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HaX

About To Complete, Somewhat Concerned!

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Hello,

Apologies for the rather drawn out nature of this thread ;

Until the government drove the housing market crazy with Help to Buy, we were happily building up our deposit with the aim of buying a £150 K house with a 25% deposit. We currently have £20K saved and are growing this by 1K PCM

We ended up looking to buy a house sooner (through fear of being priced out), and have managed to find something in a reasonable area (not somewhere we'd have ideally chosen), however I have a few concerns ;

  • The house sold for £117K in 2007, we are paying £129K for it. The EA said a lot has been done to it (including new kitchen, bathroom and conservatory), however I have managed to find it's listing/advert from 2007 (archived on right move) and the conservatory had already been built. Could redecoration, new bathroom, kitchen and carpets really add that much value?
  • A larger house across the road sold for £122 K in April (Same number of bedrooms, similar era and style). Admittedly it's not in as good condition and is without a conservatory (which ours has), but nevertheless is cheaper
  • The house is built ontop of a former landfill - classed as inert by environment agency landfill map (eg. buried glass/concrete etc) (flagged in homecheck searches as being potentially unstable/poluted land)
  • The house is built on land classed as prone to flooding, the last recorded flood I have been able to trace was in 1947 (flagged homecheck searches as high risk)

With regard to the searches I understand that Homecheck tend to be a bit pessimistic and alarmist, however despite this and factoring in the above, would it still be wise to proceed?

What about the price of the house in comparison to it's previous sold price and the house which sold near it? Am I being fleeced?

Unfortunately this is pretty critical - in order to find something nice and within our price range, we have had to set our sights on living in a smaller city with less opportunity and transport links (My girlfriend is a nurse and has managed to get a job there, I work in IT so will have to keep an eye out for suitably remunerated jobs). This does has the potential to financially ruin us if things go wrong:(

Thanks

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Now isn't a great time to buy as everyone is aware. To buy now, you will be "fleeced" for a premium as it's a sellers market and you're competing with other desperate over leveraged buyers. 10% above 2007 is the expectation today, so I wouldn't say its unreasonable from what everyone else is doing, depending on the area mostly. I wouldn't like to pay more for work that wasn't done or a site that has risk.

The question becomes, would you be happy waiting and paying rent? Opportunity is building in to the market where falls are likely to happen around 2017-18 as rates rise, 4.5x mortgage cap takes hold, HTB ends, the 2 year 1.9% teaser rate requires re-mortgaging and EU BTL restrictions come in. How far they fall is anyone's guess. Before then, price could still go higher as pension rules changes and EU is now on negative rates. Also the big question on Scotland could swing it either way too.

I'd wait, although I'll admit 3 years is a long time and who knows if it'll be better with the clowns down town...

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