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


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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. :lol: 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. :P 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.

We've lived around the SPG area for a while, in fact we've just sold on Hardy Road. Florence is nice but the houses are smaller than in Clarence, not as wide and the gardens are tiny in comparison. I've seen a couple of Florence, I think I saw the £520 one, Clarence is always going to be a bit more expensive.

The South Park Gardens area is a lovely part of Wimbledon and in the right areas for the schools, especially Holy Trinity. Faraday is good for that too. I think you and others that value these houses at £250k are dreaming. £250k? I'd buy three in a row and make a large house :) !!! There;'s too much demand for them to drop that low, most people who have moved once in Wimbledon could afford to buy at that level outright. If you put them on at £400k there would be people fighting over them. I'd buy two at that and I bet I'd make money on them in the next 5 years.

I'm intrigued though....all those people that have purchased in those roads over the last 4 years at £400k+ (remember there's a massive turnover) what do they do? Do they sell at a £150k loss? I doubt it, they'll just stay there so supply will go down no? And if the demand is there for schools then demand will go up yes? You still think prices would drop in such a scenario?

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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 know this street, my friend bought a place a few streets away in 2002. It really is a rather average part of London, rows of terraces...a few council estates within spitting distance. Not safe at night but then where is in London these days. Takes longer to get into town than from say Sussex.

So this is a 3 bed terrace, had a bit of "changing rooms" style work done on it (TBH everything screams cheap unimaginitive design by numbers - quite chavvy - looks a bit like an ex council do up job - property ladder style). My friend paid something around £230k for his place but to be honest didn't have the extension - looks identical to this place though.

A finger in the air estimate I would suggest waiting until it goes down to £500k and then offering around £350k. These houses just aint selling. My mate would be looking to get about £300k for his place but he is refreshingly realistic about the prices in that area.

In my opinion if you pay over £400k for this average 3 bed terrace house you need your head examining. Give it 6 months and rent until it goes down to £500k and then go in for the kill at £350k. You might even get it cheaper looking at the current situation in London and the way it is unfolding.

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We've lived around the SPG area for a while, in fact we've just sold on Hardy Road. Florence is nice but the houses are smaller than in Clarence, not as wide and the gardens are tiny in comparison. I've seen a couple of Florence, I think I saw the £520 one, Clarence is always going to be a bit more expensive.

The South Park Gardens area is a lovely part of Wimbledon and in the right areas for the schools, especially Holy Trinity. Faraday is good for that too. I think you and others that value these houses at £250k are dreaming. £250k? I'd buy three in a row and make a large house :) !!! There;'s too much demand for them to drop that low, most people who have moved once in Wimbledon could afford to buy at that level outright. If you put them on at £400k there would be people fighting over them. I'd buy two at that and I bet I'd make money on them in the next 5 years.

I'm intrigued though....all those people that have purchased in those roads over the last 4 years at £400k+ (remember there's a massive turnover) what do they do? Do they sell at a £150k loss? I doubt it, they'll just stay there so supply will go down no? And if the demand is there for schools then demand will go up yes? You still think prices would drop in such a scenario?

What was wrong with them in 2000 when people were buying them for 250k? Also all this waff' about buying 10 plus one for your dog...where would you be getting the money for this may l ask??

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We've lived around the SPG area for a while, in fact we've just sold on Hardy Road. Florence is nice but the houses are smaller than in Clarence, not as wide and the gardens are tiny in comparison. I've seen a couple of Florence, I think I saw the £520 one, Clarence is always going to be a bit more expensive.

The South Park Gardens area is a lovely part of Wimbledon and in the right areas for the schools, especially Holy Trinity. Faraday is good for that too. I think you and others that value these houses at £250k are dreaming. £250k? I'd buy three in a row and make a large house :) !!! There;'s too much demand for them to drop that low, most people who have moved once in Wimbledon could afford to buy at that level outright. If you put them on at £400k there would be people fighting over them. I'd buy two at that and I bet I'd make money on them in the next 5 years.

I'm intrigued though....all those people that have purchased in those roads over the last 4 years at £400k+ (remember there's a massive turnover) what do they do? Do they sell at a £150k loss? I doubt it, they'll just stay there so supply will go down no? And if the demand is there for schools then demand will go up yes? You still think prices would drop in such a scenario?

No. Certainly not all of them. Those trading up will be needing to fund the price differential between their sale (£p) and their purchase (£P). In the current market that differential will cost them.... £(P-p).

But after a 30% drop, it will cost them less... £(P-p)x.7

Why would they give a shìt what their current house is worth if it's costing them less money to move to a better house?

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What was wrong with them in 2000 when people were buying them for 250k? Also all this waff' about buying 10 plus one for your dog...where would you be getting the money for this may l ask??

And what kind of idiot buys at £400k when they have just dropped £200k in 2 years. I presume that during a recession you are assuming that everybody in London will be keeping their well paid jobs and willing to prop the market up.

The brother in law is a lawyer in W1 and his firm has just axed over 100 people (all on £60k+ jobs). He tells me that there is no recruitment going on in law so many are desperately selling their over stretched property before their 3 month redundancy pay runs dry.

More Supply whilst demand shrinks to literally nothing. Prices are set to freefall.

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We've lived around the SPG area for a while, in fact we've just sold on Hardy Road. Florence is nice but the houses are smaller than in Clarence, not as wide and the gardens are tiny in comparison. I've seen a couple of Florence, I think I saw the £520 one, Clarence is always going to be a bit more expensive.

Florence and Clarence are the exact same houses. Both are 16ft wide. They have the exact same gardens, I can see them out the window of my back bedroom. Mine is 45ft from the extention to the bottom. The houses on Effra Rd are bigger, but Florence and Clarence are identical.

It's a nice area, really very nice. But only for renting. I wouldn't buy here because as Einstein has pointed out, there are quite a few council buildings around. Just the buildings themselves are eyesores. I really like the houses on Princes Rd, but every few houses there is a break and an ugly square council flat building. Nevermind the fact that living next to a council property increases the odds of you having anti-social neighbours.

Although I disagree that it isn't safe to walk around at night. I used to live in N17 where I felt perfectly safe walking around at night (and I'm a 5ft tall woman) so this area is a doddle. It's also only a 25min train journey from S. Wimbledon station to Tottenham Court Rd in the mornings, so I don't know how that's possible from Sussex? In fact I better get off my ass as I'm meeting a friend on Oxford St in 45 minutes and I still need to get changed. :P

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No. Certainly not all of them. Those trading up will be needing to fund the price differential between their sale (£p) and their purchase (£P). In the current market that differential will cost them.... £(P-p).

But after a 30% drop, it will cost them less... £(P-p)x.7

Why would they give a shìt what their current house is worth if it's costing them less money to move to a better house?

Some of them may well be forced to sell up because of redundancy, or by divorce/separation brought about by financial problems, and some may well end up being repossessed.

I wouldn't be surprised if this sort of enclave is just the sort of place where mewing is rife for school fees, posh cars etc. These are just the sort of people who will find it very difficult to adjust to changed financial circumstances.

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I'm interested in purchasing this place:

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

Schuey - Can you provide more information. What would you pay to rent such a place today? And what did these houses go for in 2006 and 2005 ?

I would look to pay around 2004 values or a rental 5% yield.

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

You seem to have forgotten who got us into this mess. City of London, Docklands, World Financial centre etc etc London is a big city, naturally there are some very rich people here, and who says just because they live/own a house here, that they work here.

Wimbledon is a great area. I would love to live there if I could afford it. I think someone was talking about a 250K valuation, or even less? I think that is being a bit silly sorry, but perhaps understandiable if you don't live in/know London. At those prices my wife and I could afford to live there and we are not earning that much money compared to so many in London. Unless wages are going to go down in London a lot, maybe by half then that valuation would never happen.

The way I am going about things is looking at the price falls predicted on this site of 35%. Find out how much a property like that was worth at the peak of 2007 and knock off 35% and see if you can get that.

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Some of them may well be forced to sell up because of redundancy, or by divorce/separation brought about by financial problems, and some may well end up being repossessed.

I wouldn't be surprised if this sort of enclave is just the sort of place where mewing is rife for school fees, posh cars etc. These are just the sort of people who will find it very difficult to adjust to changed financial circumstances.

True, but I was talking specifically about those who've been in the housing melee for a few decades who've been sitting frugally on plenty of equity and who are just about bright enough to understand that they can be beneficiaries of a housing crash when trading up. They exist.

But now add in your forced sale victims and - hey presto - loads of houses for sale at a price we can all afford!

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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

In London? That was around the average graduate wage when I graduated in 1997 (In London). A receptionist gets more than that here.

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What was wrong with them in 2000 when people were buying them for 250k? Also all this waff' about buying 10 plus one for your dog...where would you be getting the money for this may l ask??

Wages were much lower in those days, London wages have risen considerably since 99/2000. I remember paying a grad £18k back then, they start on £25-£30k now and that's the bad ones. As for buying ten, no, I couldn't afford that :) But at £250k I would buy three. That's £750k for a 9 bed mansion in one of the nicest areas in London and close to town. :) Where would the money come from? Half deposit, half mortgage.

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The plasterboard joins in the curved ceilings look awful they should have used glass-fibre reinforced gypsum board to curve, tapered the joins in a curve, the light fittings are from argos and the dining room chairs and sofas are chinese imports off ebay.

Also the garden fencing is brand new.

Nothing wrong with that, just it's an investment property so a markup is invovled and they may have cut corners elsewhere or done DIY work.

Really don't like the ceiling myself,

26204_9362A_W1690_IMG_06_0000.JPG

Edit: taper joins

Edited by maxwell
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Are these sort of properties generally bought by FTBs?

They would be in most parts of the country

May be a dumb question but I don't know London

Not in London no. As an example my friend graduated the same time as me in 1997. The housing market was a lot more sane then. He managed to get a graduate job and bought a two bedroom maisonettei n Tooting, a scary part of London.

He and is wife are now both middle managers, I am guessing earning well over 40K each, (and both had pre-bubble purchased maisonettes to sell) but they can still could still only afford a two bedroom semi in an average part of North East London.

Even my parents when they first bought in London (maybe in the 1960s?) could only afford to buy a maisonette at first, with help from parents. They were on average wages then working in a bank.

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Schuey - Can you provide more information. What would you pay to rent such a place today? And what did these houses go for in 2006 and 2005 ?

I would look to pay around 2004 values or a rental 5% yield.

I've seen a couple recently, they're on at between £2k and £3k depending on number of bedrooms. A fair average would be about £2.5k PCM. In 2005 they went for around £450k, 2006 around £500k.

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True, but I was talking specifically about those who've been in the housing melee for a few decades who've been sitting frugally on plenty of equity and who are just about bright enough to understand that they can be beneficiaries of a housing crash when trading up. They exist.

But now add in your forced sale victims and - hey presto - loads of houses for sale at a price we can all afford!

Ah yes. I actually meant to reply to the same post you replied to. Would have made more sense following that one rather than yours. I fully agree with your point about "trader-uppers" not caring about price drops. Every little helps :)

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