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Thread: Corona property prices

  1. #101
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    Quote Originally Posted by wileeeeeey View Post
    I get your sentiment and I do think a huge crash is unlikely but they are falling, there is no doubt. We currently have a UK wide ban on repossessions and payment holidays all over the place. You don't do that when things are "just about ok" let alone "fine". You can call your agent and tell him to edit the price on Rightmove to £10m, it won't change the actual value.

    I hope it goes well for you and you get a fair price, there are always areas which do better than others, but I would brace for offers.

    I sold in Oct and wanted desperately to buy this year but I'm 100% not buying this year. Hoping for some certainty next year and to get a place by Sept but given the last 5 months anything is possible.
    Fully agree i think prices may drop a little for some properties and in certain areas they may drop even more.

    But likewise other properties are always in demand(mine being a bungalow,other's with a great view,near a good school etc)

    I will update the thread as time goes on...bye the way we are prepared to accept 285/290k which it was valued at before covid19 but don't tell everyone

  2. #102
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    Quote Originally Posted by Ruggertech View Post
    I think hogthrob means if she is the one moving out and you have to give her half the market rate for the property.
    Spot on; it would reduce the amount I have to borrow to 'buy her out', as it were. It would work for her as well, as a new property would be more affordable for her.

  3. #103
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    Real quandary thisÖ

    My house is on the market as we are looking at a home upgradeÖ. As although we are both happy and comfortable with where we live, there are a few things on our wish list that weíd like to get from a new home and Iíd ideally want to get on with ItÖ

    We had a ton of people lined up to view the week of lockdown, so, I suspect itíll sell

    But as Iím upgrading we could benefit from a potentially shrinking market and I donít fancy paying top dollar today to watch the investment in my home plummet tomorrow

    Weíll be in it for the long term 20+ years, but weíll never recover the early potential hitÖ

    Sit it out for a bit? Just go for it? Hard to say

    The best thing I did was in 2008Ö. I sold and held off buyingÖ. Rented for 18 months and brought something for 15%-20% less than the previous market valueÖ

    I need a crystal ball as opinions seem to vary greatly on this threadÖ

  4. #104
    NOT ADVISE but watch the unemployment rate it won't just be lower end jobs.

  5. #105
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    Personally there will always be demand at the lower end of the market, the cheaper your house is the more likely it will sell, the top end houses have a limited number of purchasers and in these times I would bet they are dwindling.

    All depends on the value of your house and how much your upgrade house is. If yours is worth £250k and youre going into a £350k house, it wont make much difference. If youre going into a £500k house I don't think there will be many takers right now especially in Leicester (lived there a while back) and you may be able to squeeze a better price, supply and demand and all that jazz.

    All depends on the numbers buddy

  6. #106
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    Quote Originally Posted by Wolfie View Post
    investment in my home
    Is this an "investment" or your "home"?

    If you are buying it as a form of investment (whilst obviously living in it) then it may be sensible to hold off as I would imagine the upside potential in the short term is probably less than the downsive potential in the short term (although I am no property expert).

    If you are buying as a home because you want a nice place to live, you have found a property that meets all your requirements, you can afford it at the current price and you can sell your current home with minimal hassle for a fair price then I would probably go for it personally.

    I don't believe that treating your main residence as an investment is a great idea, it isn't really practical to just sell up if the value rises significantly (as you may with other forms of investment including property) as you still need somewhere to live!

  7. #107
    Quote Originally Posted by Wolfie View Post
    But as Iím upgrading we could benefit from a potentially shrinking market and I donít fancy paying top dollar today to watch the investment in my home plummet tomorrow
    If you'll be in it 20 years who cares if it's worth 10p tomorrow? If you're concerned go with a 5 year fixed rate. Things should be back to normal by then hopefully.

    If you're in a 200k house and want to buy a 400k house and for argument's sake prices drop 10% you lose 20k but the house you'll buy just lost 40k so you're really 20k up. Only hurts when you're trading down, not up.

    Other thing to consider is when prices are low stock is thin on the ground so you'll have to find something and deal with it rather than have your choice of 30 houses.

  8. #108
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    Iím in a property quandary too.

    Iím trying to buy a 3 bed detached bungalow locally. Itís a bereavement sale, initially we dealt with the deceasedís brother who was awaiting probate. A deal was struck last October, my plan was to buy the bungalow before selling my house, renovating it and adding an extension with a view to moving in around Q3 and selling my house before winter. This was always an ambitious plan with potential to become more costly than Iíd like, but I think it wouldíve worked. Without the virus issues I expected prices to rise over Q1/Q2, thus allowing me to sell my current house at a stronger price than I was paying on the bungalow.

    The deal hit the rocks in January, turns out the deceasedís former partner has his name on the deeds. I gather their relationship was a bit on/off, he didnít live with her constantly and he moved out after her death. The brother, with whom we agreed the sale, has inherited the majority share in the bungalow but his name isnít on the deeds so he canít sell it. Both parties are at loggerheads with a court battle looming, Iíve tried to deal with the partner but heís stonewalled me.

    On the one hand I may have dodged a financial bullet; if prices drop (which I expect) I would've ended up selling mine in a weakened market. I would almost certainly have ended up owning 2 properties for longer than planned. On the other hand, the bungalow is exactly what we want and finding another in this area will be difficult. On that basis Iím prepared to still go ahead but I want to see how the market adjusts first, the price I offered last October may now be too high, but with bungalows in such short supply I suspect Iíll have to accept that Iím paying a bit too much. Thatís the dilemma, if prices drop by 15% Iíll be around £40K down, thatís not far off the figure I had in mind to do the extension and work on the bungalow!

    A good crystal ball would be helpful. Until some deals have been completed we wonít know where the market is. Thereís a risk of a short- term flourish due to pent- up demand, it may be Q1 2021 before a clear picture emerges and I fear it wonít be pretty.

  9. #109
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    Quote Originally Posted by Estoril-5 View Post
    Personally there will always be demand at the lower end of the market, the cheaper your house is the more likely it will sell, the top end houses have a limited number of purchasers and in these times I would bet they are dwindling.

    All depends on the value of your house and how much your upgrade house is. If yours is worth £250k and youre going into a £350k house, it wont make much difference. If youre going into a £500k house I don't think there will be many takers right now especially in Leicester (lived there a while back) and you may be able to squeeze a better price, supply and demand and all that jazz.

    All depends on the numbers buddy
    Thereís brand new 600k houses going up around me (Leicester) and theyíre getting snapped up like thereís no tomorrow

  10. #110
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    Quote Originally Posted by Hooshabak View Post
    Thereís brand new 600k houses going up around me (Leicester) and theyíre getting snapped up like thereís no tomorrow
    Post corona? Are they priced well for the area?

    Do you have a rightmove link or similar?

  11. #111
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    Quote Originally Posted by Estoril-5 View Post
    Post corona? Are they priced well for the area?

    Do you have a rightmove link or similar?
    There was 4 houses similar to this for 660k post corona that have all vanished, probably mid to high for the area, few 1m+ houses around there

    https://www.rightmove.co.uk/property...-79323571.html

  12. #112
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    Quote Originally Posted by walkerwek1958 View Post
    Iím in a property quandary too.

    Iím trying to buy a 3 bed detached bungalow locally. Itís a bereavement sale, initially we dealt with the deceasedís brother who was awaiting probate. A deal was struck last October, my plan was to buy the bungalow before selling my house, renovating it and adding an extension with a view to moving in around Q3 and selling my house before winter. This was always an ambitious plan with potential to become more costly than Iíd like, but I think it wouldíve worked. Without the virus issues I expected prices to rise over Q1/Q2, thus allowing me to sell my current house at a stronger price than I was paying on the bungalow.

    The deal hit the rocks in January, turns out the deceasedís former partner has his name on the deeds. I gather their relationship was a bit on/off, he didnít live with her constantly and he moved out after her death. The brother, with whom we agreed the sale, has inherited the majority share in the bungalow but his name isnít on the deeds so he canít sell it. Both parties are at loggerheads with a court battle looming, Iíve tried to deal with the partner but heís stonewalled me.

    On the one hand I may have dodged a financial bullet; if prices drop (which I expect) I would've ended up selling mine in a weakened market. I would almost certainly have ended up owning 2 properties for longer than planned. On the other hand, the bungalow is exactly what we want and finding another in this area will be difficult. On that basis Iím prepared to still go ahead but I want to see how the market adjusts first, the price I offered last October may now be too high, but with bungalows in such short supply I suspect Iíll have to accept that Iím paying a bit too much. Thatís the dilemma, if prices drop by 15% Iíll be around £40K down, thatís not far off the figure I had in mind to do the extension and work on the bungalow!

    A good crystal ball would be helpful. Until some deals have been completed we wonít know where the market is. Thereís a risk of a short- term flourish due to pent- up demand, it may be Q1 2021 before a clear picture emerges and I fear it wonít be pretty.
    Sounds a bit messy. Given the purchase is likely to be protracted why not link the two transactions into a chain eliminating the possibility of getting stuck with two properties.

    Does mean the renovations will have to be done whilst living there, will probably mean they get done quicker

  13. #113
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    Quote Originally Posted by Estoril-5 View Post
    Personally there will always be demand at the lower end of the market, the cheaper your house is the more likely it will sell, the top end houses have a limited number of purchasers and in these times I would bet they are dwindling.

    All depends on the value of your house and how much your upgrade house is. If yours is worth £250k and youre going into a £350k house, it wont make much difference. If youre going into a £500k house I don't think there will be many takers right now especially in Leicester (lived there a while back) and you may be able to squeeze a better price, supply and demand and all that jazz.

    All depends on the numbers buddy
    looking at the property market in Leicester and Leicestershire there are houses coming on at some pretty heavy prices - still seems (marginally) to have an upward trend... you're right it is all about the delta between the two houses

    i don't mind taking a hit on mine if i can give a (reasonable) hit on the onward house... up sizing in a depressed market is good... up sizing prior to the market bottoming is not as good...


    Quote Originally Posted by mmgg1988 View Post
    Is this an "investment" or your "home"?

    If you are buying it as a form of investment (whilst obviously living in it) then it may be sensible to hold off as I would imagine the upside potential in the short term is probably less than the downsize potential in the short term (although I am no property expert).

    If you are buying as a home because you want a nice place to live, you have found a property that meets all your requirements, you can afford it at the current price and you can sell your current home with minimal hassle for a fair price then I would probably go for it personally.

    I don't believe that treating your main residence as an investment is a great idea, it isn't really practical to just sell up if the value rises significantly (as you may with other forms of investment including property) as you still need somewhere to live!
    Your home is (as it is for many) likely to be the biggest investment you make, so, my practical side tells me it needs to work in both regards. Firstly it has to be the right place in the right area and then I need to work out whether i feel I am getting value for money from what I am getting. I happy to buy with a degree of emotion (i am not devoid of soul!) but, I know i need to get value too...


    Quote Originally Posted by wileeeeeey View Post
    If you'll be in it 20 years who cares if it's worth 10p tomorrow? If you're concerned go with a 5 year fixed rate. Things should be back to normal by then hopefully.

    If you're in a 200k house and want to buy a 400k house and for argument's sake prices drop 10% you lose 20k but the house you'll buy just lost 40k so you're really 20k up. Only hurts when you're trading down, not up.

    Other thing to consider is when prices are low stock is thin on the ground so you'll have to find something and deal with it rather than have your choice of 30 houses.
    Similar to the point made previously - if it was a 10% depression over 12 months in the scale of investment I will be making - its not nothing, but, equally you need to get on with your life! There does not appear to be any degree of depression that i have seen in the market yet. but, equally, when i brought in 2008, asking prices weren't vastly different, but, prices people were willing to accept were lower... I will work that out when i make bids on houses i guess.

    What I don't want to do is pee off a potential buyer of my place (it's not reasonable). If they have made a fair offer, I don't want to string them along indefinitely until I can get a good deal on my next house. I have seen maybe 3 or 4 properties (online) that I might consider, so, It's not as if I have lots and lots to go at... things do seem to be coming up for sale now though as i am getting alerts from Rightmove.

  14. #114
    If people would stop putting full width extensions at the rear of semi detached houses completely eliminating the side access I would have bought a house by now. So annoying.

  15. #115
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    Quote Originally Posted by Hooshabak View Post
    There was 4 houses similar to this for 660k post corona that have all vanished, probably mid to high for the area, few 1m+ houses around there

    https://www.rightmove.co.uk/property...-79323571.html
    Quote Originally Posted by Hooshabak View Post
    Thereís brand new 600k houses going up around me (Leicester) and theyíre getting snapped up like thereís no tomorrow
    i am East Leicestershire so wrong part of town for me... look nice enough for a modern house though (660k for the area is most certainly a bit above average i would have thought?)... Leicestershire is one area that has gone up significantly in recent years... very commutable to London with many trains < 1 hour.

    i am either looking at Stoneygate/ Clarendon Park or staying out in the country (east Leicestershire). i was convinced about moving back into town (i have always felt that i was a townie!) However, lockdown has really led me to appreciate the country a lot more... i have loved my offroad runs and long dog walks more and more in recent weeks... a lot to give up! One more thing i am in a quandary about!

  16. #116
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    Quote Originally Posted by Wolfie View Post
    Your home is (as it is for many) likely to be the biggest investment you make, so, my practical side tells me it needs to work in both regards. Firstly it has to be the right place in the right area and then I need to work out whether i feel I am getting value for money from what I am getting. I happy to buy with a degree of emotion (i am not devoid of soul!) but, I know i need to get value too...
    I agree with the point about value and that was one of my criteria when purchasing, I didn't want to feel like I overpaid for something but that can only really applied to the market at the time of purchase. A house you "overpaid" by 10% for in 2009 would look quite good value in 2018 in most parts of the country.

    I may be in the minority but I would be quite pleased if the value of my home dropped by 50% on the proviso that this same percentage reduction applied to all types of residental property in all areas equally. Hypothetically, if I owned a property that was 300k and then dropped to 150k, I could buy a property which had dropped to 300k (was 600k before the drop) with a 150k mortgage which many would consider affordable where as a 300k mortgage to the same person would be rather less affordable... Obviously there may be negative equity issues for many in that situation however so probably a bit drastic!

    If my equities or savings account which I consider my "investments" dropped by 50% I would be significantly less pleased however!

    In terms of the two scenarios above, I would be very reluctant in any market to either be out of the property market for a significant period of time (a couple of months if deals did not tie up is probably fine) or be holding two properties which I couldn't afford to keep long term. Obviously potentially high rewards if markets move with you but if they go the other way there is a significant financial risk, nevermind the costs of renting/running two properties to add to the mix.

  17. #117
    I canít speak for what might happen, or whether it makes good investment sense, but Iím very pleased to be in my new property. I still have the old one, so no doubt Iíll have to deal with whatever market values are applicable when I come to sell, but for me a home is a long term thing and as long as itís affordable then...
    It's just a matter of time...

  18. #118
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    Quote Originally Posted by Omegamanic View Post
    I canít speak for what might happen, or whether it makes good investment sense, but Iím very pleased to be in my new property. I still have the old one, so no doubt Iíll have to deal with whatever market values are applicable when I come to sell, but for me a home is a long term thing and as long as itís affordable then...
    YesÖ. Youíre right

    As I mentioned this is for the long term

    I will just have to sniff the air and take the plunge if all things line up properly!

    Anyway itís all a bit moot as I am holding off house viewings until the middle of next month anyway (not just for COVID reasons)

    I will follow this thread with interest and if anyone has any current data - itíll be interesting to see itÖ
    Last edited by Wolfie; 5th June 2020 at 17:17.

  19. #119
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    Quote Originally Posted by mmgg1988 View Post
    I agree with the point about value and that was one of my criteria when purchasing, I didn't want to feel like I overpaid for something but that can only really applied to the market at the time of purchase. A house you "overpaid" by 10% for in 2009 would look quite good value in 2018 in most parts of the country.

    I may be in the minority but I would be quite pleased if the value of my home dropped by 50% on the proviso that this same percentage reduction applied to all types of residental property in all areas equally. Hypothetically, if I owned a property that was 300k and then dropped to 150k, I could buy a property which had dropped to 300k (was 600k before the drop) with a 150k mortgage which many would consider affordable where as a 300k mortgage to the same person would be rather less affordable... Obviously there may be negative equity issues for many in that situation however so probably a bit drastic!

    If my equities or savings account which I consider my "investments" dropped by 50% I would be significantly less pleased however!

    In terms of the two scenarios above, I would be very reluctant in any market to either be out of the property market for a significant period of time (a couple of months if deals did not tie up is probably fine) or be holding two properties which I couldn't afford to keep long term. Obviously potentially high rewards if markets move with you but if they go the other way there is a significant financial risk, nevermind the costs of renting/running two properties to add to the mix.
    In many ways I agree!

    I was able to afford to buy my own house in the late 90ís independently on an ok (but nothing special) incomeÖ. Really rough for my kids when they might look to get on the ladder

    Unless you have two professionals who are relatively well paid with a deposit, you have very little chanceÖ

    I have other investmentsÖ. All quite safe though - A BTL and money squirrelled away into a company share fundÖ. Any surplus is in premium bonds as I donít know enough about investments to start experimenting!

  20. #120
    An update from me and from what I have seen happening. My buyer seems to be keen to proceed at the price agreed pre-corona price.

    I viewed someone on Saturday which had just come back on (fell through due to Corona before). I offered 3% under the asking price and it was rejected for a higher offer, I think there were multiple offers on the table. Another house round the corner has come on and they have 7 viewings booked in for the weekend already.

    The houses are in a very desirable area. It feels like there is some of this 'pent up demand' the press has mentioned. I'm still pretty confident they'll be a fall in prices in 9-12 months. I would pay pre-corona value for the right house as I would expect it to recover longer term, and I'm looking for a home not an investment.

  21. #121
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    Unhappy

    From what I have seen, new houses are coming on to the market at pre-Covid asking prices. I suspect prices will drop in the coming 3-6 months, deals are there to be had with sellers who need to sell and similarly there will be buyers that need to move.

    If I was looking to buy a BTL, I would be waiting to see what comes up and would still move if the deal was right.

  22. #122
    Quote Originally Posted by Captaincook View Post
    From what I have seen, new houses are coming on to the market at pre-Covid asking prices. I suspect prices will drop in the coming 3-6 months, deals are there to be had with sellers who need to sell and similarly there will be buyers that need to move.

    If I was looking to buy a BTL, I would be waiting to see what comes up and would still move if the deal was right.
    I spoke to another friend of joins looking to buy in the same boat, again said they would pay the current value for the right house and ride it out as they expect to own it for 5+ years.

    Iím contradicting what I have said before; but I think the drop might me lower then I first thought and transactions just wonít happen. There will of course be some bargains, right place right time and all that.

  23. #123
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    Quote Originally Posted by Omegamanic View Post
    Absolutely.

    I’d also say that with less mortgages being agreed there will obviously be less sales/moves - so less properties on the market overall.

    It could well be a time for those who are stable/safe in their income with the ability to get a decent amount of low interest credit to take advantage.
    Recently read an article that it will take months for real estate market to recover from the crisis caused by the virus. The forecast is true about Spanish real estate market but I believe that in other countries we will se the same tendency.Moving to Spain is especially preferrable after Brexit https://virtoproperty.com/info/movin...n-after-brexit in case you live somewhere in Great Britain.
    Last edited by Owren; 17th June 2020 at 01:42. Reason: additional info

  24. #124
    Quote Originally Posted by Omegamanic View Post
    If you are able to take advantage of the current uncertainty then there is no time like the present.
    The problem is looking at the prices things are coming on for here there doesn't seem to be any uncertainty just unreasonable amounts of optimism.

    At least 15 houses have come on here in the last two weeks and only two have been listed with not outrageous asking prices. Both not in our end of the market. We've been sent a fair amount of reduced property alert emails by Rightmove but these have all been at the lower end of the market sadly and no ability to see what it was before to gauge percentages as an overall indication.

  25. #125
    Quote Originally Posted by wileeeeeey View Post
    The problem is looking at the prices things are coming on for here there doesn't seem to be any uncertainty just unreasonable amounts of optimism.

    At least 15 houses have come on here in the last two weeks and only two have been listed with not outrageous asking prices. Both not in our end of the market. We've been sent a fair amount of reduced property alert emails by Rightmove but these have all been at the lower end of the market sadly and no ability to see what it was before to gauge percentages as an overall indication.
    Have got tried using home.co.uk? Once I have seen something on Rightmove I will find it on home.co.uk where you can see how long itís been listed for including a price history.

    I too havenít seen any reduction on prices, and desirable stuff is going under offer very quickly. Unless you were desperate to sell, Iím not sure why you would list your property now at a reduced price. I did see one that was listed at the end of March for 999k and now dropped to 930k which is a quicker / bigger drop than usual.

    When I have spoken to agents about properties, there have been a fair few that have come back on the market which have fallen through due to one link falling through (due to corona). I would think the discounts available for cash or at least chain free buyers are more than ever.

  26. #126
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    The mortgage advisers at work are incredibly busy - loads of new enquiries from new clients and lots of existing clients wanting to move/extend/buy more. We figure that there are all the people who wanted to buy in March, April and May joining in with the people who want to buy in June. Prices arenít dropping at all and we also figure that they wonít for a while at least . . . . The furlough scheme is potentially one long unemployment delay scheme and wonít start unfolding until at least August (when employers have to start paying NI and pension contributions, then September when 10% of wages are added, followed by October when its increased to 20%). Its only then that weíll start to see the true picture of the job market.

    I think if youíre going to move your equity should be as much a consideration as house prices. If you have 30k deposit and are buying for 300k, a 10% drop in house prices and all of a sudden youíve lost all your equity. You have 100k deposit and youíre fine. So moving up the market right now is a little risky. Waiting and you may move up cheaper - youíre 150k house dropping 10% means the 300k house you want to buy also drops 10%.

    All that said, with the government financial stimulation package being unprecedented, we may see all this influx of money help house prices remain stable, even rise in some areas. I read the other day that personal debt reduced by around 7.5b in March and April as people couldnít spend it. A record drop apparently. I also read somewhere else that in April alone there was 23b in people bank accounts ready to be spent when lockdown ended.

    So who knows - I think everyone needs to look at their own situation and see whatís right for them, right now.

  27. #127
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    Your situation is quite tricky and as you said a good crystal ball would be helpful. Not sure Iíd want to buy and own two in a potentially falling market as you get hit twice effectively. That said with a potentially court case itís kind of out of your hands for now as this could take months and youíll know the reality of the market by then.

    Would you consider testing the market and selling yours? Moving into rented if you had to? Inconvenient I know, but it could put you in a fantastically strong position in time to come.

    On the other hand, itís not always about money. If this is the house you intend to spend the next 20 plus years in and there arenít many like this about, then a 40k temporary drop, whilst being a bit annoying, might be a small price to pay long term.

    Quote Originally Posted by walkerwek1958 View Post
    Iím in a property quandary too.

    Iím trying to buy a 3 bed detached bungalow locally. Itís a bereavement sale, initially we dealt with the deceasedís brother who was awaiting probate. A deal was struck last October, my plan was to buy the bungalow before selling my house, renovating it and adding an extension with a view to moving in around Q3 and selling my house before winter. This was always an ambitious plan with potential to become more costly than Iíd like, but I think it wouldíve worked. Without the virus issues I expected prices to rise over Q1/Q2, thus allowing me to sell my current house at a stronger price than I was paying on the bungalow.

    The deal hit the rocks in January, turns out the deceasedís former partner has his name on the deeds. I gather their relationship was a bit on/off, he didnít live with her constantly and he moved out after her death. The brother, with whom we agreed the sale, has inherited the majority share in the bungalow but his name isnít on the deeds so he canít sell it. Both parties are at loggerheads with a court battle looming, Iíve tried to deal with the partner but heís stonewalled me.

    On the one hand I may have dodged a financial bullet; if prices drop (which I expect) I would've ended up selling mine in a weakened market. I would almost certainly have ended up owning 2 properties for longer than planned. On the other hand, the bungalow is exactly what we want and finding another in this area will be difficult. On that basis Iím prepared to still go ahead but I want to see how the market adjusts first, the price I offered last October may now be too high, but with bungalows in such short supply I suspect Iíll have to accept that Iím paying a bit too much. Thatís the dilemma, if prices drop by 15% Iíll be around £40K down, thatís not far off the figure I had in mind to do the extension and work on the bungalow!

    A good crystal ball would be helpful. Until some deals have been completed we wonít know where the market is. Thereís a risk of a short- term flourish due to pent- up demand, it may be Q1 2021 before a clear picture emerges and I fear it wonít be pretty.

  28. #128
    Quote Originally Posted by walkerwek1958 View Post
    Iím in a property quandary too.

    Iím trying to buy a 3 bed detached bungalow locally. Itís a bereavement sale, initially we dealt with the deceasedís brother who was awaiting probate. A deal was struck last October, my plan was to buy the bungalow before selling my house, renovating it and adding an extension with a view to moving in around Q3 and selling my house before winter. This was always an ambitious plan with potential to become more costly than Iíd like, but I think it wouldíve worked. Without the virus issues I expected prices to rise over Q1/Q2, thus allowing me to sell my current house at a stronger price than I was paying on the bungalow.

    The deal hit the rocks in January, turns out the deceasedís former partner has his name on the deeds. I gather their relationship was a bit on/off, he didnít live with her constantly and he moved out after her death. The brother, with whom we agreed the sale, has inherited the majority share in the bungalow but his name isnít on the deeds so he canít sell it. Both parties are at loggerheads with a court battle looming, Iíve tried to deal with the partner but heís stonewalled me.

    On the one hand I may have dodged a financial bullet; if prices drop (which I expect) I would've ended up selling mine in a weakened market. I would almost certainly have ended up owning 2 properties for longer than planned. On the other hand, the bungalow is exactly what we want and finding another in this area will be difficult. On that basis Iím prepared to still go ahead but I want to see how the market adjusts first, the price I offered last October may now be too high, but with bungalows in such short supply I suspect Iíll have to accept that Iím paying a bit too much. Thatís the dilemma, if prices drop by 15% Iíll be around £40K down, thatís not far off the figure I had in mind to do the extension and work on the bungalow!

    A good crystal ball would be helpful. Until some deals have been completed we wonít know where the market is. Thereís a risk of a short- term flourish due to pent- up demand, it may be Q1 2021 before a clear picture emerges and I fear it wonít be pretty.
    How different in value are the two properties? Given the situation is out of your control, unless you can still Ďkeep it under offerí without spending money on legal fees while they work things out there end. You can then keep an eye out for anything else that comes on.

    Whilst I get your logic, you are a braver man than me making a decisions based on the expectation your house will rise in value over a 6 month period.

  29. #129
    Grand Master 100thmonkey's Avatar
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    As we have a 45% increase in divorces already this year and coupled with the recession that will force many to downsize or rent the property market is doing very well thank you as investors realise its the only place they will make a decent profit over banks that could soon have negative interest rates.

    One good friend is Director of Estate Agents and I personally have a couple of properties for sale up north, both reporting a very healthy interest and market surprisingly
    "When You Go Home, Tell Them Of Us And Say,
    For Their Tomorrow, We Gave Our Today"

  30. #130
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    Quote Originally Posted by 100thmonkey View Post
    As we have a 45% increase in divorces already this year and coupled with the recession that will force many to downsize or rent the property market is doing very well thank you as investors realise its the only place they will make a decent profit over banks that could soon have negative interest rates.

    One good friend is Director of Estate Agents and I personally have a couple of properties for sale up north, both reporting a very healthy interest and market surprisingly
    Numbers are about the same here. In fact, home sales are much higher than before. Despite the fact that loaning money is slightly up.

    When buying a house, seller and buyer have to sign the contract at a solicitor's office. (The solicitor holds the official document). My neighbour across the street is a solicitor and we talked about his job. "At first, less sold homes, but more estate planning and inheritance law-related matters. Now: house contracts are up again!"

  31. #131
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    I put an inherited property on the market just before the house arrests. Nothing particularly special, although it is on a popular street. I've been gobsmacked by how many requests for viewings have come through as soon as restrictions were relaxed. More than I would have expected even in happier times. It remains to be seen how that translates in terms of offers, but the desire of folks to move doesn't seem to me to have been dampened. Quite the opposite.

  32. #132
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    Similar here, plenty of interest and booked viewings on a house I own thatís currently sitting empty after the last tenants moved out just before Christmas.

    Remains to be seen how that translates to offers, but Iím happy to become a landlord again if I canít reach a deal.

  33. #133
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    A good friend of mine is a estate agent in Norfolk and he says in the last few weeks he's never been busier and is selling them as fast as he is listing them and needs more stock.
    Cheers..
    Jase

  34. #134
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    A lot of good advice and points here.

    Fundamentally, I see the pent up demand pushing the market along, but once those needs have been satisfied, the three d's will continue to disproportionately drive the market.

  35. #135
    Watching the property auctions in London yesterday I can also say there are no bargains whatsoever out there at the money. Strong strong money for property being paid all over the place. No sign of a dip yet regardless of what media says.

  36. #136
    Quote Originally Posted by Captaincook View Post
    A lot of good advice and points here.

    Fundamentally, I see the pent up demand pushing the market along, but once those needs have been satisfied, the three d's will continue to disproportionately drive the market.

    Possibly, but other factors may be in place by then which either affect the market positively or negatively.

    Ive spoken with a couple of estate agents in relation to selling my old property, and both were very positive of achieving a very good market price inline with pre-Covid levels. So I might look to put it on the market sooner than planned.
    It's just a matter of time...

  37. #137
    Quote Originally Posted by Omegamanic View Post
    Possibly, but other factors may be in place by then which either affect the market positively or negatively.

    Ive spoken with a couple of estate agents in relation to selling my old property, and both were very positive of achieving a very good market price inline with pre-Covid levels. So I might look to put it on the market sooner than planned.
    Agents are always positive! But based on my property search it strangely would seem like a good time to list the property.

  38. #138
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    Quote Originally Posted by thestore View Post
    How different in value are the two properties? Given the situation is out of your control, unless you can still Ďkeep it under offerí without spending money on legal fees while they work things out there end. You can then keep an eye out for anything else that comes on.

    Whilst I get your logic, you are a braver man than me making a decisions based on the expectation your house will rise in value over a 6 month period.
    The properties are of similar value, mineís worth approx £10-£15k more than the one I want to buy. On a rising market that may have stretched to £15-£20k, it was never a major factor in the financial case. Prices traditionally rise during spring/ summer, thatís why I was reasonably optimistic.

    The option of renting my own house out for around £950/month would be the fallback if prices slumped significantly, but Iíve no urge to do that for several reasons.

    Despite the optimistic noises from Estate Agents I expect the market to fall once the effects of job losses start to bite.

  39. #139
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    Quote Originally Posted by walkerwek1958 View Post
    ....Despite the optimistic noises from Estate Agents I expect the market to fall once the effects of job losses start to bite.
    Sadly, I very much agree with this point.

  40. #140
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    It's all still far too early for the real ramifications to be priced in the market. The people buying and selling now are the same people who would have been doing so pre covid, you may get a small discount for the uncertainty but they are not true motivated sellers.

    The people who are really in trouble are on mortgage holidays now and are getting 80% pay on furlough. We'll only see that coming onto the market when mortgages can't be paid post holiday and when the furloughs turn into redundancies. It'll be the end of the year before that starts and I guess a number of months after that for repossessions to come to the market.

    And that's not even thinking about no deal brexit.

  41. #141
    Quote Originally Posted by thestore View Post
    Agents are always positive! But based on my property search it strangely would seem like a good time to list the property.
    Absolutely, they want the business regardless.

    It like the right time to sell though.
    It's just a matter of time...

  42. #142
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    Quote Originally Posted by thestore View Post
    I would think the discounts available for cash or at least chain free buyers are more than ever.
    That would be nice, but it doesn't appear that many appear to look at it that way!

    Quote Originally Posted by anton863 View Post
    It's all still far too early for the real ramifications to be priced in the market. The people buying and selling now are the same people who would have been doing so pre covid, you may get a small discount for the uncertainty but they are not true motivated sellers.

    The people who are really in trouble are on mortgage holidays now and are getting 80% pay on furlough. We'll only see that coming onto the market when mortgages can't be paid post holiday and when the furloughs turn into redundancies. It'll be the end of the year before that starts and I guess a number of months after that for repossessions to come to the market.

    And that's not even thinking about no deal brexit.
    Completely agree. This positivity in the market is insane, people haven't yet felt the pain of what is going to come.
    I dislike being negative, but it's insane to think of anything but a difficult market in the future.
    I pulled out of a purchase of a new build in March, when I had company shares suspended from sale, so I was stuck short of my deposit. It was the right decision to make then, but it's only looking like a better one.
    I can't get close to what I was able to borrow 4 months ago, so how the market is going to be held up, when lending is being restricted. Those saying otherwise are kidding themselves, if the money isn't available, the market will contract - it can't all be held up by BTL etc.

    I think I'll be sitting tight for a few months yet.

  43. #143
    Quote Originally Posted by Seamaster73 View Post
    I put an inherited property on the market just before the house arrests. Nothing particularly special, although it is on a popular street. I've been gobsmacked by how many requests for viewings have come through as soon as restrictions were relaxed. More than I would have expected even in happier times. It remains to be seen how that translates in terms of offers, but the desire of folks to move doesn't seem to me to have been dampened. Quite the opposite.
    One possible reason is people who want to move away from their neighbours due to their behaviour during lockdown. My family have always had a good relationship with our neighbours but a good number of them have disappointed us with their breaking the rules. Sometimes little things but recently we had the police called (presumably by another neighbour who was fed up) on some of them who had decided to have a get together.

    All of this has made it clear to both me and my wife that we would be happier to lose the local amenities and get out into the countryside with a bit more space between us and others. Its not a good time to move and we will probably procrastinate for a while yet but rightmove is a daily browse for me right now.

  44. #144
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    The real hit is coming 4th quarter this year and it'll be carnage. 3rd q results will be horrible!

  45. #145
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    Quote Originally Posted by 33JS View Post
    The real hit is coming 4th quarter this year and it'll be carnage. 3rd q results will be horrible!
    Everything is in a bubble at the moment, you can't read anything into short term trends. You are spot on to highlight that Q3 and Q4 will be a far more accurate reflection of what is to come, furlough schemes taper out, companies re-structure their business, restrictions against taking action for non-payment of rent get lifted, companies start reporting terrible results, dividends suspended, etc, etc. Anyone that thinks we are gently going to return to normal over the next 12 months is delusional, we are in for a long bumpy ride for sure and there is no magic wand to pay for the colossal debt that has been accrued.

    In terms of house prices, I've said before that parts of the market could get supported by a return of buy to let investors if we see negative interest rates, but the balance of risk for price movements is still firmly on the downside. And ultimately the government will not want to see the market supported by BTL investors, negative interest rates would be a tool to stimulate proper consumption and propping up house prices only perpetuates an existing problem where many struggle to get on the housing ladder and those that do are overly exposed to future rate rises as debt multiples have ramped up again. So don't be surprised if the government adds even more punitive SDLT levies on second homes in an effort to raise more taxes and discourage a resurgence of BTL's having already had a number of goes at killing that market.

  46. #146
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    Quote Originally Posted by thegreatdogwood View Post
    Everything is in a bubble at the moment, you can't read anything into short term trends. You are spot on to highlight that Q3 and Q4 will be a far more accurate reflection of what is to come, furlough schemes taper out, companies re-structure their business, restrictions against taking action for non-payment of rent get lifted, companies start reporting terrible results, dividends suspended, etc, etc. Anyone that thinks we are gently going to return to normal over the next 12 months is delusional, we are in for a long bumpy ride for sure and there is no magic wand to pay for the colossal debt that has been accrued.

    In terms of house prices, I've said before that parts of the market could get supported by a return of buy to let investors if we see negative interest rates, but the balance of risk for price movements is still firmly on the downside. And ultimately the government will not want to see the market supported by BTL investors, negative interest rates would be a tool to stimulate proper consumption and propping up house prices only perpetuates an existing problem where many struggle to get on the housing ladder and those that do are overly exposed to future rate rises as debt multiples have ramped up again. So don't be surprised if the government adds even more punitive SDLT levies on second homes in an effort to raise more taxes and discourage a resurgence of BTL's having already had a number of goes at killing that market.
    Agreed, but with one caveat : I think btl'ers are going to be taxed into oblivion to pay for this feck up. With increase in vat, a wealth tax and the rest...

  47. #147
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    Quote Originally Posted by 33JS View Post
    Agreed, but with one caveat : I think btl'ers are going to be taxed into oblivion to pay for this feck up. With increase in vat, a wealth tax and the rest...
    Oh I think that will happen too. I only said that the BTL market could prop up some of the housing market, I personally don't think it actually will for the reasons you mention. The government needs to remember that the wealthiest can always find a way around any problem, you will just see savings move abroad.

  48. #148
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    Quote Originally Posted by thegreatdogwood View Post
    Oh I think that will happen too. I only said that the BTL market could prop up some of the housing market, I personally don't think it actually will for the reasons you mention. The government needs to remember that the wealthiest can always find a way around any problem, you will just see savings move abroad.
    Agree with all you've said!

  49. #149
    Quote Originally Posted by LukeBird View Post
    That would be nice, but it doesn't appear that many appear to look at it that way!



    Completely agree. This positivity in the market is insane, people haven't yet felt the pain of what is going to come.
    I dislike being negative, but it's insane to think of anything but a difficult market in the future.
    I pulled out of a purchase of a new build in March, when I had company shares suspended from sale, so I was stuck short of my deposit. It was the right decision to make then, but it's only looking like a better one.
    I can't get close to what I was able to borrow 4 months ago, so how the market is going to be held up, when lending is being restricted. Those saying otherwise are kidding themselves, if the money isn't available, the market will contract - it can't all be held up by BTL etc.

    I think I'll be sitting tight for a few months yet.
    Out of interest how have you concluded you canít borrow as much? I have a mortgage in principal from April and I havenít re-applied since. The online calculators on some lenders sites donít show any change?

  50. #150
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    Quote Originally Posted by thestore View Post
    Out of interest how have you concluded you canít borrow as much? I have a mortgage in principal from April and I havenít re-applied since. The online calculators on some lenders sites donít show any change?
    Spoke to mortgage advisor and had her run the numbers. I'm a first time buyer and knew that a lot of lenders had removed 90% mortgages, so I was interested to see what the figures were. What I could borrow had dropped roughly 20%, with all the other figures being broadly similar (I've lost overtime, earnings up and have more deposit) to when I had a valid decision in principle (it expired in April).

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