What's the biggest mistake of your life?

[Deleted member 6183]

Yes.

I was speaking to a solicitor who does a lot of conveyancing about this and she commented that in some new developments that apartments were being bought in batches by landlords and not as singles.

I think what is happening is established BTL buyers favour flats and smaller proprties and that this drives up prices - outcompeting first time buyers who end up renting these properties and don't get a foothold as buyers. As a result the flow of those who would traditionally flow up the market has reduced which depresses prices for second tier smaller semis and detached. So the gap narrows.

People should maybe think back to 20 or 25 years ago. How many people did you know who had 3 or more properties? How many who owned 10 or more? Now think about the same questions asked today.

I'm intrigued by this, could you let me have the postcode in question?

I cannot think of such a situation in any of the towns that I am familiar with unless you take, say, a flat in central London and compare with a house in Port Talbot.

 

[developer]

A lot of house sales are falling through because of the uncertainty.

Every cloud...

 

[StuartK]

I have seen a couple of references to Brexit so far on this thread which surprises me a bit if I'm honest as I would have thought that very little has materially changed yet and may never do so.

Is it the fear of Brexit rather than anything tangible?

I should be heading into the peak of my earning career in a few years. Due to brexit I will likely suffer as senior management is being spread more thinly as caution levels are high.

A lot of house sales are falling through because of the uncertainty.

Actually this isn't true in my company I have to say. Our profits are up, pipelines are bigger and more instructions are coming to market vs. Last year.

 

[StuartK]

We want to move and have put it off for this reason.

Although in mind it's not uncertainty in itself, I feel there's an inevitable correction coming to house prices in the South East and I'm unwilling to strap myself up with a big mortgage right now.

However today's reduction in interest rates might make the mortgage merry go round continue, who knows.

I've also noted there's a big drop in new listings on Rightmove combined with a noticeable increase in price reductions in the area in which I search (a 10 mile radius of Hartfield in Sussex).

London and SE are about to be hit hardest. Countrywide have announced internally that they are closing 60-300 offices. Things will get tough down there I've seen it coming for a few months

 

[StuartK]

I wonder if our resident estate agent has an expert view on this situation?

Incidentally, the bit in bold, are these in the same postcode?

Any investor who favours a flat over a house is not a very good investor in my opinion. Returns are worse, capital gains are worse, vacant periods cost more due to management charges on the block. In any case a new build is generally a bad investment too in comparison to resale.

If I were the above id find a more coherent solicitor. Apartments in the West Midlands are notoriously hard to sell due to people paying over the odds for them a few years ago.

 

[StuartK]

I've seen a couple myself, however both were not essential in as much as both were second properties and the recent SDLT changes might have played a part.

I'm not convinced that it's got legs though, people generally need somewhere to live.

I'm also not sure that it's 'a lot', the data isn't out yet, however, home ownership had dropped prior to Brexit - maybe we can hang that one on pre Brexit uncertainty?

It's all propaganda. I have access to over a decades worth of figures and P&L of one of the largest chains of estate agents in Britain. I promise you the market is good and whilst August is always iffy it has actually improved since brexit in terms of instructions volume. Sales were up 0.6% vs. Last year.

 

[Red C220]

It's all propaganda. I have access to over a decades worth of figures and P&L of one of the largest chains of estate agents in Britain. I promise you the market is good and whilst August is always iffy it has actually improved since brexit in terms of instructions volume. Sales were up 0.6% vs. Last year.

When the Gov of the Bank of England publicly announces that they fully expect house prices to drop significantly over the next 24 months it can eradicate or reverse any meaning that statistical information available provides.

That happened today.

Most markets are built on sentiment, no matter how irrational that may be. Read about the Tulip Bubble in the 17th Century for the most absurd but real example.

 

[StuartK]

When the Gov of the Bank of England publicly announces that they fully expect house prices to drop significantly over the next 24 months it can eradicate or reverse any meaning that statistical information available provides.

That happened today.

Most markets are built on sentiment, no matter how irrational that may be. Read about the Tulip Bubble in the 17th Century for the most absurd but real example.

House prices go up and come down. Your buying in the same market so it's irrelevant. Unless of course you owe so much on your mortgage you may as well give up paying it back now. Equity is key.

For me prices aren't a measure of the market. Volume is.

 

[Darrell]

House prices go up and come down. Your buying in the same market so it's irrelevant. Unless of course you owe so much on your mortgage you may as well give up paying it back now. Equity is key. For me prices aren't a measure of the market. Volume is.

I am going with what Stuart says.

We are so busy.

 

[Red C220]

For me prices aren't a measure of the market. Volume is.

Exactly, so when Foxton's (London and the SE's biggest Estate Agent) announce a profits warning of a 42% reduction due to a massive drop in volume it's time to sit up and listen.

https://next.ft.com/content/ed806b42-5556-11e6-9664-e0bdc13c3bef

https://www.theguardian.com/busines...n-sharply-london-property-market-cools-brexit

http://www.telegraph.co.uk/business...t-warning-as-brexit-cools-london-housing-mar/

 

[boxbrownie]

Reading every post up until now in this thread.........

 

[StuartK]

Exactly, so when Foxton's (London and the SE's biggest Estate Agent) announce a profits warning of a 42% reduction due to a massive drop in volume it's time to sit up and listen.

https://next.ft.com/content/ed806b42-5556-11e6-9664-e0bdc13c3bef

Yep that's London. Prices have outpaced reality in London that's why. London is a seperate market.

 

[John]

# having wasted so much time on Call of Duty et al from my early teens until about three years ago

I spent a lot of time playing COD from COD4/MW1 in 2008 > 2012 (and the odd bit after when I bought back COD4/COD5 from eBay for a couple of years after).

When I say a lot, I'm talking 8 or 9 days solid for each game which comes out each November. It only counts the time you are actually in a game online!

I loved every minute of it and will never regret it. Why? Gave me a lot of enjoyment, competition and helped me forget the stress I was going through.

So I understand why someone would regret it but I think only if you didn't enjoy it...

We might have bumped into each other in the same game(s) sometimes if you had a PS3!

 

[Yugguy]

I can't help thinking if your biggest mistake is something you could post on a public forum then maybe it's not really that big.

 

[StuartK]

I can't help thinking if your biggest mistake is something you could post on a public forum then maybe it's not really that big.

That depends on how open you are.

 

[Red C220]

I can't help thinking if your biggest mistake is something you could post on a public forum then maybe it's not really that big.

Robert Mugabe might struggle.

Have you even bothered to read the thread?

 

[John]

That depends on how open you are.

...and what you perceive as "big".

We're all different after all.

I could understand if you had murdered, why you might not disclose. Especially if you are waiting for the cold hand of the law rest on your shoulder sometime.

 

[Deleted member 113659]

I can't help thinking if your biggest mistake is something you could post on a public forum then maybe it's not really that big.

Why? Many people will find it easier to be more open here with the anonymity of a forum than face to face.

 

[MartynW]

I have seen a couple of references to Brexit so far on this thread which surprises me a bit if I'm honest as I would have thought that very little has materially changed yet and may never do so.

Is it the fear of Brexit rather than anything tangible?

Without state-funded reciprocal healthcare etc, I can no longer consider living anywhere other than the UK. I can't see EU countries offering this to Brits once we retreat behind our borders and rot away in isolation. Even existing ex-pats are going to be treated as pawns in UK Gov's weak negotiating position.

 

[Deleted member 37751]

now stuck in the same old rut until I die, as far as I can see.

Wow.