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Original poster

Property Watchers - are house prices ever going to stabilise/fall in London?

62 replies

twoisenoughmum · 15/01/2007 11:17

And if so, when prices are falling, are you in a better position if you want to trade up or trade down?

OP posts:
dinny · 15/01/2007 23:37

that's what we'v done, Noddy, we sold to rent 18 months ago.

dinny · 15/01/2007 23:39

and we are renting a 3-bed in lovely bit of Surrey for 950pcm that would cost us 1900pcm to buy (and that'd be just servicing the mortgage!) just shows there's no real value in property prices atm.

we're going to se what happens his year/next year...

noddyholder · 15/01/2007 23:40

Renting sounds like heaven to me as i can't help but rip out and re do any house I live in and would quite like a rest!May rent and develop one house this year and tehn buy next.Oh what to do!

dinny · 15/01/2007 23:43

it is quite freeing, I have to say. annoying in some ways though!

skiwear · 16/01/2007 10:22

3% guys that (apparently) let the MPC off the hook (this month) but explains our shock interest rate rise. WIll try and post more this evening (thought it would be announced at lunchtimeish but couldn't resist)
twoisenoughmum one thing that might influence me is where your house is (ie some areas are more recession proof than others) plus you also have to think about how easy it will be for your dh to get another job, and how house proud you are etc.etc. Also just a word of caution (as I'm sure you know) almost everyone you ask will have a vested interest ie will want one thing or another based on THEIR circs. and you have to try and do what's right for you. I'll be honest I want a big crash so I see things to try and support that belief we've been "priced out" since 2001 but had we got an IO or enhanced multiple etc we would be potentially sitting on about 300000 pounds of equity (of course we wouldn't have 300000 pounds of equity since it would be in the roof over our head not the bank!) Would I sell now? well it would all depend on our jobs, since 2001 we now have a family (yeah) and I'm getting fed up of working so hard for so little. Plus in out field things are really going pear shaped so might not have a job soon anyway! Only one of "this years" properties has sold so far (crazily priced at 20% more than the neighbours 'cos they'd stuck their kitchen in the roof!!) and one of last years is back on allready!

skiwear · 16/01/2007 10:23

Oh I'm in SW London btw

TheBlonde · 16/01/2007 10:49

I think we'll have another year of rising prices in London - there are more buyers than sellers and everything is going quickly round here and for shocking $$$

CountessDracula · 16/01/2007 10:54

I think a lot of people are staying put and converting lofts or digging out basements as it is cheaper than moving due to the high cost of stamp duty. This is causing a massive shortage of property which is in turn driving prices on the few houses that are available through the roof.

TBH I think that downsizing to mortgage free wouldn't be a bad idea, then when (if) the market crashed you could get another mortgage but get a hell of a lot more for your money!

foxinsocks · 16/01/2007 10:55

what happened with your place cd?

CountessDracula · 16/01/2007 10:56

well we sold it to the first viewers (for £100k more than we were offered less than a year ago ) but then the bloke selling the house we wanted to buy decided to up the price significantly and we pulled out

Dinosaur · 16/01/2007 11:01

God, Blu - is that how much it costs to move nowadays? Makes the £100k we spent on our cellar conversion seem like good value really.

skiwear · 16/01/2007 11:02

CD says it all! Aren't you in SW London ish too?

CountessDracula · 16/01/2007 11:03

dino tell me more about your cellar conversion
(we are thinking of one!)

Dinosaur · 16/01/2007 11:04

What would you like to know, CD? Come and have lunch with me and I'll tell you all about it, plus give you back your baby monitor!

foxinsocks · 16/01/2007 11:05

yes, we last moved in 2003 and it cost us £25k grrr. Bloody stamp duty costs a fortune!

noddyholder · 16/01/2007 11:05

We bought in April and it has risen 140k since then but I did renovate but only spent 25k max(thank you ebay!)We want to release outr capital now in case this is the peak of what this place is worth.Inflation up to 3% so likely there will be further interest rises this year.We lost our house in 99 due to my health and have been buying and doing up ever since but have never been able to afford that type of house again

CountessDracula · 16/01/2007 11:07

oh I would love to
I will let you know next time I am coming up your way and see if you are around

I just wanted to know how much hassle it was and if you think it was worth it. What did you put in yours?

The thing I have always wondered is how can they guarantee that the thing won't spring a leak in 10 years time for eg?

Dinosaur · 16/01/2007 11:13

We have our kitchen down there now, plus a big living/play area, plus a little utility room and a loo.

We've got an outside bit too, which was really nice last summer when it was so hot in the evenings.

It was definitely worth it. Not too much hassle as all the work is just going on beneath you and you can still use ground and first/second floors as normal, more or less.

Dinosaur · 16/01/2007 11:13

Oh, and no idea about leaks!

CountessDracula · 16/01/2007 11:14

Does it drive you mad living on 4 floors though? 3 is bad enough...

CountessDracula · 16/01/2007 11:15

can you recommend the co who did it?

Dinosaur · 16/01/2007 11:15

Our house was only two storey before, so now three floors. All that stair climbing is good for the thighs (well, that's the theory). We do seem to spend lots of our time shouting into the void, though.

Dinosaur · 16/01/2007 11:17

We were ponces and got an architect, who did designs and then put it out to tender. I don't suppose there would be any problem with you approaching the builders direct though. I would probably pefer to tell you more about them offline rathr than on here, though.

CountessDracula · 16/01/2007 11:17

oh I was thinking of a specialist co who would do the lot
though I do have vg architect mate maybe he would do me a really fantastic design

Cloudhopper · 16/01/2007 11:19

It really is so hard to judge what is going to happen. I think that because the market has been flat-ish for a few years in London, there is a lot of pent up demand from people who have decided to wait and see. The waiting is over now as people just decide to move and have concluded that no crash is going to happen.

But you could argue that this is just gut instinct and has no basis in economics. Markets are driven by sentiment rather than economics, and although prices are stupidly high, I don't think they will fall until there is some kind of greater economic shock.

Basically no-one can call the top of the market, as a lot of people who sold to rent in 2003 will tell you. As long as you do what is right for you and your family at any point in time, then at least you aren't gambling on a drop/rise and can look back without regrets.