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A Sign Of The Times In London

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http://www.rightmove.co.uk/property-for-sale/property-42270025.html

This property was on the market for £550k back in January and has now reappeared for..... £600k!!! with one agent and £575k!!! with the other agent http://www.rightmove.co.uk/property-for-sale/property-30115893.html

I think it was on the market back in August 2013 for £550k and It went to under offer before Christmas but the previous buyer had a full survey, and the sale fell through. So I made an offer of £500k back in early January as it has bad damp in the basement level and other issues with water ingress in the elevated garden including a retaining side wall which was leaning over when I viewed it, hence my offer. The house has been "developed" (and I use the term loosely) but has been done in a very cheap (plastic baths, cheapo kitchen) and bizarre way as the layout makes no sense at all. That said, it's a huge house with some potential.

This was rejected and I was told that there was an offer close to asking price. Since then I got a call in mid February saying the sale had fallen through again and invited to make a new offer which I didn't as I had then found something else.

I'll be fascinated to see what happens with this one!

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Y,know that your paying about £450k for the plot and £100k for the brick construction and fittings (if that).

The 100+ year old brick construction is worth very little. It will have very poor insulation and the mortar/cement will be crumbling and possibly rot in the joists if there is damp.

wouldn't touch it with a barge pole.

Is the land really worth a 10 million per acre? Really?

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Y,know that your paying about £450k for the plot and £100k for the brick construction and fittings (if that).

The 100+ year old brick construction is worth very little. It will have very poor insulation and the mortar/cement will be crumbling and possibly rot in the joists if there is damp.

wouldn't touch it with a barge pole.

Is the land really worth a 10 million per acre? Really?

In hindsight I think we had a lucky escape. Problem is, there's very little on the market and I suspect people will now be getting pretty desperate.

it will be interesting to see what effect the new mortgage affordability rules have on things. Looking through the list of things they may ask, I think it's very doubtful anyone living in London will be getting a mortgage

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Someone paid £260k for it not even 2 years ago.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=43191814&sale=47342675&country=england

I mean, doesnt it feel *slighty* strange offering £500k for it?

I guess at least its nearly 100 feet away from the south circular rather than actually on it, thats something :blink:

Hopefully it won't sell at anything near that price.

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Hopefully it won't sell at anything near that price.

Looking at how london prices are going up, it'll probably go above the asking price.

Got this in one of the newsletters of an estate agency

Sherland Road’s open day was a huge success! After carrying out approximately 60 viewings, they received an impressive 15 offers on the property. The vendors were absolutely thrilled with the level of response and with the final figure achieved. The high demand for this property meant that the final offer accepted was a remarkable £100,000 over the original asking price. This was a record price achieved for this road! With such a strong market, we are managing to achieve offers in excess of the original asking price for the majority of our properties.

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The frightening thing is that £550 to £600k in 4 months isn't even that bad compared to some parts of SE London. I have seen several examples of smaller houses that were bought for £250-£300k during 2013 and have now sold for in excess of £500k after a cheap refurb.

I do think it is interesting what the new mortgage rules will do to London prices, but it will take a while for it to filter down to this type of area, which I think it predominantly being driven up in value by people spending cash windfalls from selling houses in higher priced areas of the capital to people who don't need mortgages either.

If the rules are actually as tough as they profess to be (i.e. stress testing to 7% interest rates) then no one apart from bankers are going to get mortgages big enough to buy even modest London homes unless they have massive savings/windfalls.

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Someone paid £260k for it not even 2 years ago.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=43191814&sale=47342675&country=england

I mean, doesnt it feel *slighty* strange offering £500k for it?

I guess at least its nearly 100 feet away from the south circular rather than actually on it, thats something :blink:

It is amazing how many people don't find it at all strange. I have had the exact same discussion with someone recently 'why would you buy that house for £600k when it sold for £350k 3 years ago and nothing else has changed', and the answer was that the 'market' has gone up since then and will continue to do so.

Most people seem to think that NOT to buy now would be the stupid thing to do because they would miss out on future gains. The disparity between the huge house prices and their tiny incomes means nothing.

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It is amazing how many people don't find it at all strange. I have had the exact same discussion with someone recently 'why would you buy that house for £600k when it sold for £350k 3 years ago and nothing else has changed', and the answer was that the 'market' has gone up since then and will continue to do so.

Most people seem to think that NOT to buy now would be the stupid thing to do because they would miss out on future gains. The disparity between the huge house prices and their tiny incomes means nothing.

I feel a mug considering paying 10 grand more for a house that last sold in 2011, 2012.

The thing is, with the government stepping in, usual market rules dont apply. Conventional logic says anemic wage growth (probably negative after basic living costs are subtracted) and ZIRP mean prices cannot rise. But with the tories basically injecting 20% deposits into the market, whats to stop them introducing 40%, 60%, 80%, if they want prices to go up. Which is the only way they can force them up.

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Why would any normal person want to live in London? You could take a lower paying job anywhere else in the UK and have a better quality of life than someone earning double in London. Look what £500,000 buys you near where I live:

http://www.rightmove.co.uk/new-homes-for-sale/property-42990544.html

+1 I took an 8k pay cut to move from the South East to the North. I can buy a reasonable house in a nice area up here rather than a cr*p flat in a cr*p part of london. There's no point in me being in London in my line of work. This situation cannot last long - either London and the SE are going to become more affordable or the rest of the country is going to become more unaffordable.

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I feel a mug considering paying 10 grand more for a house that last sold in 2011, 2012.

The thing is, with the government stepping in, usual market rules dont apply. Conventional logic says anemic wage growth (probably negative after basic living costs are subtracted) and ZIRP mean prices cannot rise. But with the tories basically injecting 20% deposits into the market, whats to stop them introducing 40%, 60%, 80%, if they want prices to go up. Which is the only way they can force them up.

This, mostly.

Screen-Shot-2013-09-30-at-15.43.09.png

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Interesting chart - does it account for all the pfi signed up to by labour, the government equivalent of a hire purchase deal from wonga.com? I imagine most of the payments on those deals had delayed starts for repayment, or matured to cash up a few years down the road / had to be bought out as they were too inflexible etc. I just really can't see where this extra spending is taking place, nothing seems to be improving as a result

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It is amazing how many people don't find it at all strange. I have had the exact same discussion with someone recently 'why would you buy that house for £600k when it sold for £350k 3 years ago and nothing else has changed', and the answer was that the 'market' has gone up since then and will continue to do so.

Most people seem to think that NOT to buy now would be the stupid thing to do because they would miss out on future gains. The disparity between the huge house prices and their tiny incomes means nothing.

They are the enemy. Not victims.

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They are the enemy. Not victims.

I'd say they are both. Victims of the government's ridiculous HPI schemes, but the enemy because they are stupid enough to fall for them and perpetuate them further.

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I'd say they are both. Victims of the government's ridiculous HPI schemes, but the enemy because they are stupid enough to fall for them and perpetuate them further.

Well, quite. I was about to post pretty much the same thing (and risk the Wrath of Venger - coming to a cinema near you). I have a strong suspicion that many don't even realise that they are part of the driver for the market, and think that prices would somehow rise independent of the actions of buyers. In a sense, as long as there's someone else in line behind them, they're right. In any event, whatever the scenario, it makes more sense to restrict lending than to expect or demand some collective enlightenment.

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And here's another one I was keeping an eye on - now gone up £25k in the past month

http://www.rightmove.co.uk/property-for-sale/property-45880880.html

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Someone paid £260k for it not even 2 years ago.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=43191814&sale=47342675&country=england

I mean, doesnt it feel *slighty* strange offering £500k for it?

I guess at least its nearly 100 feet away from the south circular rather than actually on it, thats something :blink:

You've given me the mental image of a 'house' being sold that is in fact a big campervan being driven around the North/South circular in a continual loop..

'Great location, ever changing views, convenient for all of London, more spacious than the average luxury apartment, unlikely to be broken into, no communal fees (apart from £2k a month for diesel, plus the wages for the drivers).

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You've given me the mental image of a 'house' being sold that is in fact a big campervan being driven around the North/South circular in a continual loop..

'Great location, ever changing views, convenient for all of London, more spacious than the average luxury apartment, unlikely to be broken into, no communal fees (apart from £2k a month for diesel, plus the wages for the drivers).

I await the day with great anticipation when someone says to me..."people must have lost their senses".

I still want a list of banks who are lending on these places ( i would guess the government funded one ), for those banks are going to hit a brick wall soon

I am ashamed to have voted for the tories, better to have left labour in situ and let them face their music.

P.S. Just over-heard a conversation at work where this young lass is saying her friends have been viewing houses and offering 20% ABOVE asking prices only to be told by the agents someone has out bid them. Captain. We have a problem.

No doubt the BoE will step in soon to stop this madness and stop these silly young people destroying their futures and return prices to the long term average.......................................

Edited by TheCountOfNowhere

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I await the day with great anticipation when someone says to me..."people must have lost their senses".

I still want a list of banks who are lending on these places ( i would guess the government funded one ), for those banks are going to hit a brick wall soon

I am ashamed to have voted for the tories, better to have left labour in situ and let them face their music.

P.S. Just over-heard a conversation at work where this young lass is saying her friends have been viewing houses and offering 20% ABOVE asking prices only to be told by the agents someone has out bid them. Captain. We have a problem.

No doubt the BoE will step in soon to stop this madness and stop these silly young people destroying their futures and return prices to the long term average.......................................

From the best buy charts, some of the smaller building societies (Yorkshire amongst others) may be going for it..

The cynic/conspiracy nut in me thinks that TPTB have decided to dispose of the remains of the mutual sector by 'persuading' them to lend anything to anyone. A bit like the way the Co Op was bankstered into oblivion.

Still, what's the worst that could happen..?

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And here's another one I was keeping an eye on - now gone up £25k in the past month

http://www.rightmove.co.uk/property-for-sale/property-45880880.html

Brockley has been mental for ages. Unless you absolutely must be within a 5 minute walk of the station there's better value to be had in Catford in the Culverley Green area or the Hither Green end of the Corbett Estate where there are lots of huge double fronted terraces. 'Better value' is relative though- I personally wouldn't dream of paying 500k for a house my parents bought for 57k in late 1984, just on principle!

Sorry if I'm teaching granny to suck eggs BTW.

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Interesting chart - does it account for all the pfi signed up to by labour, the government equivalent of a hire purchase deal from wonga.com? I imagine most of the payments on those deals had delayed starts for repayment, or matured to cash up a few years down the road / had to be bought out as they were too inflexible etc. I just really can't see where this extra spending is taking place, nothing seems to be improving as a result

PFI currently accounts for £54.7121 billion annually, but the coalition are still entering into new PFI deals. ConDemLabour are all in it together: http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hm-treasury.gov.uk/ppp_pfi_stats.htm

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