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On a positive note....
huntersc
Posts: 424 Forumite
I've sold my house. Purchased in August 2006 for £440k and sold today (exchanged contracts) for £690k. Not a bad price increase and I'm delighted as houses similar to mine were going for around £700k at boom time last year and one close to us has just completed at £600k. I think I lucked in 
So I'm happy but also have a question.
We're a bit stuck. In live in London and unfortunately the areas that I'm looking at, Notting Hill, Wimbledon, Kensington, aren't really dropping in price, at least not in the price range we're at. I'll give an example, there's a certain road I rather like. Average prices:
2005: £725k
2006: £805k
2007: £900k
2008:? EAs asking for £1m
Now I've looked at a few of these places and although very nice I really think I ought to be buying at an average between 2006/07 prices. £850k seems reasonable to me. But the houses are currently on for aprox £1m which to me seems ludicrous however it seems as if people are buying at these prices!!!! I offered £850k for one and the agent told me it was already under offer at above £1m. So my thinking is to rent for 12 months and see where it gets me. hopefully the buyers drop out of the marekt and the EAs price more reasonablly. The money from the sale should pay for my rent for a year so we'd be quids in really.
Here's my worry, although prices everywhere else are plummeting, areas such Notting Hill are immune and will continue going skywards. Is that likely and realistic? I hope not but intuition tells me that certain parts of London are completely immune from the issues we see in the property market.
Anyone think I'm right? If so maybe it makes sense to jump back in now rather than waiting for a year when prices will be even higher. Or should I stick with my gut feeling and wait it out?
So I'm happy but also have a question.We're a bit stuck. In live in London and unfortunately the areas that I'm looking at, Notting Hill, Wimbledon, Kensington, aren't really dropping in price, at least not in the price range we're at. I'll give an example, there's a certain road I rather like. Average prices:
2005: £725k
2006: £805k
2007: £900k
2008:? EAs asking for £1m
Now I've looked at a few of these places and although very nice I really think I ought to be buying at an average between 2006/07 prices. £850k seems reasonable to me. But the houses are currently on for aprox £1m which to me seems ludicrous however it seems as if people are buying at these prices!!!! I offered £850k for one and the agent told me it was already under offer at above £1m. So my thinking is to rent for 12 months and see where it gets me. hopefully the buyers drop out of the marekt and the EAs price more reasonablly. The money from the sale should pay for my rent for a year so we'd be quids in really.
Here's my worry, although prices everywhere else are plummeting, areas such Notting Hill are immune and will continue going skywards. Is that likely and realistic? I hope not but intuition tells me that certain parts of London are completely immune from the issues we see in the property market.
Anyone think I'm right? If so maybe it makes sense to jump back in now rather than waiting for a year when prices will be even higher. Or should I stick with my gut feeling and wait it out?
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Comments
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why does it seem like buyers are buying at these prices?
Have you looked on property bee to see how much surrounding proiperties are dropping thier prices.
And the last bit. No, I dont think you should buy now.
Nowhere is immune Im afraid. In fact Id say those are the areas larger drops will see. Cant see banking bonuises being particularly large this year? Meeedia is suffering as well I believe.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
isn't it meedjjaa?
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You are a very lucky person. You know how much your house inflated in two years, for no good reason, therefore given the last twelve months of increasingly bad news, it might be reasonable to assume a similar move in the opposite direction. Nice area or not.0
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Did you buy it cheap from desperate sellers or did you improve it in any way? (Or did you spot a bargain?)I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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If money is more important to you than having a family home, then by all means rent and wait and see what the market does. If the areas you like keep rising in the next 12+ months, then buy in an area that has dropped in price.
If owning a home is more important to you than money, and it's going to be your home for a LONG time, then who cares? So long as you can afford it, and are not going to struggle with mortgage payments.
It just depends where your priorities lie.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
If money is more important to you than having a family home, then by all means rent and wait and see what the market does. If the areas you like keep rising in the next 12+ months, then buy in an area that has dropped in price.
If owning a home is more important to you than money, and it's going to be your home for a LONG time, then who cares? So long as you can afford it, and are not going to struggle with mortgage payments.
It just depends where your priorities lie.
Once again this meme that if you can afford it (don't get repossesed) then who cares if the price goes down?
At the price levels being discussed by the OP, even a small wobble in prices could knock £100K off the target price of their property. That would be enough to pay for a very good private education for a child. If people buy an overpriced house and lose a huge chunk of wealth, this is not just a "who cares" situation, it's a major detriment to their life.
On the other hand, buying before or after a crash could make a difference of many years and hundreds of pounds a month on interest charges. This is not just a "who cares" situation, this is a very big difference.
And for the OP, it may be "good news" that you sold at peak values. But if you then go and buy another house at peak, or near to peak, values, then you haven't won anything, because your gains on one house are wiped out by losses on another.0 -
My advice would be to move oop north! The profit on your house will buy you a mansion round here.0
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Once again this meme that if you can afford it (don't get repossesed) then who cares if the price goes down?
At the price levels being discussed by the OP, even a small wobble in prices could knock £100K off the target price of their property. That would be enough to pay for a very good private education for a child. If people buy an overpriced house and lose a huge chunk of wealth, this is not just a "who cares" situation, it's a major detriment to their life.
On the other hand, buying before or after a crash could make a difference of many years and hundreds of pounds a month on interest charges. This is not just a "who cares" situation, this is a very big difference.
And for the OP, it may be "good news" that you sold at peak values. But if you then go and buy another house at peak, or near to peak, values, then you haven't won anything, because your gains on one house are wiped out by losses on another.
And? It's just money!!
Seriously, there are FAR more important things in life. One day you might have reason to understand that.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
One heck of a commuting fee though...and no chance to actually live in that mansion as you'll probably spend more time sitting on a train (or a cold station waiting for it) than you would in the property itself.My advice would be to move oop north! The profit on your house will buy you a mansion round here."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
Or perhaps it wobbles the other way and adds another £100K ... kerching!...At the price levels being discussed by the OP, even a small wobble in prices could knock £100K off the target price of their property. ..."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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