What's the worst that could happen?!

sliding_doors

Hi - just had a long conversation with my mother in which I read everyone's responses (with one or two edits!) - unfortunately as she registered blind, she has never really got to grips with computers.

The result was not particularly satisfying: she agreed that she needed to do more research but she is certainly not rushing out to withdraw her offer (Personally I felt a little sick when reading some of your responses given that I now know my family home is going to secured against this property!).

Thanks lynzpower and neverdespairgirl for all those comparison properties which I described to her. However, her main responses to all these was that none are in Wimbledon Village (most are in Wimbledon). Apparently, this is highly significant as Wimbledon is a less desirable area. Although the Village is further away from transport it is 'a pleasant walk up a hill', and apparently it is full of nice wine bars etc.

I know that by now you guys might be thinking "well, you can lead a horse to water but ........" (or maybe even screaming with frustration) but if anyone did have any local knowledge about Wimbledon Village it would be really useful. For example who do you think would rent/buy a studio in the Village.

However, on a more positive I think I am slowly getting through to her (thanks to all you)


To lynzpower: surprisingly it is my mother and not my brother who is the driving force behind our family's venture into property (she suggested it and choose Wimbledon etc.) - I thought I better correct this as my bro is probably reading this as we speak!

chewmylegoff

if your mum is insistent upon using the money to help your brother out, it might be a better idea to put the cash in the bank and use the interest to subsidise him.

if he could cover "most of the mortgage" which would be around £500pcm then say he can afford £400 pcm.

£100,000 in the bank at 6% is £400pcm after tax. She could give him £350 and he could rent a similar studio to the one referred to above that was on the market in the same area for £750pcm (which looked much nicer), and then she would be left with £50.

surely preferable to have a £50 cash inflow a month than having to pay £100 out to cover the part of the mortgage that i'm assuming he can't cover.

he gets the same sort of place to live in, she gets in real terms £150 month extra.

the only way you lose is if the studio flat appreciates in value, which isn't particularly likely in the time that your brother would be living in this place.

GracieP

sliding_doors wrote: »

For example who do you think would rent/buy a studio in the Village.

To be quite honest all I can think of wanting that type of property is a divorced father whose children live in the area and can't afford anything better. Or someone who lives in the country/abroad but needs an occasional base in Wimbledon. Or a landlord, but I can't imagine anyone being willing to pay over £700pm as the type of tenant this property would suit is someone who works in one of the local businesses.

You can also remind your mother that as the village is "just a pleasant stroll up the hill" plenty of people prefer to live in the bigger property in the town and take the pleasant stroll up the hill if the want to shop/eat out there. And Wimbledon itself is highly desirable, it isn't as desirable as the village, but it isn't as if it's Beirut. It's a lovely, pleasant suburb with plenty of great wine bars of it's own.

sliding_doors

Really good maths chewmylegoff - nice and simple for my mum to understand (hopefully).

I will also mention to her that Wimbledon isn't as bad as she hints and so the price differential shouldn't be that much (I think she is working off 1980s knowledge!).

I've almost given into going to view the property on Saturday but Im not sure whether this might create the impression that Im supporting investment in anyway. Also I don't think I can add much apart from to say that this is a studio in a nice suburb in London (i.e. I have nothing to compare it with).

However, I suppose it might give me a chance to put the EA on the spot and try and make him sweat. I particularly like the point that the demand for studios in a family area is small to none - worried he might somehow get the better of me though and come out with more 'BS'!

Thanks everyone

GDB2222

There is some pretty scary evidence of property prices in Wimbledon dropping on this website:
http://www.propertysnake.co.uk/site/postcode/sw19

I'd really strongly counsel against buying now, as prices are dropping 2% a month, which is an annualised rate of 25%. Also, studios are really bad news for letting.

fatpig_2

If you're going to invest in property at the moment (a very dumb idea it has to be said) then the last type of property you want to be investing in is a London studio flat. Get a house somewhere if you really must gamble your money.

fc123

Hi I just read your thread and would have thought that IF a studio in London is what is really wanted, wouldn't something more central be better? Near to theatres etc. Same advice as all the other posters though....the market is unsettled and it would seem sensible to wait a while.

NDG lives in this area so she may be able to comment better on location but 10% off this (give or take) is a similar price and, as a Londoner, isn't being near Covent Garden more London than Wimbledon Village?
http://www.rightmove.co.uk/viewdetails-10749576.rsp?pa_n=3&tr_t=buy

Also, don't be bamboozled by the EA's with talk of 'Long term invst', 'properdee always goes back up' bla bla......he/she needs a sale..he/she hasn't had many for a while.

Might be worth trawling through a few other threads too as I'm sure others have posted similar Q's. More info to persuade her.
Best of luck

neverdespairgirl

sliding_doors wrote: »

Thanks lynzpower and neverdespairgirl for all those comparison properties which I described to her. However, her main responses to all these was that none are in Wimbledon Village (most are in Wimbledon). Apparently, this is highly significant as Wimbledon is a less desirable area. Although the Village is further away from transport it is 'a pleasant walk up a hill', and apparently it is full of nice wine bars etc.

The 2 bed place I linked to is half-way between the station and the village - halfway up the hill!

The village is a very nice area, yes. But I'm iffy about studios there, really iffy. It's not that kind of place. I can't help thinking that a studio in Camden / Old Street / Chelsea etc, they'd all be a better bet. The young, free and single type doesn't usually end up in Wimbledon, other than maybe in houseshares. It's definitely more a family suburb.

Leaving all that aside, studios are dodgy anyway. In the last crash, studios and small 1 bed flats were nearly impossible to shift. If people are contemplating buying a long-term asset in a falling or stagnant market, they buy something bigger. People only buy studios in a rising or booming market, because it's all they can afford and they feel they have to "get a foot on the ladder".

In summary - studio a bad move in general, studio in Wimbledon a worse move, and a studio in Wimbledon at that price makes no economic sense at all.

neverdespairgirl

fc123 wrote: »

NDG lives in this area so she may be able to comment better on location but 10% off this (give or take) is a similar price and, as a Londoner, isn't being near Covent Garden more London than Wimbledon Village?

If I were buying a studio (which I wouldn't!) I'd go for one in central London, definitely. Bloomsbury, Holborn, Camden, that neck of the woods.

There is a big block of studio flats, of which fc's link is one. Over the last 10 years, I've been inside several, as they are near UCL where I went to uni, as well as very near where I live now. It's a great area, near Russell Square. There are always a couple of flats from that block on the market, and they are fine inside, in a studio kind of way.

I think a telling point is that the Wimbledon idea is the OP's mother's, not her brother's. Her brother doesn't particularly want to live in Wimbledon. But the brother is the target market for this type of place (renting or buying) and if he wouldn't pick there first choice, why would others? The mother might think Wimbledon Village is the bee's knees, but she (and others like her) aren't going to be looking for a studio there.

lynzpower

I know this is probably a slightly *dodgy* suggestion, but with your mum being registered blind, has she actualy been able to "see" the studio? Does her disability place her at further risk of bad decision- making? in my ( fairly limited) experience of working with those with sight impairment - and other impairments- it can make people MORE determined than abled people in the way that some can think "just because im blind/ deaf/ elderly it doesnt mean I cant make my own decisions"

If this is a factor- and you know her better than I do, then this might be an angle to condsider.