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How to tell if property is good value

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  • MultiFuelBurner
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    Ybe said:
    GDB2222 said:
    Ybe said:
    Pocket Living flats are well designed in terms of use of space  but very pokey and claustrophobic and there are restrictions when you come to sell them on. People buy them because they like the brand which pretends to be ethical whereas in reality they are just another housebuilder selling tiny, overpriced London shoeboxes.  I'm not sure what the future holds for house prices in Barnet but for the UK housing market, prices are only going one way over the next few years and that's down whilst interest rates will rise further, so my advice is buyer beware.
    So in terms of buying any UK property as a FTB, is it better to wait a bit for prices to fall? Or is the market just too unpredictable. 
    The share prices of house builders have risen a bit recently, indicating that investors think that house prices are not going to drop much further, or at least not as much as previously expected.
    Thanks. I don’t know enough about how the property market works to be able to know but is it generally hard to predict how property prices will change? 
    Historically they always go up.

    Buy as soon as you can
  • Sarah1Mitty2
    Sarah1Mitty2 Posts: 1,838 Forumite
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    Ybe said:
    GDB2222 said:
    Ybe said:
    Pocket Living flats are well designed in terms of use of space  but very pokey and claustrophobic and there are restrictions when you come to sell them on. People buy them because they like the brand which pretends to be ethical whereas in reality they are just another housebuilder selling tiny, overpriced London shoeboxes.  I'm not sure what the future holds for house prices in Barnet but for the UK housing market, prices are only going one way over the next few years and that's down whilst interest rates will rise further, so my advice is buyer beware.
    So in terms of buying any UK property as a FTB, is it better to wait a bit for prices to fall? Or is the market just too unpredictable. 
    The share prices of house builders have risen a bit recently, indicating that investors think that house prices are not going to drop much further, or at least not as much as previously expected.
    Thanks. I don’t know enough about how the property market works to be able to know but is it generally hard to predict how property prices will change? 
    Historically they always go up.

    Buy as soon as you can
     Not while rates are still rising though.
  • Ybe
    Ybe Posts: 293 Forumite
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    They are now on sale.  How are they now compared to market conditions and prices? I checked and on reselling, if no buyer is found after 6 months with the restrictions, they can be sold on the open market with no restrictions. 
  • Sarah1Mitty2
    Sarah1Mitty2 Posts: 1,838 Forumite
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    Can`t see much value there with mortgage rates now higher than the Truss budget episode.
  • Ybe
    Ybe Posts: 293 Forumite
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    Can`t see much value there with mortgage rates now higher than the Truss budget episode.
    So you think resales better?
  • Ybe
    Ybe Posts: 293 Forumite
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    So I have come to a decision that the pricing and the service charges are not priced correctly to offset the risks of this property (section 106 restrictions which limit the resale market, high interest rates, buying in a downward market, pricing compared to nearby properties). But my thinking is that if I’ve made a decision to walk away anyway, I have nothing to lose by asking for a discount.  
  • theartfullodger
    theartfullodger Posts: 14,703 Forumite
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    edited 22 September 2023 at 12:06PM
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    Easy.  When you sell it (or rent it out) you'll know from the profit/loss you make compared to probable/expected. 

    Anything else mainly speculation.

    Cheers!
  • Ybe
    Ybe Posts: 293 Forumite
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    Easy.  When you sell it (or rent it out) you'll know from the profit/loss you make compared to probable/expected. 

    Anything else mainly speculation.

    Cheers!
    Indeed. It is just more than what I want to pay given the restrictions and the price of other properties nearby. 
  • peterhjohnson
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    For most people, buying something that can be readily sold in years to come is very important. Any restriction on the potential market is a worry. I've seen it with retirement properties that can only be lived in by those 55+ - they stay on the market for ages - even when the market is hot.
  • RHemmings
    RHemmings Posts: 3,722 Forumite
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    The way I feel about the question in the OP is that if the property sells quickly then it was good value. But, I only know when it's too late. 
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