against my better judgement should i buy?

epz_2

ive been a long term beliver that the market is way over valued, in particular up here in scotland i think we have got caught up in the wake of the london bubble which will need considerably more rate rises than here to cool it and hence even if there isnt an overall crash i think here may get knocked down.

that said ive just viewed a house which seems a pretty amazing deal, its in a bit of a dodgy area but most are getting demolished and slightly better houses round the corner go for 250K.

issues are mostly it needs about 10k spending on getting up to scratch, group E council so £1800 a year rates(possibly not the best idea for a single guy). also while there is plenty of parking it is near a train station and busy road. front view aint the best but back is over school playingfields and park.

anyway i figure it may be worth going ballpark 135k just on a punt and wanted a few opinions, oh bty its basicly a 5 bed house but 3 of the rooms are part of a 70s extension.

http://www.rightmove.co.uk/viewdetails-15415172.rsp?pa_n=2&tr_t=buy

one of my reasons for getting such a big place is its barely 15% more than a 2bed flat up here and i could always rent out a floor to a mate if things get tight

Zammo

Well I just put an offer in for 136 and had it refused. Go for 140. :money:

hearts

No offence m8 but thats a 160k plus house I think. I maybe wrong not my area.

epz_2

hearts wrote: »

No offence m8 but thats a 160k plus house I think. I maybe wrong not my area.

in theory yes but its in a very funny area, theres a a lot of deralict flats opposite waiting to get demolished and on the edge of an industral zone with a paint manufacturer and oil processing yard the other side of the train line. neither bother me but its not the sort of stuff you would want a family living in. its also in a real state needs 10k worth of materials, total refurb like new stairs etc.

basicly competition is devlopers (who would have trouble given the layout) and landlords looking to rent out a house of multiple occupancy.


anyway i was thinking of having a punt as it looks good value, i aint paying over the odds for anything so not like i would be heartbroken to miss out

Generali

If there's no cost to bid then it's a good idea, I reckon. Offer what it's worth to you.

Lazy_Runner

So which kind of buyer are you going to sell it to?

As you say it is family home sized but families may not want to be in that area. Or is the school you back on to really good?

Landlords perhaps or developers.

When you come to sell, will you just make back what you put in or do you foresee greater gains?

Just playing devil's advocate.

lypsey

I think you will find if you study the Land registry office figures they were down 2.2%in the last quarter

http://www.ros.gov.uk/aboutus/pressreleases.html

Please do not believe what you read from the Halifax , Nationwide etc etc , the only true figures come from the LR.

As mystic trev has posted on another post the OECD think houses in theUK are over priced by 65%. Can you afford in 5 years to have lost 50% of your house value???

Guy_Montag

Epz, only you can decide.

Do you want to live in the area?
How long will you want to live there?
Do you have the skills, time & patience to do it up?
Can you afford it?
Can you afford it if rates go to 10%?
How long can you afford it if you lose your job, how easy is it for you to get a new job?
What advantage is there in buying this place over where you currently rent?

epz_2

Lazy_Runner wrote: »

So which kind of buyer are you going to sell it to?

As you say it is family home sized but families may not want to be in that area. Or is the school you back on to really good?

Landlords perhaps or developers.

When you come to sell, will you just make back what you put in or do you foresee greater gains?

Just playing devil's advocate.

dont care i want somewhere to live, not an investment vehical.

the school it backs onto is a 500 year old grammer, i dont consider it that good but then i didnt want to go to school by bus as a kid, academic selection so proximity doesnt matter.

as to the area, well it will likely improve once the flats opposite are demolished and a airport extension is built meaning likely 24 hour access to glasgow. frankly im a relatively young guy so family aint on my mind and while the area is relatively dodgy i have a lot of big mates and any hassle means some junkies are getting leathered.

on the finacials i would be looking at a 60k deposit leaving my interest only portion of the mortgage about £100 a month cheaper than renting a 2 bed flat. i will likely opt for a 5 year fix interest only and manage the repayment vehical myself giving me a bit of a fighting fund should i lose employment, im an IT monkey so the skills are relatively transferable and worst case i could always get a helldesk post.

looks like it is going to sealed bids so dubious i would that much of a deal, ill likely put in a punt and see how it plays out, cant hurt.

hearts

lypsey wrote: »

I think you will find if you study the Land registry office figures they were down 2.2%in the last quarter

http://www.ros.gov.uk/aboutus/pressreleases.html

Please do not believe what you read from the Halifax , Nationwide etc etc , the only true figures come from the LR.

As mystic trev has posted on another post the OECD think houses in theUK are over priced by 65%. Can you afford in 5 years to have lost 50% of your house value???

God all bloody mighty we are now at a 50% loss in 5 years. This isnt going to happen. Not even in the best dreams of all the ones hoping for a crash.

...and are you sure the Land registry figures are relevant in Scotland?

Generali

hearts wrote: »

God all bloody mighty we are now at a 50% loss in 5 years. This isnt going to happen. Not even in the best dreams of all the ones hoping for a crash.

...and are you sure the Land registry figures are relevant in Scotland?

If prices can double they can halve. Look at equity prices in the US in the period 1927-1939 or Florida land prices in the period 1920-1971 (the US came off the Gold Standard in 1971 hence the end date) if you disagree.