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Sylvester83

Diary Of A Aspirant Buyer

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hi,

I've been looking for 2 years, but never really been able to spend all of that money for the crappy London quality.

Obviously I regretted.. the usual.. if only I had bought two years ago..

I feel it very unnatural to indebt myself that much for such a small flat.. but I love London.. I got the deposit.. so why keep on wasting in rent and inflation?

I therefore decided to post my attempts so that with your comments I can maybe finally make the big step or convince me that is better not to.

Went today to see this property in Bow:

http://www.zoopla.co.uk/for-sale/details/35190545#yXsBST7P6x1fUgbR.97

I am thinking to dare offering a very low offer of about 300k... the view makes it very expensive.. it is actually gorgeous.. but still 104 years leashold left.. third floor with no lift.. and the fact that the interior does not looks as great as a new built flat turnes me off a little.

I'd like to see some comments that's all thanks

my alternative is to wait the launch of this development hoping is around 320... but even if modern and new the flat will be on a small but relatively busy street.. not a park: https://axisapartments.co.uk/

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There is no housing market in the UK - it is completely at the mercy of politics and political decisions. Two possible futures

UKIP kills the next election? pound collapses? housing market dies? You are much worse off as foriegn buyers liquidate in London and market crashes

EU collapses? money flows into London, tories win next election and continue to prop up the market - buying seems like a sound choice as your property goes up

It's a gamble. Don't fool yourself your choice is going to be anything but that.

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Where are you living now?

How much you you pay in rent?

How much do you have as a deposit?

How old are you?

Thanks for your help

I live in Colindale

Pay 1040 plus bills

80k Deposit

32 years old

I am Italian and lived here for 4 years

If I buy a house for 320k I would pay less then my current rent and live in a better area!

That is for the first two years of fixed rate.. then god knows.

But the truth is that my pay would allow me to cope with higher digits. Unfortunately I am a contractor so even if it looks pretty good now, there is always the chance I will have to commute outside London one day to keep working.

@Veteran you are right, it is a gamble.. and that is why I never did it so far... I do not like to gamble on my happiness in the future.

The problem is that I realized that the system does not allow you to call yourself off the gambling...

if you do not gamble in an house you are simply making a different gamble, which is resting the deposit in a bank. You are still making a gamble in this case.

Of course indebting myself 240k is a bit more scary.

It should not be so damn scary to buy your first house - is absolutely against an healthy society.

But then there are things like the shared ownership which I am considering as an option to make the gamble much less scary.

The problem is that if things get really bad with work and I've got to go abroad I cant even rent it.

See? every time I start thinking about all of this, my head starts hurting and at the end I say myself: "just wait why to get into trouble when you have currently none".

But then it hurts also not investing in your future and just keep a deposit dying in the bank and paying a wasted rent money.

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If I buy a house for 320k I would pay less then my current rent and live in a better area!

That is for the first two years of fixed rate.. then god knows.

If interest rates go up considerably after two years then your mortgage repayments might be more than your current rent.

Also, don't forget to factor into the equation service charge payments and ground rent.

If I were you I'd carry on renting and saving up. :)

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hi,

I've been looking for 2 years, but never really been able to spend all of that money for the crappy London quality.

Obviously I regretted.. the usual.. if only I had bought two years ago..

I feel it very unnatural to indebt myself that much for such a small flat.. but I love London.. I got the deposit.. so why keep on wasting in rent and inflation?

I therefore decided to post my attempts so that with your comments I can maybe finally make the big step or convince me that is better not to.

Went today to see this property in Bow:

http://www.zoopla.co.uk/for-sale/details/35190545#yXsBST7P6x1fUgbR.97

I am thinking to dare offering a very low offer of about 300k... the view makes it very expensive.. it is actually gorgeous.. but still 104 years leashold left.. third floor with no lift.. and the fact that the interior does not looks as great as a new built flat turnes me off a little.

I'd like to see some comments that's all thanks

my alternative is to wait the launch of this development hoping is around 320... but even if modern and new the flat will be on a small but relatively busy street.. not a park: https://axisapartments.co.uk/

It looks like oyu could potentailly rent out that flat for between 1200-1300, if you look at similar flats in the area. Service charge and rent is 1400/year, so that would give you between 13000-14000 gross rent. So that would give you something around 4-4.5% yield. It's not a steal, but seems reasonable compared to what you can get in most other parts of London at that price. The questions is what happens to the market in London in a few years time..

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If interest rates go up considerably after two years then your mortgage repayments might be more than your current rent.

Also, don't forget to factor into the equation service charge payments and ground rent.

If I were you I'd carry on renting and saving up. :)

true.. but maybe even if it gets up to 2k a month, I'd still do it because it is 2k that I am investing in a house I am going to own rather then spending a 1k a month in the rental bin.

The problem is if interest get so much high that I can't afford it and I loose the house..

but to get at this stage it requires a combination of:

-interest rate sky rocketing to more than 2.5/3k a month (is that really possible?)

-me loosing the job

-House market falling so that I am not able to resell the house

-Impossibility to rent for a fair price that covers the mortgage repayments

Isn't a bit of a pessimistic combination of possibilities? maybe is a view a little too pessimistic to stop me from buying? or it actually is very possible, as if interest rate goes up, more people will sell house therefore house market will fall driving the economy bad which will make me also loose the job?

But then if the interest rate gets really bad after the two years, I could simply remortgage with a mortgage for 35years rather than 25years so to get a much softer monthly repayment and survive the bad period?

But maybe yes.. I should risk less and buy in Stanmore or symilar for 270k rather than 300-320k... or again, shared ownership and buy more shares whenever I save something

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That's a view of Victoria park isn't it? Great area.

You could get a 2-bed in Leyton for 270k, which is near Bow/Hackney Wick, just the other side of the Olympic Park. I have no idea what Stanmore is like, but Leyton has improved dramatically over the last couple of years. It's also much more central than Stanmore, if that matters.

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maybe hold out for a new build in stratford?

they're building more than they can ever hope to sell now that foreign investors are no longer interested.

also, they're cutting the prices of flats they haven't even started to build yet.

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true.. but maybe even if it gets up to 2k a month, I'd still do it because it is 2k that I am investing in a house I am going to own rather then spending a 1k a month in the rental bin.

:rolleyes:

Throw it into the massively overvalued big debt skip then, instead?

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Sylvester83 - I live within seconds of empire wharf ( I dont live in it though and have no connection to the flat you link to).

To be honest I think the price is very fair that they are asking , I'd be surprised if it sold for anything close to 300 in that area. Some of the 1 beds in gunmakers wharf went for 350/360 I think and a 1 bed in connaught works has just sold against a 440k asking price.

its a great area being next to the park and there are some good pubs and restaurants both in bow and victoria park village. I've enjoyed living here but we are moving to buy a house in leytonstone (one of the terraces behind cann hall rd).

my only concern with that block is I think they are carrying out some works to the rear - and I would want to make sure you dont foot the bill...

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Throw it into the massively overvalued big debt skip then, instead?

Hi Venger thanks to participate.

what do you mean exactly? that the debt I would have to repay is anyway more than a rent I'd pay in a lifetime?

To be honest I think the price is very fair that they are asking , I'd be surprised if it sold for anything close to 300 in that area. Some of the 1 beds in gunmakers wharf went for 350/360 I think and a 1 bed in connaught works has just sold against a 440k asking price.

my only concern with that block is I think they are carrying out some works to the rear - and I would want to make sure you dont foot the bill...

Oh yes I well know the GunMakers Wharf 09/2013...

I had booked in for a the Sunday after the release to view the flat and probably buy a 1bed for 320k... unfortunately the Saturday they called me to say they were all gone. And the same happened at the second release.. unbelievable. In that year was absolutely crazy.

But you see for a new built I would have happily paid as you are sure not to have nasty surprises or short leases with extra expenses that to be honest can put you on your knees. Not to say the ready flat, looking stunning straight away.

I saw too many friends/ collegues buying something to renovate saying "so we can do it as we like" for then understand that is like an art to do it well, never seen anyone reaching the quality of a new built.

That's why for me that flat was not worthy 330k.. even though I completely understand being a reasonable market price now.

Anyway Empire Wharf 11/2014 end of the story: they have received an offer for about 325-330k and even though not completely official the flat is basically sold... the agent told me to hope something to go wrong with this sale but it is going to be difficult.

So back on Zoopla now...

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they're building more than they can ever hope to sell now that foreign investors are no longer interested.

Hi Thanks for your comment.

Why are you so convinced that investors are no longer interested? I would like to believe it, but it does not look like it to me.

It is time for another story I can add to my diary :) ...

I was really intention to buy in Bellevue Bow 07/2014

Bellevue bow is an council tower (24storey) renovated to "luxury" spec. behind Bow Road Station.

Unfortunately my lender said in advance they would not have borrowed for a building with more than 7 storey.

So demoralized I went to the launch late and the queue was massive already, something like 100 people.

22 of the 24 one-bed flat were all gone by the same day... I have been told they could get me a mortgage from the adviser at the showroom, but scared to loose the reservation fee I did not believe them.

Few days later four 1bed flat were advertised on Zoopla for around 30k more than the price you could buy them on launch day.

eg There was a 1bed flat at the 3rd floor you could buy for 285k at launch, advertised for 315k on Zoopla about a week later.

Basically an investor who went to buy for rental purposes smelled the bargain and bought something like 5 flats putting down the reservation fee for all of them.

crazily I thought I could have bought this resell and I got back to the mortgage adviser who was at the launch.

He told me that the majority of buyers, he was arranging the mortgage for, were Chinese investors - and he added: if they can get the mortgage with not even an EU residence or passport he could get one for me too.

Well luckily or not he was too busy with the many buyers already - he was too slow to reply so in the end I lost any trust in the business and dropped the idea to re-buy from the shrewd investor.

Dealing with the agent I've been able to see that the lucky investor has managed to sell some of the flat before the 1 month deadline after which he should have start to put 10% deposit for each of them.

Therefore risking only 2k per flat for the reservation he made 30k time 3 flat.

after 4 months also the only other 1bed advert disappeared from Zoopla so he probably had to risk a 10% deposit for the 4th flat but then got it back.

So I strongly believe this guy has made 120k doing nothing! and I do not think he had to pay any stamp duty.. because I suppose this happens only when someone has to finalize the purchase, which will happen next February when the rest of the deposit will be given, the mortgage started and the build will be completed.

All this was happening only 4 months ago...

It is true that is quieter than last year at this time, but every time I go to a viewing trust me I am not alone, and the flats go in a matter of a week from the advert appearance.

I've been looking in NW london and Bow area.

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Hi Thanks for your comment.

Why are you so convinced that investors are no longer interested? I would like to believe it, but it does not look like it to me.

It is time for another story I can add to my diary :) ...

I was really intention to buy in Bellevue Bow 07/2014

Bellevue bow is an council tower (24storey) renovated to "luxury" spec. behind Bow Road Station.

Unfortunately my lender said in advance they would not have borrowed for a building with more than 7 storey.

So demoralized I went to the launch late and the queue was massive already, something like 100 people.

22 of the 24 one-bed flat were all gone by the same day... I have been told they could get me a mortgage from the adviser at the showroom, but scared to loose the reservation fee I did not believe them.

Few days later four 1bed flat were advertised on Zoopla for around 30k more than the price you could buy them on launch day.

eg There was a 1bed flat at the 3rd floor you could buy for 285k at launch, advertised for 315k on Zoopla about a week later.

Basically an investor who went to buy for rental purposes smelled the bargain and bought something like 5 flats putting down the reservation fee for all of them.

crazily I thought I could have bought this resell and I got back to the mortgage adviser who was at the launch.

He told me that the majority of buyers, he was arranging the mortgage for, were Chinese investors - and he added: if they can get the mortgage with not even an EU residence or passport he could get one for me too.

Well luckily or not he was too busy with the many buyers already - he was too slow to reply so in the end I lost any trust in the business and dropped the idea to re-buy from the shrewd investor.

Dealing with the agent I've been able to see that the lucky investor has managed to sell some of the flat before the 1 month deadline after which he should have start to put 10% deposit for each of them.

Therefore risking only 2k per flat for the reservation he made 30k time 3 flat.

after 4 months also the only other 1bed advert disappeared from Zoopla so he probably had to risk a 10% deposit for the 4th flat but then got it back.

So I strongly believe this guy has made 120k doing nothing! and I do not think he had to pay any stamp duty.. because I suppose this happens only when someone has to finalize the purchase, which will happen next February when the rest of the deposit will be given, the mortgage started and the build will be completed.

All this was happening only 4 months ago...

It is true that is quieter than last year at this time, but every time I go to a viewing trust me I am not alone, and the flats go in a matter of a week from the advert appearance.

I've been looking in NW london and Bow area.

Why not South London? You would get more for your money.

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Why not South London? You would get more for your money.

yes maybe I should consider it... I am just used to the north and the north seems less urban.

Any area you would suggest in particular?

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