A surge in the market come jan 2014

HAMISH_MCTAVISH

Mr._Pricklepants wrote: »

He meant 'per kilogram' :rotfl:

Fair value would be half that.....;)

lessonlearned

calicocat wrote: »

Nope, i'm getting in now as quick as I can.

This isn't based on any real knowledge of economics or how the market works at all as I don't really understand it. However I have been hunting around the area i'm going to buy inn since last sept and houses are starting to creep up. Not all of them, but certainly some are (and the type i'm looking at). Some seem to be really sticking, and others have 7 people after them and do get the asking price.

So,i'm wanting to get in now whilst I can afford something a bit bigger if they continue to rise.

I'm not really sure I have understood all the posts on here, but I have thoroughly enjoyed reading it, and it has given me food for thought and had me off googling all sorts.....again...just to confuse matters more for me.

Good luck with your search.

You are being very sensible. You don't need to understand all the political and economic arguments for and against buying a property. They are largely irrelevant because you are buying a home, security and an investment (not just monetary) in your future. You are putting down roots and building your nest.;)

And.... you are going about it in exactly the right way. You have monitored your local market, and have read and understood the signs. You've realised what's happening and that it's time to make your move.

This is exactly what I have done.

Back in January I told my boys that they needed to buy a house this year and get on the property ladder. I had sniffed the air and noticed that, in our area, the property market was on the cusp of change. The first "green shoots of recovery" were there if you were keen eyed enough to spot them.

I have been proved right. Good properties are moving fast, prices are climbing and the best properties are achieving their asking prices - assuming of course that those prices are fair and realistic.

Yes the overpriced dross is still sticking but the good stuff is being snapped up.

I appreciate that in some areas of the country this may not have happened yet and that they may be a time lag.

My advice is, if you are thinking about making a purchase in the foreseeable future, then you should monitor your local market very closely.

My boys have secured their properties, sales going through ok.

In both cases there was a lot of competition so we didn't mess about with low offers. We deemed the asking prices to be fair and reasonable and the properties in question offered value for money.

In both cases they are period properties in need of "refreshment" - the kind of properties that always attract interest even in a slow market.

They are good investments. They are in good areas of the city. I have no qualms about paying full asking price because when these properties have been refurbished they will have substantially increased in value.

Calicocat, I wish you every success in your endeavours. Keep us posted.......

calicocat

Lessonlearned.....thank you.

Offer accepted (flipping asking price), searches survey done etc, should be good to go in two weeks.

I do panic at times that am paying a bit much for it, but these things are always a bit of a gamble aren't they. There were 7 of us after it so at least I know others though it worth it as they were prepared to pay the same I just got in first.

It seems to be the over priced large homes or the small ones that need work that are sticking in the area i'm going to be in. People are afraid of the financial commitment still I think, the 3/4 bedroomed 'modern boxes' as I call them that are in ok upkeep are flying quickly,very quickly (or were up until last month anyhow.)


To be honest I could have got an amazing victoria terrace for the same price (and much more my style), but had to look at future up keep costs etc, general running costs.

I knew nothing really when I started, and feel I could do the house showing way better than the EA I was dealing with, got right into it and would love doing it.

I researched everything from flood areas,previous purchase prices,street prices,who did the conversions if any etc. It's been exhausting, but very interesting. It took me 7 months of looking in a not massive area to work out which 4 streets I was prepared to buy in, and probably looked at 100 houses.

Thanks for the good wishes....its on to looking at paint now.....and the dreaded Move!!

Edit, I also googles flood paths, crime statistics for every street, not that I have kids but which streets were able to go to the best school if I ever wanted to sell or rent it out,and zoomed into everyone's gardens in the street.....i turned into a bit of a google maniac I think.

lessonlearned

calicocat wrote: »

Thanks for the good wishes....its on to looking at paint now.....and the dreaded Move!!

Choosing paint etc - that's the fun stuff....

I love a good refurb/decorating project.

HAMISH_MCTAVISH

calicocat wrote: »

Nope, i'm getting in now as quick as I can..

Probably wise.

lessonlearned

Thought you might be interested in this.

Today I went into the EA's office who are dealing with my DS2's house purchase. The office was packed, the phones were ringing non stop.

We had our little chat with their broker, he is an old colleague so I know him quite well. I mentioned that they seemed busy.

Here was his reply.

From the day the government announced the "Help to Buy" initiative they have got progessively busier. They are now - in his words - "crazy busy".

I asked was this just general enquiries or was this translating to sales. He confirmed that the enquiries were indeed culminating in sales, that business was brisk and prices were already starting to rise.

He showed me his own folder of FTB's who are lined up and ready and waiting to pounce next January.

We then talked about interest rate rises.

I am pleased to say that both my sons have managed to secure good fixed rate deals.

My source told me that only this week the lenders have started pulling some of their products. He anticipates that more of the really good fixed rate deals will disappear in the next few weeks. The new deals will not be as attractive.

As I mentioned in an earlier post I had noticed the subtle shift in the market even before the government had announced the "Help to Buy" scheme. I advised my boys to get cracking.

Way back in December/January they started preparing. In fact, at my insistence DS2 began repairing his credit record a couple of years ago.....Sometimes Mum really does know best:rotfl:

Again I repeat the advice I gave a few days ago.

If you have the funds then don't hesitate for too long.

The market is heating up. It may still be patchy and some areas may be a bit slower in catching up but I firmly believe that prices rises are now inevitable.

HAMISH_MCTAVISH

lessonlearned wrote: »

If you have the funds then don't hesitate for too long.

The market is heating up. It may still be patchy and some areas may be a bit slower in catching up but I firmly believe that prices rises are now inevitable.

Yes, buying now before more people can compete next January is almost certainly the prudent thing to do.

gazzabboi

Slowly slowly, my guess is a 5% rise by this time next year with sellers achieving asking price

HAMISH_MCTAVISH

gazzabboi wrote: »

Slowly slowly, my guess is a 5% rise by this time next year with sellers achieving asking price

We're almost at 5% year on year in some surveys already, and well in excess in the more desirable areas.

5% should be the average by year end, and more like 7%+ next year.