Mortgage

[SteKelly]

Been in a 3 bedroom one at the top floor, they are quite big like with brilliant views. They are a lot more than a 2 bedroom though.
Wonder how long the prices will be like this for

 

[SteKelly]

Just to add to my last post as its not letting me edit for some reason.

A 743 sqft 2 Bed Apartment at One Park West, Liverpool. Price £193,500

What sqft is an average house haha? A lot more than that I'm guessing

 

[evilwebby]

Stamp duty will be 3% if the purchase is above 250k, and solicitors fees will add up to another £1500 or so.

If its a leasehold flat then you'll also need to factor in annual service charge/ground rent which is not inconsiderable.

Its not just the mortgage. It all adds up.

 

[evilwebby]

743sqft is pretty decent size.

Most purpose built 2beds are between 500-600sqft. A bigger victorian conversion 2br would be doing well to reach 743sqft.

 

[SteKelly]

Doesn't look that nice from the outside, you'd never think Footballers are staying in there tbh.

They look sound on the website like

 

[evilwebby]

Property prices are mental. Cant last imo. Just makes no sense.

The 2007 crash was cushioned by slashing interest rates to zero.
This time rates are already at rock bottom. People are stretching themselves to the limit on 2.5% mortgages, with not consideration for if and when rates rise again. It will end in catastrophe. No way it can't.

 

[OneTrueLegend]

I think the thing with buying any property is that you cant really go wrong, as long as you are prepared to be there for the long term (at least 10 years). This is because we have a boom and bust economy, so eventually the bubble will burst, prices will become rock bottom, then slowly build up again. As long as you don't need to move, you are fine.

I think the thing you have to ask yourself is "will I want to be in this apartment for the next 10 years?" because you are paying top dollar for that place by the sound of it. Also you can't add value to a new apartment in the way you could with a house, by say extending it.

 

[blueser]

Bad move in my opinion. Service charges etc.. have to go to all sorts off hoops if you have a problem. Buy a house you are the boss then, better return much much easier to sell on!

You will get a cracking house in Liverpool for that money, you have also saved a huge deposit and have no chain so you are in a VERY strong negotiating position. You should go to an independent mortgage advisor and go for a fixed rate 5 year deal. Good Luck.

 

[evilwebby]

I think the thing with buying any property is that you cant really go wrong, as long as you are prepared to be there for the long term (at least 10 years). This is because we have a boom and bust economy, so eventually the bubble will burst, prices will become rock bottom, then slowly build up again. As long as you don't need to move, you are fine.

I think the thing you have to ask yourself is "will I want to be in this apartment for the next 10 years?" because you are paying top dollar for that place by the sound of it. Also you can't add value to a new apartment in the way you could with a house, by say extending it.

Nope.

Two things:

1. House prices are hugely overpriced because interest rates are hugely underpriced. but you can't buck the market for eternity, and eventually we will get mean reversion at some point.

2. People who say "houses prices always goes up in the long term" need to factor in inflation. When you parents or grandparents say "we bought this house for £40k 25 years ago and now its worth £400k" never quantify that with flipside that made that possible - many years of a high general inflation + high interest rates economy. Remember than general inflation was often around 10% in the 70s and 80s. Now we have 2-3% inflation. At such low rates, wages growth doesn't compound nearly as highly, and the debt simply doesn't get eroded.

 

[Foot Long Hot Dog]

Nope.

Two things:

1. House prices are hugely overpriced because interest rates are hugely underpriced. but you can't buck the market for eternity, and eventually we will get mean reversion at some point.



2. People who say "houses prices always goes up in the long term" need to factor in inflation. When you parents or grandparents say "we bought this house for £40k 25 years ago and now its worth £400k" never quantify that with flipside that made that possible - many years of a high general inflation + high interest rates economy. Remember than general inflation was often around 10% in the 70s and 80s. Now we have 2-3% inflation. At such low rates, wages growth doesn't compound nearly as highly, and the debt simply doesn't get eroded.

Leaving London out of the equation house prices across the rest of the UK have fallen massively since their peak in 2008. The low interest rates since were having little effect on house stock due to the low levels of lending & the lack of affordability (due to high deposits) for first time buyers.

Without first time buyers the market has been largely stagnant. It's only since the lenders have finally lowered the deposit thresholds again & the Govt have introduced the help to buy scheme, that you're now seeing first time buyers getting onto the ladder again thus having an inflationary effect on the market as stock starts to move more rapidly.

However, the overall prices are still less than they were prior to the start of the recession & affordability amongst 2nd & 3rd time buyers is good & whilst there's liquidity in the market, then the doomsday scenario you're predicting there won't arise, as interest rate hikes aren't going arrive overnight, there'll be plenty of advance warning before affordability becomes a major issue.

 

[evilwebby]

Whatever you do don't listen to typical EA sh1tetalk about how any property is always a good investment etc.

There are various metrics you can use for determining fair price, but as a rule of thumb a fairly priced property should sell for roughly x200 its net monthly rental value.


BTW, I don't necessarily think that buying a leasehold property is a bad thing. Newbuilds are another matter - they are getting smaller and smaller, but stuff that was built 15-20 years ago can be pretty good on space and doesn't command the newbuild markup.
I have a leasehold flat (but the lease is something like 990 years). Sure, you have to factor in service charge as an additional cost, but this will include building insurance and parking space if you own a car. Moreover leasehold flats are normally much much more efficient when it comes to electric/gas/water bills - our total electric+water comes to about £90/month, compared to more than double this when we lived in a victorian conversion flat (and that was 3+ years ago before the most recent price rises), so we pretty much save the whole cost of the service charge anyway.

 

[Tree13]

Property prices are mental. Cant last imo. Just makes no sense.

All the time our population continues to grow faster than the industry can build more homes, and all the time certain areas are highly desirable due to factors like good schools and decent transport links, prices will continue to rise. Simple supply and demand. The only thing that differs is the rate at which prices rise and the regularity and duration of market corrections when lenders go under.

 

[evilwebby]

Leaving London out of the equation house prices across the rest of the UK have fallen massively since their peak in 2008. The low interest rates since were having little effect on house stock due to the low levels of lending & the lack of affordability (due to high deposits) for first time buyers.

Without first time buyers the market has been largely stagnant. It's only since the lenders have finally lowered the deposit thresholds again & the Govt have introduced the help to buy scheme, that you're now seeing first time buyers getting onto the ladder again thus having an inflationary effect on the market as stock starts to move more rapidly.

However, the overall prices are still less than they were prior to the start of the recession & affordability amongst 2nd & 3rd time buyers is good & whilst there's liquidity in the market, then the doomsday scenario you're predicting there won't arise, as interest rate hikes aren't going arrive overnight, there'll be plenty of advance warning before affordability becomes a major issue.

You are wrong on that, but not for the reasons you think.

Rates will be kept low indefinitely by the BoE/Goverment, because they are aware that the economy is so leveraged to cheap debt that any increase in cost will kill the recovery - they will never raise them voluntarily.

However you can't buck the market indefinitely, and there will come a day when the market will have its pound of flesh. There will be a full blown currency crisis, market interest rates will spike overnight, and there will be nothing that the government can do about it. Argentina. Greece. Spain. The examples are there if you look for them.

 

[evilwebby]

All the time our population continues to grow faster than the industry can build more homes, and all the time certain areas are highly desirable due to factors like good schools and decent transport links, prices will continue to rise. Simple supply and demand. The only thing that differs is the rate at which prices rise and the regularity and duration of market corrections when lenders go under.

Bit of EA spin, that. You never see the areas with bad schools or poor transport links fall in price, do you?
One-way street thinking.

It's nothing to do with demand and supply. It's about the availability of cheap credit.

 

[andym78]

haha! They just care about the luxury mate. I'm a tight get as well so cheaper the better mate.
Shes got a Chihuahua and carries it round in her bag, says it all mate.

Before we talk about anything else we need to see some pics of your mrs to decide if she's worth it