FTB expectations too high?

mbga9pgf

[FONT=Verdana, Arial, Helvetica, sans-serif]A property located in South West which was valued at £50000 in Q1 of 1995, would be worth approximately £153317 in Q4 of 2008. [/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]This is equivalent to a change of 206.63%.[/FONT]

OK, another 4 months saving. still nowhere near as unaffordable as what they are today.

chucky

mbga9pgf wrote: »

Well people shouldnt get so angry when I tell them their house is 20% overvalued!

when have people got angry with you when you've told them they're house is over-valued?

mbga9pgf wrote: »

And I suggest you try getting priced out by D!ckheads when you are trying to do the best for your future kids!

Never been priced out - just walked away and found something else.
Never got angry with them either - it's their perogative to bid higher than you if they want the property.

mbga9pgf

when have people got angry with you when you've told them they're house is over-valued?

The only offer we have put in on a property was labelled unrealistic by the ea and derisory by the seller. I was actually quite proud of myself that day. Couple were quite desperate to sell, havent been able to shift the house in over 12 months and had been nibbling at price drops dropping 5K every 3 months as prices fell.

They were so peeved they took it off the market the next day; I have a funny feeling they will be back.

I told the EA to keep me in mind if they ever come back, apparently we were the only offer they had. We offered 35% off peak price.

Really2

I am not sure what you want to achive.
What will you do if property does not hit the price you want or your circumstances change.

I am not knocking you, you earn a good wage but trading up as always been a part of house purchasing.

In 2001 I purchased a house I was on £30k the average round here was around £20K I still could only afford a 3 bed semi in a good area.

I think the problem is people do not associate people pay more for a house in a better area so skewing the average wage and property price in that village (that does not show on averages).
But as a county it may well be well over the average it does not mean the average person can afford a average house in that village.
If you are in a good town £50K could be the average wage.
In a ruff area the house price would be cheaper and the wages but you would not want to live there on £50K would you?

chucky

mbga9pgf wrote: »

The only offer we have put in on a property was labelled unrealistic by the ea and derisory by the seller. I was actually quite proud of myself that day. Couple were quite desperate to sell, havent been able to shift the house in over 12 months and had been nibbling at price drops dropping 5K every 3 months as prices fell.

They were so peeved they took it off the market the next day; I have a funny feeling they will be back.

I told the EA to keep me in mind if they ever come back, apparently we were the only offer they had. We offered 35% off peak price.

just move and find another property that has an even more motivated seller.
people don't have to accept your offer, they consider their property worth more end of story. that's it.

just be careful that you under price the market - the reverse of what many vendors do. if you do you won't find anything that you can buy.

mbga9pgf

Really2 wrote: »

I am not sure what you want to achive.
What will you do if property does not hit the price you want or your circumstances change.

I am not knocking you, you earn a good wage but trading up as always been a part of house purchasing.

In 2001 I purchased a house I was on £30k the average round here was around £20K I still could only afford a 3 bed semi in a good area.

I think the problem is people do not associate people pay more for a house in a better area so skewing the average wage and property price in that village (that does not show on averages).
But as a county it may well be well over the average it does not mean the average person can afford a average house in that village.
If you are in a good town £50K could be the average wage.
In a ruff area the house price would be cheaper and the wages but you would not want to live there on £50K would you?

No, of course not. You must take the area into the big equation. But some of the rises do start to annoy you when you look at how mcuh people have made since 1995 using the likes of nethouseprices. For example, the above house, was originally on at 390K It was originally bought for 150K in 2001. apart from a new kitchen and a lick of paint, the house was relatively undeveloped. why they saw a 255K offer as derisory when you consider what they bought it for is beyond me. Not fussed; they have my number and my offer still stands.

chucky

mbga9pgf wrote: »

No, of course not. You must take the area into the big equation. But some of the rises do start to annoy you when you look at how mcuh people have made since 1995 using the likes of nethouseprices. For example, the above house, was originally on at 390K It was originally bought for 150K in 2001. apart from a new kitchen and a lick of paint, the house was relatively undeveloped. why they saw a 255K offer as derisory when you consider what they bought it for is beyond me. Not fussed; they have my number and my offer still stands.

personally and only in my opinion you're not approaching it in the best way.

it has no bearing what they paid for it - it's what it is worth today.
they may have done lots of work on it or changed it or even the area may have improved. it's not the best approach. sorry.

Marcheline

Hi OP, I don't think FTB expectations are unrealistic (IF people can afford what they want in the area they want!) What I do think is unrealistic about many FTBs is that people seem to want to buy a house without a substantial deposit (I'm not even talking 10% here, I think this is the absolute minimum someone needs) and without much thought to the affordability of the mortgage afterwards.

I'm not looking to buy yet, but we will be looking for 3 bed houses in the region of £120k in an ok area of Manchester (this can buy you a semi detatched house, with garage and garden, so this is what we're aiming for) We're 23 and 25 and have in the region of £50k saved. If you're not overstrecthing yourself, then I don't think FTBs have unrealistic expectations.

Really2

mbga9pgf wrote: »

No, of course not. You must take the area into the big equation. But some of the rises do start to annoy you when you look at how mcuh people have made since 1995 using the likes of nethouseprices. .

But dont feel bitter about that they have just put it in to another house.

The only people who have profited are people who STR and even now they aint sitting that great.

I have always acepted house prices go up and down. It is just a case of finding one you like at a price you can afford.

I think your problem is you have a good wage and feel you should be with like wise earners (I did in 2001 as most of the people were older or nearly retired and lived their for years)
But you are trying to enter at the higher end because of your wage which is understandable, but had you been able to purchase a samller house a few years ago when on a lower wage you may have been able to do that.

It is no individuals fault prices have gone up so no need to think you missed out on some kind of magic HPI as a lot of those who did purchase are now worried and will not be able to make that next step up for X years.

IveSeenTheLight

mbga9pgf wrote: »

Not fussed; they have my number and my offer still stands.

And your still waiting................;)