Crazy London prices

SuzieSue

It feels very much like it was in the late 80s when prices seemed to be going up weekly. My ex bought a flat for £50k in 1989 and sold it 9 years later for the same price.

The situation in the late 80s was caused by Nigel Lawson saying that the Miras relief for unmarried couples was going to end in a few months time which caused a stampede. It looks like the Help to Buy scheme is having a similar effect:

http://www.ft.com/cms/s/0/883ebfee-cdc4-11e2-a13e-00144feab7de.html#axzz2rcS19oMa

Metranil_Vavin

Quick update on my friends flat (for anyone interested!)

So after the open day on Saturday, she has had 5 offers!

£285k
£295.5k
£300k
£307k
£310k

Flat is on for £299,950k

nickyg2000

Might as well put in on for £350k and wait a coup,e of months

richemily

I've just sold my one bed in north London zone 3/4. Thought they would say under £250k but put it on for £325k at EA recommendation. Had 25 viewers on open day, 11 offers and its sold for £360k. Totally nuts

Of course I can't afford anywhere else now too!!

rob404uk

The extra 110K should pay for a few years rent somewhere though!

hazyjo

Bought mine in E4 for £274k last April. Wouldn't sell for under £325k now... In fact, would probably market at £340k. Not planning on selling any time soon though!

Crazy crazy.

Jx

ManicRower

Offer of £335k (Marketed at £350k) accepted on a Ground Floor 1950's 2 bed flat in SE3 in September. Exchanged December, completed January.


Full rewire/replaster, decoration ongoing.


Last week my 'upstairs and across 1' neighbour put their property on the market. Same floorplan, same size, admittedly a better kitchen/bathroom suite and finished with decorating. It was marketed for £425k with the same estate agents and had sale agreed within a week.


Obviously being 1st floor rather than ground will add a bit, as will the fact it's fully decorated, but £90k???? Surely not?

BigAunty

ManicRower wrote: »

Obviously being 1st floor rather than ground will add a bit, as will the fact it's fully decorated, but £90k???? Surely not?

Bubbles defy sense and logic, so quite possibly.

It might not end in tears but it might not. I do remember in the late 80s/perhaps early 90s two of my young friends (in their early twenties because it was possible for couples to buy houses down south on ordinary salaries then) boasting about how much their properties were worth. One had their marriage breakdown under the pressure of double digit mortgage interest, the other cried with relief when the council housed her after handing back the keys to her mortgage company.

As mentioned before, if you stay in the area undergoing a bullish property market, its hard to realise the profit because of the big price increase for the next property and it exposes the homebuyer to a potential bearish dip.

My partner and I sold our properties down south to move to Scotland and thus got a big mortgage free period property rather than the mortgage millstones round our neck which constitutes living down south. My parents did the same, selling down south and moving northwards to buy outright.

We've probably effectively ruined any chance of moving back down South by getting off the housing ladder there but I don't believe that I will regret it.

Metranil_Vavin

We had KFH over to value our 3 bed, top floor maisonette last week.

Last valuation I had about a year ago was somewhere between 300k-325k.

New valuation 400k-450k, which when pushed said for 'crunching numbers' purposes would confidently sell for £440k.

Obviously this is nice to hear, but houses have risen by 30% in my area too, so we still can't afford to upsize.

So we are potentially looking at Brighton as amazingly enough, we could probably afford a nice 3/4 bed house there now. I'd ruled it out previously as prices there always seemed steep too, but seems the craziness of London prices has made it a possibility.

My friend who I mentioned above accepted the 310k offer on her flat and is now buying a 3 bed, converted chapel on the Kent coast, which will leave her with a very small mortgage thank you very much.

Win for her.

AndyGuil

ManicRower wrote: »

Offer of £335k (Marketed at £350k) accepted on a Ground Floor 1950's 2 bed flat in SE3 in September. Exchanged December, completed January.


Full rewire/replaster, decoration ongoing.


Last week my 'upstairs and across 1' neighbour put their property on the market. Same floorplan, same size, admittedly a better kitchen/bathroom suite and finished with decorating. It was marketed for £425k with the same estate agents and had sale agreed within a week.


Obviously being 1st floor rather than ground will add a bit, as will the fact it's fully decorated, but £90k???? Surely not?

Not necessarily. Ground floor often has garden access or other benefits. It is often an assumption that ground floor has a slightly higher risk of security issues, but it is much more likely that a burgler will enter the communal area and head to the flats higher up the building to avoid being disturbed. It is easier to break through a door lock than through a window without being noticed and whilst inside being out of view is obviously desirable for them. Top floor flats often have issues with people going through the loft areas and down into the flats. Each has pro and cons, but I haven't noticed differences in price between them.