Property Prices

[spermann]

interest rates are still low making it cheap to hold property. I reckon there will be tangible price reductions if these were to creep up.

 

Quite agree.

 

Although I cant see interest rates rising for some time.

[spermann]

The guy selling my place said the market is depressed, someone near me lost a packet over two years. Slowly prices are coming down to realistic levels.

So after all this time you were waiting for prices to drop so you could buy at a more realistic price, fate has turned you from buyer to seller. Slightly ironic that.

 

Not quite - I was predicting a fall in prices, as for waiting to buy - to be very honest I'm glad I'm not having to return to the Island.

 

I would rather own property on the Island than most pasrts of the UK.

[GD4ELI]

I would rather own property on the Island than most pasrts of the UK.

Prior to leaving the Island & UK in 1986 I spent many weekends in Cornwall sailing & walking. I've been keeping an eye on property on the south coast of Cornwall and that would be / is my first choice when / were I to retire to the UK, probably in a few years.

 

One thing that currently gets me so annoyed about the Island is getting on / off the rock - FlyBe / Racket. I went into the Racket's freight office last week, I was a perfect customer, the female behind the counter as unhelpful as possible. There's more, but my experience with the Racket last week really turned me off.

[Tweek]

Interest rates are staying low at the moment, because 'they' know that whole economies, except a few, around the world would collapse, especially given the current austerity levels many countries are having to demonstrate. And especially so property prices.

 

I see interest rates creeping up next year, but not by much, maybe a percentage point between now and the end of 2012. That's how deep in the mire much of the world is.

 

Low interest rates are the only thing stopping the UK property market from collapsing at present, and throwing the UK into a depression. However, since banks and building societies will never go back to the lending levels that existed just prior to the crash, I still think there is another 10 to 20% to come off the property market. What you have to also remember is the millions of pay freezes in the UK (also impacting the island now, with more to come after the election in September).

 

Austere lending practices, pay freezes, low growth - all for a good couple of years at least - will all eat away at property prices and not help people save for a deposit.

[GD4ELI]

I see interest rates creeping up next year, but not by much, maybe a percentage point between now and the end of 2012.

Agreed.

 

Austere lending practices, pay freezes, low growth - all for a good couple of years at least - will all eat away at property prices and not help people save for a deposit.

Lower property prices will be better in the long term, more important is that banks don't encourage reckless lending.

[Slim]

Agree on interest rates, but I'd throw in unemployment as another big influence on the market. We seem to be doing quite well over here, interest rates are low because we're tied to the UK rate but unemployment is also low compared to the uk which means there's not much pressure on sales. The market does appear to be stagnant, but there's also development going on which means there are experts around who think the development is worth it. Some projects that were stalled, like the flats on Main Road Onchan are under way again.

 

The fixed mortgage rate is always a good one to watch, and while banks are offering under 3% on a 2 year deal, it's a good indication that they think rates aren't going to rise sharply.

 

Austere lending practices, pay freezes, low growth - all for a good couple of years at least - will all eat away at property prices and not help people save for a deposit.

 

Don't forget high inflation and low interest rates make saving very difficult indeed.

[GD4ELI]

Don't forget high inflation and low interest rates make saving very difficult indeed.

Unless I've misunderstood what I was reading but I'm sure you can get up to 5% with Barclays for large sums tied up for a few years.

(UK) http://www.barclays..../P1242590396829

(IOM) http://www.barclayswealth.com/Images/bpci_current_rate_sheet.pdf

 

Maybe people are waiting to see which clowns get elected in September before moving?

 

What I do know is that many are leaving the Island.

[Merkin]

Agree on interest rates, but I'd throw in unemployment as another big influence on the market. We seem to be doing quite well over here, interest rates are low because we're tied to the UK rate but unemployment is also low compared to the uk which means there's not much pressure on sales. The market does appear to be stagnant, but there's also development going on which means there are experts around who think the development is worth it. Some projects that were stalled, like the flats on Main Road Onchan are under way again.

 

The fixed mortgage rate is always a good one to watch, and while banks are offering under 3% on a 2 year deal, it's a good indication that they think rates aren't going to rise sharply.

 

Austere lending practices, pay freezes, low growth - all for a good couple of years at least - will all eat away at property prices and not help people save for a deposit.

 

Don't forget high inflation and low interest rates make saving very difficult indeed.

 

 

I agree with all this. There is also an argument that the UK Gov are looking for a period of inflation (hence printing money etc) as it will reduce their overall level of debt, which i understand is significant.

[GD4ELI]

There is also an argument that the UK Gov are looking for a period of inflation (hence printing money etc) as it will reduce their overall level of debt, which i understand is significant.

No way, the Band Of England sets interest rates: "Interest rates are set by the Bank’s Monetary Policy Committee. The MPC sets an interest rate it judges will enable the inflation target to be met. The Bank's Monetary Policy Committee (MPC) is made up of nine members – the Governor, the two Deputy Governors, the Bank's Chief Economist, the Executive Director for Markets and four external members appointed directly by the Chancellor. The appointment of external members is designed to ensure that the MPC benefits from thinking and expertise in addition to that gained inside the Bank of England."

 

From: http://www.bankofengland.co.uk/monetarypolicy/overview.htm

[Jam_Sandwich]

I can't tell if that's tongue in cheek or not...

[thebees]

What I do know is that many are leaving the Island.

 

Really? I know a couple of people who have gone but only to silly places like Spain & Bulgaria (no wonder we got 12 points from there in Eurovision) I cannot think of anywhere better to live

[Slim]

Unless I've misunderstood what I was reading but I'm sure you can get up to 5% with Barclays for large sums tied up for a few years.

(UK) http://www.barclays..../P1242590396829

(IOM) http://www.barclaysw..._rate_sheet.pdf

 

 

 

You have misunderstood. That's a special offer with a number of conditions, max of £2k a month for a single year, has to be new money into Barclays not existing customers etc. There's a couple of 'special offer' type exceptions, but generally you're not going to get more than 2% for a savings account at the mo. When you've got inflation at around 7% and pay freezes that don't reflect this, people who have cash or are trying to save are losing money over time.

 

Maybe people are waiting to see which clowns get elected in September before moving?

 

I don't think the majority of the people know or care much about manx politics.

 

 

What I do know is that many are leaving the Island.

 

We've certainly lossed a bunch of migrant workers, which has helped buffer unemployment numbers. A good thing

[Cambon]

There is also an argument that the UK Gov are looking for a period of inflation (hence printing money etc) as it will reduce their overall level of debt, which i understand is significant.

No way, the Band Of England sets interest rates: "Interest rates are set by the Bank's Monetary Policy Committee. The MPC sets an interest rate it judges will enable the inflation target to be met. The Bank's Monetary Policy Committee (MPC) is made up of nine members – the Governor, the two Deputy Governors, the Bank's Chief Economist, the Executive Director for Markets and four external members appointed directly by the Chancellor. The appointment of external members is designed to ensure that the MPC benefits from thinking and expertise in addition to that gained inside the Bank of England."

 

From: http://www.bankofeng...cy/overview.htm

 

Yep, a blinding move by Gordon Brown. Pass the interest rates to the BOE, who take the blame rather than the government. However, the rate decision is made based on government supplied information and direction. Brilliant!!!

 

For the past two years the uk has needed higher interest rates, not historically low ones. This is only prolonging the agony. Put rates up ASAP and let the recession happen. It is going to anyway until house prices, rents, etc have pretty much halved in real terms. They are only down around 20% at the moment.

[Slim]

For the past two years the uk has needed higher interest rates, not historically low ones. This is only prolonging the agony. Put rates up ASAP and let the recession happen. It is going to anyway until house prices, rents, etc have pretty much halved in real terms. They are only down around 20% at the moment.

 

 

Justify that. What would higher rates do for the economy? There's more to interest rates than mortgages you know.

 

 

[Jam_Sandwich]

I can see where Cambon is coming from with his point (I think), although I won't be able to eloquently type a reply.

 

But I believe he's advocating short term pain by keeping interest rates high forcing a crash of properties, defaulting of companies and even banks etc etc. In contrast to what we have now trying to save everything and just prolonging the pain.

 

Or something.