maxed-out on mortgage repayments/bills on a joint income is not the best way to go.
 

Back
Top