Brighton & Hove House Prices-help needed

[Chicken Runner61]

Where did I say that ?. Lender still apply very strict criteria now to 75% mortgages. Income multiples are muich reduced and afforability is key as it should be. The pendulum has swung the other way now. They may be have too lax in the past, they are far to strict now.

Unless you are an A1 cast iron certainty and I mean not even having 1 missed payment on a credit card for the last 3 years you will not get a mortgage.

They few lenders left are cherry picking the best clients.

They could apply the same criteria to 90% mortgage and offer sensible rates and that would get the market going.

Whats gone on is criminal. The bankers have swindled us out of money and are now making us pay for the privilege to let them survive.

They hate the base rate being so low and have raised their rates to make the profits they used to make on anyone still with a mortgage, anyone wanting a loan of any sort, overdraft, carloan, creditcard etc.

They are screwing small businesses using arrangement fees, increased rates and then they have screwed savers by giving crap interest rates.

When HSBC and barclays try and say they didn't borow taxpayers money to survive ask them how seeing they are part of the same gang of crooks they would have survived if the whole system crashed like it very nearly did. They are all guilty.

People need to get to back to buying what they can afford rather than borrowing to try and get what they can't afford.

Its the biggest scam carried out over the world - loaning other peoples money back to them at a greater rate.

 

[Gully]

In a falling market this upsizing to save money has been a bit of a falicy. You are buying a property that will then loose a bigger chunk of money than the one you had left.

How can it be a fallacy, what I posted relys on differentials and is based on a long term view...if I were to sell my current house and move a couple of rungs up the ladder it would be for a smaller difference than in a strong housing market...thus I would be moving into a house whose value would increase to a level, when the market recovered, where the difference would be far larger. The caveat here is that it takes a long term view, rather than viewing it as a short term loss look at a long term gain.

 

[Uncle C]

How can it be a fallacy, what I posted relys on differentials and is based on a long term view...if I were to sell my current house and move a couple of rungs up the ladder it would be for a smaller difference than in a strong housing market...thus I would be moving into a house whose value would increase to a level, when the market recovered, where the difference would be far larger. The caveat here is that it takes a long term view, rather than viewing it as a short term loss look at a long term gain.

Your current place is worth £100,000 and you buy a place at £200,000.

The market then falls a further 10%.

Your new house has now lost £20,000, whereas if you has sat still in your old place you would have lost only £10,000.

My point is, that Estate Agents will try and persuade you to upgrade while the market is falling, but this can lead to increased losses.

Of course the best time to upgrade is when the maket is at its lowest

 

[beorhthelm]

You can get a decent 3 bed house in Southwick now for £ 160k.

where do you find such properties? i look on the Rightmove site too and i know its not comprehensive, but i've seen those sorts of prices in the area other than Moulscombe/bevendean. is there a better website or is it trade knowledge?

 

[Gully]

Your current place is worth £100,000 and you buy a place at £200,000.

The market then falls a further 10%.

Your new house has now lost £20,000, whereas if you has sat still in your old place you would have lost only £10,000.

My point is, that Estate Agents will try and persuade you to upgrade while the market is falling, but this can lead to increased losses.

Of course the best time to upgrade is when the maket is at its lowest

My current place is worth £100k and I buy a place at £200k = Difference of £100k

The market then falls further 10%.

My new house has lost £20k, my old house would have lost £10k, I do not sell and move because I upsized on purpose to take advantage of the downturn in the housing market.

Two years ago my current place was worth £150k and the place I bought was worth £300k, this was before the market dropped by 33%, that equalled a difference of £150k.

I will stay in my new house for ten years, during which the housing market will recover and house prices will double, my old house doubled to £200k, my new house doubled to £400k which is a gain of £200k.

I take a long term view when it comes to investment and took advantage of the downturn in the market to move up the ladder at a time where I was able to afford the house I wanted to move to. Despite the risk that I might take a hit on my investment if I had to sell, if the market hadn't recovered sufficiently, although that was never my intention. Many people will take the long term view and do very well out of the current downturn, others will only take a short term view and not do anything at all.

 

[Uncle C]

Two years ago my current place was worth £150k and the place I bought was worth £300k, this was before the market dropped by 33%, that equalled a difference of £150k.

So if you'd waited till today to make this move (mortgage permitting) it would have cost just £100K, a saving of £50K. In addition you would have saved 2 years of higher mortgage payments and you would still make the future gains you are predicting.

I'm sure the move worked out right for you, but theres still a fallacy about the merits of upgrading in a falling market.

 

[Gully]

So if you'd waited till today to make this move (mortgage permitting) it would have cost just £100K, a saving of £50K. In addition you would have saved 2 years of higher mortgage payments and you would still make the future gains you are predicting.

I'm sure the move worked out right for you, but theres still a fallacy about the merits of upgrading in a falling market.

The example I gave was just to illustrate my point, it wasn't a reflection on my own property dealings, though I did spot an opportunity and buy my first house during the property crash of the early 90's...my view remains that the best time to upsize is when the market is in a dip, as it is at the moment, when the price differences between properties are reduced. For someone who wants to speculate, or move somewhere better, now is the ideal time to think about doing it in my opinion.

 

[Uncle C]

my view remains that the best time to upsize is when the market is in a dip

So we agree but I dont think we are in the dip yet.

 

[Gully]

So we agree but I dont think we are in the dip yet.

Indications are that the market has bottomed out, there have indeed been very small rises in property prices in the last couple of months...though that should be tempered by the fact that the number of sales going through is very low...do I take it that you are expecting the market to resume the downward trend?

 

[Uncle C]

Indications are that the market has bottomed out, there have indeed been very small rises in property prices in the last couple of months...though that should be tempered by the fact that the number of sales going through is very low...do I take it that you are expecting the market to resume the downward trend?

Yep, all the omens are poor, even the scientific graphs I posted here some weeks ago.

 

[zego]

My wife and I are looking to move from a 1 bed flat in Hove to a 3 bed house Hove or Shoreham way, as we have our first baby on the way.

I am after any advice/feedback anyone (especially anyone in the trade) can give me in terms of what property is actually going for in these areas currently. Particularly any advice/experiences of how much to successfully offer in comparison to the asking price (without taking the mickey/being unrealistic) and how realistic current prices are. I religoulsy check Right Move on a daily basis, but prices still seem quite high considering the Credit Crunch and the rumours that the market could crash further etc

Any help/suggestions greatly appreciated, cheers.

I use www.zoopla.co.uk for well presented data on real prices acchieved.

Data now goes back several years, from logged Land Registry information, not just approved mortgages as Halifax, etc.

This catches very near 100% of transactions, completed as recently is maybe just 4 to 6 weeks ago. Mortgage based data obviously misses buyers trading down and not using mortages, and slightly over-estimates sales as not all applications end up as completed purchases.

You can search on just actual sales, by town or area or postcode - sort by house address, max. years, to see price progression on particular houses.

Search on 1 year, then 2 year, etc, timespan to get an idea of actual activity this year compared with last - cuts through hyped-up agent waffle!

Can also select on estimated current prices, as extrapolated by zoopla from actual earlier sales using their own trend analysis of the data.

In the end, obviously the seller is asking somewhere between what they want/need and what will actually make a sale, and vice versa for the buyer.

Zoopla can't tell you that, but might help give you a better basis for your expectations than the flim-flam you might otherwise drown in!

Good hunting!