lilu_lilu Posted June 3, 2014 Share Posted June 3, 2014 Recently decided to up size from 3 to 4 bed in fleet, Hampshire. I have to say I had enough money to move in 2009-2011 but didn't as I was very happy with my good size 3 bed semi and hate the trouble of moving. I guess that laziness was bad, very bad. I put my house on the market and got an offer for 255, which is ok. But when I looked the ones I'd like to buy, it's eye watering figure. Put an offer on a detached town house 455(asking price), accepted at the first and then the vendor wanted more. For god sake, I already pay the asking price. So no go. Two weeks after the first offer was rejected, the similar houses were asking around 500, no wonder why that vendor pulled out. Now three months down the line, the same sort of house asking 530 - 575. Be honest, I saw those prices jumped every 1.5-2 months time. Can I afford a house at 550, yes at 1.5%, sort OK at 4.5%, might be OK at 7%, not really at 10%. But what worries me is I am on a 6 figure income. According the national statistic it's the top 6%. If I can't afford a decent house at a town not even close to London, how could the rest 94% do? Even more worrying the fact my kids in 15 years will be facing the same problem. That is on the projection they will be good enough to put themselves in the top 6%. Quote Link to comment Share on other sites More sharing options...
Cozza Posted June 3, 2014 Share Posted June 3, 2014 Recommend reading the thread on uni fees. Best option for your kids is to start intensive language tuition early and plan on them studying (and likely living long-term) outside of the UK. Quote Link to comment Share on other sites More sharing options...
renting til I die Posted June 3, 2014 Share Posted June 3, 2014 (edited) No problem, you just have to re-market your current home for a higher price! If you can put up the price of your own house faster than the ones you want to buy then it's win win! I'm joking, of course. Your plight (I say this with a smile, as with a 6 figure wage and a home in which you don't have to pay eye watering rents to live in, isn't so much a plight as a minor inconvenient) highlights what we all already know on this site, that the property ladder is a complete myth! Gald you are waking up to this fact. Edited June 3, 2014 by renting til I die Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 3, 2014 Share Posted June 3, 2014 What sort of a mug offers 255k for a house. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 3, 2014 Share Posted June 3, 2014 No problem, you just have to re-market your current home for a higher price! If you can put up the price of your own house faster than the ones you want to buy then it's win win! I'm joking, of course. Your plight (I say this with a smile, as with a 6 figure wage and a home in which you don't have to pay eye watering rents to live in, isn't so much a plight as a minor inconvenient) highlights what we all already know on this site, that the property ladder is a complete myth! Gald you are waking up to this fact. If the anecdote is to be believed...asking prices are shooting up at an insane unsustainable rate....if so then collapse is imminent so best hold off for reality to strike. Quote Link to comment Share on other sites More sharing options...
renting til I die Posted June 3, 2014 Share Posted June 3, 2014 If the anecdote is to be believed...asking prices are shooting up at an insane unsustainable rate....if so then collapse is imminent so best hold off for reality to strike. We can only hope this SE bubble will pop and then we have low rent and prices for the next 20 years, so noone looks at property as an investment for a generation. The 2004 to 2007 still hasn't popped so this is just a bubble on a bubble! Or what did you call it before... The super mega whatsit mega bubble thingly! Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted June 4, 2014 Share Posted June 4, 2014 So no go. Two weeks after the first offer was rejected, the similar houses were asking around 500, no wonder why that vendor pulled out. Now three months down the line, the same sort of house asking 530 - 575. How big is the market size for £500k+ houses in your area? I know my local market for £500k houses is fairly small, 52 houses in total of which 16 have sold in the past 3 months. In other words where I live it's a microcosm of a market in that price range - markets with extremely low volume tend to be very volatile, so I would hold off for 12 months and see what luck brings. Unless the government/BOE introduce another silly scheme which is very unlikely before the GE in May it's unlikely prices will rise as the record low interest rates are priced in FFL is drying up and the new MMR rules are now locked in. Could save yourself £100k + interest (£200k?) by waiting 12 months. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 4, 2014 Share Posted June 4, 2014 We can only hope this SE bubble will pop and then we have low rent and prices for the next 20 years, so noone looks at property as an investment for a generation. The 2004 to 2007 still hasn't popped so this is just a bubble on a bubble! Or what did you call it before... The super mega whatsit mega bubble thingly! Yeah, was something like that. It's clearly a mania of some sort. Quote Link to comment Share on other sites More sharing options...
lilu_lilu Posted June 4, 2014 Author Share Posted June 4, 2014 How big is the market size for £500k+ houses in your area? I know my local market for £500k houses is fairly small, 52 houses in total of which 16 have sold in the past 3 months. In other words where I live it's a microcosm of a market in that price range - markets with extremely low volume tend to be very volatile, so I would hold off for 12 months and see what luck brings. Unless the government/BOE introduce another silly scheme which is very unlikely before the GE in May it's unlikely prices will rise as the record low interest rates are priced in FFL is drying up and the new MMR rules are now locked in. Could save yourself £100k + interest (£200k?) by waiting 12 months. Well, quite a few I would say. In fleet, most 4 beds are 450+. any 4 beds + study/nice decor will be 500+ now easily. The problem is I remember there are houses in 2011/12 period asking 380 - 410 suddenly appear on the market for 530 - 550. If my math is right, average (540 - 395) / 395 = 36.71% in two years. That figure beats London hands down. Quote Link to comment Share on other sites More sharing options...
lilu_lilu Posted June 4, 2014 Author Share Posted June 4, 2014 Recommend reading the thread on uni fees. Best option for your kids is to start intensive language tuition early and plan on them studying (and likely living long-term) outside of the UK. Well, I am thinking about it now. Again, down to math, it will be around 60k for a single kid to complete bachelor in UK. I got two so will be 120k. If I am lucky/unlucky, they are doing good on academics and happily rolling to master, another 40k. PHD? I am start losing sleep now. I recently graduated my master from UCL after almost 10 years working in the industry. I have to say the uni these days look at every student as a walking wallet. I am not sure about other uni such as Oxford and Cambridge, but the quality of teaching and professor is shocking. I did my bachelor in Canada from a middle ranged uni, so when I rolled in UCL I expected a lot as it ranked No. 6 in the UK. I guess I expected too much. A bit off topic now. Hope the admin doesn't mind. Quote Link to comment Share on other sites More sharing options...
lilu_lilu Posted June 4, 2014 Author Share Posted June 4, 2014 No problem, you just have to re-market your current home for a higher price! If you can put up the price of your own house faster than the ones you want to buy then it's win win! Joke received. However I am the man on my word, a bit old fashion I guess. I hate regretting my own acceptance. If I accepted the offer from a buyer, it means I accepted it. As I mentioned in my original post, if the vendor of the property(455) came and talked to me before acceptance, I could up the offer to match. But the point is they didn't do that, they accepted it and regretted later. I really hate dealing with people have idea on and off their very small brains constantly because there won't be any guarantee they won't regret again even I match. I am sure in there mind their property worth the whole country, so it will never be enough. Quote Link to comment Share on other sites More sharing options...
longgone Posted June 7, 2014 Share Posted June 7, 2014 What sort of a mug offers 255k for a house. lol is that a lot of money or something ?? Quote Link to comment Share on other sites More sharing options...
worried1 Posted June 7, 2014 Share Posted June 7, 2014 lol is that a lot of money or something ?? Traditonally you wouldn't offer just above one of the stamp duty limits for a house. That extra £5k for the seller is going to cost double that because of the extra tax. I am not sure people worry about that any more in this mad market as offering just above the limit is more likely to get you a house for which the competition would otherwise be too great. Most people are happy to wave goodbye to £100ks, so I doubt they'd be bothered about £5k. Quote Link to comment Share on other sites More sharing options...
lilu_lilu Posted June 9, 2014 Author Share Posted June 9, 2014 Traditonally you wouldn't offer just above one of the stamp duty limits for a house. That extra £5k for the seller is going to cost double that because of the extra tax. I am not sure people worry about that any more in this mad market as offering just above the limit is more likely to get you a house for which the competition would otherwise be too great. Most people are happy to wave goodbye to £100ks, so I doubt they'd be bothered about £5k. It's true about the tax band. But I marketed my house for 260 comparing to average 270 in my area. There is nothing wrong with my house, I was hoping for a quick sale and quick buy so I can move before the summer and still have my holiday in place. Doesn't seems working now. Quote Link to comment Share on other sites More sharing options...
lilu_lilu Posted July 3, 2014 Author Share Posted July 3, 2014 Well, finally decided to give up on house hunting. In about 5 months time, I actually saw how the price jumped in fleet area. Some of the houses used to come on the market around 480k are all marked at 550k now. This is over 14% rise in asking price in 5 months and is mental. The even more crazy thing is people are paying them. How on earth those buyers are able to find a loan for extra 70k? look at the example below, a house bought at mid of 2013 for 415k were sold for 525k last week. I was interested in this one and couldn't even book a viewing within the first week the house was put on the market. What's going on? http://www.rightmove.co.uk/property-for-sale/property-44487748.html http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=45495218&sale=453139&country=england Quote Link to comment Share on other sites More sharing options...
Shamus Posted July 3, 2014 Share Posted July 3, 2014 Well, finally decided to give up on house hunting. In about 5 months time, I actually saw how the price jumped in fleet area. Some of the houses used to come on the market around 480k are all marked at 550k now. This is over 14% rise in asking price in 5 months and is mental. The even more crazy thing is people are paying them. How on earth those buyers are able to find a loan for extra 70k? look at the example below, a house bought at mid of 2013 for 415k were sold for 525k last week. I was interested in this one and couldn't even book a viewing within the first week the house was put on the market. What's going on? http://www.rightmove.co.uk/property-for-sale/property-44487748.html http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=45495218&sale=453139&country=england Crazy Crazy! We briefly looked at Fleet/Church Crookham last year and prices for the types of houses we were looking at seemed to rise by £50k in 6 months between the spring and the autumn of last year (2013). All of the houses were quite a way from the train station. Quote Link to comment Share on other sites More sharing options...
lilu_lilu Posted July 7, 2014 Author Share Posted July 7, 2014 Crazy Crazy! We briefly looked at Fleet/Church Crookham last year and prices for the types of houses we were looking at seemed to rise by £50k in 6 months between the spring and the autumn of last year (2013). All of the houses were quite a way from the train station. Well, It's bad news. What I realised during the last few months is most viewers were from London/greater London. i.e. in one viewing I am the only local resident, all other 9 were from London area. I simply can't keep up the budget with them, one couple said their 2 beds flat was sold for 635k and of course buying a house at 575k was quite cheap. I guess that's why the price jumped so much. It's not only Londoners are suffering now. Quote Link to comment Share on other sites More sharing options...
worried1 Posted July 16, 2014 Share Posted July 16, 2014 Well, It's bad news. What I realised during the last few months is most viewers were from London/greater London. i.e. in one viewing I am the only local resident, all other 9 were from London area. I simply can't keep up the budget with them, one couple said their 2 beds flat was sold for 635k and of course buying a house at 575k was quite cheap. I guess that's why the price jumped so much. It's not only Londoners are suffering now. This is the problem. That couple were actually quite sensible using their equity to upsize and actually only keep the same sized mortgage after fees. A lot of people actually take the opportunity to pile on more debt so it is affecting the SE market at all levels. Quote Link to comment Share on other sites More sharing options...
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