Property Prices.

[pipme]

Have we reached the peak ?
Info from the Motely Fool site :-
Apparently house prices are now 5.71 x Averge earnings . .. Av house £161466.

Historicaly the prices are around 3.76 x Av Pay, perhaps an adjustment is due ?

If pay increases over next 3 yrs at 4% per annum .. £28277 to £31800 then the adjust after 3 yrs could be 1 - ( 3.76 * 31800 / 161466) = 26%
This uncannily, for my property, is near the same figure I achieved in a previous topic using published Insurance rebuild costs and current land prices from the registry ........ mmmm ! True value

 

[david and julie]

I'm not sure about this property price thing at all(not your theory pipme) I live in south m/cr, to me some prices seem static whereas others are still going up. Eitherway all properties are taking a bit longer to sell.

I think this problem is effecting the south more, where properties were just getting out of hand.

Financially speaking, the Bank of England is walking a tightrope. They need to halt the ridiculous situation, but the pension funds are mainly into property, albeit commercial. Houses also create most of this countries employment due to the decline in manufacturing.

The next year or so will decide. I reckon if you had £1M you would double it, but then the rich always win.

 

[pipme]

Perhaps the property with the largest increases to date will be first to falter ... The rest may then begin to fall into line.... but it has been a heady ride ... loads of dosh has been made ...No doubt a bit will be lost too .. If history is anything to go by !!

I wonder about the BOE's actions .. Yes, they think it 'prudent' to cool the debt situation inc house prices .. But there may be other reasons for the rate increases ... I have looked at the annual change in GDP(essentially what the nation earns) against the change in M4 broad money .. the actual dosh slopping around wherever ... there was around 6% difference (M4 greater) .. So being no sort of financial expert .. I am wondering if the Govn is printing more money than we are earning then this is inflationary ? I guess we need some inflation built in to drive the economy ... but 5 or 6% ? Apparently the BOE changes take a fair old time to have effects- apart from dampening our borrowing - So it could be that the old enemy inflation is ready to take off .. Interesting, with an election approaching ... Gordon's ploy I wonder ? Nice set up for incoming Gov if the wrong colour, work to do on economy before anything else ... Or is all that I have written total rubbish ...

P

 

[ohmygodwhathaveyoudone]

bought my 3 bedroom semi 3yrs ago for £42,000,just had it valued @ £120,000. the best investment is in bricks & morter.or so people tell me?

 

[shaggy]

You've done well there Ohmy..... sell up and live in a hollowed-out tree and you're £78k up. Nice one!
I've done even better. I built my own property for a total cost of £30k and it's now worth £250k. I'm looking at trees myself but as soon as those parasites of society(Estate Agents) get a whiff of what we're up to the price of trees will rocket; b******s.

 

[big-all]

bought my 3 bedroom semi 3yrs ago for £42,000,just had it valued @ £120,000. the best investment is in bricks & morter.or so people tell me?

not realy much use though is it unless you move to a cheeper area nobody actualy gains except estate agents the goverment and builders

 

[ohmygodwhathaveyoudone]

have just seen a nice plot of land with a derelict bungalow on it.i have been told by my dad who did a self-build that if all the amenities are in place that makes it a more cost effective option?had a quick look and the electric/gas/sewerage/plumbing all seem to be in place.as it is a bungalow at present would it be possible to get planning permission for 2 dormers or extend existing footings?i don't want to do it up to make a quick buck,i'd like a nice family home.may be a pipedream but you've got to at least try

 

[big-all]

i do hope it works

you usualy find land with planning permission is so so expensive
but because its got a property on it it can put people off cos they dont consider demolition


your avenue of self build is of course a lot lot cheeper

good luck any way

 

[planenut]

OMGWHYD...sounds a good investment. To get the permission to plonk a house on a bungalow site look at the area, if the type of properties vary as in some houses and some bungalows then you are almost home. Pop into the local council planning office and talk to them, I do trust their confidentiality, and that is an obligation for them. They are fussy as to parking (need off street) and amenity space (the size of the garden, especially the rear, must be a fair amount) but again the officer would be able to advise you.......Good luck.

 

[ohmygodwhathaveyoudone]

all the properties to one side of said plot are bungalows & the only house is on the other side and thats for sale

 

[david and julie]

I was watching a programme a while back about a similar situation.

To satisfy the planners the guy had put the bedrooms in a kind of cellar, with the garden chamfered(if you see what I mean) to the ground. This gave the appearance of a bungalow from the road, but it was in fact 2 storey. only difference was the bedrooms were downstairs instead of up.

His was a new (self)build and it let him build a much bigger house on the existing bungalow plot.

Should think the digging and waste removal would be dear though.

 

[pipme]

Bit rough in a flood too !

 

[planenut]

Still sounds very good.
If you would consider putting a house on the plot, would you accept a design similar to the existing house? would it obscure any other views? talk to the planning department!