What Should We Do?

cypher007

our current position:

3 bed semi paid for, worth about £110k.
£50k deposit saved.

we want to have one property as a rental and one to live in. the rental market in Boston UK where we live is hot, due to eastern Europeans constantly moving in.

what weve found so far, when weve offered on a few properties, is the estate agents/vendors are not very keen dropping from the asking prices. more so since the HTB2 scheme was announced, not that the Help The Bubble scheme will drive up prices no no of course not.

so should we continue waiting, been waiting 6 years. or take the plunge before we cant afford to trade up at all.

hazyjo

All this cos you won't pay asking price or near to it? If that's what they're going for, that's what you pay. Supply and demand.

You could always tell every EA you won't pay asking price, give them your requirements, and the next person looking to sell something similar can overprice it by say 5% and then you can offer on that.

Really not trying to be facetious here... just not quite sure I'm reading it right!

If an area is fast moving, obviously you're far less likely to get a 'bargain'.

Jx

lincroft1710

cypher007 wrote: »

when weve offered on a few properties, is the estate agents/vendors are not very keen dropping from the asking prices

If the houses are priced at or very near their current true market value, why should the vendors accept less? Have the houses you've offered on been sold? If not, remind the EAs of your offers.

cypher007

hazyjo wrote: »

All this cos you won't pay asking price or near to it? If that's what they're going for, that's what you pay. Supply and demand.

You could always tell every EA you won't pay asking price, give them your requirements, and the next person looking to sell something similar can overprice it by say 5% and then you can offer on that.

Really not trying to be facetious here... just not quite sure I'm reading it right!

If an area is fast moving, obviously you're far less likely to get a 'bargain'.

Jx

I understand, but we offered £160k on a £169k house recently, bearing in mind the opposite property took 4 years and a big extension to only achieve £153k in 2010, and its a similar size. you can understand my frustration, when the agent asks for £162k, we refuse. then someone goes in there with a full asking price offer. the guttering and facia's haven't been put on the extended part of this property for over 8 years approx. also the roof tiles haven't been flashed into the adjoining wall, so god knows where the waters been going.

the market here has lost its mind in the last couple of months. there paying in some cases more than in 2007.

Kildare

cypher007 wrote: »

I understand, but we offered £160k on a £169k house recently, bearing in mind the opposite property took 4 years and a big extension to only achieve £153k in 2010, and its a similar size. you can understand my frustration, when the agent asks for £162k, we refuse. then someone goes in there with a full asking price offer. the guttering and facia's haven't been put on the extended part of this property for over 8 years approx. also the roof tiles haven't been flashed into the adjoining wall, so god knows where the waters been going.

the market here has lost its mind in the last couple of months. there paying in some cases more than in 2007.

My area is very similar. I had a chat with our EA and she said there's so little property on the market at the moment that they are snapped up as soon as they come on, often for asking price or over and for more than other properties on the street were selling for 6 months ago. Unfortunately the market is hot at the moment and you either choose to pay what the property is currently going for or you wait and see. Where we are looking (SE not London) you've got to be through the door within 48 hours of a property going on the market.

We're looking for a home for hopefully the next 10+ years so although I want value for money, if I find the right place and have to pay a little extra it hopefully won't matter because of the amount of time we hope to live there.

Road_Hog

cypher007 wrote: »

I understand, but we offered £160k on a £169k house recently, bearing in mind the opposite property took 4 years and a big extension to only achieve £153k in 2010, and its a similar size. you can understand my frustration, when the agent asks for £162k, we refuse. then someone goes in there with a full asking price offer. the guttering and facia's haven't been put on the extended part of this property for over 8 years approx. also the roof tiles haven't been flashed into the adjoining wall, so god knows where the waters been going.

the market here has lost its mind in the last couple of months. there paying in some cases more than in 2007.

As has been said, the housing market is hot, more buyers than sellers. The EA where I'm selling a property almost ripped my arm off to sell mine. He had a whole list of clients, all chasing the few properties out there. And mine needs a bit of renovating because it's been rented out for the last 13 years.

I askde if I should 'tart' it up a bit and he said no, leave that to the buyer, they'll like the idea of thinking that they're getting a bargain.

cypher007

wheres the money coming from? surely people are not being taken in by help the bubble scheme? or could it just be a bit of collective fear, driven by media reports of house prices rising? maybe by next spring the market will go quiet again?

ognum

cypher007 wrote: »

wheres the money coming from? surely people are not being taken in by help the bubble scheme? or could it just be a bit of collective fear, driven by media reports of house prices rising? maybe by next spring the market will go quiet again?

IMO the money is coming from my generation the 'boomers'. There are many people who have some cash lying around from different places, retirement lump sum, savings, inheritence, selling larger properties.

Due to the way saving interest is these people do not know what to do with the money in order to get long term capital growth and income, property has historically over the long term provided both.

So blame the low interest rates, low mortgage rates and the boomer generation!!

ognum

the market will not go quiet while there is pent up demand and low supply, when savings interest rises then the investment buyer will be happy to put money back in banks except no one trusts a bank anymore!

HAMISH_MCTAVISH

cypher007 wrote: »

wheres the money coming from? surely people are not being taken in by help the bubble scheme? or could it just be a bit of collective fear, driven by media reports of house prices rising? maybe by next spring the market will go quiet again?

Oh dear....

The cognitive dissonance is extreme in this one.

Not entirely surprising after 6 years of hpc brainwashing I suppose.:(

Thrugelmir

cypher007 wrote: »

I understand, but we offered £160k on a £169k house recently, bearing in mind the opposite property took 4 years and a big extension to only achieve £153k in 2010,

If you don't want a mortgage. Keep saving. At some point in the future there'll be a window of opportunity.