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UK house prices saw the biggest monthly fall for nearly eight years during April, according to the Halifax, as demand for homes weakened.The lender said prices fell by 3.1% between March and April, the biggest decline since September 2010.http://www.bbc.co.uk/news/business-44037087Is this first sign of spring, that the market is going to cool down to 'normal' levels?
On the other hand:Average house price reaches record high
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
The hills could be a very nice place to be
I will sit there and watch what unfolds below me
But Running down a hill is a lot faster then going up ?
in other words there could be bargains to be had if we see a crash
Any Landlord who has positive cash flow can work through crashes and pick up bargains
I know I have done it twice in my investing life 1990,s and 2007 all saw large corrections
We have a large correction coming ???
A switched on Landlord would have the strategy to come into the market when the correction comes
So yes Go to the Hills and see the view I have been here since Osborne Law came and watch and I have been alone
When the Crowd rushes up the hill I will make my way down and Buy again Via my Company If I have to leverage
If I don't need leverage I will buy with cash in my own name.
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
I agree about running down hill to pick up bargains, I have noticed over the last month or so some agents(in our area: Surrey) have started using 'Guide Price' instead of a firm number or an asking price.
I see Guide Prices a lot in the NE
My own thought is the Agent has a problem giving a price because they just don't know themselves where the market is at that point in time
or the vendor has to sell and they want to generate interest fast with a low guide price and then bid up the price if they get offers
either way its an uncertain market
3.1% in one month could be a blip, and still up 2.2% YOY which is broadly flat in real terms with 2-3% inflation.
Price increases outside London seem to have stalled around the summer last year. It won't take many more monthly slides to send the YOY negative, and that is more of a sentiment changing and significant thing. I think we will know by the time July's figures are released in August where this is really heading.
Personally, I think a moderate price collapse is fairly inevitable. I don't think it will be anything like the -50% bloodbath some people predict (or rather demand / hope for). I also think it will be more strongly regional than any previous "bust" as there has been no increase in some areas, others have boomed, and London is a bubble. The country has far greater regional economic disparities than at any previous time I can think of.
People normally run to the hills if they are scared
Stay in town
If prices go up 3.1% then a 1 mil portfolio makes 1000 a day - Lovely
If prices go down 3.1% then you can buy a 100K property for £96,900 - Lovely
Over a 20 year period prices will have gone up 3.1% quite a few times . Maybe 100%
There will be peaks and troughs . Pay attention to them yes but dont let them rule you
Just acquire property . 3.1% up or down will pale into insignificance in 20 years
Time is kind to property even if you buy at the top of the market
If you buy 10 units @ 100K and they double in 20 years your 1 mil goes to 2 mil
If you buy 10 units @ 96.9K and they double in 20 years you got just under 2 mil
If you buy 10 units @ 103.1K and they double in 20 years you got just over 2 mil
In 40 years it will be just under or just over 4 mil which at 75% LTV is a good return on 250K investment
Plus all your rental income which at say £300 pcm per property is 1.44 mil over 40 years
So 5.44 mil on 250K in 40 years
Get the perspective right .
Look at 40 years and dont let 1 month good or bad make you scarper and hide in the hills
Unless of course you are going to view and possibly buy something like this
Jonathan Clarke. http://www.buytoletmk.com
I agree with all your points Jonathan, however someone it helps for a 'moment' to step out of the way to allow things to cool - only for a while; talking days, weeks etc when you see something like this coming along the path...!
NOBODY expects the Spanish Inquisition or a lava flow for that matter!!
Yes good point - sometimes things do get a bit too hot to handle....
Now where did i put those crumpets