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Guest Baffled_by_it_all

What To Do?

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Guest Baffled_by_it_all

I've recently begun the search for my first flat in London after years of renting and after finding this site, reading some news stories and experiencing the wonderful world of estate agents I'm not sure what to do next.

Things seem a little crazy at the moment. It seems to be a real sellers' market and yet everything seems completely overpriced. I'm not looking to buy in Chelsea. We're talking about Tottenham, Walthamstow, Wood Green 'Albanian stabbing capital of London' and Bounds Green - gateway to the North Circular and not much else. Nearly every 2 bed flat here is approaching £180,000.

I'm facing the usual first time buyers dilemma of a rising market - Do I jump on now or carry on renting for a while and get priced out of even these 'borders' areas. There have been predictions of a crash for the last five years but everyone seems to be in more debt with nothing happening about it.

An estate agent was going on to me about the imminent arrival of 'bi-generational mortgages' wtf! Like I'd really like to burden my child with a load of mortgage debt.

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I've recently begun the search for my first flat in London after years of renting and after finding this site, reading some news stories and experiencing the wonderful world of estate agents I'm not sure what to do next.

Things seem a little crazy at the moment. It seems to be a real sellers' market and yet everything seems completely overpriced. I'm not looking to buy in Chelsea. We're talking about Tottenham, Walthamstow, Wood Green 'Albanian stabbing capital of London' and Bounds Green - gateway to the North Circular and not much else. Nearly every 2 bed flat here is approaching £180,000.

I'm facing the usual first time buyers dilemma of a rising market - Do I jump on now or carry on renting for a while and get priced out of even these 'borders' areas. There have been predictions of a crash for the last five years but everyone seems to be in more debt with nothing happening about it.

An estate agent was going on to me about the imminent arrival of 'bi-generational mortgages' wtf! Like I'd really like to burden my child with a load of mortgage debt.

********.... bi-generational morgages arent and wont be legal in the uk. However you and a offspring could get a morgage together, but you would both have to sign up to it and be over 18.

Edited by moosetea

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I'm facing the usual first time buyers dilemma of a rising market

It's not a rising market. You have been misinformed. Even in places wher asking prices have recently edged upwards this is merely a dead cat bouncing, be patient and you will have your reward.

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I've recently begun the search for my first flat in London after years of renting and after finding this site, reading some news stories and experiencing the wonderful world of estate agents I'm not sure what to do next.

Things seem a little crazy at the moment. It seems to be a real sellers' market and yet everything seems completely overpriced. I'm not looking to buy in Chelsea. We're talking about Tottenham, Walthamstow, Wood Green 'Albanian stabbing capital of London' and Bounds Green - gateway to the North Circular and not much else. Nearly every 2 bed flat here is approaching £180,000.

I'm facing the usual first time buyers dilemma of a rising market - Do I jump on now or carry on renting for a while and get priced out of even these 'borders' areas. There have been predictions of a crash for the last five years but everyone seems to be in more debt with nothing happening about it.

An estate agent was going on to me about the imminent arrival of 'bi-generational mortgages' wtf! Like I'd really like to burden my child with a load of mortgage debt.

I suggest you spend a lot of time reading the information and forums on this site, and follow the global and uk economy news with scrutiny before you commit to your biggest ever financial commitment.

Most people spend more time investigating which digital camera to buy.

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I suggest you spend a lot of time reading the information and forums on this site, and follow the global and uk economy news with scrutiny before you commit to your biggest ever financial commitment.

Most people spend more time investigating which digital camera to buy.

But at least they will have nice clear photographs of their prized possesions that they'll have to sell to keep up with the mortgage payments.

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I've recently begun the search for my first flat in London after years of renting and after finding this site, reading some news stories and experiencing the wonderful world of estate agents I'm not sure what to do next.

Things seem a little crazy at the moment. It seems to be a real sellers' market and yet everything seems completely overpriced. I'm not looking to buy in Chelsea. We're talking about Tottenham, Walthamstow, Wood Green 'Albanian stabbing capital of London' and Bounds Green - gateway to the North Circular and not much else. Nearly every 2 bed flat here is approaching £180,000.

I'm facing the usual first time buyers dilemma of a rising market - Do I jump on now or carry on renting for a while and get priced out of even these 'borders' areas. There have been predictions of a crash for the last five years but everyone seems to be in more debt with nothing happening about it.

An estate agent was going on to me about the imminent arrival of 'bi-generational mortgages' wtf! Like I'd really like to burden my child with a load of mortgage debt.

Bi-generational mortgages will make no difference..........Because of the way compounding of the interest works increasing a repayments mortgage's length from 25 years to 50 years doesn't reduce the payments by much........and we already have interest-only (infinity) mortgages.....

Which go on for ever.........

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Guest Cletus VanDamme

At this point in the bubble, buying a flat seems to me much more risky than buying a house. If you must buy, try to get a freehold terraced house rather than a flat. The difference is price may not be that great, but in the event of a downturn prices of houses, at least in the past, have held up more than the prices of flat.

When you add up the potential extra costs of a flat (service charge, ground rent, extra maintenance), plus the restrictions in the leasehold, you may feel it is not worth paying 180K for that 2-bed (actually one-bed plus cupboard with single bed squeezed in).

Have you considered a little further out? Enfield Chase area is much nicer than Bounds Green, but you could get that 2-bed flat for maybe 30K cheaper.

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Prices are still rising in some areas - but to me that makes a crash more likely, not less so... there's only so long you can stretch a piece of elastic before it snaps.

If I were a potential FTB I would work as hard as possible to save, and only buy if you can genuinely afford a half decent place - and even then, are you sure you want to buy?

Can I make a prediction - you currently live in a better area than the ones you are considering buying in? Can I make a second prediction - your mortgage will be more than your current rent?

If both of the above are true then the only possible purposes of buying now are "getting on the ladder"and "benefitting from price rises".

Are they good reasons at the minute?

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Guest Baffled_by_it_all

Very perceptive Father Fred.

My reason for moving wasn't to make a bundle of sweaty cash though. At 34 I just want a place of my own and ditch the whole flatsharing thing.

I'm starting to have some severe reservations now though. I think I might sit out the spring as it seems quite a bullish time for sellers anyway.

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I'm starting to have some severe reservations now though. I think I might sit out the spring as it seems quite a bullish time for sellers anyway.

Indeed, hence all the VI crap you can read. Come September the market will turn big time (in my opinion).

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It's not a rising market. You have been misinformed. Even in places wher asking prices have recently edged upwards this is merely a dead cat bouncing, be patient and you will have your reward.

My advice to the original poster is to re-read the above a few times as an object lesson in which posts on here can be safely disregarded.

Once you understand that there is a difference between fact and opinion, you are well-equipped to wade through the dross here to find information worth basing major financial decisions upon.

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London is indeed a rising market but I would still be wary of flats as there is a suggestion of big oversupply with so many new builds out there. Stick to places with genuinely good transport links, and avoid new builds that have sprung up in the 'middle of nowhere' i.e. not within easy reach of a Tube station.

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My advice to the original poster is to re-read the above a few times as an object lesson in which posts on here can be safely disregarded.

Once you understand that there is a difference between fact and opinion, you are well-equipped to wade through the dross here to find information worth basing major financial decisions upon.

Indeed, I cannot disagree, it is my opinion. I would also advide the poster to apply this philosophy when reading any press releases regarding which way the property market is heading.

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Guest Baffled_by_it_all

Having been looking for a couple of months now I know what I should be looking for. As I live in North London I'm also aware of the standard of each area. As for freehold would I like one - of course?

The fundamental issue is consistently rising prices which buy you almost nothing. A terraced house is more than £200,000 in nearly every area now. I make a decent living. have no debt and money in the bank but that's still way out of my budget.

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Very perceptive Father Fred.

My reason for moving wasn't to make a bundle of sweaty cash though. At 34 I just want a place of my own and ditch the whole flatsharing thing.

I'm starting to have some severe reservations now though. I think I might sit out the spring as it seems quite a bullish time for sellers anyway.

I just bought a flat (not a new-build...) not so far from your areas, as a FTB. I'd say a couple of things.

Firstly London does seem to have twitched up slightly since the end of last year, but I'm inclined to think that it's already gone up as far as it's likely to this year and won't do too much more in the short term, so probably no harm in waiting a bit longer to see what happens. I'm one that thinks London is not so overpriced (relatively speaking) as elsewhere, but also I think it is very uneven. New-builds and dodgy areas are clearly over the top.

Which leads to the second thing. As Fred points out you are probably living in a slightly nicer area, looking at what you can afford. The areas you mention are pretty different in terms of value. Tottenham is still a bit cheap, but not nearly cheap enough to be a good bet in a downturn (areas like that lost a lot last time). Ditto Wood Green (the ladders are OK I suppose, but well overpriced now). Walthamstow seems to me to have got worse over the last decade but it's not quite such bad value. I'd spend some time there before thinking of buying though, personally I don't like the atmosphere these days. Bounds Green is dull yes, but actually pretty nice in parts. Much better place to be looking than the others IMPO. Maybe you already know these areas well but if not it might be a good idea to take a pretty close look over the next six months or so, maybe view houses purely to get a feel of what the affordable bits are like. It's hard trying to find something acceptable and the more you see of the market and local areas the more chance you will have of makig a good decision. If you do consider buying within the next year or so at these kinds of prices it needs to be somewhere you could stay for a fair amount of time without hating it. The people I knew who had the worst time in the last crash had bought in dodgy areas expecting to be able to move on in a couple of years.

Having been looking for a couple of months now I know what I should be looking for. As I live in North London I'm also aware of the standard of each area. As for freehold would I like one - of course?

The fundamental issue is consistently rising prices which buy you almost nothing. A terraced house is more than £200,000 in nearly every area now. I make a decent living. have no debt and money in the bank but that's still way out of my budget.

Yes, I think looking for a freehold terrace is a bit of a non-starter - might get one in the dreggiest corner of Tottenham, but not a good plan. Plus you can get pretty reasonable maisonettes or conversions in London at or around your budget and I think that's a better way of thinking. New-builds are well over-priced, but you can't apply the same to all flats.

Edited by Magpie

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It's not a rising market. You have been misinformed. Even in places wher asking prices have recently edged upwards this is merely a dead cat bouncing, be patient and you will have your reward.

What planet are you living on? :) didnt everyone say that last year? Last year was much quieter during the spring from my observations.

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not perceptive - it's obvious!!!!

if i had a budget of 180k as an FTB now i'd be tempted to sacrifice space and buy a studio in pimlico.

seriously, some of the better areas are the best value now!!!!!

i can understand the personal reasons for wanting to move... but in all honesty, if you are a decent person then you should be able to live in a fairly good houseshare.

maybe try to find a resident landlord just looking to rent a room to make ends meet... less like a houseshare (even though you are still sharing)

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It's not a rising market. You have been misinformed. Even in places wher asking prices have recently edged upwards this is merely a dead cat bouncing, be patient and you will have your reward.

But this dead cat seems to have been bouncing for years.... is it going to stop?

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Guest Baffled_by_it_all

If this wasn't such a big deal this forum would be hilarious. It's like standing in a circle with everyone shouting something different.

You're basically no better off than when you started.

I'm not going to plan on actually buying somewhere this spring. I'll take a look at some places and stick in low offers if I like the look of them.

As far as I can tell from reading dozens of posts today NOBODY has any idea what the market is doing - bears or bulls. You're all just reacting to any news you get as proof after the fact.

Has anyone ever made any predictions which actually came to light?

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If this wasn't such a big deal this forum would be hilarious. It's like standing in a circle with everyone shouting something different.

You're basically no better off than when you started.

Best thing to do is listen very carefully for someone saying what you wanted to hear in the first place - and then ignore everyone else or shout them down.

That's what we all do.

Edited by Magpie

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As far as I can tell from reading dozens of posts today NOBODY has any idea what the market is doing - bears or bulls. You're all just reacting to any news you get as proof after the fact.

You're a bright lad. You'll go far.

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Best thing to do is listen very carefully for someone saying what you wanted to hear in the first place - and then ignore everyone else or shout them down.

That's what we all do.

:lol::lol::lol:

Bbia,

Father Ted is an ex London estate agent and a straight guy in my book....OK I know that sounds controdicatory in it's self, but I'd trust his advice, and I'm a bear until I'm convince differently.

Has this market got legs, has this economy got legs, has this housing cycle got legs......18 years peak to peak so far. Are we nearer the top or the bottom of the cycle, if you get it wrong "stick or twist" could you/ would you like to get "burned"

You pays your money [or not as the case may be] and takes your chances. :ph34r:

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Guest Baffled_by_it_all

I'm guessing he was joking about buying a studio flat in town though. I wouldn't like to be stuck there for five years if prices started dropping

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  • 301 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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