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How to tell if property is good value

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  • BungalowBel
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    Ybe said:
    Does this development look like good value?  It does comparing to other prices in the area especially given its a new build but I don’t know if the current market conditions or predicted fall in house prices upcoming or anything else I might have missed would make it not as good value as it first appears.  I know it has a section 106 condition on it that it can only be sold to FTBs. 

    I don't know anything about the London property market, but love the roof gardens, especially if you can plant stuff in it yourself, or put your own garden furniture up there.
  • Ybe
    Ybe Posts: 293 Forumite
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    RHemmings said:
    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. 
    Well not how I intended for it to mean. Good value is subjective I guess. 
  • RHemmings
    RHemmings Posts: 3,676 Forumite
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    Ybe said:
    RHemmings said:
    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. 
    Well not how I intended for it to mean. Good value is subjective I guess. 
    Subjectively, good value for me is a house that I want to live in which I can afford. Having seen a number of properties and seen which ones sell is giving me a better gut feeling about which ones are good value. 

    But, from observing houses that sell, I think that my impression of good value is shared by other people. 
  • Ybe
    Ybe Posts: 293 Forumite
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    RHemmings said:
    Ybe said:
    RHemmings said:
    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. 
    Well not how I intended for it to mean. Good value is subjective I guess. 
    Subjectively, good value for me is a house that I want to live in which I can afford. Having seen a number of properties and seen which ones sell is giving me a better gut feeling about which ones are good value. 

    But, from observing houses that sell, I think that my impression of good value is shared by other people. 
    I think for me also good value is a house that I can live in that I can afford but also which I can sell easily if for example i lose my job due to redundancy. Otherwise, you could burn through your savings then be repossessed. 
  • RHemmings
    RHemmings Posts: 3,676 Forumite
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    Ybe said:

    I think for me also good value is a house that I can live in that I can afford but also which I can sell easily if for example i lose my job due to redundancy. Otherwise, you could burn through your savings then be repossessed. 
    In a declining market (and I'm not arguing HPC), even a good value house now may not be good value at that same price in the future. 

    For people who own the house outright (including cash buyers), a house can be a good store of wealth in case of losing one's job. Because a house owned by someone that they live in is, I believe, not considered in terms of means tested benefits. So, someone can ride out a period of unemployment without having to use so much of their personal savings to support themselves - and not losing that asset. 

    In that situation, even a 'poor value' purchase may turn out to be a good purchase, financially, in the long run. 
  • BobT36
    BobT36 Posts: 589 Forumite
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    ^ This is true. I've been saving for a house my entire life and should something terrible happen to my income, I'd absolutely be expected to blow my entire savings, before being able to claim anything besides a tiny amount of contributory based JSA. That would then leave me effed for the rest of my life and unable to ever buy a house. 

    Yet someone who's already bought one and essentially got that same amount of money "stored" in their house? Well they can claim whatever, not have the same financial impact detriment their future, and still have a secure roof over their head, too (as long as the mortgage gets paid, which it has a better chance of doing as they can claim). 
  • Ybe
    Ybe Posts: 293 Forumite
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    edited 24 September 2023 at 10:34AM
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    BobT36 said:
    ^ This is true. I've been saving for a house my entire life and should something terrible happen to my income, I'd absolutely be expected to blow my entire savings, before being able to claim anything besides a tiny amount of contributory based JSA. That would then leave me effed for the rest of my life and unable to ever buy a house. 

    Yet someone who's already bought one and essentially got that same amount of money "stored" in their house? Well they can claim whatever, not have the same financial impact detriment their future, and still have a secure roof over their head, too (as long as the mortgage gets paid, which it has a better chance of doing as they can claim). 
    What can they claim? Is there a benefit that pays mortgages if one no longer has an income? I think any benefit out there (JSA, universal credit etc) would barely put a dent in mortgage repayments these days. Does this also rely on property prices not going down? 
  • Ybe
    Ybe Posts: 293 Forumite
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    Ybe said:
    Does this development look like good value?  It does comparing to other prices in the area especially given its a new build but I don’t know if the current market conditions or predicted fall in house prices upcoming or anything else I might have missed would make it not as good value as it first appears.  I know it has a section 106 condition on it that it can only be sold to FTBs. 

    Are the properties now better value given that mortgage rates have come down and property prices are rising again? 
  • lika_86
    lika_86 Posts: 1,779 Forumite
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    No. They still suffer from the same problems they did. I'd also check out things like Trust pilot for Pocket Living. 
  • Ybe
    Ybe Posts: 293 Forumite
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    lika_86 said:
    No. They still suffer from the same problems they did. I'd also check out things like Trust pilot for Pocket Living. 
    Are open market new builds generally better? 
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