What Kind Of Discount Would You Want To See To Buy This Place?

[nicebuyer]

I'm interested in purchasing this place:

http://www.rightmove.co.uk/viewdetails-18737575.rsp

Assuming you are renting, would like to buy a new house and have the deposit you need, what kind of price drop would you need to see to make this a worthwhile purchase? Would a 10% drop make you feel happy about buying and not getting into trouble at a later stage? Or 20%? Maybe only 5%? I'm thinking that an offer of £520k in the current climate would be fair but am interested in what others think. Am I being a bit ambitious at thinking about such a drop?

[Frank Hovis]

I know the area, it's fine but not posh, just rows of red brick terraces.

Why not step back from the current valuation and come up with your own?

My back of an envelope would be that I'd expect the sort of person who lives there to have say £60k income. maybe £50k deposit.

60 * 3.5 = 210 + 50 = 260 which looks like a reasonable price.

600k or 500k is still at bubble levels. But it if you're happy with losing a few £100k go ahead.

[SMAC67]

£640,000, for a house, any house. I am in the top 1% of earners on this little island and even if I lived to be 100 I would never be able to afford a house that expensive. A three bed house in an average street should be the equivalent of an average wage multiplied by 3.5 at the most. If people are gullible enough to get into mega debt to buy into this delusion, then I say, go ahead.

My parents live in a similar sized house in Scotland, even at the top of the market it has been valued at £160,000, and I think that is a lot. The value of anything is what you are willing to pay.........

[REP013]

I'm interested in purchasing this place:

http://www.rightmove.co.uk/viewdetails-18737575.rsp

Assuming you are renting, would like to buy a new house and have the deposit you need, what kind of price drop would you need to see to make this a worthwhile purchase? Would a 10% drop make you feel happy about buying and not getting into trouble at a later stage? Or 20%? Maybe only 5%? I'm thinking that an offer of £520k in the current climate would be fair but am interested in what others think. Am I being a bit ambitious at thinking about such a drop?

£250k at the most, its a 3 bed house.

Are you completely nuts?

Had a friend recently sell in Wimbledon and move to the far east. He took a 10% drop but would have taken more if necessary .. wtf makes a 3 bed house in Wimbledon worth anymore than £250k I do not know. A seriously hyped market if ever I saw one.

[Pindar]

Maybe estate agents feel that if they market properties for twice as much as they are worth, they will somehow manage to sustain the market at its previous unsustainable levels. The theory perhaps being that a ludicrous price will mean punters meeting them halfway, that halfway being the intended sale price. This three bed semi is being marketed as if it is some kind of palace. The french pine flooring will make useful fuel when oil hits $200 a barrel in the coming years.

[nicebuyer]

£640,000, for a house, any house. I am in the top 1% of earners on this little island and even if I lived to be 100 I would never be able to afford a house that expensive. A three bed house in an average street should be the equivalent of an average wage multiplied by 3.5 at the most. If people are gullible enough to get into mega debt to buy into this delusion, then I say, go ahead.

My parents live in a similar sized house in Scotland, even at the top of the market it has been valued at £160,000, and I think that is a lot. The value of anything is what you are willing to pay.........

I wouldn't get into mega debt but it's interesting that you mention a 3.5 multiple. I doubt £60k for people living on that road is realistic. Probably £60k each with a £100k deposit. So on that multiple that would be £420k + £100k deposit = £520k.

That's not a bad way of thinking about it actually. That would make my £520k reasonable. Of course I might be underestimating the deposit, it's probably nearer £150k. Hmmm.....

[REP013]

I wouldn't get into mega debt but it's interesting that you mention a 3.5 multiple. I doubt £60k for people living on that road is realistic. Probably £60k each with a £100k deposit. So on that multiple that would be £420k + £100k deposit = £520k.

That's not a bad way of thinking about it actually. That would make my £520k reasonable. Of course I might be underestimating the deposit, it's probably nearer £150k. Hmmm.....

Please buy it for £520k, go on, the market needs more fools.

[nicebuyer]

Please buy it for £520k, go on, the market needs more fools.

So you obviously think that the house will be worth £250k sometime in the near future. When do you think that might be? I think it was probably worth about that in 1999-2000, you think we're going to be back at those rates within the next couple of years?

[HenryWeston]

£639,950 for a f@#king terrace! offer them £150,000

[salamander]

I'm interested in purchasing this place:

http://www.rightmove.co.uk/viewdetails-18737575.rsp

Assuming you are renting, would like to buy a new house and have the deposit you need, what kind of price drop would you need to see to make this a worthwhile purchase? Would a 10% drop make you feel happy about buying and not getting into trouble at a later stage? Or 20%? Maybe only 5%? I'm thinking that an offer of £520k in the current climate would be fair but am interested in what others think. Am I being a bit ambitious at thinking about such a drop?

You might find this link helpful....

http://www.houseprices.co.uk/e.php?q=Clare...d+sw19&n=10

Edit: Corrected gibberish

Edited August 9, 2008 by narrowescape

[REP013]

So you obviously think that the house will be worth £250k sometime in the near future. When do you think that might be? I think it was probably worth about that in 1999-2000, you think we're going to be back at those rates within the next couple of years?

Yes

[jonewer]

I wouldn't get into mega debt but it's interesting that you mention a 3.5 multiple. I doubt £60k for people living on that road is realistic. Probably £60k each with a £100k deposit. So on that multiple that would be £420k + £100k deposit = £520k.

I'd love to know who all these millions of super-rich Londoners are, who they work for and what jobs they do.

[Jonnybegood]

Prices seem to be around the £300k mark 7 years ago (2001), add the time it takes the market to bottom and inflation and a realistic bottom for this property is going to be around £350k.

However this property is in very good order from looking at the pictures and to undertake this type of work in the area it is located would be likely to set you back £80-100k, maybe more.

So realistically I would say getting this property for £400-450k now is pretty safe bet.

http://www.houseprices.co.uk/e.php?q=SW198...p;s=31&n=10

Edited August 9, 2008 by Jonnybegood

[nicebuyer]

I'd love to know who all these millions of super-rich Londoners are, who they work for and what jobs they do.

It's not all that much money you know. Graduate starting wages (from a good Uni that it is) must be averaging at about £35k. I just had a quick look at jobs over £60k on Michael Page added in the last 7 days and there are more than 250 of them: http://*******.com/5gsykw

That's been one of the issues with house prices in our area. £100k between two people is not a lot and when banks were offering 5X income prices went through the roof. Especially here because it's a lovely area and 15 mins from Waterloo. Even now the banks are lending 4X as long as you have a decent deposit. Some of the prices are still going mad. check this: http://www.rightmove.co.uk/viewdetails-9496902.rsp? That went for £1.56m. This one's just on a road around the corner, it's not that nice an area, it's Pelham Road, http://www.rightmove.co.uk/viewdetails-6918594.rsp? Went for £1.1m

I went to see a place two weeks ago, on at £700k, said I would make an offer and they had accepted one a few days after it going on the market at £675k. I didn't even have the chance to make an offer!

People are nuts But if they have the money and the demand is there then why not?

[FrozenOut]

If someone has £1.5 million quid to spend on a house, do you REALLY think they're in a position to worry about house prices crashing?

[Liquid Goldfish]

to undertake this type of work in the area it is located would be likely to set you back £80-100k, maybe more.

What is worth this?

You could build the whole house for less than that

[juvenal]

It's not all that much money you know. Graduate starting wages (from a good Uni that it is) must be averaging at about £35k.

Where on earth do you get this figure from?. Outside the financial sector (contracting fast) graduates start on half your figure. Yes - 'good' universities and all. Govt average is £16-£19K

[renterbob]

It's not all that much money you know. Graduate starting wages (from a good Uni that it is) must be averaging at about £35k. I just had a quick look at jobs over £60k on Michael Page added in the last 7 days and there are more than 250 of them: http://*******.com/5gsykw

That's been one of the issues with house prices in our area. £100k between two people is not a lot and when banks were offering 5X income prices went through the roof. Especially here because it's a lovely area and 15 mins from Waterloo. Even now the banks are lending 4X as long as you have a decent deposit. Some of the prices are still going mad. check this: http://www.rightmove.co.uk/viewdetails-9496902.rsp? That went for £1.56m. This one's just on a road around the corner, it's not that nice an area, it's Pelham Road, http://www.rightmove.co.uk/viewdetails-6918594.rsp? Went for £1.1m

I went to see a place two weeks ago, on at £700k, said I would make an offer and they had accepted one a few days after it going on the market at £675k. I didn't even have the chance to make an offer!

People are nuts But if they have the money and the demand is there then why not?

Most graduates may start at 20k, if they're lucky, I know, I teach the little blighters.

Many are going under due to:

1. Huge student debt

2. Huge credit card debt

3. Mummy and Daddy can no longer remove equity from their now negative equity property.

4. Huge shop card debt

5. Their inability to see anything other than easy money, which they realise after they leave Uni that they must pay back.

On top of this you want our future generations to get into more debt.

I think the banks are now reaping the rewards of a few years of this frivolity.

The house: 65K max.

EDIT: Thanks for the posts Kirstie

BTW..the STC says it all on your rightmove prpperties.....they will fall through you know, they always do in 2008.

Edited August 9, 2008 by renterbob

[Jonnybegood]

What is worth this?

You could build the whole house for less than that

The property has a loft conversation and kitchen extension which from the photos seems to be a high quality job.

Extension - £30k

Loft & Ensuite - £20k

You will be suprised how quickly the other £30-50k can mount up, plastering each room, getting carpenters to fit new doors and architrave, new flooring, kitchen, bathroom.

It all seem to have been done to a high standard.

I assume you are currently renting as you have no appreciation for tradesman prices, plumbers , carpenters , builders in the London area.

And yes you can build a house for this type of money but first you need land, and that is not freely available and when found can be expensive, normally more than the cost of the building itself.

Anyone in the building trade will tell you it costs more to renovate than build from scratch as it normally means removing the old first before you begin adding to the overall cost.

[Liquid Goldfish]

The property has a loft conversation and kitchen extension which from the photos seems to be a high quality job.

Extension - £30k

Loft & Ensuite - £20k

You will be suprised how quickly the other £30-50k can mount up, plastering each room, getting carpenters to fit new doors and architrave, new flooring, kitchen, bathroom.

It all seem to have been done to a high standard.

I assume you are currently renting as you have no appreciation for tradesman prices, plumbers , carpenters , builders in the London area.

And yes you can build a house for this type of money but first you need land, and that is not freely available and when found can be expensive, normally more than the cost of the building itself.

Anyone in the building trade will tell you it costs more to renovate than build from scratch as it normally means removing the old first before you begin adding to the overall cost.

I've got to admit I hadn't looked in detail at the property and had missed the large extension

I can see that it might cost this.

But, still, is it worth spending that much on such a property, especially in expensive fittings, in terms of what it will add to the sale price?

[BoomBoom]

I'm interested in purchasing this place:

http://www.rightmove.co.uk/viewdetails-18737575.rsp

Assuming you are renting, would like to buy a new house and have the deposit you need, what kind of price drop would you need to see to make this a worthwhile purchase? Would a 10% drop make you feel happy about buying and not getting into trouble at a later stage? Or 20%? Maybe only 5%? I'm thinking that an offer of £520k in the current climate would be fair but am interested in what others think. Am I being a bit ambitious at thinking about such a drop?

Not worth a penny over £250k in a sane market.

[FunkyGibbon]

An extended Victorian terraced house in an average London suburb. Personally, I think 600K is utter madness and is the epitomy of everything that's wrong with the London housing market at the moment. If the vendors sell to you for anything near this price then you will have been well and truly mugged. Seriously, is this some sort of mistake? I think even at 300K this property would be overpriced and if I wanted to live in Wimbledon (which I don't) I would pay no more than 240K.

[Jim B.]

To the OP - you would be mad to offer £520k now. Prices are falling fast. Especially if you are intending to take out a mortgage to buy it. I reckon properties like this will be £350k in a year or two. Don't be tempted because it's a nice house.

[Nomadd]

I'm interested in purchasing this place:

http://www.rightmove.co.uk/viewdetails-18737575.rsp

Assuming you are renting, would like to buy a new house and have the deposit you need, what kind of price drop would you need to see to make this a worthwhile purchase? Would a 10% drop make you feel happy about buying and not getting into trouble at a later stage? Or 20%? Maybe only 5%? I'm thinking that an offer of £520k in the current climate would be fair but am interested in what others think. Am I being a bit ambitious at thinking about such a drop?

I'd pay about £250k for it in 5 years. And I've lived in London for the last 21 years, so I can remember times before the current house price stupidity. That house is..well..horrid. Even at £250k.

Nomadd

[iguana]

I live on the next street from that house and I don't think these houses are worth much over £200-220k, maybe less. The "am I dreaming that these may fall to £520k" made me laugh because on Florence road there is currently a 3 bed on for £520k, so I'd imagine that is the best price the Clarence Rd vendor could achieve, if they are very lucky. And there are quite a lot of these houses for sale at the moment.

Wimbledon is better than some on this thread suggest, neither too urban nor cloyingly suburban. And all the bars seem to do a 4 hour happy hour each day. South Park Gardens area, which these streets are part of, is pleasant but it is right at the edge of nice Wimbledon, as it gets shabbier south of the Broadway and east of Haydons Road.

Although I'm aware that when they were built they probably housed families of 11, I wouldn't be happy raising more than 2 toddlers, in these little houses. They are "starter homes" and in a falling market very few people fall for the "starter home" scam, so these houses become virtually unsalable.