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Charlie Don't Surf

Who Buys The 4/5 Bed £500K+ Houses In Cornwall

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I see a fair few decent sized houses, i.e. 4-6 bedrooms either in 'nice' parts of towns or in the countryside at around the £5-650K mark.

How buys these? Given that there are few jobs in Cornwall and even fewer well paid jobs I'm at a loss. I.e. these are family homes, you wouldn't want an extra 3 bedrooms to rattle around in and heat if your kids have left home. But, the only people with that kind of money/equity are just this group.

Obviously there is the DFL (down from London) contingent - but they'd need to find well paid work, which they won't.

Holiday rental homes? I don't think so. The return is better for smaller places, plus many of the type of places I'm talking about aren't in prime holiday areas.

I guess part of the answer to my question is that these places aren't selling.

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I see a fair few decent sized houses, i.e. 4-6 bedrooms either in 'nice' parts of towns or in the countryside at around the £5-650K mark.

How buys these? Given that there are few jobs in Cornwall and even fewer well paid jobs I'm at a loss. I.e. these are family homes, you wouldn't want an extra 3 bedrooms to rattle around in and heat if your kids have left home. But, the only people with that kind of money/equity are just this group.

Obviously there is the DFL (down from London) contingent - but they'd need to find well paid work, which they won't.

Holiday rental homes? I don't think so. The return is better for smaller places, plus many of the type of places I'm talking about aren't in prime holiday areas.

I guess part of the answer to my question is that these places aren't selling.

Good question.. (we are in Devon).. Noticed a few changes in last month on market. ..more appearing + some slicing 50k off etc.. (nothing is going up). Also seems a disproportionate 'gap' from 350k properties up to 500k (ie 150k is a lot of money, even more so today) . DFL won't need work in local vicinity , or work from office/home.. Anecdotal evidence that in some Devon villages these are holiday homes (not even rented out - just used by family / friends etc ) .. ie used for the school hols a bit like we used caravan for our breaks. Maybe someone can enlighten more. Don't have any real facts of wealth/age profile of owners. House may be mortgaged or bought out right. Maybe this market slice (£450k - 750k) may see 15 - 20% drops in the next 6 months.. We are not DFL and not into this price bracket, however amusingly when I've put a couple of offers on property in the last 6 months (at least 20% below asking and I didn't budge)

both agents quipped "Are you from London" ?

blimey gov I thought !

Edited by Bonhomie

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Here is a prime example of what I'm talking about. Posh are in a 1980s kind of way, but pretty arbitrary really:

http://www.rightmove.co.uk/property-for-sale/property-31083794.html

The only people who are impressed by this address are the over 50s - i.e. Sunday car washing and curtain twitching in the week!

Here's what you get for £75k less:

http://www.rightmove.co.uk/property-for-sale/property-27419176.html

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In a moderate outer London suburb, 1930s semis change hands for 450k. 4/5 bed Victorian terraces are 600k - 800k. Anthing really nice is a million plus.

London is a big place. There are lots of people who own property like this. Even in the commuter towns - places like Guildford and Tunbridge Wells - there are loads of properties that when they go on the market do so at 850k upwards.

It only takes the odd one of these to sell up, move down to Cornwall and treat themselves to something nice in Padstow for 450k and, voila, Cornwall has a functioning housing market and person from London has 400k in the pension pot.

I have spent holidays in the West Country for years. 99% of the people you meet down there who own nice properties are from London / South East. Even the holiday complexes are owned by outsiders these days.

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1. Its going to be rich types in London who have a 3m house in the city and want a place in the countryside for the summer months.

2. Public Sector Upper Management, Older people who get marred and sell two properties to buy one, or get money from a death in familiy. People who retire by sell a business (dentists etc etc)

Edited by AteMoose

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http://www.rightmove...y-29463479.html

this link shows a lovely looking 5 bedder in samew area (going off postcodes)

£1700 pcm

giving valuation for effective yiled in the 200k range

yep, the asking prices seem way more than 100% overvalued

however, there ARE some in the 300k range, so maybe the extra 200k is for things like a mahoosive garden, privacy, and spectacular views

edit: i think 'yiled' must be west-country speak for 'yield'...

Edited by Si1

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if more typical (not got privacy and views) 5 bed houses go for 300k, then they seem abiout 50% overpriced, which is the going rate across large parts of the country right now, needs a 30% correction

then there appears to be a 300k or additional 100% premium for a view and privacy, i am guessing, paid by status-symbol seekers with lots of wonga, whether this will persist is anybody's guess

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Me.

I plan on buying a 4 bed house in Croyde Bay, North Devon in the (Hopefully not to distant) future. I will use as a second home for a few years and when I am good and ready I will sell up/cash in the company and home in surrey and retire my ass with a sea view.

It`s nice to have a dream.

Edit to add.. Only if I thought I was getting value for money of course.

Edited by Bosh

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Me.

I plan on buying a 4 bed house in Croyde Bay, North Devon in the (Hopefully not to distant) future. I will use as a second home for a few years and when I am good and ready I will sell up/cash in the company and home in surrey and retire my ass with a sea view.

It`s nice to have a dream.

Edit to add.. Only if I thought I was getting value for money of course.

but would you pay 200k for a good 5 bed house or double it (and more) for one with privacy, fantastic views and a huge garden, that otherwise offers the same function?

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1. Its going to be rich types in London who have a 3m house in the city and want a place in the countryside for the summer months.

2. Public Sector Upper Management, Older people who get marred and sell two properties to buy one, or get money from a death in familiy. People who retire by sell a business (dentists etc etc)

But why would they need 5 bedrooms?

The places I'm talking about are family homes - but often without views, not attractive enough and too arbitrarily located to attract a premium

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In a moderate outer London suburb, 1930s semis change hands for 450k. 4/5 bed Victorian terraces are 600k - 800k. Anthing really nice is a million plus.

London is a big place. There are lots of people who own property like this. Even in the commuter towns - places like Guildford and Tunbridge Wells - there are loads of properties that when they go on the market do so at 850k upwards.

It only takes the odd one of these to sell up, move down to Cornwall and treat themselves to something nice in Padstow for 450k and, voila, Cornwall has a functioning housing market and person from London has 400k in the pension pot.

I have spent holidays in the West Country for years. 99% of the people you meet down there who own nice properties are from London / South East. Even the holiday complexes are owned by outsiders these days.

Spot on. The only way forward is to build affordable house for the locals and then these "special" places aint so special anymore are they? The shock, the horror-"Maude we have some local peasants spoiling our view, the rotters".

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But why would they need 5 bedrooms?

to have the grandchildren round for christmas - big lovely house in the country, roaring log fire, christmas tree

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but would you pay 200k for a good 5 bed house or double it (and more) for one with privacy, fantastic views and a huge garden, that otherwise offers the same function?

That would depend on what budget I had Si1, I have seen (From the outside only) some wonderful properties in our target area for about 500k. If I was loaded I would probably have bought one by now.

I do believe that a correction in house prices is right for society but I would never put my life on hold for too long waiting for something that may or may not happen. (We just don`t live long enough)

If it`s right for you and you can afford it irrespective of what happens to the market/economy then why not.

Please don`t get me wrong, I am not anywhere near this position as yet but I have dreams and aspirations and I was attempting to answer the `Who would buy 500k houses in Cornwall/Devon.

I have spent a good part of my life visiting the area and spent a small fortune renting holiday homes, chalets, caravans etc. I absolutely love the area and wish to see out my days there. So a view would be of value to me.

If the 200k property was all I could afford, then so be it.

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That would depend on what budget I had Si1, I have seen (From the outside only) some wonderful properties in our target area for about 500k. If I was loaded I would probably have bought one by now.

I do believe that a correction in house prices is right for society but I would never put my life on hold for too long waiting for something that may or may not happen. (We just don`t live long enough)

If it`s right for you and you can afford it irrespective of what happens to the market/economy then why not.

Please don`t get me wrong, I am not anywhere near this position as yet but I have dreams and aspirations and I was attempting to answer the `Who would buy 500k houses in Cornwall/Devon.

I have spent a good part of my life visiting the area and spent a small fortune renting holiday homes, chalets, caravans etc. I absolutely love the area and wish to see out my days there. So a view would be of value to me.

If the 200k property was all I could afford, then so be it.

fair enough

if I may clarify my sentriment - I wanted to know whether likely purchasers consider a 100% mark-up for the extra (extremely nice) bells and whistles to be reasonable, and you have, broadly answered my question, people will just pay what they have to to get what they want in these circumstances

a relation of mine tries to justify these prices with yields - saying you can rent it out, but doesn't understand that the maths works the opposite

your take is very different however

Edited by Si1

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fair enough

if I may clarify my sentriment - I wanted to know whether likely purchasers consider a 100% mark-up for the extra (extremely nice) bells and whistles to be reasonable, and you have, broadly answered my question, people will just pay what they have to to get what they want in these circumstances

a relation of mine tries to justify these prices with yields - saying you can rent it out, but doesn't understand that the maths works the opposite

your take is very different however

Yep, I don`t live my life overpaying for shit. I am quite prudent and if you have followed my boring stories on HPC you will know that I have played the ongoing game fairly well. I sold at the peak, STR`d and bought back in again.

I`ll give you another scenario. If I was ready to call it a day and cashed in everything, I would be able to afford to buy (Cash) my final house today in the place I want to spend the rest of my life in relative peace.

I would simply use the money from the sale of my house to buy in that area.

Some people want second homes for status or investments but for me it would be because I will either live or eventually live there. Nice place to end up.

Long way off for me but many folks in the south east can sell, lets say, a 3/4 bed semi in a desirable area and easily get 500k and if no mortgage could choose to retire in Cornwall or Devon and pay extra for the view and garden for growing veg.

I must admit, to pay 100% more. It would have to have a fecking fantastic view and 200% more garden.

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just seen a 1 year old 'escape to the country'

strangely, late 30-somethings with 700k to splash on a 5 bed house in a village in pembrokeshire

inherited money too? (didn't sound very bright, mildly dumb blonde female demanded a big family house)

(farmers daughter - so yes, possibly)

Edited by Si1

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If I were to sell up and move to the country/south west, location, views, and land, outskirts of active village with shops and reasonable transport links would be on my wish list not something with 4 or 5 bedrooms...something cosy, warm, economical to run and comfortable... less is more apart from the fact I hate cleaning. ;)

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If I were to sell up and move to the country/south west, location, views, and land, outskirts of active village with shops and reasonable transport links would be on my wish list not something with 4 or 5 bedrooms...something cosy, warm, economical to run and comfortable... less is more apart from the fact I hate cleaning. ;)

Nothing too big, 4 bed would be nice, one as a study. Room for the kids and future grandkids to stay, small, easily maintained garden. Near a beach, pub and village.

Sea view a bonus. :D

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Nothing too big, 4 bed would be nice, one as a study. Room for the kids and future grandkids to stay, small, easily maintained garden. Near a beach, pub and village.

Sea view a bonus. :D

Not particularly drawn to beaches, prefer the hills...so a view from above overlooking the countryside and maybe a view of the sea at a distance would be nice. ;)

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I see a fair few decent sized houses, i.e. 4-6 bedrooms either in 'nice' parts of towns or in the countryside at around the £5-650K mark.

How buys these? ...

Obviously there is the DFL (down from London) contingent - but they'd need to find well paid work, which they won't.

(first post, be gentle!)

Incomers. The entire Cornish economy depends on them. Not Euros, not tourists. Incomers. Two categories:- silver foxes retiring in their early 60s, and 40 somethings who move down and plan to telecommute or work for the government. Until 2009 both were selling up in the home counties and buying exactly in that price range. As a previous poster said, they need 4-5 bedrooms for grandkids/visitors.

The economy down here entirely depended on them. First they paid £500k for the house. Often that went to a local:- a "property developer" or via probate. And the estate agent. The seller then went and bought a Mini Cooper/Range Rover, powerboat, new kitchen etc. Money poured into the economy. Then the buyer ripped the place to bits, typically paying a builder £50-100k plus high end kitchens, baths etc. More money to the builders who bought Mini Coopers/Range Rovers, etc etc. Finally the Incomers themselves moved down and started to spend, spend, spend, buying their own Mini Cooper/Range Rover, you get the idea.

My local jobbing builder in 2009 and 2010 bought:- a (largish) powerboat; a brand new Peugeot crew van; a 6 week holiday for the whole family in NZ, a kit car. Local jobbing architectural technician, nothing special, has a personal plate Audi Q7, kids in private school. Even the local window cleaner has a brand new VW van with personal numberplate. Builder's modus operandi was to work for incomers who were still living up country and were very excited to move down. He would quote £40k to renovate their new house, knock some walls down and "find out" that the whole place needed flattening, turning it into a £100k job. He did this at least twice to my knowledge.

But they've stopped coming. For whatever reason, no more incomers. The economy is crippled. Builders are having to slum it doing £20k extensions, or go bust. Estate agents are laying people off left, right and centre because nothing's selling. Rumour has it a local agent is even taking their kids out of private school (the horror!). There is some "cannibalisation" where out of work builders are buying houses themselves and doing them up to sell in the vain hope the market will pick up.

The guys who came down here hoping to "work from home" are also stuffed. It works for a year or two, but then their boss Up Country gets a bit fed up with them never being in the office. And it's impossible to move jobs:- given equal candidates the boss will always choose the guy who comes into the office every day over the guy who is 300 miles away. A few people commute out of Newquay airport but it's horribly expensive, you probably have to work 2 days a week just to pay your travel and living.

The guys who came down to work for the government (Council, NHS, quangos) are equally stuffed. Dead end jobs mostly, NHS centralising, usually in Devon. All the departments are relatively small so it's impossible to get promotion without moving back Up Country. Big time Council job losses on the cards.

Incomers starting to think about moving back. By and large they are flat broke. Massive mortgages, income declining. Still a few retirees moving down here, but they are very thin on the ground. Lots of houses SSTC but in stalled chains for months or years. Prices starting to come down in big chunks.

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(first post, be gentle!)

Incomers starting to think about moving back. By and large they are flat broke. Massive mortgages, income declining. Still a few retirees moving down here, but they are very thin on the ground. Lots of houses SSTC but in stalled chains for months or years. Prices starting to come down in big chunks.

...is that not a good thing, is there not plenty of work working with the elderly or working from home self employed?

Good and informative post, very plausible. ;)

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...is that not a good thing, is there not plenty of work working with the elderly?

IMHO it's a very good thing, and yes I would guess there's some opportunity to work for the elderly. But that strikes me as minimum wage work, not gonna support a £500k mortgage

or working from home self employed?

Again in principle yes. But doing what, paid by whom? And earning enough to maintain a £500k mortgage? The basic problem is, all the money is Up Country. Cornwall has little native economy apart from tourism, a bit of boatbuilding and fishing, and (until recently), Objective One Euros. You can be a hot web designer, patent attorney, solicitor etc, but today your best (only?) paying customers will be U.C. And given two equally qualified, equal priced choices, a client will always choose the one local to them. So the guy in Truro has to undercut his competitor in Reading, or travel during the week. Either way it's expensive. And even if you have some unique offering, and can trouser, say £70k a year, that will still only give you a £250k mortgage, not enough to buy the house you want in Cornwall at today's prices.

It's all over (IMHO)

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but would you pay 200k for a good 5 bed house or double it (and more) for one with privacy, fantastic views and a huge garden, that otherwise offers the same function?

What kind of a 5-bed house would you get for 200k?

Yes, I'd pay more for a place with peace and quiet, and a bit of privacy/seclusion.

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IMHO it's a very good thing, and yes I would guess there's some opportunity to work for the elderly. But that strikes me as minimum wage work, not gonna support a £500k mortgage

Again in principle yes. But doing what, paid by whom? And earning enough to maintain a £500k mortgage? The basic problem is, all the money is Up Country. Cornwall has little native economy apart from tourism, a bit of boatbuilding and fishing, and (until recently), Objective One Euros. You can be a hot web designer, patent attorney, solicitor etc, but today your best (only?) paying customers will be U.C. And given two equally qualified, equal priced choices, a client will always choose the one local to them. So the guy in Truro has to undercut his competitor in Reading, or travel during the week. Either way it's expensive. And even if you have some unique offering, and can trouser, say £70k a year, that will still only give you a £250k mortgage, not enough to buy the house you want in Cornwall at today's prices.

It's all over (IMHO)

Who needs or would want a £500k mortgage, bit extreme if you don't mind me saying....being a slave to bricks and mortar is not my idea of a stress free life living in beautiful surroundings....as for Cornwall, very nice and all that but for me a bit out in the sticks...I like peace and tranquility but not isolation. ;)

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  • 145 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%



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