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Property Slump? What we think?


J4L

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So many good views that I just had to add, and yes I'm positive about the future. Make up your own minds, the evidence or a load of rubbish.

Will prices keep rising?

Rising house prices – Caused by supply and demand

The Barker review – States more new households created each year than properties being built

Immigration – Rising due to EU expansion

Student Population – Growing

Number of households increasing – Divorce, later marriages

New investors – I regularly speak to people who intend entering the market

Tenants – Some have no intention of buying at all

HIPS – Stop the water testers and add to shortage of property on market

Grouping – People are buying together

Equity release – Older generation not downsizing just releasing equity

Mortgage term – 35 year mortgages available

Parents – Paying deposit and acting as guarantors

Rightmove – 25% of property bought without a mortgage

Why do landlords invest?

Long term investment – ie Pension nest egg, children’s inheritance

Long term investment – CGT reduced with taper relief, transaction costs increasing

Long term investment - Capital growth, rent just pays the bills

Landlords – Surely they know most about potential returns

Could Landlords survive a market correction?

Property equity – Could argue that there’s better equity in Buy-to-Lets, an investor would start with a 15% deposit to achieve a better rate, 1st time buyers can start with Minus 25%!

Price correction – Still have equity, still have rental income, still have property, still wouldn’t sell.

Fact or Fiction?

Landlords – Work in all sectors of employment

Available tenants - Void periods down from 4.4 to 3.6 weeks at end of 2006 according to ARLA

Rental yield lower – Market efficiency rather than over demand?

Buy-To-Let – Market only 10 years old and will continue to mutate to market conditions

Property crash ahead?

Investors – Buy good opportunities which should prevent a significant fall so it's a myth that they add to house price inflation

Land – The UK is a small island ie France is 5 times as big with the same population.

The ‘Crash of 1989’ – How many people actually wanted to sell, when people buy they tend to stay in the market

Over supply – Corrects at a local level, landlords sell and buy elsewhere

Interest rates rising – How far can they go? Too far and it’ll effect trade with the rest of the EC who are some 1.5% lower. What would happen if the UK joined?

But what do i know.............

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Yes, there are lots of factors to consider, but it would certainly be foolish to presume that house prices will continue to rise in the same manner of the past 10 years, especially as affordability is at its highest level ever (higher than in 1989) a ratio of 6 times the average salary, and everyone knows what followed.........

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.........interest rates is the major deciding and key factor for forcasting property futures and it is almost a certaintity that there will be a rise in July followed by possibly another rise in early Autumn.

This will kill the growth in any property values.

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.........interest rates is the major deciding and key factor for forcasting property futures and it is almost a certaintity that there will be a rise in July followed by possibly another rise in early Autumn.

This will kill the growth in any property values.

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.........interest rates is the major deciding and key factor for forcasting property futures and it is almost a certaintity that there will be a rise in July followed by possibly another rise in early Autumn.

This will kill the growth in any property values.

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Blxxxdy Hell Mel!!

We got the massage first time ! really got it by the third ......

So house prices frozen eh .......Can only be good news for us while we are buying then >!!!!!!!!LOL

And more open attitude to offers as people lie in fear of th big "crash" -just figure all this into your equation & on on we go ?

or not.........?????????

Simon

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well melboy

I dunno bout you but I was counting the posts down where I would become a senior member, but you already being a SUPER senior member haven't got much to benefit by posting 3 times haha.

(unless of course they dish out gold watches, an interest free mortgage, and a new car when you get past 351 posts)

;)

Gareth

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Not sure what happened there but I was having a spot of bother with this darn computer.....

Oh well chalk up an extra 2 more........... ;)

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haha ;)

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