House purchase thoughts in current market

culvers · 4 Mar 2012 at 22:23

SpeedFreak said:
And the "added value" is my real problem with the pricing.

Added value is a myth cooked up by lame property shows like location, location, location. The only reason people made money buying houses and "doing them up" was because the market was rising, and not because they painted it and put some twigs in a vase. They would have made the same profit simply by holding the house and selling after the market had risen.

If you are not paying rent, even more reason to sit tight and watch the fireworks - grab your self a bargain a few years down the line once the numpties who joined the pyramid scheme at the end lose their shirt.

culvers · 4 Mar 2012 at 22:24

Stretch said:
The us and Irish markets crashed years ago.

crashed? they are still crashing, the irish market is still a fair distance from reaching the bottom

SpeedFreak · 4 Mar 2012 at 22:31

culvers said:
twigs in a vase.

sounds like you and I regular the same forum

SpeedFreak · 4 Mar 2012 at 22:32

culvers said:
crashed? they are still crashing, the irish market is still a fair distance from reaching the bottom

It's all the more annoying that my brother didn't take my advice two years ago in N. Ireland. To say things are bad is a huge understatement.

EdwardTeach · 4 Mar 2012 at 22:39

In your situation don't be scared to negotiate hard. Offer 250, if they say no offer 252! Keep hitting them with low offers and see how keen they are to sell. Don't get too attached to any particular property, living rent free really puts you in driving seat.

SpeedFreak · 4 Mar 2012 at 22:42

EdwardTeach said:
In your situation don't be scared to negotiate hard. Offer 250, if they say no offer 252! Keep hitting them with low offers and see how keen they are to sell. Don't get too attached to any particular property, living rent free really puts you in driving seat.

The only thing I really hate is the 3% stamp threshold.

Raumarik · 4 Mar 2012 at 22:45

radderfire said:
My view is that the property market is going to remain flat for the next few years.

It's a buyer's market. Estate Agents will always tell them to start high. Don't be afraid to make cheeky offers, they can only say no.

Rgds

Actually most estate agents are trying to push down prices to get sales and commission from what I've seen in the past 18 months. The more properties moving, the greater the profit, it's the only way they can maintain a decent turn over as over priced properties aren't getting viewings and aren't selling. People aren't daft, if you ask too much they won't waste their time on it.

OP - It sounds overpriced, but try to find out what work they've done since moving in. It isn't always apparent but could be a fair amount more than the neighbouring property and that could be the reason they're looking to get a little more for it. That doesn't mean you have to offer it though.

SPG · 4 Mar 2012 at 22:47

Wait 6 months,

Prices are going to bomb again due to the euro not being fixed.

SpeedFreak · 4 Mar 2012 at 22:57

Thanks for the input guys. I will stick with my instincts and hold fire. I'll see if it's about in a few months time but if not there will always be others. Ideally I don't want to pay over 250 anyhow. Renting is always an option if I get fed up with this living for free lark (well we do pay the bills)

radderfire · 4 Mar 2012 at 23:03

Whilst I think that property prices will generally flatline, they are being held artificially high by all the bank bailouts. If the Euro has a major hiccough, then that could cause property prices in the UK to fall IMO. It is totally a buyer's market, so not only cheeky offers but very cheeky offers are worth making. The worst that can happen is you lose the house to someone else, but all the time more and more good deals are likely to come to market, because people are really going to start feeling the pressure quite soon. The UK economy is in a really big mess, so property buyers that aren't in a rush should make sure they are getting a good deal.

Rgds

Ev0 · 5 Mar 2012 at 04:03

The market isn't as dire as people would like to think it is. Yeah it's not great, but it's not awful.

My folks bought a new build 4 bed detached in 2009/2010 and paid 267 for it. Sold it this week after 3 weeks on the market for 278 and I think it was up for 285.

I'm guessing there's some reason why one sold in the 270s if this is up for 305 as that's a hefty gap for just a few months. Could just be that the seller really needed to sell, or wanted a quick sale so took a low offer.

If it's up for 305 then an offer in the 240s isn't likely to be accepted.

Could also be a rubbish agent with a crap valuation as well as there are some clueless shockers around.

Richie · 5 Mar 2012 at 06:38

SpeedFreak said:
sounds like you and I regular the same forum

I would never have guessed... Culvers may as well go outside like this guy:

MBennett · 5 Mar 2012 at 09:22

You sound although you are in a good place, being rent free and having some savings in gold so personally I would wait. Like others have said you should let them know you know what they paid for it and ask what they have done that warrants another £50k (and no, a lick of paint and some twigs in a base don't cut it). They are probably trying it on as they know they will have to knock it down 10% so have bumped up the initial asking price by the same amount.
If they don't go for that then move on, there are plenty more distressed sellers in the sea that will be far more reasonable.

My personal opinion on property now is that it would be akin to buying a ticket for the maiden voyage of the Titanic. Property prices outside of the SE have been falling but overall London has managed to mask this with foreign investors taking advantage of the weak pound and snapping up a property in a stable country. However IMHO we could see this effect diminish post Olympics, combine this with an increasing Libor rate which means mortgage rates will be going up irrespective of BoE rates and more distressed sellers and I think we might just have a crash on our hands (finally).

NotAGolf · 5 Mar 2012 at 09:39

For those of you saying that you think there will be a crash, what kind of % drop in house prices would constitute a crash to you? 10%, 20%, 50%?

EdwardTeach · 5 Mar 2012 at 09:40

Ev0 said:
The market isn't as dire as people would like to think it is. Yeah it's not great, but it's not awful.

My folks bought a new build 4 bed detached in 2009/2010 and paid 267 for it. Sold it this week after 3 weeks on the market for 278 and I think it was up for 285.

.

Very true, I am not seeing any problems where I live. The uk house Market is not uniform. You will have regional bubbles, and even in London, there is no city wide pattern each area is different. We bought our flat in Maida vale in dec 2008. We have had it valued a couple of times recently as we are considering selling it. All the valuations are placing it 35-40% more than what we paid. These were not figures plucked out of thin air, but sale prices of properties with the same floor an in the same building. Needless to say we are delighted, but are probably going to rent it out.

realBabelfish · 5 Mar 2012 at 10:00

SpeedFreak said:
It's funny that the general public feel that high house prices are actually a good thing in the UK. The BBC are pedalling this pro house price inflation crap on a regular basis as well.

agreed. nobody benefits from high house prices apart from the government (more people paying stamp duty and paying higher levels) and people downsizing or emigrating.

shoes · 5 Mar 2012 at 11:54

Well I've just bought a house for £222k which the owners paid £88k for in 2001

HummuH1 · 5 Mar 2012 at 12:19

culvers said:
edit: just look at what has happened to the property market in the USA and Ireland for a little taster of what will be coming to the UK soon...

And how exactly do you come to that conclusion?

aardvark · 5 Mar 2012 at 12:25

SpeedFreak said:
Thanks for the input guys. I will stick with my instincts and hold fire. I'll see if it's about in a few months time but if not there will always be others. Ideally I don't want to pay over 250 anyhow. Renting is always an option if I get fed up with this living for free lark (well we do pay the bills)

good idea - no point jumping in now when prices will be flat at best.
plenty of economic problems on the horizon that will probably raise interest rates and screw the housing market - greece is just the start.

elmarko · 5 Mar 2012 at 13:55

realBabelfish said:
agreed. nobody benefits from high house prices apart from the government (more people paying stamp duty and paying higher levels) and people downsizing or emigrating.

I think you will find the banks benefit from high house prices greatly.

Every other company loses out (due to a reduction in disposable income for the average worker).