First time buyer: one bedroom in London

Crashy_Time

redefinr said:

blue_max_3 said:

redefinr said:

The problem with all these new builds are Service Charge...they are all quite high. I'm alright with £1400pa when it's a new build with concierge etc...but some of those are reaching £2400 etc. it's quite crazy.

So, you're unhappy about the additional £1k per year? Just knock 20 years worth off the asking. And make it clear that's why you are doing it. Or move onto the next one. 

That's not a reasonable offer. Despite what a lot of people says 'market is frozen', 'houses are overprices' etc etc in the real world you can't knock like £20k off a property right now, unless maybe it's been on the market for years.

Not sure that is accurate TBH, PropertyLog tells us that sellers are regularly knocking much more than that off their asking prices, and after October IMO it will be really easy to do.

Jamaicanmelaff

redefinr said:

blue_max_3 said:

redefinr said:

The problem with all these new builds are Service Charge...they are all quite high. I'm alright with £1400pa when it's a new build with concierge etc...but some of those are reaching £2400 etc. it's quite crazy.

So, you're unhappy about the additional £1k per year? Just knock 20 years worth off the asking. And make it clear that's why you are doing it. Or move onto the next one. 

That's not a reasonable offer. Despite what a lot of people says 'market is frozen', 'houses are overprices' etc etc in the real world you can't knock like £20k off a property right now, unless maybe it's been on the market for years.

I knocked 20k off a £190k asking price for a house (4 bed detached, huge garden) that had already sold for £200k last year and fallen through last minute. Welsh valleys though so the market is very different to London and because it fell through it had been on the market for 8 months. 

blue_max_3

redefinr said:

That's not a reasonable offer. Despite what a lot of people says 'market is frozen', 'houses are overprices' etc etc in the real world you can't knock like £20k off a property right now, unless maybe it's been on the market for years.

In London, do you think prices are reasonable? I'm more than happy to offer less for one that just came on the market. I'm the first to view and am a cash buyer (in the bank, no mortgage). It's an ex rental place, so they may or may not be motivated to sell quickly. I'm certainly looking for a deal though. I'd rather buy in Winter and this Winter will be especially favourable I believe.
Doesn't mean I'm right and may get short shrift from the agent. But I'll let you know and keep up my search if not.

numbercruncher8

Sellers are knocking money off all the time.
https://www.rightmove.co.uk/property-for-sale/property-88307177.html has £30k off today (been on since January). Sure it's a repo but I can see lots of properties in your price range that get reduced.
Maybe you feel that way because it's your experience, but that could be that a sign that you're doing things right. When you are at the bottom of the range for price already, discounts will be harder to come by. At the frothy tops and kite-flyers, they are common. 

Across London I can see quite a few really overpriced things where the sellers would be delighted if someone came in and offered just £20k off the asking price. But I wouldn't claim that all London property is overpriced just because of that.

redefinr

It's very tough, I'm not sure of a second Lockdown and I feel like I want to take advantage of the current situation of uncertainty in London...I find it already hard to get a flat now - imagine when it's all back to normal.
This is a good shot in the same area:
https://www.rightmove.co.uk/property-for-sale/property-81879187.html
A really good space and it looks like in good nick. I'm not particularly keen on ground floors but maybe I could go and have a look to understand if the windows faces busy roads or private areas maybe?
£1600pa of service charge....a bit expensive but it's feasable.

Crashy_Time

Things won`t be going back to "normal", we have Brexit looming even if the virus dies out tonight, and the relationship with China is deteriorating daily which will impact people`s debt costs in future, nearly a third of a million pounds debt on that last flat just looks bonkers TBH.

hazyjo

Crashy, it's a lot to you, but not to Londoners! It's not a lot of money to spend there.

The postcode is a Lewisham one so check if it's under Greenwich or Lewisham Councils as I seem to remember they were different (was a long time ago I lived there though). Might make a difference with Council Tax costs etc if they are different.

bouicca21

The ground rent is very high for a one bed flat.   It’s about twice what I pay for a 2/3 bed one.  It’s right on the Lewisham/Greenwich border.

Crashy_Time

hazyjo said:

Crashy, it's a lot to you, but not to Londoners! It's not a lot of money to spend there.

The postcode is a Lewisham one so check if it's under Greenwich or Lewisham Councils as I seem to remember they were different (was a long time ago I lived there though). Might make a difference with Council Tax costs etc if they are different.

Really. Do you know what the average wage in Lewisham is? Many Londoners are stretched to the max most months I would say, or on some kind of benefit, I have multiple years living expenses set aside, don`t confuse knowing the value of things with financial scarcity, the average person daft enough to buy this is looking for a 90%+ mortgage plus subbing from family as well IMO. PropertyLog tells us that London prices ARE too much for many Londoners.

hazyjo

Lewisham is not a particularly affluent borough itself, but I bet those living there who commute a very short journey into London are earning several times more than the average wage in Lewisham!