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Potential First Time Buyer - Advice Sought!


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#1 sammyg

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Posted 17 January 2010 - 07:33 PM

Hello everyone,

I've been reading the posts on this site for a good three years now and was inspired to hold off on buying a property in London when I was living down there by the comments of the many bears on here. I am now very glad I did so - judging by prices in the areas I was looking today compared with 2006, I would have ended up in some serious negative equity if I had bought.

I regard myself as a bear. However, I am not getting any younger. I have recently returned to my native North East and am currently renting in Newcastle (Sandyford area). I would, however, like to start looking at buying a place, either a small house or possibly a flat (preferably a Tyneside flat rather than an apartment in a managed block with sky-high service charges to pay!).

With my salary and the deposit I can afford, I could probably afford a maximum of around 140k.

I have been looking on Rightmove and in a few estate agents' windows over the weekend and am a bit shocked at how expensive things still seem to be. I thought prices had dropped!

Does anyone have any advice on which areas I should be looking in? Ideally I'd require the following:

- Somewhere nice and quiet, relatively affluent, middle-class and not too "studenty";
- Good transport links for central Newcastle;
- Somewhere with a bit of "feel" and character - i.e. a few nice shops, pubs, etc.

A few conclusions I've drawn, but please feel free to correct me if I'm wrong:
- I really like parts of central Gosforth but it is probably too expensive;
- Jesmond/Sandyford are student ghettos;
- Heaton is mostly awful, except for the nice bits which seem to be expensive and almost exclusively consist of "larger" properties;
- High Heaton seems a possibility, although I don't know it well;
- Ryton on Tyne also seems quite nice and quite good value;
- Tynemouth seems very expensive, although Whitley Bay doesn't look too bad;
- Benton and Forest Hall seem reasonably nice and good value;
- Had a drive round Killingworth today - looked absolutely awful;
- Parts of Gateshead might be quite good value, but I must admit that I don't know it at all well.

Right, sorry, bit of a "stream of consciousness" post really. Any advice gratefully received.

#2 neilrich

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Posted 17 January 2010 - 09:00 PM

A few conclusions I've drawn, but please feel free to correct me if I'm wrong:
- I really like parts of central Gosforth but it is probably too expensive;
- Jesmond/Sandyford are student ghettos;
- Heaton is mostly awful, except for the nice bits which seem to be expensive and almost exclusively consist of "larger" properties;
- High Heaton seems a possibility, although I don't know it well;
- Ryton on Tyne also seems quite nice and quite good value;
- Tynemouth seems very expensive, although Whitley Bay doesn't look too bad;
- Benton and Forest Hall seem reasonably nice and good value;
- Had a drive round Killingworth today - looked absolutely awful;
- Parts of Gateshead might be quite good value, but I must admit that I don't know it at all well.

Right, sorry, bit of a "stream of consciousness" post really. Any advice gratefully received.

I think you've got it sussed, you really don't need any advice! £140k shall get you a tyneside flat in central Gosforth, Salters Road area. How about South Gosforth?
Don't like to give advice, should always do your own research, however, as you've asked...I'd say just wait a little longer, at least until after the general election, what ever the outcome, who ever wins, they shall have to address the PSBR(public sector borrowing requirement). The new government shall have no choice, but somehow they'll have to reverse a £200,000,000,000 deficit. The Bank of England shall have to stop the quantitative easing, and at some point, sooner rather than later, interest rates will rise. Don't under estimate the effect that the above shall have on our economy, house prices at present remain over-valued, they've been supported by the government's unsustainable policies, but not for too much longer! The magic recovery is somewhat artificial, I could go on!

Twelve years ago Tyneside flats in Gosforth SOLD for less than £45k, what is their true worth Today? Nobody knows, but I do know that in Japan house prices have fallen to 1984 levels!

At the end of the day, much of this is simply opinion. Who do you want to believe? Estate agents, mortgage lenders, those that have a vested interest?

I'm in the same boat, and it is a very difficult call, but I'd sooner continue to live within my means, enjoying life, as opposed to being distracted by a large debt on an illiquid asset that's likely to continue falling in value.

What ever you decide, I do wish you the very best.

Regards

Neil

Edited by neilrich, 17 January 2010 - 09:02 PM.


#3 Snafu

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Posted 18 January 2010 - 03:10 PM

What Neil Rich said basically. South Gosforth is a nice area, some bits are studenty though. Your own list was pretty good too.

I drive through High Heaton from work every day and I can't really get to grips wih the area from a ..."am I going to have chav neighbours or not"? Is it a bit of a mix?

#4 PhoneyMcRingRing

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Posted 18 January 2010 - 07:07 PM

I have been looking on Rightmove and in a few estate agents' windows over the weekend and am a bit shocked at how expensive things still seem to be. I thought prices had dropped!


As per the Whitley Bay thread things have not dropped that much round here (I have no idea why). I am probably in a similar situation to you, back in the NE and not getting any younger. I would like to live within half a mile of Whitley Bay, Tynemouth, Cullercoats, Monkseaton or West Monkseaton Metro stations. They are good areas and I love being by the sea. I'm looking about £160k but not impressed at all by what that would get me. Oh well keep putting the money away I guess (I am able to save at least 2x what I pay in rent at the min).

Would be delighted to see more opinions as to why North Tyneside / Newcastle are crash proof at the min. Is it a case of the bigger they are the harder they fall? Will all things be rosey until the "evil" Tories get in and hope vanishes? Is it that the average worker in Newcastle is getting £40k+ a year?

Phoney

Edited by PhoneyMcRingRing, 18 January 2010 - 07:08 PM.

"But now the guy's got to come up with Paulie's money every week. No matter what.
Business bad? F*ck you, pay me.
Oh, you had a fire? F*ck you, pay me.
The place got hit by lightning, huh? F*ck you, pay me."

#5 okaycuckoo

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Posted 18 January 2010 - 07:13 PM

Have a look at these charts from Mish - in case anyone had forgotten how insane house prices are:

http://globaleconomi...-uk-canada.html

#6 Snafu

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Posted 18 January 2010 - 08:47 PM

I think people have just played the property ladder business over a long perod of time in the Coastal areas, driving prices higher but without the need for massive mortgages ( just looking at people in the office and that seems like that they've done). The "I'm not selling below my asking price" is still strong so the pain hasn't really hit home just yet for the north east when it comes to redundancy. One person in my
office has divorced recently but still not
sold her house after over a year on the market but doesn't seem that bothered.

Suspect good big houses in the coastal area are a bit pike the hexham area.

#7 meow

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Posted 20 January 2010 - 02:00 PM

What Neil Rich said basically. South Gosforth is a nice area, some bits are studenty though. Your own list was pretty good too.

I drive through High Heaton from work every day and I can't really get to grips wih the area from a ..."am I going to have chav neighbours or not"? Is it a bit of a mix?


I'm glad to hear I'm not the only one like this, I've had many a drive around many a place in the entirety of tyne and wear and I often find north tyneside and newcastle an absolute oddity!!! I know plenty of people who live in various parts of north tyneside and newcastle and report varying things about their respective areas, but when I drive around these places it nearly all looks like squashed up shit housing that is apparently "really well to do" or "utterly shit" despite it "all" looking shit (yes, I'm including places like gosforth, jesmond et al)... and then... the bits that looks like "ok to good" are either insanely priced (well established area) or everyone I know who might know X estate says "avoid" (a lot of new builds places). I just don't get the north side???

I tend to find, on the whole, Gateshead and South Tyneside seem to be much more WYSIWYG.
MEOW - Mortgage Equity Over Withdrawal

A woman phoned in today to say there was a house price crash coming, don't worry, there isn't....

#8 jaynewcastle

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Posted 20 January 2010 - 07:59 PM

What does WYSIWYG mean please ?.

#9 Snafu

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Posted 21 January 2010 - 01:08 PM

What does WYSIWYG mean please ?.

What You See Is What You Get




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