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Pezerinno

What Is A Fair Price For A Small Terrace?

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What would you say was a fair value for a small terrace in South East England? At the moment in my area they're still around £120k+

It's whatever you are prepared to buy at, and what they are prepare to sell at.

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What would you say was a fair value for a small terrace in South East England? At the moment in my area they're still around £120k+

It isnt fair but you need to add about 50-60k to that for a 2 bed here, am guessing that you are closer to the coast than london?

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Okay so I should have worded it differently. I'm curious at what price HPCers would be prepared to pay for a 2 bed terrace (assuming that what would wanted to buy). Yes I'm on the coast Number79. I was thinking around £75k.

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What would you say was a fair value for a small terrace in South East England? At the moment in my area they're still around £120k+

That seems pretty good to me. How many houses is a small terrace as that would obviously affect the price per house :P

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OK - so I'm central London (zone 2, south of the river). We don't really have any 2bed terraces, so I'll go with the local equivalent, a 2 bed maisonette. I think that that should be a starting property for a young couple who don't yet have any kids, but are thinking maybe in a couple of years (2bds gives them approx 5 years before wanting to move). Lets take a salary of 35k and 25k for this imaginary 28-30yr old professional / semi-professional couple, and allowing for stretching a touch when starting out take 3.5 x 1st salary + 1 x 2nd salary gives a mortgage amount of (35*3.5)+25 = 147.5. Add a 15% Deposit and you get approx £170k. Actual Price? 350-400k - so I reckon a 50% fall is what is due...

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What would you say was a fair value for a small terrace in South East England? At the moment in my area they're still around £120k+

Lucky you. In the Chichester - Arundel area, depending on location and size, it can go from £170k all the way up to £300k.

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What would you say was a fair value for a small terrace in South East England? At the moment in my area they're still around £120k+

Depends on the area and the rental value. In my area you'd be looking at £150,000 - £160,000.

They rent for £750 p/m max; assuming a fair yield of 8% then maybe fair value is £110,000, one could argue for less.

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OK - so I'm central London (zone 2, south of the river). We don't really have any 2bed terraces, so I'll go with the local equivalent, a 2 bed maisonette. I think that that should be a starting property for a young couple who don't yet have any kids, but are thinking maybe in a couple of years (2bds gives them approx 5 years before wanting to move). Lets take a salary of 35k and 25k for this imaginary 28-30yr old professional / semi-professional couple, and allowing for stretching a touch when starting out take 3.5 x 1st salary + 1 x 2nd salary gives a mortgage amount of (35*3.5)+25 = 147.5. Add a 15% Deposit and you get approx £170k. Actual Price? 350-400k - so I reckon a 50% fall is what is due...

A 2 bed flat in east dulwich, also zone 2, is a bit cheaper...

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More seriously, here's how to work out the fair value:

Work out what sort of job the typical working person would have who would be living in such a place. Multiply that salary by 3.5, and voila, you have your answer.

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Are we confusing "fair" and "realistic"? It doesn't really matter what the average teacher or traffic warden earns in somewhere like Camden or Islington - the price of a house there is always going to be prohibitive.

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Are we confusing "fair" and "realistic"? It doesn't really matter what the average teacher or traffic warden earns in somewhere like Camden or Islington - the price of a house there is always going to be prohibitive.

....one mans trash is another mans treasure. ;)

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Are we confusing "fair" and "realistic"? It doesn't really matter what the average teacher or traffic warden earns in somewhere like Camden or Islington - the price of a house there is always going to be prohibitive.

No. Where do they live? In Cambden or Islington? What sort of house/ flat / hovel in Cambden or Islington? Or do they live somewhere cheaper?

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Are we confusing "fair" and "realistic"? It doesn't really matter what the average teacher or traffic warden earns in somewhere like Camden or Islington - the price of a house there is always going to be prohibitive.

surely a 'key worker' could get housing benefits to live there?

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Lucky you. In the Chichester - Arundel area, depending on location and size, it can go from £170k all the way up to £300k.

You could always move to Portsmouth ;)

Edited by Pezerinno

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250k in Guildford - 230k if just outside

I'm a couple of miles outside the Town Centre and asking prices here at 250k+

Just down the road two new developments of three bed terraces have asking prices of 370k :o

Beyond belief, I can't really understand why prices are so high here.

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More seriously, here's how to work out the fair value:

Work out what sort of job the typical working person would have who would be living in such a place. Multiply that salary by 3.5, and voila, you have your answer.

Not credible in affordability terms though. That's the sort of calculation that was being used when IRs were 10-12%. How realistic is that as a pricing guide when fixed-rate mortgagesof 3-5% are available (albeit at high LTVs). I reckon round me 140K would be reasonable in the current market.

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  • 311 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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