Whats a fair price to pay

kier333

Cleaver wrote: »

Remember that a 'regeneration programme' can often be a euphamism for a new bus stop, an NHS walk in centre, a bribe to get a Starbucks, one quirky apartment building designed by John Rocha that no locals can afford to buy and possibly a bar that sells cocktails that has a name like 'Cloud', that looks great on the brochure as people sup cosmos in the sunshine, but doesn't seem such a good idea on a wet, dark, Tuesday in November when the place is empty.

It also involves naming things differently that don't actually change. For example, a 'canal' becomes a 'wharf', a 'shopping precinct' has a flat and office built above it and becomes an 'urban solution complex' and the 'corner shop' becomes a 'lifestyle solution'.

I live in an 'urban regeneration' area and, although I've been a bit sarcastic, you do honestly need to check exactly what that means. If it's additional schools, a real public transport network, more poilce, genuine extra funding for public services then the area could genuinely be 'regenerated'. My area is doing okay, with a mixture of the real stuff and the modern rubbish listed above.

http://www.brentcrosscricklewood.com/

Cleaver

kier333 wrote: »

can i ask where you purchased?

Manchester area, around a mile from the city centre. We moved here from a small town that we were very, very bored of and we absolutely love our life here. Very glad we bought this place. We do have doubts though and sometimes wonder 'what if' about whether we should of rented, but I can happily say that is way down the list of worries in life. We do have the luxury of being nearly mortgage free though, so it's easy for me to say. If we'd bought with a 100% mortgage it'd be brown trousers time at the moment.

kier333

I do think that if you took the time to look at whats avaliable in NW2 for that price you would be shocked, 175k ex council etc etc.

Cleaver

kier333 wrote: »

rong I also cannot see how a flat in NW2 can drop another 20% in a year, maybe i'm wrong only time will tell.

I'm starting to sound like all the doomers on here (and worryingly quite enjoying it) but I'm sure if you told someone in the early 90s that property prices in NW2 would more than treble in ten years they would have tied you to a stake, danced round you chanting then set you on fire. "This is Barnet you moron!", they would have cried.

I have no idea where house prices will end up, you might be completely correct and we'll see stagnation in 2009 before they start rising again. But if they can treble in ten years then they can happily fall in value by the three times over the next ten years too.

kier333

Cleaver wrote: »

I'm starting to sound like all the doomers on here (and worryingly quite enjoying it) but I'm sure if you told someone in the early 90s that property prices in NW2 would more than treble in ten years they would have tied you to a stake, danced round you chanting then set you on fire. "This is Barnet you moron!", they would have cried.

I have no idea where house prices will end up, you might be completely correct and we'll see stagnation in 2009 before they start rising again. But if they can treble in ten years then they can happily fall in value by the three times over the next ten years too.

I partly agree but i have rented in London for many years and NW2 has always been very expensive although resonable to say NW6 which is 5 minutes walk away, Think is London is expensive i mean look at Stratford for example and if the flat i've offer on was say in St Albans then i would agree it would not seem such and ok buy. Charactor is great i agree but the size, low service cost etc are more what i was thnking about

lostinrates

kier333 wrote: »

I do think that if you took the time to look at whats avaliable in NW2 for that price you would be shocked, 175k ex council etc etc.

Its very difficult to refer to just the post code though when property searching in London though, as you will well know the areas vary dramatically within tiny distances/postcodes. The prices will vary to, and of course the averages are...averaged.

Cleaver

kier333 wrote: »

I partly agree but i have rented in London for many years and NW2 has always been very expensive although resonable to say NW6 which is 5 minutes walk away, Think is London is expensive i mean look at Stratford for example and if the flat i've offer on was say in St Albans then i would agree it would not seem such and ok buy. Charactor is great i agree but the size, low service cost etc are more what i was thnking about

As I said before, I don't personally think it's the price that's really the issue, or whether it's a 'good deal'. You may own the place for twenty years (although that's a long time to live in Barnet), so it could be largely irrelevant what you pay for it in some ways. The issue is that you have a small deposit and, as Mewbie pointed out, most economists seem to be in a vague agreement that we're looking at 10% to 20% falls this year. They could be wrong, but if they are right you're in negative equity. And whilst you may be in a secure job I know that if I was in negative equity I wouldn't sleep very well, I'd be constantly thinking about it and it would effect my quality of life. I have real sympathy for anyone that is in this situation.

Ring 'em up tomorrow morning and offer then 90k and see what happens. At the very least we'd good have a laugh at the outcome. In fact, let me know your details and the estate agents and I'll ring them on your behalf, like Phil Spencer does on Location, Location, Location.

Cleaver

lostinrates wrote: »

I remember reading somewhere theAthens Olympics were meant to have a regenerative effect on some parts of Athens and in fact the aftermath did not live up to the hype at all.

Estate Agent: "Okay, this is a new build, 2 bed flat. Great dual aspect views, new kitchen, power shower and laminate floors. Comes with a free running track and long jump pit in the back, perfect for any athletics enthusiasts. Anyway, come this way and I'll show you the massive torch in the back garden..."

kier333

Cleaver wrote: »

As I said before, I don't personally think it's the price that's really the issue, or whether it's a 'good deal'. You may own the place for twenty years (although that's a long time to live in Barnet), so it could be largely irrelevant what you pay for it in some ways. The issue is that you have a small deposit and, as Mewbie pointed out, most economists seem to be in a vague agreement that we're looking at 10% to 20% falls this year. They could be wrong, but if they are right you're in negative equity. And whilst you may be in a secure job I know that if I was in negative equity I wouldn't sleep very well, I'd be constantly thinking about it and it would effect my quality of life. I have real sympathy for anyone that is in this situation.

Ring 'em up tomorrow morning and offer then 90k and see what happens. At the very least we'd good have a laugh at the outcome. In fact, let me know your details and the estate agents and I'll ring them on your behalf, like Phil Spencer does on Location, Location, Location.

HAHA and strange you mentioned centre parc, i'm going there tomorrow so will give me a good chance to feel at home!

To be honest buying or should i say trying to buy a property has been a real headache hence being on here fro thoughts/advice. I do intend to buy somewhere and will see the surveyors outcome tomorrow with regards what he feels its worth. Tell me how acurate are they?

Cleaver

kier333 wrote: »

HAHA and strange you mentioned centre parc, i'm going there tomorrow so will give me a good chance to feel at home!

To be honest buying or should i say trying to buy a property has been a real headache hence being on here fro thoughts/advice. I do intend to buy somewhere and will see the surveyors outcome tomorrow with regards what he feels its worth. Tell me how acurate are they?

Someone who knows more than me may correct me, but their job is to tell the bank whether they will get their money back if you stop paying the mortgage. A couple of years ago I fully reckon it was a finger in the air jobby, or just look at what it was on sale for and state the same amount as they know it would be worth 5% more in 6 months anyway. I imagine that in more recent times they will be more stringent and you get the impression that banks are looking at cases much closer.

Sorry to possibly depress you further, but your bank will probably be counting on prices dropping between 10% and 20% in the next 12 months. They know you have just over a 10% deposit. It doesn't take a genius to work out that in 12 months time there is a good chance you'll be in negative equity, especially on a fairly newly-built flat such as this. So if I were a lender I would probably not lend to you.

The surveyor is, in my opinion, no more of an expert of valuing the propety than me, you or anyone else. Their main job is to check that it isn't falling down, built on jelly or has walls filled with asbestos which would mean that the bank wouldn't lend you the money. If it's structurally sound and there are no major issues he'll probably value it at around the asking price or a bit below. Doesn't really mean that much IMHO.

For the record, there's no 'accurate value' for a property. This one obviously isn't worth £400k and is worth far more than 10k, but it is worth what someone will pay for it, as the cliche goes.