Is anyone else currently buying in London? Isn't the frenzy putting you off?

sterl1ng

With asking prices being offered 10% over I'm starting to wonder whether to just hold until frenzy calms down. Plus i'm getting worried I could end up in negative equity.

Right now i'm looking in south croydon, and with east croydon having excellent transport links, as well as regeneration I there's a high demand for 2 bed property. Whilst I'm still looking (now also looking at 1 beds) I'm starting to wonder if I should just hang on to see what happens what dust settles.....but when will it settle!

browneyedbazzi

There's no guarantee that the dust will ever settle...if you wait too long and prices continue to raise you may end up priced out.

hazyjo

After having gone through two recessions, it doesn't really 'settle' as such. It's always gone up then gone slightly static much later on then dropped into a recession (very roughly, two decades apart).

You take your chances...

Not usually one to say jump on the bandwagon, but if I was buying in London right now with nowhere to sell, I would be one of those trying to buy asap. I know it just makes things worse, but I've seen friends priced out of the market. I've kinda been lucky mostly, but have lost money a couple of times. Swings 'n' roundabouts...

Jx

Turnbull2000

If and when the 'dust settles', it's almost certain that prices will still be a good 20-30% higher in a few years time.

cayennepepper

We had to offer asking price and got the house because we have no chain but also because the Vendors were honest people that did not gazump us when someone else offered more. We just exchanged and boy am I glad to be a home owner again! No regrets here (until I move in and the house falls apart LOL)

Booge

Not convinced it will get better. I'm also looking at buying in London, but not being from London the better option for me is to get out of London and find a job outside the city. Not so easy if you were born here and have all your friends and family here though.

shortchanged_2

browneyedbazzi wrote: »

There's no guarantee that the dust will ever settle...if you wait too long and prices continue to raise you may end up priced out.

What happens when the majority are priced out?

urbanmyth

Is it really a frenzy though? House prices in London have always been higher than the rest of the UK. As HazyJoe points out, London prices never really "settle".

MaxTheCat

I've just been through the buying process in Richmond I didn't pay the asking price and it wasn't very stressful. Does it worry me that prices may fall, no because I can't control them and I'm paying less than I would to rent a flat in finchley for a 4 bed house in Richmond. All I would suggest is get a decent fixed rate mortgage I got a 10 year fixed yes I could have got a cheaper interest rate for a shorter time but I doubt interest rates are going anywhere significant over the next 2-3 years however 4-10 is a different matter.

HarrietM

We're buying at the moment. Asking price offer accepted three weeks ago and asking prices for equivalent flats in the area are now around £15,000 higher than when we offered. I'm terrified we'll be gazumped or the sellers' purchase falls through...we can't afford any more so this is our only chance. If we'd waited even these few weeks we would already be priced out.

browneyedbazzi

shortchanged wrote: »

What happens when the majority are priced out?

when? the majority of would be first time buyers are already priced out of the market down here yet prices continue to rise because demand (from the few who aren't priced out) is still higher than supply of properties.

If the supply of properties rockets (unlikely because developers tightly control new properties coming on to the market to maximise their profits) or demand dries up because no-one can afford to buy, then prices will stabilise but I think they are still unlikely to plummet as some would like to believe....there might be small dips, but if you buy with a medium to long term view (ie holding on to a property for at least 5 years) you're unlikely to get less for it than you paid. (and you certainly won't lose what you would have paid in rent during that time!!)