House prices and when to buy . Feeing fed up

[flopseyR72]

I was looking at houses before lockdown. Splitting from dp so buying own house for 3. Seriously fed up with local houses just saw a house I looked at in 2016 sold for £615k ( 3 bed semi) now listed for £850k this is in Buckhurst Hill area London. It just seems like madness to me. I earn 100k but seriously I just feel like giving it up and going to live in the country. I have savings. Even if the house prices go down with Coronavirus how can a 3 bed semi have gone up to that price when the house prices in London were supposed to be stagnant. I just don’t think they can possibly be worth that much.

Well, don’t buy a 850k house then

I look at house buying differently, work out what I can afford comfortable (without over stretching), then work out which location/school catchment I want to be in, then buy the nicest house in that category.

Then live there and let prices go up/down whatever.

Then after 10-15 years reassess

To me a house is more a home than an investment

You earn such good money, use it to live somewhere nice (to me a 3 bed semi with a garden sounds lovely)

@flopseyR72 the 250k increase alone would buy you two decent houses where I am (north to be fair). Could you look at another cheaper area?

Buckhurst Hill has always been very expensive. Cast your net wider?

Op you started a thread that hundreds of people start every month (only slight exaggeration) even before covid 19. You have a good income, you can buy. So I think your thread is pointless.

Nevertheless, as an example of people at the higher end of the market finally getting the madness, it has some utility.

I am looking wider it was just that I recognised the house from when I looked at it in 2016 and was just shocked at the idea it had gone up that much as I thought it was overpriced at 600k tbh.

“would you buy a 3 bedroom semi for 650 to 850k?”
“I’m quite surprised that people are so ok with just buying a 850k house”

@flopseyR72 - if that’s the market value of a 3 bed semi in Buckhurst Hill then it’s irrelevant what a 3 bed semi in Scotland, or elsewhere, would cost you, because you are currently looking at properties in Buckhurst Hill.

Of course, if you think they’re overpriced you could put a lower offer in. Or relocate to a cheaper area. Be that in the SE, or somewhere completely different, where you can get a 3 bed semi for £200k.

I live in London (zone 2). We remortgage every 2 years. The valuation that the mortgage company did in January this year was higher than the one two years ago (around 15%)

It's not that my house is fab but it is the location.

I’m quite surprised that people are so ok with just buying a 850k house. Making me feel like I must live in a different world

Buying an £850k house is beyond the vast majority of people’s ability. So yes, you very much are living in a different world from most.

Use your excellent salary and and large pot of cash savings to buy a house you can afford in your chosen area.

Or, if you want more house for your money, move.

If you can afford to buy a house for £615k then you have already benefitted by the ‘insanity’ of London house prices.

You have to do what people have done since time immemorial - buy where you can afford.

I haven’t benefited from any house price growth as have spent time living frugally and currently renting,.... And working really hard when younger.That’s why I have savings but it’s kind of annoying to just give it away as I have made sacrifices for it and feel like the house prices just seem like a big ponzi scheme ,

I'd love to have this much money. I'd move to a commuter town or one with decent trains into London. To buy a nice detached home with a large garden in a good area where I live in the south east (commuter town) you need around 500k and you definitely can afford this!

You can see what people have paid for property on Zoopla and that the estate agents just add a bit on even when the market is supposed to be flat. As I say it’s just like a giant Ponzi scheme and where will it end?

I recommend you move to Horsham or Brighton, both are nice and should have detached homes you like around or under your budget.

Everyone works hard for their money, OP.

Did you live rent free with parents whilst saving money? That’s how I saved mine.

As you’re a cash buyer, could you look to buy in an auction?

No just renting on market. I would have to move jobs to live somewhere like Brighton and that is more tricky as I have a specialised profession

I was thinking more of dropping out and living cheaply in Scotland near family but I know I would probably regret the loss of income because I want to do the best for my kids

You would also get a better return on your property investment in London.

Why not somewhere near Richmond like St Margaret’s? Or the Help to Buy scheme which allows house purchase up to £650k?

I work in east London so has to be commutable

Everyone works hard for their money, OP.

Possibly an exaggeration.

it’s kind of annoying to just give it away as I have made sacrifices for it

This. It’s galling to hand over hard-earned savings to someone who made, or expects to make, loads of money merely by sitting in their house – or almost as bad, “adding value”, which so often means questionable taste with a premium. This is what the ladder is all about, of course: finding greater fools (to put it unkindly) to finance your “forever home”. Ugh.

Human nature being what it is, I’m not going to blame anybody for taking money offered to them. Just don’t try to justify it, or claim the bloated prices are in any way healthy.

Get out of London. So many options at a reasonable price, beautiful countryside, fresh air...

There are nice places in London where you can get a decent 3 bed semi for a lot lot less than 850k.

I doubt that property will sell for 850k either. We recently sold a small 3 bed terrace (decent condition throughout, new bathroom etc), and opposite is a 2 bed semi, with a much smaller living room/kitchen. Theirs was on the market for 25% more than ours, has an expensive kitchen installed but every other room needs gutting and redoing (and their lovely kitchen doesn't have any room to sit and eat, and no space for a table elsewhere so isn't all that practical for some buyers). Admittedly this isn't in London but months on it hasn't sold yet. Some sellers, and estate agents, are just deluded.

What’s your budget?

That’s why I have savings but it’s kind of annoying to just give it away as I have made sacrifices for it

But you’re not giving it away, you’re gaining an asset worth 600k/800k/whatever.

Even if the house prices go down with Coronavirus how can a 3 bed semi have gone up to that price when the house prices in London were supposed to be stagnant. I just don’t think they can possibly be worth that much.
That’s because the property culture of this country has converted people into vultures.

I can live out 30 to 45 mins drive from Romford area so there are options. Or change job which will take longer or drop out. Current job my budget is 800k but 500k is cash