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Balham Sw12 Hydefarm


Steppenpig

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HOLA441

Byrne Road a bit of an anomaly as well then I guess, what with the railway right behind?

I'd have thought those flats should have a bigger discount given the trains running through the back of the garden all day!?!?!?

And don't forget Fernlea Road!

Soon though there might be a bit of a glut. I hear 91 new apartments on Boundaries Road? That's going to take some time to shift, even in this buoyant market.

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HOLA442

Byrne Road a bit of an anomaly as well then I guess, what with the railway right behind?

I'd have thought those flats should have a bigger discount given the trains running through the back of the garden all day!?!?!?

i wouldn't really say "anomaly" as such.

all parts of balham have slightly different perceived quality, & hence price. most obviously, west of the high road has always been considered smarter [and hence more expensive] than the east, in general, but there are loads of pockets that buck this and other trends.

and even then all flats or houses or whatever are different.

e.g. the north side of oakmead road, backing onto the railway line, has historically been about 10% or so cheaper than the south side... and on somewhere like rowfant road, the houses that have du cane court looming over their back gardens are cheaper than t'other side by a similar margin.

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HOLA443

And don't forget Fernlea Road!

Soon though there might be a bit of a glut. I hear 91 new apartments on Boundaries Road? That's going to take some time to shift, even in this buoyant market.

yeah - nappyvalley.com sent out an email today obviously hoping to get at least someone's back up but the [two] responses on the message board both seemed more or less positive and supportive.

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  • 5 years later...
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HOLA444

Just to note an odd one, so I can see what it looks like when it hits Land reg figures.

https://www.zoopla.co.uk/for-sale/details/49890963?search_identifier=b167f07307fa3cc2d9edc2862273bc2e

description refers to 3 bedder, but details relate to No 32 which is a 5 bedder

Could be mix up, or could be split into flats like No 34/34a.

Has gone STC very quickly

Pricewise, seems  200k too cheap for even the worst unmodernised house. Could be high end flat.

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18 hours ago, Steppenpig said:

Another unexpectedly cheap one, gone under offer in a few days. 975k. No loft extension, but sure it would have been at leat 100k more a couple of years ago.

 

https://www.rightmove.co.uk/property-for-sale/property-78759140.html

Sales history

2001 £325,000
1996 £118,000

That's insane. Clearly paying 3 times what is sold for last time makes sense to some people but it's never going to make any sense to me.

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HOLA447
57 minutes ago, Captain Kirk said:

That's insane. 

Yeah, I shouldn't have said "cheap" but still interesting that prices do seem to be coming down., and setting a price below the neighbours results in going stc in a few day, and/or something dodgy going on with the last two I mentioned and I want to keep an eye on them.

At the moment, they look like they're still 50% overvalued, which must be about 10 years' salary for the sort of people who buy there. ie overspending by about a quarter of their working life's earnings.

If it is a trend, they might be reasonable value in 10 or 20 years

Edited by Steppenpig
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HOLA448
2 hours ago, Captain Kirk said:

Sales history

2001 £325,000
1996 £118,000

That's insane. Clearly paying 3 times what is sold for last time makes sense to some people but it's never going to make any sense to me.

£325,000 at 7% interest rate over 25 years = £2297pm.

£975,000 at 1.8% interest rate over 35 years = £3131pm. 

I'm omitting the deposit but that is a rise in repayment amount of 36% over 18 years. Or 1.7% annualised.

The cost of paying a mortgage has risen at less than inflation over the last 18 years but the asset price has risen 8% annually. 

That's the impact of cost of credit on assets purchased using credit. 

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HOLA449
49 minutes ago, dugsbody said:

The cost of paying a mortgage has risen at less than inflation over the last 18 years but the asset price has risen 8% annually. 

That's the impact of cost of credit on assets purchased using credit. 

On a simple affordability argument it probably makes sense (although not sure what salaries are like these days) but doesn't account for the financial risk of borrowing 20 times salary in 2019 compared to 3 times salary in 1996.

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1 hour ago, dugsbody said:

£325,000 at 7% interest rate over 25 years = £2297pm.

£975,000 at 1.8% interest rate over 35 years = £3131pm. 

I'm omitting the deposit but that is a rise in repayment amount of 36% over 18 years. Or 1.7% annualised.

The cost of paying a mortgage has risen at less than inflation over the last 18 years but the asset price has risen 8% annually. 

That's the impact of cost of credit on assets purchased using credit. 

Well I tend to agree that the cheaper and easier it is to borrow, the more inflated the prices people are willing to pay. I guess I just don't get the mentality of paying as much as you can possible borrow for something. When I buy a packet of crisps I don't look in my wallet and then ask the shopkeeper 'what can I get for £50?'. Well, maybe after Brexit ? (a little joke for the remainers).

I guess rates would have to stay suppressed for most of the 35 years. Personally, I don't think they are going to get £975K unless the sell it pretty soon.

Edited by Captain Kirk
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3 hours ago, Steppenpig said:

On a simple affordability argument it probably makes sense (although not sure what salaries are like these days) but doesn't account for the financial risk of borrowing 20 times salary in 2019 compared to 3 times salary in 1996.

No it doesn't but I'm just illustrating how, in my opinion, the global rises in property prices has been directly correlated and caused by the downward trend of the cost (and availability) of credit and unfortunately for us (some of us) has resulted in a generational wealth transfer that will not be repeated or rectified because I believe we've entered permanent low interest rates in advanced economies.

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  • 2 years later...
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HOLA4413

Really interesting looking back at this thread as someone who is thinking of buying a 3/4 bed house in Balham (potentially Hyde Farm although would prefer Wandsworth). I wonder if @Steppenpig decided to buy something - in the OP it says considering buying in 10 years. About 11 years has passed since then.

I'm seeing the nicely done up and extended 1500-1800 sqft houses around Hyde Farm, Ormeley Road, Laitwood Road etc going for around £1.2m-£1.4m at the moment.

At the other end of the scale for houses, there's a 3 bed for sale on Cambray Road, recently reduced to £950k which looks in pretty bad shape and needs a lot of work:

3 bedroom house for sale in Cambray Road, Balham, London, SW12 (rightmove.co.uk)

Looking back at this thread, it seems that prices for houses in this area have increased quite a lot over the past 10 years, but prices of flats have not increased by quite so much.

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