Looking for my First Home :D

Vincent.waldorf

Hi All,

I am looking for my first home to buy and have come across a property that Iquite like.
www. manncountrywide. co. uk/buy/property/2-bedroom-semi-detached-house-in-london,se3-for-gbp-245,000-ref-1684142/ [pls delete spaces] and wanted to know if people had any thoughts / opinions on it before I put inan offer.

My Situation:

FTB looking to get onto the property ladder. I am currently single andlooking to move out of the family home. I am early 20s and my income is>£35k. I do not have much outgoings and I have enough deposit for c.25%deposit.

What I am looking for:

A house that is in a good location that I can easily rent out a room and haslimited resale risk and by the looks of the first picture there is somepotential to extend to the side or possible rear.

The House:

The house is a new build (2010) it has been furnished well and I can seemyself living there as it is not deep in the residential area and open. I feelthat the house has been done to a fairly high quality and the space has been optimisedi.e. bathroom is in middle meaning the rooms are equal in size.

The Area:

I know the area very well; it is very well connected by bus, train and car(i.e. not too far from A-Roads. The house next door sold for £225k, I have afeeling that this is what the seller is also expecting and the £245k is just anopening price. The area is not the best but I feel that with the redevelopment in the area, it will rise.

In addition, there is a premium on the SE3 postcode as it is often associated with a better area, when it gets marketed, it will some under a better town because of its location.

I have been very picky with the houses that i choose and not many actually catch my eye, so i dont want to lose this house because of a few thousand pounds.


My Dilemma:

People say that it is location location location I think thatlocation is more key with commuters (I work in the city) and with betterlocations, people are more likely to take the houses.

If I was to buy another property in the future, I would rent this one outand I think given its location and quality, would yield a higher return!

I have run the spreadsheets and the extra prices (because of the house andlocation) do not stretch me much, I think it’s just psychologically that I donot want to pay so much for the house!)

What I would like:

I wanted to know if anyone sees any potential issues that I may have overlooked, or positive comments would be most welcomed

I going to put in an opening offer of 218k which i think will give me some head room for my neogotation. I am goign to view the house later this afternoon :O

hazyjo

Know the area well and personally wouldn't have bought there (just off Rochester Way). Have lived on the Progress Estate, SE9 (just the other side of the roundabout), and have lived on Kidbrooke Park Road (to the left of where you're looking).

It might have an SE3 postcode, but IMO it's no better than buying in Kidbrooke and saying it's got an SE3 postcode. It's still Kidbrooke and will never command the same prices or level of increase (if prices go up again) as Blackheath.

This house is more Eltham/Kidbrooke, despite the postcode of SE3 covering much of Blackheath. Much of that Rochester Way is local authority and very estate-ish.

The house is in a small estate of newer builds, but those surrounding it aren't so nice.

Also it seems very overpriced for there. There's a nearby 2 bed house up for £152k, a 4 bed for £225,950 and a 3 bed for £219,950. All estate-looking, but you would be paying a ridiculous premium for the decor, and the fact it's a newer house (not even brand new) which is small in comparison. Two of those are listed as 'Kidbrooke' despite being further away from Kidbrooke and nearer Eltham than the one you're looking at.

Sorry to be negative, just saying it like I see it. Much better deals to be had elsewhere IMO...

Jx

Vincent.waldorf

Hi J,

Thank you for your reply. I guess you have confirmed what i already know. I actually live on the Rochester Way. It is actually Kidbrooke, and i know that a lot of the houses are Local Authority. The small estate of new build is a lot nicer than the surrounding houses, so given that this house is on the outskits i.e. not too deep into the estate i am attracted to it.

Indded it does seem over priced. I think fair value would be 200-215, but the neighbouring house sold for 225 which i think the seller will using as a benchmark.

What do you think of rental values? Mortgage payments would be 800ish.

Given that you know the area, do you think the new Kidbrooke village will have a positive impact on the the area, particularly the Kidbrooke brand.

Have you moved to Essex now?

Beckyy

They can use whatever they like as a benchmark - that doesn't mean they will get it.

See what you think of it in the flesh at your viewing. If you're still interested then go and see an independant financial advisor (not one at a bank!) and sort out a mortgage in principle so that you can make an offer.
Depost wise, do you have 25% of the asking price, or 25% of what you're wiling to pay?

Although I must say if you think it's only worth £200,000 - £215,000 in your eyes there is no way I would even consider offering more, especially as an opening offer. Only pay what it's worth to you.

Good luck!

hazyjo

Ah, very local then and you obviously do know it well!

Wouldn't have thought it'd be the first choice for London commuters - not somewhere I'd choose to rent, would rather rent a flat in Blackheath or a house elsewhere.

If you do want a house, consider New Eltham or Bexley. Far nicer.

It's always 'location, location, location'. Yes, it's a nicer tiny pocket of newer houses, but the location won't change - it's still in the middle of what is mainly a massive council estate. Not too grim or anything, I know it's actually mainly well kept and set back and actually not that bad at all - but not somewhere people would necessarily choose to live if the sale/rental prices compared with nicer areas. I definitely would never have bought there.

As the house is only a couple of years old, you will probably need the permission of the developer/builder to extend (within a set time period) - along with other relevant planning permission. Not sure you'd get it as don't you think a developer would've already built a house as big as they could fit on the plot? They were probably only granted permission for 2 bed houses in that particular spot.

You'd probably have to change to a BTL mortgage so that could well bump up your payments. Not sure you'd get it particularly quickly on your first property. Might have to own something for a while.

I think, tbh, you'd be lucky to get just over £1k a month rental. Bear in mind mortgage payments might be higher cos of BTL, plus you should really base it on 10 months a year rather than 12 to allow for times when it might be vacant. Also, ain't cheap being a LL! You have checks to pay for, and maybe agency fees, and gas certificates, inspections, repairs, maintenance, etc... I'd not do it for love nor money unless absolutely forced into a corner!

What year did the house next door sell for £225k? If they were built in 2010, what did both houses sell for originally as new builds? You should be paying WAY under that IMO.

Don't know much about the new Kidbrooke village - they've been saying they're regenerating Kidbrooke since I lived there in the early '90s! If the flats/estates are staying, I can't see it making a lot of difference...

Yep, have moved to Essex now. Have also lived in Blackheath, Eltham (twice), Greenwich and East London.

Jx

Vincent.waldorf

Hi Becky, Jo


I just went to see the house and it was done to a very highquality. I made an offer of £235k which is well above that I initially thought.But the EA told me that they have an offer that is close to the asking price, Iam truly shocked because the probably didn’t do their research on the area andit leaves very little room for appreciation as stamp duty kicks in at £250k. Iwanted them to formally acknowledge my offer and if the other person fallsthrough I will be notified. Grrr I really liked that place, was exactly what I wantto be for my first house, was imagining myself living there too!



The house that sold was in 2010. It is exactly the same,apart from the garden, where this house had slightly more on the side.



RE: Kidbrooke Village

www. Berkeley group .co.uk/Berk eley /kidb rooke –village



Jo - I have also looked into this one (below) which is nottoo far from the one I have fallen in love with. I think they would sell for£220k, but this is in such a bad condition relative to the other one and it isa terraced house. The only thing here is the extension potential as it is acorner plot.



www. kfh .co.uk/residen tial/hou ses-for-sale/lo ndon-blackheath-se3-birdbrook-road/2095638/


Also, i spoke to the seller, it was her father who build the two houses i.e. the one next door (just those two on the sub-estate). the fixtures and fittings were very good quality. just cant believe that someone would pay that much for a 2bed in Kidbrooke!!

hazyjo

EAs often say they have an offer on something in order to bump yours up - sometimes they're lying, sometimes the offer is old, has since been withdrawn, or has been made by someone who's not proceedable for whatever reason. I would take that with a large pinch of salt. If they had an offer that close to the asking price, surely they'd have accepted? I really don't see why they'd not bite their hand off for an offer higher than yours in in that area. How long has it been on the market?

I'd be tempted to leave the offer on the table (presuming you do want to go buy it) and tell them to get in touch should the 'other offer' fall through (bet it mysteriously does - if they tell you to use their in-house whatever to make you a more favourable buyer, tell them to go whistle!). I think you'd be mad to pay anything more than your offer (I think your offer is high anyway), but at the end of the day it's up to you. I can't believe someone would pay that much for a 2 bed in Kidbrooke either - which is why I don't believe them, and why I wouldn't want that 'someone' to be you!

Other house looks nicer to me, but, as said, not somewhere I personally would have bought.

Jx

Vincent.waldorf

hazyjo wrote: »

EAs often say they have an offer on something inorder to bump yours up - sometimes they're lying, sometimes the offer is old,has since been withdrawn, or has been made by someone who's not proceedable forwhatever reason. I would take that with a large pinch of salt. If they had anoffer that close to the asking price, surely they'd have accepted? I reallydon't see why they'd not bite their hand off for an offer higher than yours inin that area. How long has it been on the market?

I'd be tempted to leave the offer on the table (presuming you do want to gobuy it) and tell them to get in touch should the 'other offer' fall through(bet it mysteriously does - if they tell you to use their in-house whatever tomake you a more favourable buyer, tell them to go whistle!). I think you'd bemad to pay anything more than your offer (I think your offer is high anyway),but at the end of the day it's up to you. I can't believe someone would paythat much for a 2 bed in Kidbrooke either - which is why I don't believe them,and why I wouldn't want that 'someone' to be you!

Other house looks nicer to me, but, as said, not somewhere I personallywould have bought.

Jx

It has been on the market for about 3 weeks. They have saidthat they have just had an offer which has been accepted so I guess I am out ofthe running. I genuinely cant believe that a 2-bed in Kidbrooke is going for somuch and someone is actually offering that much money for it.



The house being sold by KFH is ok, but not done to a high quality, I think it isnot “show room” like if you know what i mean.



I have just become so sick of the whole house hunt if I amhonest… been looking for a long time and getting sick of EA, they are scum haha

I want to look in in other parts of London, I have only beenlooking in Kidbrooke and it is difficult…

hazyjo

I'd forget Kidbrooke if you're thinking about future rental.

What other parts of London would you consider? Only SE, or other side of river, etc?

Budget up to £250k?

Jx

Vincent.waldorf

hazyjo wrote: »

I'd forget Kidbrooke if you're thinking about future rental.

What other parts of London would you consider? Only SE, or other side of river, etc?

Budget up to £250k?

Jx

I like kidbrooke because I live here and I commute to central London for work. Where I live in particular has really good transport links which is why I wouldnt mind living here.

I am also looking in Welling area, one thing i need to realise is that not everyone needs to travel up to london for work!

hazyjo

Trouble is, you're not buying in areas that are considered that great. If you're thinking about future rental, you need to compare what you'd get on a house in say Welling or Kidbrooke with one you'd get in say Bexley or even a flat in Blackheath.

As said, it's about 'location location location'. If it's just for you to live in and you're not fussed on the area, great. But for future rental, I'd be thinking long term. I would never buy the biggest house I could get in the worst area. I would buy smaller in a nicer area. My personal choice, yes - but also that of many others (there's a thread running at the moment asking if people would compromise location over size - go view the poll results on that).

Up to you at the end of the day.

It's definitely not all about commuters, but you are likely to get a better return on somewhere that London commuters are going to want to live.

Good luck.

Jx