Max69vk Posted May 9, 2007 Report Share Posted May 9, 2007 Been looking around for a couple of months with the missus for a small house (at least 2 bed + garden) for us to move in together, & plan a little more for the future should circumstances arise. During this time I've been completely redecorating her flat, new laminates, carpets, tiled floors etc, repainted everything top to bottom & done a lot of tidying up like new kitchen/door handles, light fittings/switches etc. Now being a bit of a bargain hunter I reckon all the materials & labour (where required) has cost under 1k. So you can imagine my shock when the place was valued this morning at £245,000, up 40k on the valuation in January for what is essentially a 2 bed purpose built flat in not the best of locations! Now this obviously puts the pair of us in a fairly good position to move on to the next property (thank God), but what if we were completely new to the market? If we were looking to buy our 1st property or taking our 1st steps on the ladder, what hope in hell chance would we have of getting anything? If Im being perfectly honest the flat is nowhere near worth that much (it only cost 175k 2 yrs ago & that was overpriced). Obviously the market isn't going to collapse overnight but with prices rising steadily over the last 7+ years & more interest rises on the way (at least 2 coming over the next couple of months) + the lack of new buyers into the market, things are defiantely going to reach a 'critical point' somewhere along the line.What's everybody elses opinions on this?Discuss. Quote Link to comment Share on other sites More sharing options...
Cooke Posted May 9, 2007 Report Share Posted May 9, 2007 property always out performs every other type of investment, even shares... So yes, 1st time buyers are going to have a shock but prices are set on demand and so the price they charge is the price some is prepared today... basic supply and demand... Quote Link to comment Share on other sites More sharing options...
scottgroovez Posted May 9, 2007 Report Share Posted May 9, 2007 People bang on about how much they have "made" from their house, but it's only actually worth anything if you downsize or sell up and move abroad. If you you move to a bigger property then that will have gone up in value also. In fact marginally more if it's raised by the same percentage.The current housing market is bad for the economy in the long term as the more you need to spend on your mortgage the less you have to spend elsewhere. It doesn't help that mortgage lenders promise ridiculous loans. If people couldn't obtain the money then the market would have no choice but to slow down.A part of the reason that there's a shortage is that people are buying second or more houses for investment, ready to cash in on when their pitiful pension fails them if they even have a pension. The shortage is not going to ease up with more and more people coming over from the EU (Poland and Romania for example) Quote Link to comment Share on other sites More sharing options...
Ramirez Posted May 9, 2007 Report Share Posted May 9, 2007 I used to work at an estate agents and laughed at some of the prices then, thinking these increases couldnt continue... 3 years on and they're still going up!I don't think prices are going to crash but rather continue to rise for sometime yet, what with 100% mortages etc.Im just glad I got on the ladder early. Quote Link to comment Share on other sites More sharing options...
simpo Posted May 9, 2007 Report Share Posted May 9, 2007 Yep houses are just expensive, good luck with the search for a nice place style="vertical-align:middle" emoid=":blink:" border="0" alt="blink.gif" /> Quote Link to comment Share on other sites More sharing options...
Max69vk Posted May 9, 2007 Author Report Share Posted May 9, 2007 People bang on about how much they have "made" from their house, but it's only actually worth anything if you downsize or sell up and move abroad. If you you move to a bigger property then that will have gone up in value also. In fact marginally more if it's raised by the same percentage.V.good point, I mean who are the only people who benefit form the higher prices? The goverment (stamp duty etc), estate agents with their % fees, & people naffing off out the country! Quote Link to comment Share on other sites More sharing options...
Putney Posted May 9, 2007 Report Share Posted May 9, 2007 V.good point, I mean who are the only people who benefit form the higher prices? The goverment (stamp duty etc), estate agents with their % fees, & people naffing off out the country!Yeah but if you are renting somewhere you are lining other peoples pockets....if i sold my flat i could buy a brand new F430 convertible with the equity... if i had been renting then i would just be in the same postion as i was 6 years ago... the market wont crash down to what i bought my flat for so don't really care....I live in a flat i have done up to my tastes not had to move about like some of my friends have in the last 6 years... so i think it's worth it just for that. If i leave the country i can get £500 profit every month rental and that could pay for where ever in the world i am going to be.the trick is to buy a house / flat you like... do it up and just hold onto it... even if the market crashs long term house always cost more in the future....People bang on about how much they have "made" from their house, but it's only actually worth anything if you downsize or sell up and move abroad. If you you move to a bigger property then that will have gone up in value also. In fact marginally more if it's raised by the same percentage.The current housing market is bad for the economy in the long term as the more you need to spend on your mortgage the less you have to spend elsewhere. It doesn't help that mortgage lenders promise ridiculous loans. If people couldn't obtain the money then the market would have no choice but to slow down.A part of the reason that there's a shortage is that people are buying second or more houses for investment, ready to cash in on when their pitiful pension fails them if they even have a pension. The shortage is not going to ease up with more and more people coming over from the EU (Poland and Romania for example)sorry above post was a reply to this... Quote Link to comment Share on other sites More sharing options...
scottgroovez Posted May 9, 2007 Report Share Posted May 9, 2007 I didn't mention renting and the two examples you used; selling and buying a Ferrari and moving abroad, I take it you agree with what I was saying? style="vertical-align:middle" emoid=":D" border="0" alt="biggrin.gif" /> Quote Link to comment Share on other sites More sharing options...
Putney Posted May 9, 2007 Report Share Posted May 9, 2007 People bang on about how much they have "made" from their house, but it's only actually worth anything if you downsize or sell up and move abroad. If you you move to a bigger property then that will have gone up in value also. In fact marginally more if it's raised by the same percentage.it was really just a reply to this part of your post.... my point was to not hold off and wait for a crash like a lot of people are doing... and i don't think you should try and release the equity in you house..... i think it's better to hold onto your property as an investment....i forget my other points.... and yes i generally agree with you if you were saying that buying property is a good thing..... Quote Link to comment Share on other sites More sharing options...
Blackrat Posted May 9, 2007 Report Share Posted May 9, 2007 People bang on about how much they have "made" from their house, but it's only actually worth anything if you downsize or sell up and move abroad. If you you move to a bigger property then that will have gone up in value also. In fact marginally more if it's raised by the same percentage.thats why i say buy houses and rent them out :-D and after 10 or twenty years then sell them Quote Link to comment Share on other sites More sharing options...
IDGM Posted May 10, 2007 Report Share Posted May 10, 2007 thats why i say buy houses and rent them out :-D and after 10 or twenty years then sell themIt rarely works out well these days. e.g. our house was £197k in December 2004, an identical one went up for sale last week for £199k. Mortgage up from £750 to £850 per month (although initial deal ended and now on offset) and likely to rise again. Rental income £650 per month max. I've an Uncle in Lees, Oldham who is finding it cheaper to rent than buy at the moment too.The news last night was all about the next rate rise, the continued London property boom etc etc. The trouble is, in the industrial North, things have been relatively stagnant since mid 2004. Scotland rarely sees increases like those in England despite the scenery (there must be a good reason for that). But nationally, it looks all hunky-dory because the South East is doing well. Quote Link to comment Share on other sites More sharing options...
matt~black Posted May 10, 2007 Report Share Posted May 10, 2007 well i'm fooooked no going t be able buy a house for a couple of years yet so might end up just saving then bloomin' off 2 newzeland lol out of interest how old were u guys when u bought your first property Quote Link to comment Share on other sites More sharing options...
Linz Posted May 10, 2007 Report Share Posted May 10, 2007 Me (21) and my boyfriend (25) bought our flat 6 months ago, after a lot of work we are hoping to start moving in in the next week or two. I have my Lupo and he has a Skyline R32 GTR, and a wee Nova runabout. We can offord to keep all the cars, however, the Skyline may be going shortly as it is a VERY expensive toy!! We were lucky to buy the property off the market - so never had to go through all of this 'offers over' malark. We paid £90k for the two bedroom ground floor flat in a decent location. They guy who we bought it off paid £63k a little more than two years ago - healthy profit I would say (he buys and sells/rents regularly). We were also lucky that I am a good saver and was able to pay the deposit and legal fees, and Byron (a joiner) was able to do and pay for all the renovaion works.We are planning on an extention in two years time to increase it to a 3 bedroom, 2 bathroom with dining room property, if we get permission to build up one storey at the back (not a problem with the owner of upstairs as it is not obstructing any windows, and he already has an extention down a storey into what would have been our garden - agreed with the previous owner). If not, then just extend kitchen to add dining room, and gain our second bedroom back. This should hopefully increase the value enough that we could afford to upsize at a later date without being in the same position as when we started - everything too expensive - as we would have a healthy lump to put down. However, if we get to extend, we don't anticipate moving for some time. I am just glad that we are now on the ladder at a reasonably young age, because it doesn't look like its going to get any easier. Quote Link to comment Share on other sites More sharing options...
Fran Posted May 10, 2007 Report Share Posted May 10, 2007 Myself & boyfriend bought our first place 6 months ago, I was 22, him being 25. Had we not decided to move out of our flat we could keep both cars but we somehow need to find money to pay for carpets in this new place so Ben's beemer has to go as its too expensive to insure me on it. We paid £103k for a second floor 2 bed flat in what is a nice area. However the problem we seem to have is investors have bought in and rented it out to god knows who and they are causing us problems.Luckily we are fortunate enough to have been accepted for a larger mortgage (160k) for a 3 bed townhouse. We don't intend to move from this new place (saying that we're not in yet). Quote Link to comment Share on other sites More sharing options...
Putney Posted May 10, 2007 Report Share Posted May 10, 2007 I bought my flat when i was 18.... £175k....still living in it and spent about £20k doing it up..... revauled at £350k- £380....not selling it... rental income is £550 more than the mortgage if i rent the entire flat out and i currently have flat mates living with me. who i charge £675 for a room......i feel very smug writing this..... style="vertical-align:middle" emoid=":lol:" border="0" alt="laugh.gif" /> owned! style="vertical-align:middle" emoid=":coffee:" border="0" alt="coffee.gif" /> Quote Link to comment Share on other sites More sharing options...
vworks41 Posted May 10, 2007 Report Share Posted May 10, 2007 Me and my girlfriend where lucky enough to buy our 1st place, with one of these shared owner ship schemes with the council.We own 25% of it, we can buy more if and when we can afford to. It's great!! its just ashame theres not more of them about. Quote Link to comment Share on other sites More sharing options...
nfbr Posted May 10, 2007 Report Share Posted May 10, 2007 I Blame my parents generation for how ridiculous house pricing is... well done to those already on the property ladder, comiserations to those of you that aren't. Quote Link to comment Share on other sites More sharing options...
M1 Lupo Posted May 10, 2007 Report Share Posted May 10, 2007 So far, its only been a bit of tax and the land survey fees that have hit me. I love having my own place! Had it valued this week at £195,000, for a 2 bedroom bungalow. Quote Link to comment Share on other sites More sharing options...
matt~black Posted May 10, 2007 Report Share Posted May 10, 2007 I bought my flat when i was 18.... £175k....still living in it and spent about £20k doing it up..... revauled at £350k- £380....not selling it... rental income is £550 more than the mortgage if i rent the entire flat out and i currently have flat mates living with me. who i charge £675 for a room......i feel very smug writing this..... style="vertical-align:middle" emoid=":lol:" border="0" alt="laugh.gif" /> owned! style="vertical-align:middle" emoid=":coffee:" border="0" alt="coffee.gif" />where the fooook did u get ni on 200k at 18 u must have had a decent job rich dead relatives or won the lottery i think i'm quite well off for a 19year old i earn 22k a year but am not in any position to buy a crap flat as i am all i need is for a rich uncle to turn up from nowhere decide i'm the son he's never had then pop off and leave me everything lol Quote Link to comment Share on other sites More sharing options...
Putney Posted May 10, 2007 Report Share Posted May 10, 2007 got 100% mortgage. Parents guaranteed the mortgage the 1st three years. I had to pay it though....Had £9 grand saved for all fee's etc.... and basic furniture... Old dear is a solicitor which saved me money on searches etc....Got flatmates from gum tree as soon as the keys were available... Paid for the mortgage the 1st three years.... interest rates were so low… wasn't earning that much money so had to have flatmates really....Started up my own business at 21... took over the mortgage myself. Got married. Then the Mrs started Uni so continued to have flatmates... Now she has finished and not going to be solely relying on my income and flatmates.. We can have the flat to ourselves. Having flatmates has given me the money to do it up....Not hard really..... style="vertical-align:middle" emoid=":coffee:" border="0" alt="coffee.gif" /> Quote Link to comment Share on other sites More sharing options...
4Real Posted May 11, 2007 Report Share Posted May 11, 2007 I bought my flat when I was 23 for 80k. Lived in it for 2 years. Sold it a month ago for 182k. Just bought a 4 bed house for a whole lot more so thank god I made money on the flat style="vertical-align:middle" emoid=":sweating:" border="0" alt="sweating.gif" /> Quote Link to comment Share on other sites More sharing options...
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