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  • FIRST POST
    • heyya99
    • By heyya99 14th Apr 17, 11:45 AM
    • 9Posts
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    heyya99
    How is the London market?
    • #1
    • 14th Apr 17, 11:45 AM
    How is the London market? 14th Apr 17 at 11:45 AM
    I was about to buy a 2-bed in September in Surrey Quays, London. The asking price was 600k and I got it agreed at 550k. I lost my job so pulled out. The flat since went for 505k.

    Now I'm back in the market. Have prices fallen? I don't see asking prices have. One agent (Foxtons) is telling me that right now, the market is picking up and not to wait. Another agent said asking prices are still the same but that, depending on circumstances, sale prices are lower.

    Who do I believe?
Page 2
    • cashbackproblems
    • By cashbackproblems 17th Apr 17, 1:19 PM
    • 1,627 Posts
    • 622 Thanks
    cashbackproblems
    key is to make offers, as already mentioned i offered well below asking and stuck to my guns (don't show seller/EA how much you really like it), a few more weeks and no offers the seller came begging, and even managed to include all the newish white goods he had bought, into my original offer.
    • Crashy Time
    • By Crashy Time 17th Apr 17, 2:46 PM
    • 4,007 Posts
    • 1,936 Thanks
    Crashy Time
    http://www.cityam.com/262960/uk-house-prices-unattainable-no-not-just-london-most
    • hazyjo
    • By hazyjo 17th Apr 17, 3:55 PM
    • 8,971 Posts
    • 11,180 Thanks
    hazyjo
    If you were buying a house in London at this point in time would you buy now or wait then?
    Originally posted by Lamy
    I'd buy when the time was right for me. There will ALWAYS be something making you say today is more of a risk. If you're buying for a 'home', ride out anything that comes along. Make sure you're not buying something you'll outgrow in say 2 years. Two years until Brexit, and probably the same again after that. Think of all the rent that could have been paying down a mortgage...

    Jx
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; book; film Premiere; Broadchurch DVDs
    • Crashy Time
    • By Crashy Time 18th Apr 17, 8:07 PM
    • 4,007 Posts
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    Crashy Time
    I'd buy when the time was right for me. There will ALWAYS be something making you say today is more of a risk. If you're buying for a 'home', ride out anything that comes along. Make sure you're not buying something you'll outgrow in say 2 years. Two years until Brexit, and probably the same again after that. Think of all the rent that could have been paying down a mortgage...

    Jx
    Originally posted by hazyjo

    Depends how much you are paying in rent. If France is the catalyst for EZ break up, watch rates rise.
    • Crashy Time
    • By Crashy Time 20th Apr 17, 7:49 PM
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    Crashy Time
    key is to make offers, as already mentioned i offered well below asking and stuck to my guns (don't show seller/EA how much you really like it), a few more weeks and no offers the seller came begging, and even managed to include all the newish white goods he had bought, into my original offer.
    Originally posted by cashbackproblems

    Many sellers won`t do this though, it looks like it will take rate rises or recession to get many to come round to the idea of dropping their price?
    • hutman
    • By hutman 24th Apr 17, 4:33 PM
    • 66 Posts
    • 24 Thanks
    hutman
    I'm a hovering FTB so have vested interest in the developments of this topic.

    To me, London has to quote UBS "elevated risk of prices correction" due to it being completely out of tune with market fundamentals - riding the wave of positive expectations, basement rates and foreign capital inflows. The fundamentals being price-income ratios, inflation, wages, economic policy.

    Thus i too am hoping for a crash but fear due to the nature of property being an illiquid asset, the phasing of monetary policy and watering down of burgeoning expectations.. it will take time.
    The biggest factor which would stop this was relentless pace of migration into London holding it up... So FTB are sincerely hoping Mrs May does mean "Brexit means Brexit"
    • chucknorris
    • By chucknorris 24th Apr 17, 4:39 PM
    • 8,770 Posts
    • 13,080 Thanks
    chucknorris
    I'm a hovering FTB so have vested interest in the developments of this topic.

    To me, London has to quote UBS "elevated risk of prices correction" due to it being completely out of tune with market fundamentals - riding the wave of positive expectations, basement rates and foreign capital inflows. The fundamentals being price-income ratios, inflation, wages, economic policy.

    Thus i too am hoping for a crash but fear due to the nature of property being an illiquid asset, the phasing of monetary policy and watering down of burgeoning expectations.. it will take time.
    The biggest factor which would stop this was relentless pace of migration into London holding it up... So FTB are sincerely hoping Mrs May does mean "Brexit means Brexit"
    Originally posted by hutman
    We have given up extending our existing home (which would be better value, but we can't be bothered with the hassle). So we are looking to buy and upsize our home (not in London but in nearby Surrey: Dorking, Leatherhead, Ashtead or Guildford). So although we still hold investment property, a temporary fall would actually suit us (I bet that is a surprise to Crashy).
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • Planet Switzerland
    • By Planet Switzerland 24th Apr 17, 10:53 PM
    • 94 Posts
    • 60 Thanks
    Planet Switzerland
    According to Zoopla my flat is worth 6% more than what I paid for it last year, but you have to take that with a pinch of salt.


    Not too sure about now, but when I was looking there were properties coming onto the market for quite ambitious prices but eventually selling at the typical area price, so being made to look like bargains when they weren't, just nobody was foolish enough to pay the original asking prices.
    • hazyjo
    • By hazyjo 25th Apr 17, 12:11 AM
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    hazyjo
    According to Zoopla my flat is worth 6% more than what I paid for it last year, but you have to take that with a pinch of salt.


    Not too sure about now, but when I was looking there were properties coming onto the market for quite ambitious prices but eventually selling at the typical area price, so being made to look like bargains when they weren't, just nobody was foolish enough to pay the original asking prices.
    Originally posted by Planet Switzerland
    A whole sack of salt lol. Undervalues mine and what I'm looking at by up to around 150k

    Prices are at last sticking in Leigh-on-Sea, along with several reductions. At last we may be able to afford what we want - although our E4 market is very slow. The EA said it's not been like this for months/years. Way down on viewings/offers compared to last year. Seems to be certain areas that are affected at the mo, not everywhere (yet).

    I suspect they will pick up in the next three months or so, but I do think they'll start creeping down again the closer to Brexit we get - and prob for a good year or so after. But I'm only guessing (along with the 'experts'!). It's all an unknown.
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; book; film Premiere; Broadchurch DVDs
    • Crashy Time
    • By Crashy Time 26th Apr 17, 8:43 PM
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    Crashy Time
    A whole sack of salt lol. Undervalues mine and what I'm looking at by up to around 150k

    Prices are at last sticking in Leigh-on-Sea, along with several reductions. At last we may be able to afford what we want - although our E4 market is very slow. The EA said it's not been like this for months/years. Way down on viewings/offers compared to last year. Seems to be certain areas that are affected at the mo, not everywhere (yet).

    I suspect they will pick up in the next three months or so, but I do think they'll start creeping down again the closer to Brexit we get - and prob for a good year or so after. But I'm only guessing (along with the 'experts'!). It's all an unknown.
    Originally posted by hazyjo

    Buyers might not see it that way though?
    • hazyjo
    • By hazyjo 27th Apr 17, 10:16 AM
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    hazyjo
    Buyers might not see it that way though?
    Originally posted by Crashy Time
    Then they need to give their heads a wobble. If they don't know Zoopla is not to be trusted and start quoting it as scientific fact, then I really don't think they're ever going to find a house in my area.


    Thankfully I know it's BS and won't be offering 150k-ish lower on the houses we like.
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; book; film Premiere; Broadchurch DVDs
    • cloo
    • By cloo 27th Apr 17, 10:26 AM
    • 854 Posts
    • 680 Thanks
    cloo
    I think it's been fairly static since we bought almost exactly two years ago in a North London suburb. The luxury market in central London's really collapsed, the normal one is holding, though I think compared to when we bought, more of a gap is opening up between properties in a good state and ones in need of work or with odd layouts that might be harder to sell, so you may get a better deal with a property with more flaws, although best to make sure they're solvable ones.
    • Yazmina
    • By Yazmina 27th Apr 17, 10:52 AM
    • 71 Posts
    • 16 Thanks
    Yazmina
    What effect does anyone think the election will have? We're under offer in SW17. I think the offer is reasonable considering recent sales in the area. Hubby wants to wait until after 8/6.
    • hazyjo
    • By hazyjo 27th Apr 17, 11:33 AM
    • 8,971 Posts
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    hazyjo
    What effect does anyone think the election will have? We're under offer in SW17. I think the offer is reasonable considering recent sales in the area. Hubby wants to wait until after 8/6.
    Originally posted by Yazmina
    People don't like a deadline so I suppose a lot will wait until after. Most won't even know why they're waiting, it's a bit like lemmings


    Not sure if it will have an impact on prices, just that it'll be static. People do tend to panic though (me included) and think it's not selling so it's the price and drop - and it still won't sell. That may cause wider panic and everyone runs around like headless chooks screaming RECESSION.


    Who knows. I just wish it would bloody hurry up and happen.


    I want to move and election or no election, I'm still moving as soon as I get an offer!


    Jx
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; book; film Premiere; Broadchurch DVDs
    • Crashy Time
    • By Crashy Time 27th Apr 17, 1:19 PM
    • 4,007 Posts
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    Crashy Time
    Then they need to give their heads a wobble. If they don't know Zoopla is not to be trusted and start quoting it as scientific fact, then I really don't think they're ever going to find a house in my area.


    Thankfully I know it's BS and won't be offering 150k-ish lower on the houses we like.
    Originally posted by hazyjo

    The property market runs on sentiment not scientific fact though?
    • hazyjo
    • By hazyjo 27th Apr 17, 1:32 PM
    • 8,971 Posts
    • 11,180 Thanks
    hazyjo
    The property market runs on sentiment not scientific fact though?
    Originally posted by Crashy Time
    If I believed Zoopla was correct, there is no way I would pay 150k over the odds because of sentiment. Don't believe others would either so really not sure what point you're making... Are you saying everyone paying over a Zoopla estimation is obviously overpaying on its true value and it should be trusted more? It's often way out! It overvalued my last house by around 150k!
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; book; film Premiere; Broadchurch DVDs
    • cloo
    • By cloo 27th Apr 17, 2:44 PM
    • 854 Posts
    • 680 Thanks
    cloo
    I don't think election result will have any effect - Tories will get in, the stock exchanges will probably react quite positively to that in relief for the people involved in big finance that it's not Corbyn, and housing market won't do much one way or another.
    • ModernSlave
    • By ModernSlave 27th Apr 17, 5:31 PM
    • 207 Posts
    • 196 Thanks
    ModernSlave
    Hi OP!

    Here is my anecdotal experience of the London Market in April 2017. As background, I've been monitoring selected areas for over 2 years.

    My first advice is to go onto Zoopla and search your areas, filtering for new builds. Then sort according to Most Reduced. This will give you a good idea of what is happening.

    Here is what I have noticed. People are scared to move/can't afford to move. The price difference between a 2 bed and a 3 bed in my areas is 250k upwards, that's a heck of a step up for one extra room. As a result of fewer properties coming on the market, agents are over-valuing by crazy amounts. I have watched a basic 3 bed go from 1.3mil to 810k in a year. It hasn't sold.

    On the bright side higher stamp duty for BTL has allowed FTBs to start buying. This has helped to keep the lower end buoyant.

    If priced correctly, ie not overpriced, places sell quickly. But they can still fall through (I've had 2 calls from agents this week with broken chains). Surveyors are being conservative in their estimates and banks are under stricter lending rules.

    In London a lot of new build flats are going up in the next few years. Something like 50,000 of them. China has recently talked about stemming capital outflows (stopping Chinese citizens safe-havening their money overseas). And of course there's the Brexit elephant which could stomp on the jobs in the City (a big driver of central London prices).

    I would be very cautious about new build flats in London at the moment. Also, Foxtons are the absolute pits and everything they say is complete b0ll0cks.

    Good luck
    • needhouseadvice
    • By needhouseadvice 27th Apr 17, 6:28 PM
    • 93 Posts
    • 28 Thanks
    needhouseadvice
    I was about to buy a 2-bed in September in Surrey Quays, London. The asking price was 600k and I got it agreed at 550k. I lost my job so pulled out. The flat since went for 505k.

    Now I'm back in the market. Have prices fallen? I don't see asking prices have. One agent (Foxtons) is telling me that right now, the market is picking up and not to wait. Another agent said asking prices are still the same but that, depending on circumstances, sale prices are lower.

    Who do I believe?
    Originally posted by heyya99
    I bought a few months ago and wish like hell I hadn't. That's more to do with the flat I ended up buying and seeing that I could probably have gotten a better deal by waiting though. Having kept an eye on the market FTB flats still seem to be selling if they're reasonably priced. Also my Facebook feed is telling me that friends and acquaintances are still going for it. I think if you're buying, now is as good a time as any. You're more likely to get a better deal and less competition.
    • Crashy Time
    • By Crashy Time 28th Apr 17, 9:27 AM
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    Crashy Time
    If I believed Zoopla was correct, there is no way I would pay 150k over the odds because of sentiment. Don't believe others would either so really not sure what point you're making... Are you saying everyone paying over a Zoopla estimation is obviously overpaying on its true value and it should be trusted more? It's often way out! It overvalued my last house by around 150k!
    Originally posted by hazyjo

    People have been paying (borrowing) over the odds for years, that is why we are where we are, they believed, or wanted to believe all the hype about property. Do you compare zoopla guesstimates with actual sold prices?
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