First Time Buyer - How to Value a Property?

Crashy_Time

MobileSaver wrote: »

The only fundamentals that really count are that more and more people want their own home (demand) and we're not creating anywhere near enough homes (supply) to satisfy that demand. Until the fundamental law of supply and demand is addressed prices will continue to rise over the mid to long term.

There will be peaks and troughs along the way affected by localised and short-term issues (e.g. uncertainty over the aftermath of Brexit) but over the mid to long term it's a complete no-brainer which way prices will go.

Until and unless there's a seismic political shift in housing policy the 50%+ house price crash that the HPC crowd long for is never going to happen. To make matters worse for the HPCers the sad truth is that even in the practically unthinkable situation that house prices crash by almost 40%, all that would do is bring them back to the same levels as when the HPC site started! So they've waited 14 years and gained absolutely nothing (except lived in places they don't want to live, felt angry at the world in general, ruined countless relationships along the way and missed out on being half way through a mortgage and thus half way towards owning their own property outright...)

Makes you wonder why the biggest central bank intervention in history had to take place at all doesn`t it...??

LdnFtB

getmore4less wrote: »

You need to understand better where the variations are in your methods, there are so many things that can influence the pricing that statistical approaches have significant short comings.

The broad overview average to average gives an idea of the trend which can be helpful.

if you go more narrow to say a street or a single block, the volumes may be insufficient to get a trend but might pick up a deviation from the broader view. Ie. is a particular block or street rising faster or slower, any factors that might be doing that, could be some planning application is going to make the area a bit better or a bit worse, could something simple like the street parking policy changed or permits went up and this block has private parking.

What might be a good addition to this last method is to also look at similar places that sold around the same time to see where the specific sits, did it sell cheap or expensive at the time.

This is all excellent advice GetMore4Less, thank-you for the helpful suggestions. Will take a look at the surrounding sales this evening.

getmore4less

hutman wrote: »

What Im posting is not hyperbole - its backed up my market fundamentals which will reveal themselves to you via a simple google search. Even before the referendum conundrum London's housing bubble was completely out of tune with people's incomes. After brexit - we will simply have the necessary cooling effect (does a change in wording help you?). Population growth is overwhelmingly one the main contributors to the bubble - and whether you like it or not immigration will be right at the front of the queue when exit negotiations start.

Seems like anytime the housing status quo is challenged on these forums - the outcome is mud slinging. I havent been around for 10 years, so cant entertain the countless anecdotes you may have amassed. Im a prospective FTB looking to assess my risks as i embark on the most important economic decision of my life. So i will assign as much cynicism and doubt as i want, provided i can back up my argument..

You have to be a little careful of trying to relate the market to wages because there are significant external investment forces at work.

These external forces impact supply, stimulating this investment just needs the UK and London in particular to be seen as save haven for the worlds rich to park their cash.

There are a lot of very rich people that are struggling to find places to put their money(away from their own regions) and these are cash buyers not those struggling to save deposits and raise a mortgage.

movilogo

Calculate total available floor space (based on room dimensions) and convert price to £/sq ft or £/sq m in order to compare similar houses.

This will tell you which house is overpriced (in same location).

Surrey_EA

movilogo wrote: »

Calculate total available floor space (based on room dimensions) and convert price to £/sq ft or £/sq m in order to compare similar houses.

This is not always easy to do, as generally hallways/landing and bathrooms are not measure, making if difficult to calculate the area of a property.

However, if you request the EPC (the 5/6 page full report, not just the graph) then that should tell you the floor area of the property.

Crashy_Time

getmore4less wrote: »

You have to be a little careful of trying to relate the market to wages because there are significant external investment forces at work.

These external forces impact supply, stimulating this investment just needs the UK and London in particular to be seen as save haven for the worlds rich to park their cash.

There are a lot of very rich people that are struggling to find places to put their money(away from their own regions) and these are cash buyers not those struggling to save deposits and raise a mortgage.

It seems Brexit is diminishing this image does it not?