Never buy the most expensive house on the street - is this always true?

mooch

We're interested in buying a new build property on an infill site. 1 of 2 detached 5 bedroom houses on a quiet street where the majority of houses are 2 bedroom bungalows. There are 2 neighbouring 3 bedroom houses then about four 3 or 4 bedroom houses behind.

These two new houses will definitely be the most expensive on the street. Asking price £400k. There's not much turnover in houses on the street. Neighbour has lived there 25 years. Nethouseprices show sale prices of around £250k - £275k for the bunglows or 3 bed semis.

I know that one of the cardinal rules of house buying is to 'never buy the most expensive house on the street' or 'always buy the least expensive house on the most expensive street'.

The house ticks all the major boxes for us - catchment area, close to shops/transport, nice area, safe, spacious, good layout, build quality.

Do you think we should be concerned about being the most expensive house in terms of property value and more importantly resaleability (no plans to move, but never know)? Any other reasons we should consider e.g. we will be a young family on a street of mostly pensioners.

The price is certainly at the lower end of the market for the size. Similar houses in an area with other 5 bedroom houses 1/4 miles away closer to town are asking around £525k (unrealistic but certainly putting a premium on the 'desirability' of those streets).

The builder is local and from what I know reputable. Gets alot of work in the area and neighbour who's in trade says they did a great job on the houses. We've viewed once and from what we saw finish was good quality.

Any advice greatly appreciated. Going for 2nd viewing tomorrow.

Thanks.

DVardysShadow

The advice is actually not to buy the best or most expensive house on the worst street as I understand it.

For what you are doing, ie not planning to move, then if you think the house is fair value, then don't be deterred.

Catblue

The phrase only really applies to houses of similar size/appearance etc.

If you have a street of 100 identical Victorian terraces then I probably wouldn't want to be the most expensive on the street since the scope for adding value would be much less. I'd expect not to make much money on it when I came to sell.

Your situation is different - there is a mix of housing types on the street. From what you've said, the builder is acknowledging that the new houses will not be quite as desirable as those on other streets because of the cheaper houses already there on the street. And has priced the new houses accordingly.

neverdespairgirl

It's a rule of thumb, not one of the 10 commandments!

silvercar

We did! Broke all the rules and bought the most expensive on the street by a long way. But our house had been extended and refurbished. Since then a few houses have been bought and then extended, so when they come to sell I doubt we'll be the most expensive. Every house is unique, so its not like we overpaid on a like for like basis.

sonastin

The rule of thumb is really advising to buy in the best area you can afford, not so much about the relative price of houses in the same street (i.e. you're better off buying the least expensive house on the best street than the most expensive house on the worst street if they are the same price). If the house is in a good area it doesn't matter that it is more expensive than the rest of the street.

mooch

Thanks guys. So glad I asked the question here and of course very happy with all the positive responses. Fingers crossed for a good viewing tomorrow.

[Deleted User]

Please don't underestimate the importance of buying a family house in a street with other families. Will your children have to go streets away to find someone to play with (the importance of this depends partly on your children's age)? Will you have much in common with your neighbours (and will they moan at the slightest sound your children make)?

Consider this carefully. Ask questions. Find out what the neighbours are like as you should anyway.

Hammyman

1) Do you like it?
2) Is it going to be suitable for your needs?
3) Most importantly do you plan on being there say 5 or 10 years?

At the end of the day, you're buying a home first and foremost. Deannatrois is about spot on with what you need to consider. If it feels like the right house for you, ignore the fact its the most expensive on the street.

Too many people seem to view their houses as investments and not homes thanks to the deluge of "lets make a quick buck" property programmes on TV.

Errata

Any other reasons we should consider e.g. we will be a young family on a street of mostly pensioners

Other young families may not want to buy a house in this environment. Plus, pensioners can occasionally be in the position where they can't afford/don't wish to maintain their property and a couple of run down ones could put people off the area.

Davesnave

Errata wrote: »

Plus, pensioners can occasionally be in the position where they can't afford/don't wish to maintain their property and a couple of run down ones could put people off the area.

To be fair, I think there are as many younger people with rotting VW campers, wildflower meadows and other similar 'projects' out front, as there are old fogies with high hedges and peeling window frames.

Oh, and student accommodation isn't noted for raising the tone of an area either.

That just leaves you & me, then!