House prices in Edinburgh

[Munch]

Yes but you are likely to be getting 10-15% off within only 6 months of this all properly kicking off.

 

My predictions are for over the next 3-4 years. I think you would have to agree I am looking more than good so far.

 

If you are looking for a New Town place I have a tip for you. I don't know if you remember the other thread about DJ Alexander selling off all his New Town stuff under the 'Heritors' guise ?

 

These signs have now all gone. They have either disappeared or been replaced with To Let signs from DJ Alexander itself. Not sure what has happened. Their website has disappeared too....

 

If I were you I would be contacting them about the places they were recently trying to sell. Ask if they would be open to a quick offer at perhaps 15% under what they were wanting...

 

Of course I think you should just wait for 4 years and get it at closer to 50% off. If you don't want to rent however you could do worse than my plan above. Don't say I'm not good to you.

 

Did you see the front page off the business section of the Herald today? your wisdom and predictions have no end you got it right again.

 

Article is headed " Builders turn to rental market as sales fall "

 

By D J Alexander.

 

It prattles on about them renting 50 properties fpr 4 developers in the city, because nothing is selling. " Heritors " i strongly suspect would be some of them.

 

Mactaggert and Mickel, also laying off staff, they comment the rental market is booming.

 

Whats the big picture here copper, you got to have an angle on whats going on here ?

[Munch]

Yes but you are likely to be getting 10-15% off within only 6 months of this all properly kicking off.

 

My predictions are for over the next 3-4 years. I think you would have to agree I am looking more than good so far.

 

If you are looking for a New Town place I have a tip for you. I don't know if you remember the other thread about DJ Alexander selling off all his New Town stuff under the 'Heritors' guise ?

 

These signs have now all gone. They have either disappeared or been replaced with To Let signs from DJ Alexander itself. Not sure what has happened. Their website has disappeared too....

 

If I were you I would be contacting them about the places they were recently trying to sell. Ask if they would be open to a quick offer at perhaps 15% under what they were wanting...

 

Of course I think you should just wait for 4 years and get it at closer to 50% off. If you don't want to rent however you could do worse than my plan above. Don't say I'm not good to you.

 

More intersting news in the Scotland on Sunday, every market economy on the world is slowing down and/or going into reccesion, except Saudi Arabia its economy is expected to grow by 50% in the next year alone.

 

A one way ticket to Saudi is the answer mate, that is utterly increadable.

 

your wisdom on this would be appreciated.

[flecktimus]

I dont get that, why would anyone put a property on the market if they did not really want too sell ?

 

It was very common, because of the estate agents being no sale no fee. Potential vendors would put there property on the market, maybe a little above market value then they would wait and see if it sold. If it sold, then it would be sold above there expectations, if it doesn?t sell it has cost them nothing, only the estate agent would lose out on advertising.

 

Now with hips in place it costs to put your property on the market so potential vendors are not so keen to put there properties on the market unless they are serious about selling

[Munch]

It was very common, because of the estate agents being no sale no fee. Potential vendors would put there property on the market, maybe a little above market value then they would wait and see if it sold. If it sold, then it would be sold above there expectations, if it doesn?t sell it has cost them nothing, only the estate agent would lose out on advertising.

 

Now with hips in place it costs to put your property on the market so potential vendors are not so keen to put there properties on the market unless they are serious about selling

 

Interesting, i can only see the new single survey scheme that is starting here having a detromental effect on an already stagnent market.

 

One area off the market where there are huge opportunities is the builders who are siting with there throats cut, are offering part exchange schemes, so they take your property at top market price off your hands, pay your stamp duty and legal costs etc etc, and you get in return a shiny new property at a 3rd off its actual value ( good negotiating skills required though ).

 

If you are thinking long term say 10 years minimum, for your main residence home, this has got too be a winner.

 

Id like to hear Copper views on this one as well.:Hearts Man spotrun:

[flecktimus]

Interesting, i can only see the new single survey scheme that is starting here having a detromental effect on an already stagnent market.

 

One area off the market where there are huge opportunities is the builders who are siting with there throats cut, are offering part exchange schemes, so they take your property at top market price off your hands, pay your stamp duty and legal costs etc etc, and you get in return a shiny new property at a 3rd off its actual value ( good negotiating skills required though ).

 

If you are thinking long term say 10 years minimum, for your main residence home, this has got too be a winner.

 

Id like to hear Copper views on this one as well.:Hearts Man spotrun:

 

The big difference you may find with the survey scheme is that an actual figure will be on the valuation. The Edinburgh property market has had it to good with the offers over scenario. It has basically been a blind auction with the market being so buoyant. Just wait until potential buyers have a price put in there heads, that?s when it will really get tough for vendors in a slow market.

[coppercrutch]

Did you see the front page off the business section of the Herald today? your wisdom and predictions have no end you got it right again.

 

Article is headed " Builders turn to rental market as sales fall "

 

By D J Alexander.

 

It prattles on about them renting 50 properties fpr 4 developers in the city, because nothing is selling. " Heritors " i strongly suspect would be some of them.

 

Mactaggert and Mickel, also laying off staff, they comment the rental market is booming.

 

Whats the big picture here copper, you got to have an angle on whats going on here ?

 

I just think they are desperate for any sort of income at all. They are a business afterall and their main function, building and selling houses, is collapsing. Therefore building houses and then renting them seems to be the natural next step. Of course Mr Alexander was alos spouting that leases this year are 25% more than last !! Perhaps for a small selection of high level properties but overall nothing like that. Rents are up 5-6% on average by the looks of it. IIRC City lets do a good market survey if you google for it.

 

You have individuals who can't sell their houses - they are going to rent them out as 'rents are going up'

 

You have builders who can't sell their houses - they are going to rent them out as 'rents are going up'.

 

There is one glaring fundamental problem with the above plans...

 

More intersting news in the Scotland on Sunday, every market economy on the world is slowing down and/or going into reccesion, except Saudi Arabia its economy is expected to grow by 50% in the next year alone.

 

A one way ticket to Saudi is the answer mate, that is utterly increadable.

 

your wisdom on this would be appreciated.

 

No idea bout Saudi I am afraid. But for sure where there is oil there is money. Of course many believe the oil increase is just another bubble set for bursting. Who knows. Way above my head !! What is certain is whatever happens to the price of oil it will be in demand for a good time to come.

 

Interesting, i can only see the new single survey scheme that is starting here having a detromental effect on an already stagnent market.

 

One area off the market where there are huge opportunities is the builders who are siting with there throats cut, are offering part exchange schemes, so they take your property at top market price off your hands, pay your stamp duty and legal costs etc etc, and you get in return a shiny new property at a 3rd off its actual value ( good negotiating skills required though ).

 

If you are thinking long term say 10 years minimum, for your main residence home, this has got too be a winner.

 

Id like to hear Copper views on this one as well.:Hearts Man spotrun:

 

Not sure if builders can continue to do this. I know they have in the past but many are pretty much bankrupt now. Not sure how they can continue to pay 'top dollar' for a part exchange when they have no money.

 

Personally I think if you were planning on getting a 'bargain' today you should be doing the opposite. Going to the builders and offering way under the odds for one of their part exchanged properties. I have seen a few adverts for these recently. Never seen them before. Clearly they are desperate for money and are desperately trying to sell all these off. Not much point having them on their books after all is it ?

 

Although beware of ideas about getting a 'bargain'. In a falling market a bargain can quickly become the norm as far as price is concerned.

 

If prices go down as much as I expect then getting 10% off today is not really much of a bargain. I think many people expect this crash to be a minor blip. 10% of prices over the next year or so, then game on as per usual !!

 

That is a possibility. However every day it looks like this is the big one. Remember this fall in prices has only just begun. If it is going to carry on for the next 3-4 years then it would make sense to wait that long for a real 'bargain'. If you can wait that long of course.

[Therapist]

This thread's hilarious.

[Munch]

The big difference you may find with the survey scheme is that an actual figure will be on the valuation. The Edinburgh property market has had it to good with the offers over scenario. It has basically been a blind auction with the market being so buoyant. Just wait until potential buyers have a price put in there heads, that?s when it will really get tough for vendors in a slow market.

 

That is a very very interesting point well made i must say, i never thought off that.

This single survey scheme is really the death of the offers over system, fixed prices will be the norm after this scheme starts.

 

This will ultimatly lead to a revolution in how the property market works post the scheme.

 

It may take a few years , but id say the offers over system is going to die out.

[Munch]

D j

I just think they are desperate for any sort of income at all. They are a business afterall and their main function, building and selling houses, is collapsing. Therefore building houses and then renting them seems to be the natural next step. Of course Mr Alexander was alos spouting that leases this year are 25% more than last !! Perhaps for a small selection of high level properties but overall nothing like that. Rents are up 5-6% on average by the looks of it. IIRC City lets do a good market survey if you google for it.

 

You have individuals who can't sell their houses - they are going to rent them out as 'rents are going up'

 

You have builders who can't sell their houses - they are going to rent them out as 'rents are going up'.

 

There is one glaring fundamental problem with the above plans...

 

 

 

No idea bout Saudi I am afraid. But for sure where there is oil there is money. Of course many believe the oil increase is just another bubble set for bursting. Who knows. Way above my head !! What is certain is whatever happens to the price of oil it will be in demand for a good time to come.

 

 

 

Not sure if builders can continue to do this. I know they have in the past but many are pretty much bankrupt now. Not sure how they can continue to pay 'top dollar' for a part exchange when they have no money.

 

Personally I think if you were planning on getting a 'bargain' today you should be doing the opposite. Going to the builders and offering way under the odds for one of their part exchanged properties. I have seen a few adverts for these recently. Never seen them before. Clearly they are desperate for money and are desperately trying to sell all these off. Not much point having them on their books after all is it ?

 

Although beware of ideas about getting a 'bargain'. In a falling market a bargain can quickly become the norm as far as price is concerned.

 

If prices go down as much as I expect then getting 10% off today is not really much of a bargain. I think many people expect this crash to be a minor blip. 10% of prices over the next year or so, then game on as per usual !!

 

That is a possibility. However every day it looks like this is the big one. Remember this fall in prices has only just begun. If it is going to carry on for the next 3-4 years then it would make sense to wait that long for a real 'bargain'. If you can wait that long of course.

 

D J Alexander, have had various articles in the een, and the Scotsman about rental figures booming, i suspect they are telling porkies too talk upp there agency, trying too atract new landlords to use them.

[Munch]

Yes but you are likely to be getting 10-15% off within only 6 months of this all properly kicking off.

 

My predictions are for over the next 3-4 years. I think you would have to agree I am looking more than good so far.

 

If you are looking for a New Town place I have a tip for you. I don't know if you remember the other thread about DJ Alexander selling off all his New Town stuff under the 'Heritors' guise ?

 

These signs have now all gone. They have either disappeared or been replaced with To Let signs from DJ Alexander itself. Not sure what has happened. Their website has disappeared too....

 

If I were you I would be contacting them about the places they were recently trying to sell. Ask if they would be open to a quick offer at perhaps 15% under what they were wanting...

 

Of course I think you should just wait for 4 years and get it at closer to 50% off. If you don't want to rent however you could do worse than my plan above. Don't say I'm not good to you.

 

Give me some info on how this spread betting works, you seem too know whats going on, give me a few tips , id like too give it a bash.

[coppercrutch]

D j

 

D J Alexander, have had various articles in the een, and the Scotsman about rental figures booming, i suspect they are telling porkies too talk upp there agency, trying too atract new landlords to use them.

 

Indeed. They are best buddies with the Scotsman. A few months back DJ was in the paper with his advice on how to ride out this storm for property investors. His advice was DO NOT SELL. This was actually in big bold capital letters as well just to emphasise the point.

 

The interesting thing is DJ also owns the Heritors property investment group - which owns a massive amount of new town property. The very interesting thing is the week before telling everyone else NOT TO SELL he put up his entire (Or very close to it) Edinburgh investment portfolio for sale...

 

Give me some info on how this spread betting works, you seem too know whats going on, give me a few tips , id like too give it a bash.

 

No danger. Spread betting is VERY RISKY. You can lose a lot of money. I am only doing it because I have a wee bit of cash I can afford to lose. I know I probably will. With spreadbetting you are trying to work out the direction of shares and the market. Big banks have hundreds of analysts to do this for them. They quite often get it wrong.

 

If you want to get into it have a look. But be very careful. You will more than likely lose big style.

[Munch]

Indeed. They are best buddies with the Scotsman. A few months back DJ was in the paper with his advice on how to ride out this storm for property investors. His advice was DO NOT SELL. This was actually in big bold capital letters as well just to emphasise the point.

 

The interesting thing is DJ also owns the Heritors property investment group - which owns a massive amount of new town property. The very interesting thing is the week before telling everyone else NOT TO SELL he put up his entire (Or very close to it) Edinburgh investment portfolio for sale...

 

 

Seems D J Alexander works in reverse thinking practices he advices people do do one thing then does the opposite himself. id be very suspicious of any thing he says, he appears to court a lot of publicity as well.

 

Id take everything he says with a pinch of salt.

 

Another article i read yesterday in the Scotland on Sunday Business section, saying that the chancellor is considering a stamp duty holiday.

 

They reckon this will solve everything and get the market back to normal, what do you think off this plan ?

[coppercrutch]

Indeed. They are best buddies with the Scotsman. A few months back DJ was in the paper with his advice on how to ride out this storm for property investors. His advice was DO NOT SELL. This was actually in big bold capital letters as well just to emphasise the point.

 

The interesting thing is DJ also owns the Heritors property investment group - which owns a massive amount of new town property. The very interesting thing is the week before telling everyone else NOT TO SELL he put up his entire (Or very close to it) Edinburgh investment portfolio for sale...

 

 

Seems D J Alexander works in reverse thinking practices he advices people do do one thing then does the opposite himself. id be very suspicious of any thing he says, he appears to court a lot of publicity as well.

 

Id take everything he says with a pinch of salt.

 

Another article i read yesterday in the Scotland on Sunday Business section, saying that the chancellor is considering a stamp duty holiday.

 

They reckon this will solve everything and get the market back to normal, what do you think off this plan ?

 

Well have a look at ESPC and you can see what area is having the most difficulty. First time buyer flats. The stamp duty threshold is at 125k. Many of these flats are below that. They are still not selling. This ripples up to all areas of the market as it is essentially a pyramid system. With no bottom feeders it collapses.

 

For all the complex reasons you hear banded around there is one main reason for this housing 'crisis'.

 

Houses are far too expensive. Pretty simple really.

[Sydney from Sydney]

Real estate won't recover for a few years. It's a world wide thing. I've just returned from Scotland and most people I spoke to were happy that England was suffering more than them. Found that strange.

Edinburgh is way over priced. Money in the bank in a term deposit will do a lot better than property investment for years to come. The only people talking up the market are real estate firms and companies with a vested interest in property.

The debt crisis is yet to hit home. I read that 4m people in the UK paid their mortgage at least once last year with a credit card.

The cost of living, low wages and the banks willingness to lend up to 125% of the purchase price of a house is yet to seriously hit home.

In Australia our rates are a full 2% higher than the UK and we've been going through a property slump for over two years now. The trick is to hold tight if you can and wait for it to change or sell up now regardless, and buy back in when the market starts to bottom out.

Lots of bargains starting to appear. Good luck !!

[Therapist]

I've just returned from Scotland and most people I spoke to were happy that England was suffering more than them. Found that strange.

 

You must have had the misfortune to bump into a disproportionately large number of SNP supporters, the vast majority of whom are anti-English racists.

[Deek]

You have individuals who can't sell their houses - they are going to rent them out as 'rents are going up'

 

There is one glaring fundamental problem with the above plans...

 

Perhaps I read this wrong, but if you rent your house out, surely you have to find somewhere else to live?

[Munch]

Well have a look at ESPC and you can see what area is having the most difficulty. First time buyer flats. The stamp duty threshold is at 125k. Many of these flats are below that. They are still not selling. This ripples up to all areas of the market as it is essentially a pyramid system. With no bottom feeders it collapses.

 

For all the complex reasons you hear banded around there is one main reason for this housing 'crisis'.

 

Houses are far too expensive. Pretty simple really.

 

I suspect the goverment will intervine in some way in the not too distant future too try and kick start the market again.

 

There is an election in 24 months, id dought they will go into an election with the housing market in such a mess.

[Munch]

Real estate won't recover for a few years. It's a world wide thing. I've just returned from Scotland and most people I spoke to were happy that England was suffering more than them. Found that strange.

Edinburgh is way over priced. Money in the bank in a term deposit will do a lot better than property investment for years to come. The only people talking up the market are real estate firms and companies with a vested interest in property.

The debt crisis is yet to hit home. I read that 4m people in the UK paid their mortgage at least once last year with a credit card.

The cost of living, low wages and the banks willingness to lend up to 125% of the purchase price of a house is yet to seriously hit home.

In Australia our rates are a full 2% higher than the UK and we've been going through a property slump for over two years now. The trick is to hold tight if you can and wait for it to change or sell up now regardless, and buy back in when the market starts to bottom out.

Lots of bargains starting to appear. Good luck !!

 

There is no dought there is a price correction going on in the market, i suspect you can write off the rest off this year, things may improve next spring we shall just have too see.

[Geoff Kilpatrick]

I suspect the goverment will intervine in some way in the not too distant future too try and kick start the market again.

 

There is an election in 24 months, id dought they will go into an election with the housing market in such a mess.

 

HMG's main problem is that their finances are fecked too and with inflation rising because of the price of oil and food, they can't even create a money illusion by printing more of the stuff.

[Munch]

Perhaps I read this wrong, but if you rent your house out, surely you have to find somewhere else to live?

 

The grassmarket has a nice homless shelter, the grubs pretty good as well so i am told.

 

Theres a plan to get rich quick, rent out your gaf, and get yirsell doon ti the homeless shelter.

 

Only problem is you are likely too be sharing with a few Hobos.

[Munch]

HMG's main problem is that their finances are fecked too and with inflation rising because of the price of oil and food, they can't even create a money illusion by printing more of the stuff.

 

I am sure they will think off something.

[Coco]

I am sure they will think off something.

 

Brown is desperate to avoid house prices falling. House prices falling mean that he will lose the election. That is why he nationalised Northern Rock.

[coppercrutch]

Perhaps I read this wrong, but if you rent your house out, surely you have to find somewhere else to live?

 

Two people I know have been told to do this. One is moving back in with parents to save up cash before moving abroad. The other is moving abraod immediately. How many others have bought flats as investments that have been sitting empty in new developments ? There is actually a fair supply of places to live in this city. Otherwise we would see the homeless shelters overflowing !!

 

The most glaring nonsense we have been told about the 'boom' in Edinburgh's house prices is the reason behind it - a lack of supply. Funny how the second the market goes down this supply seems to explode and the demand disappears overnight. It just shows the real reason for most (Not all) of the recent price rises in the City - speculation, pure and simple. Now the speculation has gone we are left with REAL demand and supply. Very different story isn?t it?...

 

Brown is desperate to avoid house prices falling. House prices falling mean that he will lose the election. That is why he nationalised Northern Rock.

 

Nothing he can do about it. His coffers are empty. Remember the dossier from Flint that was photograghed a while back?

 

"We have to be seen to be doing something".

 

I think that tells us all we need to know. I reckon they know this bubble has gone too far and needs to burst. They can't come out and say that though. As for the next election Labour IMO they have given up already. They may not say that but I am sure it is true. The economy is in a mess. I reckon they are more than happy to leave it to the Torys to deal with.

[Munch]

Two people I know have been told to do this. One is moving back in with parents to save up cash before moving abroad. The other is moving abraod immediately. How many others have bought flats as investments that have been sitting empty in new developments ? There is actually a fair supply of places to live in this city. Otherwise we would see the homeless shelters overflowing !!

 

The most glaring nonsense we have been told about the 'boom' in Edinburgh's house prices is the reason behind it - a lack of supply. Funny how the second the market goes down this supply seems to explode and the demand disappears overnight. It just shows the real reason for most (Not all) of the recent price rises in the City - speculation, pure and simple. Now the speculation has gone we are left with REAL demand and supply. Very different story isn?t it?...

 

 

 

Nothing he can do about it. His coffers are empty. Remember the dossier from Flint that was photograghed a while back?

 

"We have to be seen to be doing something".

 

I think that tells us all we need to know. I reckon they know this bubble has gone too far and needs to burst. They can't come out and say that though. As for the next election Labour IMO they have given up already. They may not say that but I am sure it is true. The economy is in a mess. I reckon they are more than happy to leave it to the Torys to deal with.

 

Intersting that interest rates in the USA are 2%, and the majority off the citizens in the usa have been granted a 600 dollar tax rebate.

 

What the usa does we follow, bah bah.

[Geoff Kilpatrick]

Intersting that interest rates in the USA are 2%, and the majority off the citizens in the usa have been granted a 600 dollar tax rebate.

 

What the usa does we follow, bah bah.

 

And why do you think oil has gone up so much? Because the dollar has plunged as a result of this course of action. The US is trying to repeat what Japan did in the early 90's but it didn't work there either as people either paid down debt or saved the cash.

 

The US property market is completely goosed, hence why Fannie Mae and Freddie Mac needed to be bailed out. Maybe the UK will follow that lead too?

[coppercrutch]

And why do you think oil has gone up so much? Because the dollar has plunged as a result of this course of action. The US is trying to repeat what Japan did in the early 90's but it didn't work there either as people either paid down debt or saved the cash.

 

The US property market is completely goosed, hence why Fannie Mae and Freddie Mac needed to be bailed out. Maybe the UK will follow that lead too?

 

Indeed, and oil is priced in dollars of course. Best option for this sort of mess is to let it sort itself out. Yes some banks will go bust but if there is a safety net in place for individuals ( We don't really have one ) not a big deal.

 

One thing that has been kept VERY quiet by the media is the plunge in the value of the pound, not just against the euro but against most currencies. The only major currency the pound has kept up with is the dollar. Not a good thing as the dollar is ****ed !!

 

Inflation figures out today are a shocker. Looks like the BoE will have no choice but to raise interest rates next month. Not much they can do about much of the inflation being imported - but at least if our currency gained some strength it would offset some of it.

 

Just look what lenders did when the BoE kept rates on hold or dropped them - very lilttle. Imagine what they will do if the BoE raise rates...

[Geoff Kilpatrick]

Indeed, and oil is priced in dollars of course. Best option for this sort of mess is to let it sort itself out. Yes some banks will go bust but if there is a safety net in place for individuals ( We don't really have one ) not a big deal.

 

One thing that has been kept VERY quiet by the media is the plunge in the value of the pound, not just against the euro but against most currencies. The only major currency the pound has kept up with is the dollar. Not a good thing as the dollar is ****ed !!

 

Inflation figures out today are a shocker. Looks like the BoE will have no choice but to raise interest rates next month. Not much they can do about much of the inflation being imported - but at least if our currency gained some strength it would offset some of it.

 

Just look what lenders did when the BoE kept rates on hold or dropped them - very lilttle. Imagine what they will do if the BoE raise rates...

 

Not by me it hasn't! When I moved out here in January an Aussie dollar was worth about 40p. Now it's worth 48p. Time to repatriate some cash soon!

[Sydney from Sydney]

You must have had the misfortune to bump into a disproportionately large number of SNP supporters, the vast majority of whom are anti-English racists.

 

Probably a fair enough comment, but sadly appears to apply to a fair amount of Scots. No offence meant but that's how I saw it.

[bill duff]

Intersting that interest rates in the USA are 2%, and the majority off the citizens in the usa have been granted a 600 dollar tax rebate.

 

What the usa does we follow, bah bah.

 

2%? Where did you get that notion? The 30 year fixed conventional right now is 6.325 if you are in good standing.

 

Neither myself or my daughter (both US tax payers) have seen a that $600.00incentive yet.

[coppercrutch]

2%? Where did you get that notion? The 30 year fixed conventional right now is 6.325 if you are in good standing.

 

Neither myself or my daughter (both US tax payers) have seen a that $600.00incentive yet.

 

Just goes to show how pointless it is the BoE/Fed lowering interest rates to 'improve lending' is. When the lenders don't want to lend they won't. Nothing the BoE can do about it.

 

The lenders should not be lending at the moment anyway to all but the safest of customers. If only they could stick to this simple logic and not get caught up in 'boom' hysteria this sort of 'crunch' would never happen.

 

If the BoE lower rates our currency will tank even more and imported inflation will increase. House prices will continue to fall and lending will still remain low -simply due to the excesses of the past 10 years.

 

If they raise rates at least it may improve things a smidgen.

 

Either way our economy, and especially the housing market, is goosed.

[Gorgieboy]

I have to say I agree with CC. I've never wanted to live in Gorgie/Leith or equivelant. I dont like the built up smoggy areas, I've never even looked at Gorgie with view to buying..

 

I live in Gorgie, overlooking the Water of Leith , pine trees, a park and rose gardens ,I have back and front gardens, 3 bedrooms and hav,nt seen smog since 1968, , but I,m glad you,ve never even looked at Gorgie with a view to buying.

[Munch]

2%? Where did you get that notion? The 30 year fixed conventional right now is 6.325 if you are in good standing.

 

Neither myself or my daughter (both US tax payers) have seen a that $600.00incentive yet.

 

Is that a fact, i read this on the internet, im sure it was posted on AOL, im glad you sorted that one out, Thanks.

 

Whats it like over the pond right now, with all the Banking turmoil ?

[Munch]

I have to say I agree with CC. I've never wanted to live in Gorgie/Leith or equivelant. I dont like the built up smoggy areas' date=' I've never even looked at Gorgie with view to buying..

 

I live in Gorgie, overlooking the Water of Leith , pine trees, a park and rose gardens ,I have back and front gardens, 3 bedrooms and hav,nt seen smog since 1968, , but I,m glad you,ve never even looked at Gorgie with a view to buying.[/quote']

 

Funny that, id never consider buying in Leith, i wonder why:confused:

[Munch]

Just goes to show how pointless it is the BoE/Fed lowering interest rates to 'improve lending' is. When the lenders don't want to lend they won't. Nothing the BoE can do about it.

 

The lenders should not be lending at the moment anyway to all but the safest of customers. If only they could stick to this simple logic and not get caught up in 'boom' hysteria this sort of 'crunch' would never happen.

 

If the BoE lower rates our currency will tank even more and imported inflation will increase. House prices will continue to fall and lending will still remain low -simply due to the excesses of the past 10 years.

 

If they raise rates at least it may improve things a smidgen.

 

Either way our economy, and especially the housing market, is goosed.

 

Do you think Brown and Darling have cooked there Goose ?

[Munch]

Indeed, and oil is priced in dollars of course. Best option for this sort of mess is to let it sort itself out. Yes some banks will go bust but if there is a safety net in place for individuals ( We don't really have one ) not a big deal.

 

One thing that has been kept VERY quiet by the media is the plunge in the value of the pound, not just against the euro but against most currencies. The only major currency the pound has kept up with is the dollar. Not a good thing as the dollar is ****ed !!

 

Inflation figures out today are a shocker. Looks like the BoE will have no choice but to raise interest rates next month. Not much they can do about much of the inflation being imported - but at least if our currency gained some strength it would offset some of it.

 

Just look what lenders did when the BoE kept rates on hold or dropped them - very lilttle. Imagine what they will do if the BoE raise rates...

 

A raise in interest rates would be like a nuclear bomb exploding in the property market.

[coppercrutch]

A raise in interest rates would be like a nuclear bomb exploding in the property market.

 

The property market has already had a nuclear bomb. No matter what anyone tells you the entire problem is down to the simple fact house prices are too high. All the rest are just straws that broke the camels back. People can still get mortgages for 3-4 times their salary with a 5-10% deposit. If house prices were not crazy and this country was not in masses of debt - this 'crunch' would have a much smaller impact.

 

As for the BoE the lenders have been changing their rates as they wish anyway. If the BoE drop rates to 2% the lenders could still raise them to 10% if they want. The link has been broken between LIBOR (Which is used to define most mortgage rates) and the BoE base rate.

 

Nothing much Brown can do about it. The worst thing they can do is get involved and 'try' to sort it out. They tried it in Japan and see what happened. They are trying it in the US and watch what is happening. They cannot sort it out.Waste of time and effort trying.

 

If they follow in the footsteps of Japan and the US they deserve to be hung up and shot. Seriously - because they will be fecking up this country for even longer than is necessary.

[frankblack]

The property market has already had a nuclear bomb. No matter what anyone tells you the entire problem is down to the simple fact house prices are too high. All the rest are just straws that broke the camels back. People can still get mortgages for 3-4 times their salary with a 5-10% deposit. If house prices were not crazy and this country was not in masses of debt - this 'crunch' would have a much smaller impact.

 

Disagree that the problem is down to house prices being too high, although that doesn't help.

 

I think that the banks are to blame. They took out dodgy financial packages from the US Banks without checking what they were getting.

 

Once the US property market crashed and the true value of these packages became known, who suffers? Not the suits gambling the money away - but the people needing loans and mortgages, especially first time buyers.

 

To some extent there is a good thing - an end to silly mortgage deals like 6 times your salary. I do agree you should have to put down a deposit of say 5% minimum to show commitment and ability to pay.

 

Getting back to point of this thread, I think Edinburgh is suffering from a lack of supply on the market, where demand outstrips the supply. However, I think a lot of sellers are getting scared and think it better to keep their properties off the market until things clear up.

[flecktimus]

A raise in interest rates would be like a nuclear bomb exploding in the property market.

 

Just seen one of your Grunton properties going up for auction at ?135 - ?140,000 guide price.

 

http://www.countrywidepropertyauctions.co.uk/property-details.php?pcode=CHL081110&dbtype=&rps=cherpa&pamend=1216043108

 

Sold 28/11/2006 for ?393,000

 

http://www.rightmove.co.uk/action/SoldPricesAction?eventsubmit_dodetailedresults=1&outcode=EH6&incode=6JN&type=0&startyear=-1&endyear=-1&buildtype=1&s_lo=EH6+6JN&street=Western+Harbour+Terrace&locality=Newhaven+Place&order=0&ascending=false&resultsperpage=20&country=SCO&gotofulladdress=false&summarypagenum=1

 

These flats only achieved ?160,000 at the last auction.

 

Coopercrutch that is over 100% fall

[coppercrutch]

Disagree that the problem is down to house prices being too high, although that doesn't help.

 

I think that the banks are to blame. They took out dodgy financial packages from the US Banks without checking what they were getting.

 

Once the US property market crashed and the true value of these packages became known, who suffers? Not the suits gambling the money away - but the people needing loans and mortgages, especially first time buyers.

 

To some extent there is a good thing - an end to silly mortgage deals like 6 times your salary. I do agree you should have to put down a deposit of say 5% minimum to show commitment and ability to pay.

Getting back to point of this thread, I think Edinburgh is suffering from a lack of supply on the market, where demand outstrips the supply. However, I think a lot of sellers are getting scared and think it better to keep their properties off the market until things clear up.

 

Point one and two are inextricably linked. We would not have had the high prices we have just now if sensible lending had been in force. You really think 3 bed flats in Granton sold for almost 400k due to 'demand'........

 

As for point 3 I don't know what to say. At the moment there is a MASSIVE oversupply of property. Credit is what matters, and that has been slashed.

[coppercrutch]

Just seen one of your Grunton properties going up for auction at ?135 - ?140,000 guide price.

 

http://www.countrywidepropertyauctions.co.uk/property-details.php?pcode=CHL081110&dbtype=&rps=cherpa&pamend=1216043108

 

Sold 28/11/2006 for ?393,000

 

http://www.rightmove.co.uk/action/SoldPricesAction?eventsubmit_dodetailedresults=1&outcode=EH6&incode=6JN&type=0&startyear=-1&endyear=-1&buildtype=1&s_lo=EH6+6JN&street=Western+Harbour+Terrace&locality=Newhaven+Place&order=0&ascending=false&resultsperpage=20&country=SCO&gotofulladdress=false&summarypagenum=1

 

These flats only achieved ?160,000 at the last auction.

 

Coopercrutch that is over 100% fall

 

Mental. But not unexpected. I know many people will be thinking 'what a bargain' but what is to happen for this area ? Living on a half finished building site ? Such a mess from start to finish. Could have been an nice new area instead it's a mess. Epitomises this whole 'boom'.

 

BTW - Don't think you can have over a 100% fall...

[Munch]

Just seen one of your Grunton properties going up for auction at ?135 - ?140,000 guide price.

 

http://www.countrywidepropertyauctions.co.uk/property-details.php?pcode=CHL081110&dbtype=&rps=cherpa&pamend=1216043108

 

Sold 28/11/2006 for ?393,000

 

http://www.rightmove.co.uk/action/SoldPricesAction?eventsubmit_dodetailedresults=1&outcode=EH6&incode=6JN&type=0&startyear=-1&endyear=-1&buildtype=1&s_lo=EH6+6JN&street=Western+Harbour+Terrace&locality=Newhaven+Place&order=0&ascending=false&resultsperpage=20&country=SCO&gotofulladdress=false&summarypagenum=1

 

These flats only achieved ?160,000 at the last auction.

 

Coopercrutch that is over 100% fall

 

Yip Grunton harbour is a nightmare, these flats are still being offered for 270k, in the sales office down there subject too them doing the survey ? my contacts in the surveying field are at a loss as too who would value them at that level.

The real price for them in the current market is 150 tops, thats on a good day, predict them to come down too 120k, which in real terms is all they are worth, all you are getting is a box in a high rise block off flats at grunton harbour, so more like a price drop off 150k on first sold , a 150% drop in value.

[Munch]

Mental. But not unexpected. I know many people will be thinking 'what a bargain' but what is to happen for this area ? Living on a half finished building site ? Such a mess from start to finish. Could have been an nice new area instead it's a mess. Epitomises this whole 'boom'.

 

BTW - Don't think you can have over a 100% fall...

 

you are too conservative copper ( i never took you for a tory as well) :byebye:150% price drop in grunton is in the post too them.

 

you got too up your estimation off the percentage drop in prices that are on the way.

 

Big day coming up for you when your fabled ex leader gets her state funeral paid for generously by the government, no bad for the lady who turned coal into heroin. ( the words of Tommy Sheridon)

[Munch]

Mental. But not unexpected. I know many people will be thinking 'what a bargain' but what is to happen for this area ? Living on a half finished building site ? Such a mess from start to finish. Could have been an nice new area instead it's a mess. Epitomises this whole 'boom'.

 

BTW - Don't think you can have over a 100% fall...

 

http://money.aol.co.uk/money-news/new-housing-supply-measures-due/article/20080716005613240790134

 

Whats your angle on this one copper, i dont get it ,what cunning plan are they hatching with this idea ? and who benefits from it ?

[Coco]

you are too conservative copper ( i never took you for a tory as well) :byebye:150% price drop in grunton is in the post too them.

 

you got too up your estimation off the percentage drop in prices that are on the way.

 

Big day coming up for you when your fabled ex leader gets her state funeral paid for generously by the government, no bad for the lady who turned coal into heroin. ( the words of Tommy Sheridon)

 

You can't get a 150% price fall - unless the builder/receiver is going to pay people 50% of the original price to take them on!

 

What a wasted opportunity that Benidorm on Leith area is. Could have taken the time to develop an interesting and bustling mixed use area. But no, the Council were suckered by Forth Ports and the big other holders into allowing ghetto developments of low quality high priced flats. And suckered into providing a billion pound tram line to it. Hopefully the meltdown in prices will halt any further development of these Anytown, Anywhere ugly flats and a rethink will happen.

[Coco]

http://money.aol.co.uk/money-news/new-housing-supply-measures-due/article/20080716005613240790134

 

Whats your angle on this one copper, i dont get it ,what cunning plan are they hatching with this idea ? and who benefits from it ?

 

This is the Government trying to set the price of houses. They will be as successful as Brown's bottom was in calling the top of the gold market.

 

They think that if house prices fall then they will be out of office. These 'plans' have been cooked up as they try anything to avoid prices falling.

[Munch]

You can't get a 150% price fall - unless the builder/receiver is going to pay people 50% of the original price to take them on!

 

What a wasted opportunity that Benidorm on Leith area is. Could have taken the time to develop an interesting and bustling mixed use area. But no, the Council were suckered by Forth Ports and the big other holders into allowing ghetto developments of low quality high priced flats. And suckered into providing a billion pound tram line to it. Hopefully the meltdown in prices will halt any further development of these Anytown, Anywhere ugly flats and a rethink will happen.

 

You are right the percentage was wrong, anyway what im saying is they are currently marketing 2 bed flats for 270k, they say they can get them valued at 270k in there advert.

 

We know that they are selling at auction for 140 too 150k, for the same units, thats a price drop off around 130k, i still think they are only worth 120k Max.

 

How much are the high rise flats worth at the back off fester road, all the daft hobos who were duped into paying crazy prices for these dumps, which are also at least 50% over priced.

[Munch]

2%? Where did you get that notion? The 30 year fixed conventional right now is 6.325 if you are in good standing.

 

Neither myself or my daughter (both US tax payers) have seen a that $600.00incentive yet.

 

http://www.ft.com/cms/s/0/2/2a/afcee-42e0-11dd-81d0-0000779fd2ac.html

 

Maybee you are one off the 4400 and you live in a parallel universe;)

[Geoff Kilpatrick]

http://www.ft.com/cms/s/0/2/2a/afcee-42e0-11dd-81d0-0000779fd2ac.html

 

Maybee you are one off the 4400 and you live in a parallel universe;)

 

There's a difference between base rate and what Joe Public can actually get.

 

EDIT: For example, all Aussie banks have raised their mortgage rates over the past 7 days without a move in base rate by the RBA. This is because the supply on the wholesale market continues to tighten.

[coppercrutch]

This is the Government trying to set the price of houses. They will be as successful as Brown's bottom was in calling the top of the gold market.

 

They think that if house prices fall then they will be out of office. These 'plans' have been cooked up as they try anything to avoid prices falling.

 

Remember they have to be 'seen' to be doing something.

 

The entire housing market is a mess. Nothing is going to sort it out other than a seriously messy and huge crash. It will eventually recover but this should be a lesson learned. High house prices are not a good thing !!

 

Totally agree with your Granton comments. People should be going to jail for that mess. They have completely destroyed an entire area's development. What a waste.

 

Anyway back to the Government's 'plan'. So for these 20% reduced rental rates who is going to pay ? The taxpayer no doubt. Great.

 

If you have a look there are already numerous builders doing this already( Rent to buy schemes). No idea why the Government needs or wants to get involved.

 

Looks to me by these builders schemes they think this whole thing will be over and done with in 2 years(These rent to buy schemes are 2 year leases that I have seen). What is likely to happen is they get to 2 years, the market is in a bigger downturn than it already is. The people who have been renting may not want to buy even with their rent put towards the cost. Back to square one...

[Munch]

Remember they have to be 'seen' to be doing something.

 

The entire housing market is a mess. Nothing is going to sort it out other than a seriously messy and huge crash. It will eventually recover but this should be a lesson learned. High house prices are not a good thing !!

 

Totally agree with your Granton comments. People should be going to jail for that mess. They have completely destroyed an entire area's development. What a waste.

 

Anyway back to the Government's 'plan'. So for these 20% reduced rental rates who is going to pay ? The taxpayer no doubt. Great.

 

If you have a look there are already numerous builders doing this already( Rent to buy schemes). No idea why the Government needs or wants to get involved.

 

Looks to me by these builders schemes they think this whole thing will be over and done with in 2 years(These rent to buy schemes are 2 year leases that I have seen). What is likely to happen is they get to 2 years, the market is in a bigger downturn than it already is. The people who have been renting may not want to buy even with their rent put towards the cost. Back to square one...

 

Another hand in the damm plan announced by the PM This morning 200 million set aside for local councils too buy up houses on the market to help the housing market and increase council house numbers.

 

Do you think this will dent the market, at todays prices 200 million, that wont go far.

 

You got an angle on this one?