Property Prices, another Bubble??

[LDeville]

Hi

 

As many will be aware, we recently completed on a detached property in a very salubrious part of Sheffield.

 

In london, and many se England and other England locations that are deemed very popular, property prices smashed through and clearly surpassed by massive margins the 2007 highs.

 

Reasons for about is that people are receiving little interest on their money in the banks and fears of banks going under. Importantly record low interest rates have a major part to play in the massive rises. Therefore, when interest rates rise and they will, you will get people defaulting again in their thousands.

 

 

to buy and sell almost anywhere in England is hard unless one is chain free or can afford to be chain free, ie buy a property and sell yours later or keep as rents on the whole in London are avg 8%. In Sheffield we willbe getting an above avg gross yield for the area.

 

So if you are buying, remeber that if you are paying an avg of 3:7% now, what you will be paying on a repayment mortgage at 11%, and don't say this won't happen as it has done so several times over the last 30 years.

 

Thanks

[LDeville]

Hi

 

Oh dear, just read this, a repeat of history!!!

 

Mrs Thatcher gave aways billions of tax payers money to buy votes by selling coucil property, ie propaerty that belonged to the hard pressed tax payers are reductions up to 70%. Many could and just as many could not afford to buy so friends/familys and investors moved in and bought on their behalf and sold at large profits. The rest is history, ie lack of decent housing, shortgaes, people not being able to pay their mortgage as rates go up or look after their property.

 

 

http://www.bbc.co.uk/news/uk-politics-15140573

 

 

.

[wednesday1]

Hi

 

As many will be aware, we recently completed on a detached property in a very salubrious part of Sheffield.

 

 

 

 

I thought you lived in Toytown Phil???

[andyofborg]

I thought you lived in Toytown Phil???

 

he lives in Camberwick Green

[muddycoffee]

Hi

 

Oh dear, just read this, a repeat of history!!!

 

Mrs Thatcher gave aways billions of tax payers money to buy votes by selling coucil property, ie propaerty that belonged to the hard pressed tax payers are reductions up to 70%.

 

.

 

As long as the accommodation is replaced (as Cameron promises this time) then this is a good scheme for several reasons.

Firstly having a large mix of council accommodation to rent across many areas is better than having single areas where every dwelling is council owned. People tend to make improvements and do more to maintain their own property to a higher standard than the council employed contractors do.

 

Taking into consideration that a tennant may have paid the rent on a property for decades, means that you can justify a bargain "right to buy" price, because they could have actually paid for the property already with the amount of rent they have paid over the years.

 

Then by passing on older property for private sale and using it to build new stock you are renewing the council housing stock to higher modern standards for a much cheaper price. As well as getting the chance to spend the new development money on the types and sizes of dwelling that is most needed by the local waiting list.

 

Allowing this scheme to bring new renting tennants into the local economy will mean that there are more households paying rent and therefore regular payments go up while the cost of building older proerties was written off the accounts years ago.

[LDeville]

Hi MC

 

Mrs Thatcher sold to those that could ill afford, especially when interest rates went up. Importantly, most of the properties that sold were in the better locations, thus leaving behind, on the whole properties/falts in squalid areas. Many that bought could not afford themselves even at 70% reductions but family bought for profit

 

We met a few people over the years that bought flats, in tower blocks and they can't afford the communal area lift frpairs/relaplcesm and general refubishment to the whole bloc, one was being asked to cough up in excess of 20k for new windows, roof and lifts.

 

 

We uold never buy in a new estate even in london as most councils insist 10% are so-called affordable hpousing. where our sone lives - he paid 350k for his apartment in 2007 and now wrth about that, but a floor below the one bed propeorties are booked at apptox 280k and rented out by Hosuing ASSociations and the people are trouble - thankfully they are being thrown out

 

Cameron lies a lot and this is no different.

[muddycoffee]

I know of lots of people who have bought former council housing, and housing association hosing in sheffield and overall it seems to have worked very well in my view. The areas have improved and become very nice in many cases.

 

Obviously buying in a block of flats is a different set of technical problems, there are not only the problems of upkeep of the communal areas, but also the fabric of the block and the communal heating which is very expensive.

 

I accept your points but I am still keen to see what the details of Cameron's scheme are before I make my mind up about it and I believe these details will not be finalised for a few months yet.

[wednesday1]

he lives in Camberwick Green

 

 

Is this true Phil?