Friday, May 30, 2008
Can anyone help Lee?
Times: Stuck in a Streatham studio flat
Lee is looking to buy a one-bedroom flat with the sale of his studio because he needs more space. In early April he reduced the price of his flat from£169,950 to £159,950 and further dropped the price to £149,950 two weeks ago. He is considering waiting until next spring before a second attempt to sell
Posted by confused76 @ 06:30 PM (964 views) Add Comment
15 Comments
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1. shipbuilder said...
I don't really get this idea of taking a property off the market in the hope of getting a better price in the future - someone tell him the market is going down, so he needs to drop his price accordingly. It's not rocket science.
2. little professor said...
"Studios are faring particularly badly at present because it is a buyers’ market, so potential purchasers, most of them first-time buyers, can force prices down and get a one-bedroom flat for a similar price as a studio. In the slow-down of the 1990s, studio apartments were quick to lose value for this reason."
Yep. If I recall correctly (I was only about 9 at the time) it was the people that overstretched themselves to buy studios in London and awful back to back/terraced housed oop North that got the most pwned in the last crash, as there was a flight to quality and the price differential between the lower rungs of the ladder reduced so much that there was little point buying right at the bottom.
This time I reckon it will be all the paper-walled 2-bed new-builds that were thrown up in 5 mins flat that will face the most pwnage.
3. little professor said...
He's getting some dangerous advice there in the reader's comments- "Clearly he isn't going to get the value he paid yet, best to hang on to it a bit longer"
Yes, so you are losing money every month, so why not hang on to it a bit longer and lose even more money.
4. jack c said...
I suggest he makes a call to Stuart Law of Ass(etz) - he will resolve such a simple matter in an instant.
5. jack c said...
The South East is bucking the national trend of falling house prices when it comes to new homes, says SmartNewHomes.com.
The new homes website report that prices for new builds have risen for the second month in a row. The South East accounted for 36% of all new homes on the market last month, buoyed by a resurgence in apartments and a continuing demand for larger family homes.
David Bexon, managing director of SmartNewHomes.com, says: “In recent months it has become clear that demand is going through a period of correction. Whereas apartments have been at the forefront of new development for a number of years, detached homes are now performing well, accounting for around quarter of all new homes and with prices up 2.5% in April.”
Bexon adds: “Apartments still remain a popular home choice in some regions, as indicated by increased demand and strong prices in the South East. However, current issues of oversupply in some northern locations have led to a dip in prices in these areas over the short term. I expect to see a recovery here, and across the board, as homebuyer confidence continues to increase.”
6. drewster said...
Love the comments in the Times:
"Hang in there buddy. London is one of those cities where the population is always growing."
After WWII, the population of London declined as people moved out of the over-crowded inner city and into the New Towns. The population didn't start growing again until the mid-1980s. If the UK economy tanks and all the Poles head back home, things will change.
"London exists in a bubble to the country's wider experience."
Yes, the London property market is an even bigger bubble than in other parts of the country!
"Clearly he isn't going to get the value he paid yet, best to hang on to it a bit longer."
Hang on a bit longer for the value to fall even further? Great idea!
7. paul said...
I understood that there is a really cutthroat market in places like Streatham and Hackney - people are just dying to live in places like that.
8. hpwatcher said...
Silly s*d doesn't realise that house prices may have dropped by a hell of a lot more by next spring!
What price a dingy studio flat in Streatham? Not much!
9. Landedgentry said...
Streatham, like Hackney is a cutthroat market - people are just dying to live there so don't worry
LMFAO, yes they are dying literally. Who'd want to live in violent dumps like that now that house prices are falling? I know I'm south london born and bred.
10. Peter Anton said...
Studio flat for £149K? WHAT?
He will be lucky to get half that next year.
11. jonb said...
Yes, prices will be lower by next spring, but it isn't as simple as saying that he should sell now rather than next spring.
He is buying a place as well, and that place will also be cheaper. That means less, or probably no stamp duty payable.
Also, once a sense of reality returns to the market, it may well be easier to set up a chain that these lower prices than it is at the moment.
On the minus side, studio flats may well fall by more than one bed flats fall by, and if he has a high mortgage, then he will be buying the new place with a higher LTV, and may not get such a good deal.
12. markj69 str05 said...
@jonb - I agree with all your comments. If he waits a yr he may loose another 15%. However, he may be able to buy the place he wants for 15% less. In cash terms he may be better off. It's a gamble, a very high value gamble.
No-one can give advice with absolute certainty. Advice can only be given based on experience and speculation on the future market. Personally, I beleive (As many do), that prices will continue to fall for a few years yet. Therefore, IMO, sell now and acheive the best return possible. Rent for 1-2 yrs and bide your time. The place you want might just be more affordable than you think.
13. titaniccaptain said...
Hey ive got a house for sale 3 bed 325 grand backs onto brecon beacons perfect holiday home with some of the finest views in wales 400 years old with real fires and large garden never have to lock front door..........then again you could buy a 1 bed flat in center of london for the same with views of a country collapsing........any offers???? didnt think so
14. uncle tom said...
These case studies always make interesting reading, as they give a good take on current sentiment, especially when there are some HYS comments following.
It still looks as though Londoners regard the HPC as something they're exempted from - someone else's problem - and that any difficulties in the capital are no more than temporary annoyances.
Where I live we have a mixture of London commuters and those who work locally - the commuters still seem convinced that this a temporary problem, and that things will return to normal before long, while the local workers are debating how bad the downturn will be.
Twenty seven years ago I was a commuter, before electing to start my own business locally. Only then did I realise how blinkered you become, working in the capital.
Some things don't change...!
15. Youwanthowmuch said...
I think the house price issue is here in a nutshell......£150,000 for a STUDIO flat in STREATHAM. You are having a laugh if you think that is fair value. Maybe £70,000 or £75,000, but £150,000...............