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A third of everything

This house gives me hope

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http://www.zoopla.co.uk/for-sale/details/42051457?search_identifier=c5c7977682157d764e23cac3e80ff953#CReCdf95QkdlmblO.97

I lived not far from here in a nice enough 3 bed 1930's semi which sold for 385,000 last summer - not even extended and the garden needed a fortune spending if you were to landscape it. Looking at the size and standard of this house I'm genuinely surprised it's not sold (look at the reduction history). Yes it's on a main road and needs a dropped kerb but the sheer size of it means a year ago this would have ben snapped up at asking. All the while houses like this aren't selling I see a light at the end of the tunnel...

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Sorry to dampen your hope, but it says "Last sale £327,000 on 29th Mar 2016" on the Zoopla page...

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5 minutes ago, R1ch said:

Sorry to dampen your hope, but it says "Last sale £327,000 on 29th Mar 2016" on the Zoopla page...

More:

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=52105750&sale=69574953&country=england

Above showing archived pre sale pics, before the buyers refurb.

with a link to 'currently on the market' - leading to latest RM listing... not studying in detail but a quick glance though and I see a bathroom match.

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Reality check. That is the best part of four hundred thousand pounds.

Working on the 123 rule quoted elsewhere ( sorry, forget who but it is a great rule), with mortgage interest that is eight hundred thousand pounds which is a before tax income of one point two million pounds.

On the assumption that to be safe your mortgage should never be more than one third of your salary, you need to earn three point six million pounds gross to afford that three bed semi.

So earn one hundred thousand pounds for thirty six years and you could be the proud owner of a three bed semi.

Good job I haven't wasted all my money on an iPhone!

 

 

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It's not so much the 3 times a lady rule against these mortgage rates... teaser rate 2 year fixes, or even 5 to 10 year fixes, and SVRs.

Yet the higher buying prices and bigger mortgage, put into sharp focus the amount of debt to be repaid in total, on any sizeable mortgage.

I would far prefer to pay less and borrow less, even against higher rates.

I got this link from Democorruptcy in 2012, and haven't yet found a better mortgage calculator.

https://www.drcalculator.com/mortgage/uk/

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6 hours ago, CunningPlan said:

Reality check. That is the best part of four hundred thousand pounds.

Working on the 123 rule quoted elsewhere ( sorry, forget who but it is a great rule), with mortgage interest that is eight hundred thousand pounds which is a before tax income of one point two million pounds.

On the assumption that to be safe your mortgage should never be more than one third of your salary, you need to earn three point six million pounds gross to afford that three bed semi.

So earn one hundred thousand pounds for thirty six years and you could be the proud owner of a three bed semi.

Good job I haven't wasted all my money on an iPhone!

 

 

Yes.....it only makes sense if HPI continues. That is the assumption built into house "values". You're not buying a cr@ppy semi. You're paying for admission to a pyramid that doubles your stake very 7 years. 

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I no more look for a house in Wokingham but keep monitoring the price as a house price trend indicator.

The asking prices for this kind of houses in this area were around 425k or higher early in 2016, and sold very quickly. But it's now listed as 375k. Another positive fact is the EA is Romans who is known as a kite flyer.

http://www.rightmove.co.uk/s6p/58277932

Many of you will say 375k is still insane and I totally agree, but still it gives me hope. 

 

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I am surprised dropping the Kerb wasn't the first thing done on the refurb. A quick check on the local council website, should give you a fixed price on having it done - usually less than for £2K.

You have to think if you bought it what you could improve on it - a dropped kerb might add £10-30K value depending on scarcity of parking in the area, which reduces your risk if you buy.

£375K sounds a lot for most people in the UK. But you have to calculate your unknown pros in your situation that we on the forum don't know about you. If you earn £85K in the city, your job is reasonably safe and you have a £100K deposit, then that seems a reasonable bet. IF the Trump/Brexit years coming up is the start of a long structural boom then the timing might be right. We won't know for a while though. The mainstream media are terribly pessimistic over Trump/Brexit and for the Contrarian, this might provide an opportunity.

Cheeky offer of £300K?

Edited by 200p

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6 hours ago, 200p said:

I am surprised dropping the Kerb wasn't the first thing done on the refurb. A quick check on the local council website, should give you a fixed price on having it done - usually less than for £2K.

You have to think if you bought it what you could improve on it - a dropped kerb might add £10-30K value depending on scarcity of parking in the area, which reduces your risk if you buy.

£375K sounds a lot for most people in the UK. But you have to calculate your unknown pros in your situation that we on the forum don't know about you. If you earn £85K in the city, your job is reasonably safe and you have a £100K deposit, then that seems a reasonable bet. IF the Trump/Brexit years coming up is the start of a long structural boom then the timing might be right. We won't know for a while though. The mainstream media are terribly pessimistic over Trump/Brexit and for the Contrarian, this might provide an opportunity.

Cheeky offer of £300K?

I am not considering buying anything now,  Wokingham was just a candidate location a year ago.  I FEEL prices are going down so I will wait. :rolleyes:

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On 19/03/2017 at 6:53 PM, A third of everything said:

http://www.zoopla.co.uk/for-sale/details/42051457?search_identifier=c5c7977682157d764e23cac3e80ff953#CReCdf95QkdlmblO.97

I lived not far from here in a nice enough 3 bed 1930's semi which sold for 385,000 last summer - not even extended and the garden needed a fortune spending if you were to landscape it. Looking at the size and standard of this house I'm genuinely surprised it's not sold (look at the reduction history). Yes it's on a main road and needs a dropped kerb but the sheer size of it means a year ago this would have ben snapped up at asking. All the while houses like this aren't selling I see a light at the end of the tunnel...

Tiny third bedroom and no upstairs bathroom, only a ground floor wetroom. Without a window. And it looks like the wetroom is accessed via a door in the lounge. So that's a horrible layout for the family you'd expect to want a three bedroom house. Plus it's Hornchurch. And yet they still wanted £400K last November, hoping to bag a £73,000 increase since the March 2016 sale.

London's outer boroughs have rocketed in price since 2013 and most continue to do so. 

There is now no 'cheap' property in London that an average earner might hope to buy using just their salary. I've even posted 1-bed flats in tower blocks in Thamsemead that are asking £200,000. 

To say there is any hope in that picture...

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On ‎20‎/‎03‎/‎2017 at 0:01 AM, CunningPlan said:

Reality check. That is the best part of four hundred thousand pounds.

Working on the 123 rule quoted elsewhere ( sorry, forget who but it is a great rule), with mortgage interest that is eight hundred thousand pounds which is a before tax income of one point two million pounds.

On the assumption that to be safe your mortgage should never be more than one third of your salary, you need to earn three point six million pounds gross to afford that three bed semi.

So earn one hundred thousand pounds for thirty six years and you could be the proud owner of a three bed semi.

Apologies if I'm mistaken but it seems you assume the property is bought by a one income household with zero wealth and 100% mortgage.

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6 minutes ago, Muddlehead said:

Apologies if I'm mistaken but it seems you assume the property is bought by a one income household with zero wealth and 100% mortgage.

To an extent yes. Because that is how it should be.

I see this as a home to start a family in. Therefore, in a decent world, one earner would not be earning for 5-7 years and then maybe part time for another 5.

I will concede on the 100% mortgage - but at this sort of level a 90% mortgage would be the only way it would be affordable to most under 30's without Bomad / HPI profit from ludicrously priced one bed rabbit hutch.

It is very similar to my in-law's house. They bought that with one average salary and stay at home mother until both kids were at school and then part time bank teller job during younger school years.

That is the society we should be looking to get back to.

 

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