London market gone mad???????

natwill_3

I have just had ea's round to value a 2 bed 2 bath garden flat in shepherds bush which I bought a year ago. Have done some work on it and decided to get it valued.....just curious rather than wanting to move

They have valued it at 115k more than I bought it for, ie 400k.(work cost 15k)

Is this going on everywhere? I know realise that I can't afford to trade up again, but more depressing, surely that rise could be wiped out if ir's go up, it doesn't seem real, even ea said people were paying more than flats were worth as there is a shortage

Is this happening evrywhere? if so it seems a very bad sign

Generali

It is happening all over London as far as I can tell. It'll unhappen too eventually. This is illusory money - it only exists in the minds of EAs, bankers and mortgage brokers. As long as you don't spend it you'll be fine.

xela_17

From what I've heard from friends buying in London, the bit about people paying over the odds for flats because there is a shortage seems to be true. My friend said that she went to view a flat the other day, the first day it went on market. There were 15 other people viewing the same time as her. A different friend went to view a flat and was stopped at door by EA, saying they couldn't even go in because the previous people there had already offered (1st day on market). A third friend (everyone I know seems to be buying at mo, including me!) is nearly at completion on her flat. When they were looking, they looked for about 2 months and everything they saw just sold before they could get to it. In the end they had to offer over asking price to even get a look in.

To answer the other question, I don't think this is happening everywhere because we are selling in herts and buying in manchester and, while Herts seems to be average for houses selling, Manchester is very slow (luckily for us as we have found a flat we like but have no buyer as they dropped out).

natwill_3

Just makes me nervous, alot of people in London who I know are sitting tight...I wonder if this is why there is a shortage?

I thought I read there would be a rush of people selling before HIPS came in?

Put me off the idea of moving, not least cos I couldn't afford the stamp on an upgrade!

Sisyphus

Sell up. Bank your profits. :money:

olly300

There is a shortage of 2 bed properties in London as they suit both FTB and BTL so the market is a bit mad.

natwill_3

Sisyphus wrote: »

Sell up. Bank your profits. :money:

Don't think I haven't been tempted, but rent would be 1500 pcm in this neck of the woods, plus my 2 cats would make me an undesirable tenant

long term, repayment mortgage, friend renting 2nd room, may as well stay put:o

nelly_2

Generali wrote: »

It is happening all over London as far as I can tell. It'll unhappen too eventually. This is illusory money - it only exists in the minds of EAs, bankers and mortgage brokers. As long as you don't spend it you'll be fine.

Thing is though a lot are spending it, their phoning the bank asking for the mewage consultant and saying Deal Noel I'll take the 50 grand even though it'll cost me 100 grand

lynzpower

natwill wrote: »

Don't think I haven't been tempted, but rent would be 1500 pcm in this neck of the woods, plus my 2 cats would make me an undesirable tenant

long term, repayment mortgage, friend renting 2nd room, may as well stay put:o

god I wouldnt! Id flog it while there are muppets still wiling to pay it.

natwill_3

lol...but where would I live!!

Honestly I'm not paying the rental on flats round here, its ridiculous

Plus if prices go down only 5-10% I would kick myself, repayment mort is 1,100 a month, 400 from my friend renting a room, paying capital of 500 a month off....

Plus I'm too scared, rather play safe and have a roof over my head!

Reading stories of what some teants put up with I like being owner..

Generali

It's a tough one. Property is massively overpriced but it could go higher still, incredibly. I'd just ignore the value of the flat and just enjoy living there. Unless you've got plans to sell or remortgage the value of it doesn't matter.

If someone tries to engage you in smug banter about how much your place has gone up in price, walk away quickly. They're clearly very boring people.