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.

"other people do or don't do" sorry

To be a bit simpler, our whole economy is now built around maintenance of property prices as a minimum.

Even the government is saying the economy won’t bounce back though and there will be a recession. So how can you be sure the status quo will just continue

Inflation means our £ will devalue and our economy shrink. But in simple £ the government will ensure prices don't fall meaningfully, as they know from the past that the psychological impact of negative equity etc is catastrophic for the economy.

You OP are in a dangerous position holding so much in cash. If we enter an inflationary period (likely, as the govt will want to inflate away debt, also we will end up importing inflation from countries where Covid impact has been lower) your cash may quickly be worth a lot less.

My current job I am well established and it lets me have a good childcare work balance in that I can part work from home even before Covid

Times are changing.

My office used to be 0% wfh - no leeway, no options. Now they’ve told us we’re going to be 50% wfh permanently. I have friends whose employers are shutting down their office completely.

WFH will feature much more heavily in future for lots. Have you checked with your employer if you could wfh permanently?

Keep the £100k job and buy a £500k house for cash - in whatever area you decide if work location was irrelevant.

Don’t buy that house look at others in the area. £850 for a 3 bedroom semi is top of the market for that area.

I agree house prices are way too over-inflated in general and reflect low interest rates/cheap money, as well as all the ridiculous schemes the government have used to prop up prices.

Your options aren't just London or Scotland.....there are lots of nice towns in Kent/Essex/Herts that would be commutable, and where you could buy a lovely house for 500k.

Fair enough, I would not buy a house now

We’re on an economic cliff edge, about to fall off

House prices may tumble , people will lose jobs (and homes) , most of it is yet to come ....

Echoing posters saying North Chingford. V frequent Overground to Liverpool St, 30 minute journey. Gorgeous forest all around it and a lovely village feel, good high street with a great selection of restaurants, a library, small soft play and even a couple of smashed avocadoey places (Dada is lovely as is the Butler’s Retreat up by the plains).

There’s also good and outstanding primary schools, and catchment for the grammars, plus loads of good independents.

www.rightmove.co.uk/property-for-sale/property-80021431.html

This is nice, and about 10 min walk to the station... a lot cheaper than £850k!

Good luck whatever you decide.

I just looked at the house you sent in hinghmam park and you see also that was bought in 2017 for £505 and now they are asking excess of £575

Have you looked at the pics from 2017 compared to now? A fortune has been spent on it! It looked pretty crap before. I don't think an increase of 70k is much considering

70k in three years in a nice area like Highams Park isn’t much, especially as they’ve spent money on it.

Wait, OP - prices clearly about to fall.

You don't get the worst economic collapse in 300 years and no impact on house prices.

You'd be mad to buy now at those prices.

Thanks effing that’s what I was hoping people would think. However it feels like most people on here are saying they will never drop or not by very much

I think they probably will drop at least a little bit. But most people won't be able to take advantage of it because they'll need huge deposits and in fact will actually find it more difficult to buy, not easier. Already banks are withdrawing some high ltv lending options.
You have a huge deposit compared to purchase price so you'd be one of the few people who would benefit.
Whether they drop a lot of not, prices certainly aren't going to continue to go up ridiculously as they have in the past so there's no point in rushing to try to buy now.
Just keep looking and hopefully you'll find something that's good value

Why can’t you move somewhere else in England?

Surely Kent/ Surrey/ Sussex etc are commutable to / from Romford? At the salary you’re on I suspect you’re in quite a senior position so can you not negotiate say 3 days a week WFH and just 2 in the office? That way, even if the journey is a 2 hour 1 each way, you only have to do it twice a week and you get a nice, big house in a safe area and get to keep your job/ salary.

We live in Herts, which is commutable to east London (under normal circumstances). For your budget you'd get a lovely 3 bed here. You can PM me of you want more details of our area.

Incidentally we are trying to sell as we need to relocate to South London for work. It's been a total nightmare. I've almost had to go back on my meds to help stop the panic attacks about moving. Job was got pre Corona but doesn't start till September.