Anyone struggling to buy a property even with funding?

[nantucket66]

We put our place up for sale last Friday, been looking around for the past few months in our area (don't want to switch school ideally) and plenty of nice property in our budget.

Over the past 6 days we've had 5 viewings, 2 good offers and another 5 viewings over the next 3 days. No more viewings being taken and we're looking good fingers crossed, but of course now there is nothing at all we remotely like, spoilt for choice 2 or 3 months ago.

Law of sod!

 

[MassiveJim]

Oh and you will probably retire in your mid to late 70s. Free markets eh. Magic.

but there is always the argument that we are healthier and living longer than ever before, 50 years ago retirement age was 65 with an average life expectancy of 72
Now the average life expectancy is 82, (which is 2.5x the amount of time spent retired compared to what it was in the 70s, if the retirement age were to stay at 65), so whilst I will probably moan about it just as much as others would, thinking logically, the retirement age is always going to naturally increase.

We put our place up for sale last Friday, been looking around for the past few months in our area (don't want to switch school ideally) and plenty of nice property in our budget.

Over the past 6 days we've had 5 viewings, 2 good offers and another 5 viewings over the next 3 days. No more viewings being taken and we're looking good fingers crossed, but of course now there is nothing at all we remotely like, spoilt for choice 2 or 3 months ago.

Law of sod!

My feeling is that the market has been somewhat dry now for a while, we really stretched ourselves to buy our current house, and I have my doubts wether it was the right decision or not, but having kept my eye on right move for smaller properties that would still fill our needs, or even ones that wouldn't fill our needs, but have scope to extend, I haven't yet found a property that would suit us.
So from that perspective we bought the right house.

Friend was in the same boat, needed to upsize and has had to buy a property that was almost 3 times the price he sold for, mortgage gone from £400pcm to £1400!

 

[Unseul]

but there is always the argument that we are healthier and living longer than ever before, 50 years ago retirement age was 65 with an average life expectancy of 72
Now the average life expectancy is 82, (which is 2.5x the amount of time spent retired compared to what it was in the 70s, if the retirement age were to stay at 65), so whilst I will probably moan about it just as much as others would, thinking logically, the retirement age is always going to naturally increase.

Whilst you're not wrong, I'd question how much of that comes from reducing infant mortality rates, rather than people who made it into adulthood actually living longer.

 

[fez]

but there is always the argument that we are healthier and living longer than ever before, 50 years ago retirement age was 65 with an average life expectancy of 72
Now the average life expectancy is 82, (which is 2.5x the amount of time spent retired compared to what it was in the 70s, if the retirement age were to stay at 65), so whilst I will probably moan about it just as much as others would, thinking logically, the retirement age is always going to naturally increase.

Oh from a purely logical standpoint it makes sense but we aren't live to an average age of 82 and being much healthier. If anything, as a country we are getting ever unhealthier and more disease/illness prone. The difference now is that when you get weight related diabetes or lifestyle related illnesses we are much better at treating you and keeping you alive for longer. Expecting people in their 70s to still be working is a little crazy when you think about it.

It becomes even less palatable when you consider the vast riches that a lucky few have in society and how much better we could make life for everyone if so much of the countries output wasn't funnelled to so few. Christ, I don't want to be working full time after I am 50, let alone 70.

 

[Puzzled]

but there is always the argument that we are healthier and living longer than ever before, 50 years ago retirement age was 65 with an average life expectancy of 72
Now the average life expectancy is 82, (which is 2.5x the amount of time spent retired compared to what it was in the 70s, if the retirement age were to stay at 65), so whilst I will probably moan about it just as much as others would, thinking logically, the retirement age is always going to naturally increase.

The quality of life in those final years hasn't necessarily improved at the same rate though. We may be living longer but someone retiring in their 70s likely won't have the same energy, health and opportunities as someone retiring in their 60s.

 

[cheesyboy]

but there is always the argument that we are healthier and living longer than ever before, 50 years ago retirement age was 65 with an average life expectancy of 72
Now the average life expectancy is 82, (which is 2.5x the amount of time spent retired compared to what it was in the 70s, if the retirement age were to stay at 65), so whilst I will probably moan about it just as much as others would, thinking logically, the retirement age is always going to naturally increase.

Prior to COVID, UK life expectancy had plateaued and was anticipated to actually be lower for young people now than our current old.

Another area where the Boomers got the plum deal

 

[cheesyboy]

Whilst you're not wrong, I'd question how much of that comes from reducing infant mortality rates, rather than people who made it into adulthood actually living longer.

Three score and ten (70) is in the Bible as a normal lifespan. We've never really gained much.

Infant mortality is a big impact on stats (and won't be factored in to the Bible number), though post-industrial revolution working conditions brought it down too.

 

[nantucket66]

Friend was in the same boat, needed to upsize and has had to buy a property that was almost 3 times the price he sold for, mortgage gone from £400pcm to £1400!

We are likely to be in the same position in terms of mortgage size once we find somewhere, We're tempted to look at new build (which I never thought I'd say), is it a lesser of 2 evils? - Dealing with the snagging of a new build but having no chain to worry about, the offers on our place are all from first time buyers, one of whom has the bank of mum and dad paying so no mortgage at all.

4 more viewings over weekend then decide early next week.

 

[BongoHunter]

We are likely to be in the same position in terms of mortgage size once we find somewhere, We're tempted to look at new build (which I never thought I'd say), is it a lesser of 2 evils? - Dealing with the snagging of a new build but having no chain to worry about, the offers on our place are all from first time buyers, one of whom has the bank of mum and dad paying so no mortgage at all.

4 more viewings over weekend then decide early next week.

Not all new builds are equal - there are still some great developers out there who do the job right.

We looked at a couple from smaller developers and the quality was top notch (partner works in construction as a surveyor so really got into the detail)

 

[nantucket66]

Not all new builds are equal - there are still some great developers out there who do the job right.

We looked at a couple from smaller developers and the quality was top notch (partner works in construction as a surveyor so really got into the detail)

I'm sure you're absolutely right, I'm just thinking of the big well known names I guess, seen an awesome old house today, we were the first people through the door and very likely to make an offer tomorrow. I suspect it will go silly! We'll see!

 

[BongoHunter]

I'm sure you're absolutely right, I'm just thinking of the big well known names I guess, seen an awesome old house today, we were the first people through the door and very likely to make an offer tomorrow. I suspect it will go silly! We'll see!

Having been through something similar - if it's a house you really like and plan to stay in a long time, don't fret too much about making a big offer. Over the lifetime of the property it won't won't make much difference and at least it will be done and dusted.

 

[ChocAndGray]

This isn't just limited to buying properties.

It's even worse for those renting. Viewings fully booked within minutes (seemingly) of an advert going up, people offering more than asking etc.

Everything is mad at the moment.

I think the biggest factor is location surely?

 

[BongoHunter]

This isn't just limited to buying properties.

It's even worse for those renting. Viewings fully booked within minutes (seemingly) of an advert going up, people offering more than asking etc.

Everything is mad at the moment.

I think the biggest factor is location surely?

Got to be - pandemic really changed people's priorities, and many professionals/white collar workers will be WFH a lot more so will be able to consider a location they wouldn't normally.

We're currently relocating from London to South coast as though the journey to work is crap, we only need to do it a couple of days a week max - we have way more to spend on a property than a lot of locals as we get paid London wages still.

We've managed to get a house where the garden is 4/5 times larger, and the house itself is 3 times the square footage - the extra we've had to add to the mortgage is covered by the saving in child care alone (1600 pm where we live in London Vs 800pm where we are moving to).

If it wasn't for Covid changing how we work we wouldn't have left London.

 

[nantucket66]

Having been through something similar - if it's a house you really like and plan to stay in a long time, don't fret too much about making a big offer. Over the lifetime of the property it won't won't make much difference and at least it will be done and dusted.

We got it! More than the asking price, but a good chunk under what I expected, went down the road of saying what will it take to stop viewings and not enter a bidding war, very happy, definitely a forever home, tons of space and a fab garden. We accepted an offer on our place today from a cash buyer as well, when they viewed I made it obvious that we wanted someone who would work with our timescale which they have said they are happy to do. No onward chain on the property we are buying as well. First hurdle done, but not celebrating just yet!!

 

[Irish_Tom]

Case in point, a place came on the market at £995k. It had a nice view but it needs a lot of work to bring it up to scratch (or it needs knocking down and re-building). They kept dropping the price and it’s now on at £750k but it’s still not selling.

Another place just came on at £685k — sure they’ve done a nice job decorating and it’s got a nice kitchen, but it’s a bog-standard 4-bed, it’s really nothing special. Frankly, £585k would be a lot for it.

A bungalow down the road has been listed at £1.2m Honestly, if it sells for that I will eat every hat I own.

Well, the bungalow has sold after they reduced it to £1.1m — absolutely nuts considering a similar place sold for £750k back in October.

The worrying thing for us is it now sets a ridiculous precedent for that kind of price on one of the few streets we actually want to live on.

We could have afforded the £750k one (had our viewing cancelled an hour before the appointment ) but £1m is beyond us.

The £995k down to £750k has finally sold. The £685k place is still on the market.

Nothing of interest has come up since my last post. Still very frustrating.

 

[dlockers]

Well, the bungalow has sold after they reduced it to £1.1m — absolutely nuts considering a similar place sold for £750k back in October.

The worrying thing for us is it now sets a ridiculous precedent for that kind of price on one of the few streets we actually want to live on.

We could have afforded the £750k one (had our viewing cancelled an hour before the appointment ) but £1m is beyond us.

The £995k down to £750k has finally sold. The £685k place is still on the market.

Nothing of interest has come up since my last post. Still very frustrating.

Been through (and may still be going through this cycle).

One house was 850k, listed as a 3 bed with off road parking. We viewed it and it was a 2 bed with a box/study. It was up for months and finally they just de-listed it.

A house a street over, no parking - 3 bedrooms (2 plus loft room) - 850k, immaculately decorated - went for £898k in the end.

I think people are willing to pay top dollar for "forever homes" and those that don't cut the mustard get battered. My was up at £550k and we had 9 viewings on the first day, with an offer of £525k. We were probably a bit premature to accept the £525k but we did on the basis that we would half a chance when we offered elsewhere...

Unfortunately it mattered none as they still expected cash buyers/no chain people. Feel a bit silly now I've paid £860k for a house where the neighbor paid £740k a year ago -- identical but better in every way. And a fully extended (side/rear/two story) sold for £880k a year ago.

I think COVID has pushed the full size 3 bed houses into mega territory, and anything other than that is just not worth the cost to change.

 

[Irish_Tom]

Been through (and may still be going through this cycle).

One house was 850k, listed as a 3 bed with off road parking. We viewed it and it was a 2 bed with a box/study. It was up for months and finally they just de-listed it.

A house a street over, no parking - 3 bedrooms (2 plus loft room) - 850k, immaculately decorated - went for £898k in the end.

I think people are willing to pay top dollar for "forever homes" and those that don't cut the mustard get battered. My was up at £550k and we had 9 viewings on the first day, with an offer of £525k. We were probably a bit premature to accept the £525k but we did on the basis that we would half a chance when we offered elsewhere...

Unfortunately it mattered none as they still expected cash buyers/no chain people. Feel a bit silly now I've paid £860k for a house where the neighbor paid £740k a year ago -- identical but better in every way. And a fully extended (side/rear/two story) sold for £880k a year ago.

I think COVID has pushed the full size 3 bed houses into mega territory, and anything other than that is just not worth the cost to change.

It’s absolutely crazy.

Part of me thinks it can’t be sustainable at this rate and a crash (or at least a significant slowdown) is inevitable. On the other hand, you could have said the same thing at any point in the last few years and things have continued to rocket.

What’s the saying about the market can stay irrational longer than you can stay solvent — feels like the same sort of thing.

 

[HangTime]

Got to be - pandemic really changed people's priorities, and many professionals/white collar workers will be WFH a lot more so will be able to consider a location they wouldn't normally.

We're currently relocating from London to South coast as though the journey to work is crap, we only need to do it a couple of days a week max - we have way more to spend on a property than a lot of locals as we get paid London wages still.

We've managed to get a house where the garden is 4/5 times larger, and the house itself is 3 times the square footage - the extra we've had to add to the mortgage is covered by the saving in child care alone (1600 pm where we live in London Vs 800pm where we are moving to).

If it wasn't for Covid changing how we work we wouldn't have left London.

https://www.ons.gov.uk/chartimage?uri=/economy/inflationandpriceindices/bulletins/housepriceindex/january2022/1e126d6a

London prices are rising at around 2%, but areas periodically commutable to London (midlands, south, east) are experiencing double-digit growth. Plenty of people on good earnings with London equity just spreading out into these areas.
I think this is the trend that may sustain for a while because despite increased cost of living and rising prices these buyers are still wooed by the extra space they get. In other words a house a couple of hours from the capital may have risen by 30% in the past 2 years, but it still looks "cheap" to the city slickers, you'll get a long tail on this I think as not everyone working in London will have instantly jumped ship, some will have been waiting to see what post-pandemic looks like, if changes in working styles are here to stay or not, or just have been weighing up the loss of London lifestyle. These people will be trickling through and keeping demand up over a period of years.

I feel there's a lot of potential for growth in previously overlooked areas that don't have fast connections to London, because they never really got the 'commuter belt' premium in yesteryear. They can sustain high growth for longer because they are starting from a low base. Obviously in the longer term there will be more equilibrium with "the locals" getting diluted by influx of newbies in the same way that historically happened for commuter towns and villages.

 

[Grim5]

£33k in a year! The average house earns more annually than the average worker

That's so cheap lol, come here where the average house price just went up 30% in a year to (converted) 635 thousand pounds and 635 isn't even a nice house, if you want a new 3/4 bed on a small section it's 1 million pounds or more

Maybe I should move to the UK, buy a house cash but I hear the average floor size is quite small in your houses

 

[mattyfez]

it's a strange situation, but I really don't understand all this 'houses getting snapped up at 20% over asking the second they hit the market.

If you are a serious buyer, you'll know the market, and approximatley what the place is worth, and it won't be a differental of 5% if that.

Its all BS and hype.