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Shetland's property boom


Caeser
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Not sure why you find the prospect of a crash amusing though... Confused

 

You think this ridiculous boom in prices is doing the country any good? Why should young people have to be life long slaves to a money lender, just in order to put a roof over their head? A crash is a good thing, we needed a correction a few years ago to put the brakes on this mad money lending boom. The higher this speculative market bubble gets, the harder it's going to fall, and this just leaves more people enslaved to the banking system. Housing should be for living in, it should not be allowed to be used as an investment.

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A crash would not necessarily result in a lot of cheap houses which you were able to pick and choose between though. A crash will involve unemployment and bankruptcy, thus reducing the wealth available. This could mean that you, along with many others may loose their jobs and still be unable to afford housing. It's not a winning situation by any means. No one will be immune to the effects of a crash.

 

I'll admit that economics isn't a strong subject of mine but I'm pretty sure that it's far from certain that you stand to benefit from this.

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I hope so, that would make buying a house a lot simplier! This current state of affairs (trying to guess how much extra to offer) is rediculous.

 

This (in my experience) is 'spot on'. We contacted an estate agent about a particular property. He said that "being realistic, the property is going to sell for far more than the advertised price - perhaps 40-50% more".

 

The property in question is cheap and does need a great deal of mordernisation, but why can't the estate agent offer it at the 'realistic' price in the first place ?

 

Obviously, this allows estate agents to state to potential clients that they have sold so many properties over the asking price.

 

As Sudden Stop has mentioned previously, trying to guess how much extra to offer is ridiculous. Frankly, I'm unwilling to get involved in a blind auction.

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^^^

 

I've gone through the whole process of putting in offers a couple of times now and still haven't gotten anywhere. The last time we offered ten grand (that's a lot of cash to find when added to the 5% needed to make up a mortgage) more than what the house was worth and still didn't get it. I feel that estate agents have a big part of the blame for the current problems, as you say, always telling you that you'll need to pay 'x' amount over the valuation to get the house. Since it costs so much (a good couple of hundred quid a try) to get a far as making an offer, people feel they have to offer big money so they are not wasting money on failed offers.

 

In the situation above, you have basically been told by the estate agant that you will have to pay the projected value of a house after it 's been mordernised. The thing is, say you pay that money and get the house, you still have to pay to have it modernised - your paying twice!

 

If I were able to buy a house that I thought had every thing that I would ever need and that I would live in for the rest of my days, I wouldn't feel to bad about paying over the odds for a house, but I could never hope to buy such a house and being realistic, I'll probably go through a couple of houses on the 'ladder' before I get one I actually want! And I'm not going to throw money on a basically unwanted house.

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I suppose it's all supply and demand.

 

The "offers over" price may be all that the house is really worth, so in that sense it is a valid figure for valuation, but if enough people want it then that is when you end up paying more than it is "worth".

Second problem with this comes when the bank will only give you a mortgage for the valuation figure, or a little more....

 

Which is why there are so many new build houses I suppose, as you can at least build for less than the house is worth.... it is just that it will take you a couple of years at least for the whole process.

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If you go to this page on the BBC website and key in a Shetland post code you will find that house prices in Shetland increased by 32.8% in the last quarter.

 

http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm?q

 

However Shetland is 8th from the bottom of the average cost of a house in Scotland so we could have a long climb ahead of us.

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