Jump to content
House Price Crash Forum

First Time Buyers Account Of Current Goings On


Recommended Posts

another month and not a great deal.. a few EAs calling just to check I'm still looking, i repeat the same requirements and get the standard reply of 'thats fairly restrictive, I'm sure our brokers can find you a bigger mortgage, houses are selling fast etc etc' fair enough but i cant be bothered any more. i look on rightmove and the decent properties are; too expensive and still for sale, crap and in a bad area and not sold, or very nice in a nice area and go to offers within a month or so and eventually sold. there is money out there buying houses, but there just isn't enough supply of good stock, hence price rises IMO.

another more interesting note we had another family meet up and i was rather surprised to find out 2 of my cousins had bought places (signed and sealed). given that last time we spoke (in April) they had a vague interest in buying but hardly anything serious. they've both bought 2 bed places in south London, both with healthy assistance from the bank of mum and dad... the best bit being a quote from said mum of "well she had to get a 2 bed so she could let the other room out, without that she wouldn't be able to afford the mortgage" ... i actually choked on the food i was eating at the time.. what a brilliant position to be in, only being able to afford the house if your in work and have a lodger, sounds like a faultless plan to me, what could go wrong with that?

this ties in with my work colleague who also completed on a 2 bed flat in the last month or so. he went from not showing much interest to putting in an offer that was accepted in about a month. 1 month to decide how to spend the most amount of money you ever will in your life... bank of mum and dad for deposit, and living with a family member to afford the payments. he's actually moved in recently, and i managed to get a few details altho not much. his mortgage is 39% of his take home pay, fine as long as him and his brother stay in work. but a bit close for comfort if something should happen.

the other thing that was often said at the family gathering was 'this recession isn't really effecting anybody' i added that we have yet to pay for it, come the vat increase, come the election and the tax increase and everyone will see. there is still so much finger in the ears la la la I'm not listening going on. people that should know better having worked through previous recessions just seem happy to not even think about what might happen. the credit crunch has been and gone and its game on as usual <_<

IMO i feel this bounce is being funded by the boomer generation giving their kids the funds to buy. and foreigners using the favourable exchange to see big discounts (the missus has lots of Italian friends who have all commented how cheap it is now compared to how it used to be).. i wouldn't be surprised if we saw this rally in housing continue for a lot longer than many were thinking (myself included) in many ways i think its quite necessary, the more funding goes in now the bigger cushion the banks have when it slides again. this country is so broke its not going to be fixed any time soon.

Link to post
Share on other sites
  • Replies 90
  • Created
  • Last Reply

Top Posters In This Topic

I was chatting with an EA from Savills over dinner last night. He was actually a really nice guy.

He pretty much confirmed all the points that Dandan makes. It is parents buying for kids (as they feel there is nothing better to do with their cash) and foreigners – who currently view London property as a bargain as it has dropped 50% for them in real terms (20% asking price drop and 30% drop due to the pound devaluing against the euro)

Savills themselves did not expect this upturn and are deeply skeptical about how long it will last. They are obviously making hay while the sun shines but basically have no idea about what will happen going forwards.

He did share one bit of EA humour. Apparently, when selling houses in Streatham to foreigners it is much easier if one refers to the area as Saint Reatham. Made me chuckle.

Link to post
Share on other sites
  • 1 month later...

I shall be returning the favour of my story when I start my serious search for a property in the new year. Thank you.

£35k salary + £35k deposit (+£12k wage from girlfriend - not sure if that's gonna be a help officially).

Do not plan on buying unless price it is substantially down from the peak we all saw. Most likely looking in Manchester - apartments have already crashed badly.

I have a friend in an almost indentical situation and with same mentality.

I'm very worried about QE and other policies ruining my deposit which I guess is how they want me to feel.

Link to post
Share on other sites

I got into (and lost) a bidding war in belfast this week. I'm a ftb with a 35k deposit. The house was a detached 3 bed in a nice area. An elderly couple had lived in it for many years and it needed A LOT of work- windows/kitchen/bathroom/insulation/heating etc. Asking price was 170K. I offered 140K about 2 weeks ago. It was refused with no counter offer.

Then, from friday to monday:

Some guy "155"

Me "160"

Some guy "162"

Me "163"

Some guy "165"

Me "167"

Some guy "170"

Me "172.5"

Some guy "175"

Me "Fold"

I was surprised that things played out in the way they did. It seems that if 2 people want something, the price can shoot up quite quickly. We both might have thought that 160k was a fair price. If I had ducked out sooner he might have saved 10k. I'm new to this and the whole thing is a bit weird.

Link to post
Share on other sites

I got into (and lost) a bidding war in belfast this week. I'm a ftb with a 35k deposit. The house was a detached 3 bed in a nice area. An elderly couple had lived in it for many years and it needed A LOT of work- windows/kitchen/bathroom/insulation/heating etc. Asking price was 170K. I offered 140K about 2 weeks ago. It was refused with no counter offer.

Then, from friday to monday:

Some guy "155"

Me "160"

Some guy "162"

Me "163"

Some guy "165"

Me "167"

Some guy "170"

Me "172.5"

Some guy "175"

Me "Fold"

I was surprised that things played out in the way they did. It seems that if 2 people want something, the price can shoot up quite quickly. We both might have thought that 160k was a fair price. If I had ducked out sooner he might have saved 10k. I'm new to this and the whole thing is a bit weird.

It's possible that the EA was taking bids "Off the Wall". ie. inventing "some guy", in order to get you to raise your offer.

It works like this: You made the opening offer and it was refused. They waited for you to raise your offer, but you didn't. So they used "some guy" to entice you into a bidding war. You lost the bidding war, but the EA now knows how much you are willing to pay and can afford. It's all highly illegal, but very difficult to police.

Anyway, their next move is to tell you "some guy" is unable to proceed, and to reopen negotiotion with you armed with the knowledge of your position.

If this happens you will have 3 choices:

1. Say you will pay the asking price of £170K and do not budge. You've been tricked into paying more, but it's established you can afford it and are satisfied with the price. The EA and vendor will be satisfied with this. If you hold your ground the EA will get bored and you'll get the property, it's not worth their effort squeezing that last couple of grand out of you.

2. The simplest and best option is to put it all down to experience and walk away. There will be plenty of other good houses to buy and you will be better placed to negotiate armed with your knowledge of EA tactics.

3. This is a dangerous option but could be fun and rewarding. EAs are highly skilled at manipulating you to pay as much as possible. You need to get some practice dealing with these people, so you can use the situation to polish up your negotiating skills. Now that "some guy" has pulled out, tell the EA that your original offer of £140K is back on the table. Spend as long as you can, weeks, months even, keeping as close to your original £140K. Set a price in your head slightly above your opening offer, say £150K and do not ever cross this line. If you stick to your new limit you might just beat them at their own game and get the property at that price. At least you will have gained some valuable experience. The danger is though they will chip away at you until you give in or they get bored, and you could end up paying through the nose again.

Good luck!

Link to post
Share on other sites
  • 3 months later...

Almost forgot about this thread :D

Well not a lot has happened in the passing months, other than pretty much every family gathering has involved me telling people i’m not interested in buying until I can buy a place without taking a massive risk with my finances and that being set by a reasonable multiple of my income. I feel quite fortunate that most of my family have a basic grasp of maths and can see it really doesn’t make any sense for me to over stretch and that the current market is not as it seems.

There is little or no choice of houses out there, there hasn’t been for a long while now. but places are going under offer quickly (3-4 weeks for a tidy place) and haven’t come back on yet... however I have noticed a few of my property bee listings being revised after they've been changed to sstc, which seems a little odd.

We have also renewed the rent on our flat, which will be the same as last year, I did try for a reduction but as a nearby flat let for the same as ours with one less bedroom I didn’t have much hope. So that’s another year we can sit and wait quite happily :)

Interesting times ahead, post election I think we'll see things pan out, even if the government stays the same. it all feels so fragile, but we shall have to wait and see.

Edited by dandandan
Link to post
Share on other sites

Almost forgot about this thread :D

Well not a lot has happened in the passing months, other than pretty much every family gathering has involved me telling people i’m not interested in buying until I can buy a place without taking a massive risk with my finances and that being set by a reasonable multiple of my income. I feel quite fortunate that most of my family have a basic grasp of maths and can see it really doesn’t make any sense for me to over stretch and that the current market is not as it seems.

There is little or no choice of houses out there, there hasn’t been for a long while now. but places are going under offer quickly (3-4 weeks for a tidy place) and haven’t come back on yet... however I have noticed a few of my property bee listings being revised after they've been changed to sstc, which seems a little odd.

We have also renewed the rent on our flat, which will be the same as last year, I did try for a reduction but as a nearby flat let for the same as ours with one less bedroom I didn’t have much hope. So that’s another year we can sit and wait quite happily :)

Interesting times ahead, post election I think we'll see things pan out, even if the government stays the same. it all feels so fragile, but we shall have to wait and see.

Hi dandandan, always good to hear from you again - your posts compel me to give my tuppence worth.

I might as well just write +1. Not alot on. Seeing a few reductions in N1 area which is encouraging, but I see no harm in waiting. As an anecdotals. My friend who is this "house prices will only go up" kinda guy has bought a flat near Old St, N1 and paid IMO well over the odds. He mortgaged himself up to the eyeballs and his interest payments are 6% and he says he can now no longer go on holidays, come out with me to nice restaurants, etc.

2 weeks after moving in some unsavoury neighbours move in next door. He is really down poor guy, as he knows he is stuck there for a long time.

I take no pleasure in his predicament but take a lot of pleasure in mine. If house prices go down to more reasonable levels, great I will buy. If they go up and I miss this mythical boat I hear of, I won't buy and have a wonderful life. I am completely debt free, have six figures 'deposit' saved and I have just booked three holidays this year - a mini trip to Hong Kong, a 4 week tour of the USA and a week in the Greek Islands. And apparently I'm the mug for not buying.....

Link to post
Share on other sites

dandandan,

The boringness* of your last update nicely reflects the market at present. Nothing is happening, the market is not going anywhere (up or down), no one can buy, no one wants to sell.

Hopefully there will be more interesting news to come on this thread in the (probably slightly distant) future.

*appreciate the update though ;)

Link to post
Share on other sites
  • 2 weeks later...

dandandan,

The boringness* of your last update nicely reflects the market at present. Nothing is happening, the market is not going anywhere (up or down), no one can buy, no one wants to sell.

Hopefully there will be more interesting news to come on this thread in the (probably slightly distant) future.

*appreciate the update though ;)

Not my experience in the South West. We've been bidding on a house we want to buy since last Monday. There are so far 5 separate bidders, all of whom the agents say are "proceedable" with their offers. We are 100% cash; not sure what "proceedable" means nowadays. Pretty fed up because I think it means that we won't get it - I'm not prepared to bid way over price in a price war. I've come across two separate houses in the last month down these parts (both of which we went to view) which shortly afterwards went under full cash offers from buyers (price range from 600k up to 800k).

Edited by rex
Link to post
Share on other sites

Not my experience in the South West. We've been bidding on a house we want to buy since last Monday. There are so far 5 separate bidders, all of whom the agents say are "proceedable" with their offers. We are 100% cash; not sure what "proceedable" means nowadays. Pretty fed up because I think it means that we won't get it - I'm not prepared to bid way over price in a price war. I've come across two separate houses in the last month down these parts (both of which we went to view) which shortly afterwards went under full cash offers from buyers (price range from 600k up to 800k).

Which part of the South West Rex?

(BTW - Great story Dandan, I liked your attention to detail AND the fact that you have a dispute resolution process working on in your relationship :) Augurs well for the future! )

Link to post
Share on other sites

Which part of the South West Rex?

East Devon / West Dorset. All hell breaking loose from Honiton across to Charmouth, certainly at price levels of between 600 - 995. We've stepped out of our bidding war now and left two others to it (apparently both cash buyers).

To illustrate my point, see the following prime location search result -

My link

Edited by rex
Link to post
Share on other sites

East Devon / West Dorset. All hell breaking loose from Honiton across to Charmouth, certainly at price levels of between 600 - 995. We've stepped out of our bidding war now and left two others to it (apparently both cash buyers).

To illustrate my point, see the following prime location search result -

My link

Sorry for not getting straight back to you. I had a former EA in my office this morning (now runs a letting agency). She saw a fantastic place in Auction - 3 Bed, Doublefronted, garage, loads of land for £165k Teignmouth side of Exeter and it has made of her think of selling and renting for a while with a view to buying in about six months.

It seems to me that the activity is very localised. In Totnes prices are going through the roof (10% MoM for March- BBC/land registry), where I used to live (edge of Dartmoor) about flat (0% MoM for March) and where I am now Truro, down 2.5%. House just up the road from me was dropped £2k and only went on the market 38 days ago.

My cousin in Ealing has seen prices in his area drop by 25% MoM! (It might be just detached - I need to check stats again).

Just looked at your link - exclusive end! :) Bracket where money is only a concept to people and they lose track of the zeros! I remember browsing around Seaton. Just parking in the car park told you everything you needed to know - stacks of Mercs/Audis jammed in with computer precision.

Edited by Reluctant Heretic
Link to post
Share on other sites

Sorry for not getting straight back to you. I had a former EA in my office this morning (now runs a letting agency). She saw a fantastic place in Auction - 3 Bed, Doublefronted, garage, loads of land for £165k Teignmouth side of Exeter and it has made of her think of selling and renting for a while with a view to buying in about six months.

It seems to me that the activity is very localised. In Totnes prices are going through the roof (10% MoM for March- BBC/land registry), where I used to live (edge of Dartmoor) about flat (0% MoM for March) and where I am now Truro, down 2.5%. House just up the road from me was dropped £2k and only went on the market 38 days ago.

My cousin in Ealing has seen prices in his area drop by 25% MoM! (It might be just detached - I need to check stats again).

Just looked at your link - exclusive end! :) Bracket where money is only a concept to people and they lose track of the zeros! I remember browsing around Seaton. Just parking in the car park told you everything you needed to know - stacks of Mercs/Audis jammed in with computer precision.

I don't think you can rely on LR data to give you an idea of the current situation due to low sample sizes and the non standard type of housing in this part of the country. Much better to look at the bigger picture and observe your own local market.

I live in a nice part of the South Hams and locally has been effected over the last 3 years but there were not huge drops in 08 and there are not huge rises in 09/10. The mentality is people will always want to live here so largely the market has stagnated during the first phase of the crash. This side of Christmas has seen a much larger number of properties coming onto the market, today for example I have had as many properties come onto the market for my search than would have come on for an entire Month in 09. Also lots of price drops have been happening over the last month.

Some encouraging signs from where I am although I do read plenty of anecdotes around the country where it is hard to dispute the propaganda has managed to whip buyers into a frenzy again, I just hope it gets nipped in the bud before it spreads.

Link to post
Share on other sites
  • 5 weeks later...

Some encouraging signs from where I am although I do read plenty of anecdotes around the country where it is hard to dispute the propaganda has managed to whip buyers into a frenzy again, I just hope it gets nipped in the bud before it spreads.

Oooooh I hope it spreads into a crazed speculative frenzy - meaning (1) irrational landlords continue to offer me nice house for peanuts in rental (2) the blow out bottom, when it finally comes, will be a bargain opportunity of historical proportions and a sight to behold

it won;t get that bad but you never know

Link to post
Share on other sites
  • 3 years later...

Rather than start a new thread I thought I'd just chime in on this one.. Should offer some comparison opportunity as to the then and now.

I've been away from the UK for the last few years working abroad. I recently finished my contract and moved back having saved up an amount of money I was hoping would allow me to buy outright with. Sadly, prices haven't crashed to that level and my area (SW) has remained stubbornly sticky. Very luckily, My father has offered a small sum to top up what I have on interest free loan so I can buy outright rather than go down the mortgage route. I'm hoping this will strengthen my position as I'm proceedable with no chain.

I would like to buy now rather than rent for a variety of reasons which I'm happy enough to discuss on the main forum but I'm not sure they belong here so I shall leave them out for now.

I've followed the market in my area all through the time when I was away so I'm fairly clued up on whats going on which reduces the amount of swotting I have to do now, so the general plan is to view anything I like the initial look of and then dig deeper into previous prices against asking price etc if I decide I like it enough to take it to the next level and actually make an offer.

I'm looking for a place I can spend the foreseeable future in, so I don't have to worry about future moves in the market, but that still doesn't mean I'm going to fall in love with somewhere and pay vastly over the odds for something just because a deluded owner believes they're entitled to a profit or has to get one because they're overstretched.

I spent the last couple of weeks registering with various estate agents (my town has around 10 which is a ridiculous amount) if they had houses I wanted to view. I will continue to do this rather than give my details to all and sundry as I'm perfectly capable of monitoring Rightmove and I don't want to be swamped by Agents calls.

The registration was better than I thought it would be. Out of the agents I spoke to only one was overly bullish, the rest seemed fairly reasonable, even when I asked about making offers under asking price they went as far as to point out the buyers they thought would be amenable to approaches and who wouldn't. Only natural really as anything else would obviously be wasting everyones time but it still surprised me given the horror stories I'd previously read on here.

So far I've only seen the one house. 4 bed semi that used to be owned by a old fella that passed away. Being sold by his sister so for a quick sale there may have been a possibility of movement on price. I really liked the look of the outside. It had a drive for parking and was an old stone built cottage which ticks a lot of boxes. Sadly, the inside was a huge disappointment. There wasn't a single room that didn't need some kind of work doing and the kitchen and bathroom would need replacing completely. I estimated 20-30k worth of work that needed doing and mentioned as much to the agent. She agreed it was a 'project' house and didn't really try to push me any further. They are due to give me a follow up call this week though so we shall see. I wouldn't be interested now unless there was serious movement on price and will tell them as much and see what they say.

I have a further 3 or 4 viewings booked in for this week so shall update again later on when thats been concluded. Feel free to comment and question I shall answer if there are any!

Link to post
Share on other sites

I have a further 3 or 4 viewings booked in for this week so shall update again later on when thats been concluded.

And here it is. Looked at a further 4 houses so far this week.

One 3 bed Georgian terrace that looked ok, had a beautiful kitchen, but apparently there isn't room for manoeuvre on the price as they 'need this price to buy the house they want'. House has recently come down by 30k which is a direct result of the house they want being reduced by that much but as this still leaves it priced at 170k when the last sold price was for 156k in 2006 so I will continue to monitor but otherwise ignore it.

One 2 bed bungalow. Huge garden so room to move out as the inside was fairly small, but overpriced for what it was.

One 3 bed terrace that was nice on the inside but just in an awful location. Right on the road, sandwiched between two social housing estates and opposite a secondary school with no parking. No thanks.

One 2 double bedroom end terrace. Built on the corner so had a bit more space than normal. Small garden but allocated parking and opposite a common green. On at 150k and I liked this one enough to offer 135k (10% off as the kitchen and bathroom needed updating and he has already had one chain fall through). This was flatly refused and he had already refused two previous offers of about the same price. Moved up to 140k which was 'in the right area' but also refused. Declined to move up any more as I feel that price is fair in this climate.

There is only one more property in my price range that I'm interested in viewing so I will try to view that next week. If that doesn't work out I'm left with the choices of holding on or extending my search area.

Ninja edit.

Edited by Vagabond
Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.