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Ok So I’Ve Finally Found A House That I Like…

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I have been viewing properties on and off for the last 18 months or so, viewed a house yesterday that I actually quite like. Without giving too much away about the exact house it’s a 4 bed detached period place, good plot, located on a reasonably busy but ‘prime’ road in a nice part of Essex with excellent transport links. In this area these types of properties are few and far between and rarely come to market. Although the house is liveable I would want to gut the place, extend and renovate before moving in.

I already did my research before viewing and the house next door sold for 900k in March 2007 (sold before that for 615k in 2003) as far as I can see the house is identical apart from the one I viewed didn’t have the loft converted and I cant be sure of what the internal condition of the neighbouring house was in when it sold although it looked reasonably tidy from the outside.

The house doesn’t quite tick all the boxes, it’s a little smaller than I would have liked and there is the busy road but apart from that it’s pretty close to what I have been looking for. Obviously the problem for me is the price, they are more or less asking for 25% more then the neighbouring house sold for in 07 but I am unable to find a single index (Nationwide, Halifax or Land registry) to justify the price increase.

It’s all well and good telling me to sit back and wait for the price to fall but the last 2 period houses that came to market in this area sstc within a week…

So I have a few questions that I would like to get the forums opinion on:

1. Do I just have to accept that normal market conditions don’t apply to this type of property?

2. Can it be true that the area I am looking to purchase in really one of those special towns where the people who own property say “prices will never fall round here as its so desirable, good schools, rail links etc” actually be right?

3. Are high end properties affected later on in the downward price cycle, does it take longer for falls to happen at this end of the market? Lets face it bankers are not feeling any pain just yet.

4. Are the indexes being dragged down by the poor quality flats and distressed sales while leaving the prime houses to increase?

I have been lurking on this Forum on and off for 5 years or so and although I agree with the general consensus on here that prices should and must fall but as much as it pains me to admit it we have been calling the crash now for a long time but its not quite materialised, although it may be happening in some parts of the country it doesn’t seem to be happening here.

I have viewed around 10 properties recently and out of all of them I can’t imagine any of the vendors would ever be in a position of being a forced seller, most have owned for 10yrs+ and I expect they all have no mortgage. So please someone explain what is going to prise these people from their homes at a price at less than what they feel it is ‘worth’? The old saying “Markets remain irrational longer than you can remain solvent” is very apt at this moment.

Your opinions would be appreciated.

T

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I have been viewing properties on and off for the last 18 months or so, viewed a house yesterday that I actually quite like. Without giving too much away about the exact house it’s a 4 bed detached period place, good plot, located on a reasonably busy but ‘prime’ road in a nice part of Essex with excellent transport links. In this area these types of properties are few and far between and rarely come to market. Although the house is liveable I would want to gut the place, extend and renovate before moving in.

I already did my research before viewing and the house next door sold for 900k in March 2007 (sold before that for 615k in 2003) as far as I can see the house is identical apart from the one I viewed didn’t have the loft converted and I cant be sure of what the internal condition of the neighbouring house was in when it sold although it looked reasonably tidy from the outside.

The house doesn’t quite tick all the boxes, it’s a little smaller than I would have liked and there is the busy road but apart from that it’s pretty close to what I have been looking for. Obviously the problem for me is the price, they are more or less asking for 25% more then the neighbouring house sold for in 07 but I am unable to find a single index (Nationwide, Halifax or Land registry) to justify the price increase.

It’s all well and good telling me to sit back and wait for the price to fall but the last 2 period houses that came to market in this area sstc within a week…

So I have a few questions that I would like to get the forums opinion on:

1. Do I just have to accept that normal market conditions don’t apply to this type of property?

2. Can it be true that the area I am looking to purchase in really one of those special towns where the people who own property say “prices will never fall round here as its so desirable, good schools, rail links etc” actually be right?

3. Are high end properties affected later on in the downward price cycle, does it take longer for falls to happen at this end of the market? Lets face it bankers are not feeling any pain just yet.

4. Are the indexes being dragged down by the poor quality flats and distressed sales while leaving the prime houses to increase?

I have been lurking on this Forum on and off for 5 years or so and although I agree with the general consensus on here that prices should and must fall but as much as it pains me to admit it we have been calling the crash now for a long time but its not quite materialised, although it may be happening in some parts of the country it doesn’t seem to be happening here.

I have viewed around 10 properties recently and out of all of them I can’t imagine any of the vendors would ever be in a position of being a forced seller, most have owned for 10yrs+ and I expect they all have no mortgage. So please someone explain what is going to prise these people from their homes at a price at less than what they feel it is ‘worth’? The old saying “Markets remain irrational longer than you can remain solvent” is very apt at this moment.

Your opinions would be appreciated.

T

Go for it buy it without thinking, it will probably be worth another 25% next year...

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Yeah I have to agree, see if their accept the asking price and if they don't, make offers in 10% increments until you get it. Spruce the place up a bit and you can make a few bob in a couple of years whilst living rent free, then find another property and do the same. One idea I saw on the tellie is get a bread machine or coffee maker and play that just before the potential buyers come for a viewing, you can't lose in this game I tell you. It's like a bloke down the pub told me, money in property is like money in the bank, you never lose. I would wish you luck but with property you don't need any because it only goes one way. The government has the backs of the public sector, property owners and bankers the future of our growing nation.

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I do not think you understand the HPC rules you can only give anecdotal evidence of properties beeing worth at least 25% less than they were in 2007.

Surely though you must know the answer more than anyone replying to you.

I follow the prices of 3 bedroom exlocal properties in the posher parts of SW11 where prices are now more than the last peak, three bedroom ex locals in sW4 clapham park where less than the peak 10% ish.

Four bedroom houses with garden in SW12 where prices are similar to the peak.

If properties are advertised at way above the price they are actually selling for and they stick .

I have never bothered asking on these properties as if you wait a more realisticly priced property will come along. You mentioned two properties coming onto the market and selling quickly. You now the price that was agreed and I imagine similar properties coming onto the market will sell for a similar amount now.

You must know the comparables better than anyone

If the prices were less /more the same as 2007 you already have the answer.

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I have been viewing properties on and off for the last 18 months or so, viewed a house yesterday that I actually quite like. Without giving too much away about the exact house it’s a 4 bed detached period place, good plot, located on a reasonably busy but ‘prime’ road in a nice part of Essex with excellent transport links. In this area these types of properties are few and far between and rarely come to market. Although the house is liveable I would want to gut the place, extend and renovate before moving in.

I already did my research before viewing and the house next door sold for 900k in March 2007 (sold before that for 615k in 2003) as far as I can see the house is identical apart from the one I viewed didn’t have the loft converted and I cant be sure of what the internal condition of the neighbouring house was in when it sold although it looked reasonably tidy from the outside.

The house doesn’t quite tick all the boxes, it’s a little smaller than I would have liked and there is the busy road but apart from that it’s pretty close to what I have been looking for. Obviously the problem for me is the price, they are more or less asking for 25% more then the neighbouring house sold for in 07 but I am unable to find a single index (Nationwide, Halifax or Land registry) to justify the price increase.

It’s all well and good telling me to sit back and wait for the price to fall but the last 2 period houses that came to market in this area sstc within a week…

So I have a few questions that I would like to get the forums opinion on:

1. Do I just have to accept that normal market conditions don’t apply to this type of property?

Yep, normal market conditions don't apply to such properties:

OT1H, if the owners need to sell, in the current market they will almost certainly have to price below market prices to get it away.

OTOH, If they don't need to sell they will put it on at a hopefull 25% above market prices and wait for a stupid buyer (forever in necessary)

I think that you can work out which of these two you have here!

tim

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A very similar stuation to my own (albeit looking at a slightly lower strata of house).

We are looking in Surbiton, which is a relatively sought after part of SW London suburbia. The central (nicest) area is mainly flats, so there are literally 2 roads with the type of 3 bed semi that we are looking for. Not only has this meant that the price has bubbled up to £650k+ for the type of house that can be had for well under £500k in the rest of the town it also means that they sell much quicker than those houses.

In this area (and I guess it would be the same in Essex), it is definitely the strength of the banks that is causing this. Mega bonuses have priced people out of the higher priced houses, and this is trickling down. It is true that there is no shortage of houses in the UK overall, but there is a finite number of houses within nice areas that are a short commute of the City. The price of these sort of houses (4-5 bed detached 'exec' homes in, say, Esher or Cobham) has been pushed up so much by the high earning bankers, that the lower level ones have to look at the next level down.

It can't be underestimated just how many people that there are in the financial services industry in London earning a good six figure salary and doubling that with their bonus.

Even though the rest of the economy is on it's knees, the better houses in this type of area still seem to sell quickly. I keep thinking to myself that it can't go on forever because the differential is so high - Richmond is upto twice the price of Surbiton and Surbiton itself is twice the price of other areas very nearby. At least it seems that it is like that in equivalent areas around the M25!

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I have been viewing properties on and off for the last 18 months or so, viewed a house yesterday that I actually quite like. Without giving too much away about the exact house it’s a 4 bed detached period place, good plot, located on a reasonably busy but ‘prime’ road in a nice part of Essex with excellent transport links. In this area these types of properties are few and far between and rarely come to market. Although the house is liveable I would want to gut the place, extend and renovate before moving in.

I already did my research before viewing and the house next door sold for 900k in March 2007 (sold before that for 615k in 2003) as far as I can see the house is identical apart from the one I viewed didn’t have the loft converted and I cant be sure of what the internal condition of the neighbouring house was in when it sold although it looked reasonably tidy from the outside.

The house doesn’t quite tick all the boxes, it’s a little smaller than I would have liked and there is the busy road but apart from that it’s pretty close to what I have been looking for. Obviously the problem for me is the price, they are more or less asking for 25% more then the neighbouring house sold for in 07 but I am unable to find a single index (Nationwide, Halifax or Land registry) to justify the price increase.

It’s all well and good telling me to sit back and wait for the price to fall but the last 2 period houses that came to market in this area sstc within a week…

So I have a few questions that I would like to get the forums opinion on:

1. Do I just have to accept that normal market conditions don’t apply to this type of property?

2. Can it be true that the area I am looking to purchase in really one of those special towns where the people who own property say “prices will never fall round here as its so desirable, good schools, rail links etc” actually be right?

3. Are high end properties affected later on in the downward price cycle, does it take longer for falls to happen at this end of the market? Lets face it bankers are not feeling any pain just yet.

4. Are the indexes being dragged down by the poor quality flats and distressed sales while leaving the prime houses to increase?

I have been lurking on this Forum on and off for 5 years or so and although I agree with the general consensus on here that prices should and must fall but as much as it pains me to admit it we have been calling the crash now for a long time but its not quite materialised, although it may be happening in some parts of the country it doesn’t seem to be happening here.

I have viewed around 10 properties recently and out of all of them I can’t imagine any of the vendors would ever be in a position of being a forced seller, most have owned for 10yrs+ and I expect they all have no mortgage. So please someone explain what is going to prise these people from their homes at a price at less than what they feel it is ‘worth’? The old saying “Markets remain irrational longer than you can remain solvent” is very apt at this moment.

Your opinions would be appreciated.

T

What town is it?

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  • 317 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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