Edinburgh house prices

rich1000

Hi i was thinking to sell my 2 bedroom flat in edinburgh and rent for a while and the buy again once prices go down..

Firstly are prices going to fall like the rest of the uk?

Or are edinburgh prices are going to rise as there is a demand for property as more and more people coming into Edinburgh?

Confused..!!

mr.broderick

rich1000 wrote: »

Hi i was thinking to sell my 2 bedroom flat in edinburgh and rent for a while and the buy again once prices go down..

Firstly are prices going to fall like the rest of the uk?

Or are edinburgh prices are going to rise as there is a demand for property as more and more people coming into Edinburgh?

Confused..!!

Sounds nice and easy doesn't it?

Zammo

I think you're forgetting that a house is also a home, not just an investment.

pokey128

Its a difficult one. I have friends who just spent £45k over the valuation for a 2 bed in Marchmont (having lost out on 6 similar properties) and also other friends who have a 2 bed in Restilrig who have had to reduce the price for the 3rd time since January and still haven't sold. It depends where your property is I guess.

I am hoping that prices in Ed will not drop as much as everywhere else but have budgetted for a 20% drop just in case!!

Good luck

AceCobra1

pokey128 wrote: »

Its a difficult one. I have friends who just spent £45k over the valuation for a 2 bed in Marchmont

What does the valuation mean? Does it mean ur friend has spent £45K in fees alone to get the properties they looked at evaluated to make sure they are really worth what they are askin for?:rolleyes::rolleyes:

brit1234

rich1000 wrote: »

Hi i was thinking to sell my 2 bedroom flat in edinburgh and rent for a while and the buy again once prices go down..

Firstly are prices going to fall like the rest of the uk?

Or are edinburgh prices are going to rise as there is a demand for property as more and more people coming into Edinburgh?

Confused..!!

I think you should be in a good position if you sell straight away as Scottish market is delayed behind the rest of the UK. Maybe if you drop your price 5% below the market value this could aid the quick sale. If you get away with this and rent you could be massively quids up if you choose to buy say in 18 months.

Drea

Prices are definetly dropping.

rudedog_2

pokey128 wrote: »

Its a difficult one. I have friends who just spent £45k over the valuation for a 2 bed in Marchmont (having lost out on 6 similar properties) and also other friends who have a 2 bed in Restilrig who have had to reduce the price for the 3rd time since January and still haven't sold. It depends where your property is I guess.

I am hoping that prices in Ed will not drop as much as everywhere else but have budgetted for a 20% drop just in case!!

Good luck

Thats my experience also. Property in decent areas of Edinburgh are still getting lots of interest. I know this as I sold my New Town flat last month for 25% over the asking (80k over). Since then, we have been trying to buy a family home in a decent catchment area (Blackhall, Crammond, Newington, Barnton etc) and have missed out on 5 properties so far. All our offers have been at least 25% over the asking. One we bid for had 16 notes of interest and went for 40% over!!

New build flats have bombed however, much like the rest of the UK.

Back to the OP, I think you may have missed the boat. If you had sold at the peak last summer, then you definetely would be quids in. Remember that you will need to factor in selling and puchasing costs (stamp duty being the killer, when you buy again).

One thing to point out however is that from December, Scotland is introducing the mandatory sellers survey and home packs. This will definetely have an effect on the market, so if you do want to go through with your plan, I would sell quickly. Good Luck...

dog

k9p9

It does depend on where the flat is and what type it is aswell, which has already been said.

I've got a flat for sale in Trinity and since November i've had to change the price 4 times, and it's still not sold. Started of on offers over (had 8 people view, no offers) then went too fixed price (£20,000 less than it would have gone for last summer, no viewers), reduced it again for a fixed price (no viewers), and have gone back to an offers over price of £10,000 less than in November just to try and get people interested.

It's getting tough, but may look at putting into the rental section cause the rents are going up cause people aren't buying.

One other thing, spoke to my sol who informed me that espc have nearly 10,000 properties on the books, which is the most they've ever had.

In scotland i'm finding houses sell fast and for more than you'd expect but the market for flats is alot slower, unless you're looking at the higher end.

good luck on whatever you do.

IveSeenTheLight

brit1234 wrote: »

I think you should be in a good position if you sell straight away as Scottish market is delayed behind the rest of the UK. Maybe if you drop your price 5% below the market value this could aid the quick sale. If you get away with this and rent you could be massively quids up if you choose to buy say in 18 months.

If you look historically, the above quote is absolute folly.
In the last 20 years (yes including the crash of late 80's / early 90's), Edinburgh has dropped in only 3 years: -
3% in 1993
1% in 1995
4% in 1997

While prices may drop it is good to understand historically how prices were affected in different areas during the last crash.

Look at http://www.hbosplc.com/economy/includes/19_01_08PostTownsData3.xls for the statistical evidence.

If the same occurs this time, will a 4% drop in one year make it worthwhile?
Remember the other years between, the prices rose
7% in 1992
5% in 1994
13% in 1996
9% in 1998

One thing to take into consideration was at the time of the last crash, people were selling in London and buying in Scotland where it was much cheaper.

Scotland is still one of the cheapest areas to buy property in the UK

dopester

IveSeenTheLight wrote: »

One thing to take into consideration was at the time of the last crash, people were selling in London and buying in Scotland where it was much cheaper.

Not this old chestnut again. It was only earlier this month BenL was trying to persuade everyone with some fanciful theories that Harrogate wouldn't fall in price by much due to the demand from Londoners coming up to live.

http://forums.moneysavingexpert.com/showthread.html?t=954689&page=2

Seems many people have high ideals for their own areas, with Londoners coming up to save property crashing in their own local area.

I wouldn't leave my own immediate region except for some really pressing reasons. Holding factors are employment and family and friends all here. That's not true for everyone but I would expect it's a holding factor for many. Not to just up sticks and move from London to Scotland as easily as you might think on the flimsy basis that:

IveSeenTheLight wrote: »

One thing to take into consideration was at the time of the last crash, people were selling in London and buying in Scotland where it was much cheaper.

Also, unlike BenL's "Harrogate magnet" theory, Scotland is a different country altogether, and the union could weaken further in the future. You've also got that National Party calling the shots which I find a little disturbing for a future direction of Scotland and the relationship between England-Scotland, Scotland-England.

I can see the pull towards moving toward London and a number of my friends have done that, and a brother too, but not the pull for London to Harrogate or Edinburgh. Why is there that saying.. "It's grim up north". I always presumed it was because Londoners enjoy London life, or the life down South.

In 2002 a friend of mine was offered £85,000 to go work in Aberdeen (oil job), twice what he was on, and after weighing it up, thinking it might be ok for a few years, he still refused the offer. I'm not ruling out some people moving up to Scotland.. maybe they came from there in the first place or offered a very job good opportunities - but you would have thought London job opportunities will remain better than some other regions.