I'm tempted to buy again

Toto

Right, as most of you know, we've been looking for something to buy for a while. Now, I have got sick of the stupid house prices around here for the size of house we need. So, we have been plodding along renting waiting for things to change.

I found a house in Norwich on the same estate as my brother lives, it's a 4 bed house, lovely quiet area and obviously having my family almost next door is a huge plus (I get on really well with my bro). We can handle the travel time into london, which is only once a week or so. So all of that is great. it also means that rather than having a pretty big mortgage, we won't have much of a mortgage at all, if we can get it at the right price. Which obviously means we will be paying less mortgage than we are rent.

So, here's the situation with this house. It has been rented out previously but the vendor has decided to sell rather than rent it again. My property bee tells me

History

dateevent22nd Jun 2008

• Price changed: from '£229,950' to '£219,950'

4th May 2008

• Initial entry found.

But 4th may was when I first viewed the house. I called the agent and asked a bunch of questions, she said it had been on the market a couple of months originally for £235,000.

Most of the houses in the area are 3 beds, there are only a few 4 bed places. nethouseprices tells me that the most a house has ever sold for on this estate is £228,500 on 04/07/2007 which was the absolute peak of the market. I don't have a price last sold for this house so it must have been purchased as a new build prior to 2000.

I asked the agent what sort of interest there had been, got the usual answer, plenty of interest, but people need to sell their house first. But, the vendor has been round and painted it magnolia throughout so that should drum up a bit more business :rolleyes:

So, there you go, I am tempted to put in an offer of around £180,000 fully expecting it to be refused and then waiting for the market to drop a bit more etc etc. Or should I just wait it out a bit longer and see what happens. Oh I dunno, I just didn't expect to be thinking about buying right now.

Kez100

No harm in asking because you don't know the situation and if they need to sell desparately. I assume it's not a repo.

However, chances are if he is buying elsewhere he will have to say no because his next home won't drop - yet - similarly. Of course if prices do drop 30% that will later open up your offer as sensible and his new buy -30% as sensible too but that will incur a wait.

With 15 sellers to 1 buyer it is worth trying but if you don't get a bite keep looking for a suitable place at the right price for you.

lostinrates

If owner did buy new in 2000 they are likely to have made a reasonable profit on yur cheeky low offer. As it was a BTL they are not a straightforward sell to buy.....I'd test the water with a cheeky offer if it were me.

Generali

I'd be looking at the auctions not in the EA windows personally. I suspect that is where the value is to be found.

brit1234

I really can't understand why there are people considering buying now. Either they just want to throw money away or they are loaded beyond all believe.

Prices are falling fast, there are no green shoots on the horizon and prices will continue falling at the fastest rate since records began.

Remember all the huge negative price figures have been in the prime selling periods, whats it going to be like in the traditional poorer selling periods.

Just look at this graph if you don't believe me. Figures out on Friday will show big price drops and this graph will look even more of a free fall than it is now.

Sorry to sound negative but all we are trying to do is save you a lot of money. Don't jump in for saving £10,000 when you can save £50,000.

Kez100

Where did you get the 10k from? The offer is going to be 40k lower. I don't think it will be accepted but it will give 20% buffer against negative equity.

I also believe it will drop more but it's everyones personal choice.At least this OP isn't offering more than the asking like some of the new build go go crazy bones on here.

mr.broderick

Kez100 wrote: »

No harm in asking because you don't know the situation and if they need to sell desparately. I assume it's not a repo.

However, chances are if he is buying elsewhere he will have to say no because his next home won't drop - yet - similarly. Of course if prices do drop 30% that will later open up your offer as sensible and his new buy -30% as sensible too but that will incur a wait.

With 15 sellers to 1 buyer it is worth trying but if you don't get a bite keep looking for a suitable place at the right price for you.

This is the 2nd time in a few days i have read the highlighted above.
I am interested to know how we arrived at this.
Wife and i were talking about buying a 3 bed terrace that is up for sale in the village at the moment, am i included in the above statistic? Weird

Kez100

Re: 15 to 1. It was quoted in the press and caculated by an EA, I believe based on buyers on his books compared to properties. OK, not exactly the most accurate of measure but as the guys calculations last year were 7 to 1, it does give the general gist of the situation.

phil_b_2

mr.broderick wrote: »

This is the 2nd time in a few days i have read the highlighted above.
I am interested to know how we arrived at this.
Wife and i were talking about buying a 3 bed terrace that is up for sale in the village at the moment, am i included in the above statistic? Weird

I was thinking the same thing. If it is indeed based just on one agent in one part of the country then you may as well just chuck a handfull of stones in the air and see how many land in the cup. Use that as your ratio.

phil_b_2

oh... I think the OP is being pretty sensible about this, and knows the dangers. It sounds like it would be a good move for you emotionally, mentally, physically etc. Wether or not it is financially who knows. It sounds like you will be easily able to afford the mortgage so what is the problem? If you can get it for anywhere near the offer you are contemplating it will be a good buy IMO.

If it does go down in value over the next few years, big whoop, you'll have buffered a decent amount and it will go back up again eventually. Either way it doesnt sound like you'll be financially streched at all.

drbeat

How can you buffer against something that is not tangible? It's like building a house on the beach at low tide and then finding that you're fooked come high tide!