Page 8 | Buying in London. Come here and share your stories

Flowers2014 · 2014-03-26T19:34:12+00:00

So we are trying to buy in London and the market is crazy. Everything that we've seen has gone for 10%-20% over the asking price. Because of DP and his work we can't go too out of London which is making this whole process much harder than it needs to be. We have a good budget but in this market it's just not enough. I'm tired by the process now so we are taking a break from it. We have until Nov to move out of out rented flat so we are going take the spring off and try again in the summer. Anyone else in the same boat of trying to buy in London? Come share your stories with me!

LondonGirl83 · 01/04/2014 16:06

Hairy Potter- most people including in London are borrowing fairly sensibly. The average London first time borrow has an income multiple of 3.6x which is only slightly higher than the national average.

LondonGirl83 · 01/04/2014 16:29

Sorry, for London its actually 3.79x vs. 3.43 for the country.

www.cml.org.uk/cml/media/press/3833
www.cml.org.uk/cml/media/press/3816

spotty26 · 01/04/2014 17:03

The thing is people seem delighted with it when it just means you are stuck in your current house forever in an area which may or may not be gentrifying, or you have to take your London £ reluctantly or otherwise and spend in it commuterville. In an ordinary world, as one got older, earned more etc you could take the next step on the ladder to get a bigger garden or extra bedroom.

We were happy in our pocket of SW London but needed more space, each leap up the ladder is another £500k and whilst your own may have gone up 20% or now 50% then so has your dream house at the next level but from a higher starting point.

What is quite sickening is that we lovingly renovated our house with hard earned savings and made a good but not obscene profit on the house when we sold to move out of London in July last year.

Its new owners have only owned it for 7 months and will have made the same money we did on it over 6 years in that time.

Bonkers.

stonehairbrush · 01/04/2014 17:11

Had a conversation with my mother about this the other day. She was basically saying that if DP and I just saved harder we could buy. She had a partial point in that we could cut back a bit in some areas but to buy a standard three bed in a not very nice area would require about £50k ish for a ten % deposit and stamp duty. It's not easy to save that much when you're paying so much in rent. Her argument then is 'move somewhere cheaper to rent'. We could I suppose but we both already spend two hours a day commuting and moving further would also cost more to commute. We could of course buy a two bed but with interest rates bound to rise and us having children and the associated nursery fees I have no idea how we would ever progress from there.

A house she bought 12 years ago cost her £120k but is now worth £400k. It's a fairly normal house in a fairly grotty part of town albeit with good transport links

If the house had gone up in line with normal inflation it would be worth £176k. But it's gone up to £400k. I just find my parents don't 'get' it at all. £176k would be doable. Easy as we're on good incomes. But £400k for a frankly less than desirable area is depressing.

The nicer areas are £700k and up and I'm talking zone three, not central.

stonehairbrush · 01/04/2014 17:11

Had a conversation with my mother about this the other day. She was basically saying that if DP and I just saved harder we could buy. She had a partial point in that we could cut back a bit in some areas but to buy a standard three bed in a not very nice area would require about £50k ish for a ten % deposit and stamp duty. It's not easy to save that much when you're paying so much in rent. Her argument then is 'move somewhere cheaper to rent'. We could I suppose but we both already spend two hours a day commuting and moving further would also cost more to commute. We could of course buy a two bed but with interest rates bound to rise and us having children and the associated nursery fees I have no idea how we would ever progress from there.

A house she bought 12 years ago cost her £120k but is now worth £400k. It's a fairly normal house in a fairly grotty part of town albeit with good transport links

If the house had gone up in line with normal inflation it would be worth £176k. But it's gone up to £400k. I just find my parents don't 'get' it at all. £176k would be doable. Easy as we're on good incomes. But £400k for a frankly less than desirable area is depressing.

The nicer areas are £700k and up and I'm talking zone three, not central.

Gooseysgirl · 02/04/2014 09:46

Sorry if it's already been mentioned on this thread but I'm so cross about estate agents (yes Douglas Allen I'm talking about YOU!!) adding on this 2% 'introduction' fee... My DH is about to sell his flat in E17 so we are looking to buy a house nearby.. We're trying to boycott DA but they seem to be attracting vendors by passing this fee on to buyers. I'm worried that if we don't move quickly once the flat sells that we will be priced out of buying a house and may have no choice but to pay this fee in order to get the house we want

spotty26 · 02/04/2014 13:10

What is this for? Explain a bit more please...

Gooseysgirl · 02/04/2014 16:03

Have a look here Spotty www.theguardian.com/money/2014/feb/10/house-buyers-beware-estate-agents-double-charge

littlecrystal · 02/04/2014 16:33

Those introductory fees are Nonsense! It is just another way for EAs to double cash-in.
I totally refuse to move house until the market (and EAs) are back to normal.

On the other hand, do you think there are signs that the market started to cool down a little bit? In my area (SE London zone 4) any house under 300k would be normally be marked as SSTC within 1-2 days after going on the market. But I have been watching Rightmove, and while asking prices increased once again (on weekly basis), the houses are not marked as SSTC as quickly as before.

I hope it is cooling down a little bit.

Stokey · 02/04/2014 16:45

GooseysGirl I bought my house from DA and they are horrendous

most unprofessional people I have had to deal with

Sell through an online agent like house network and keep the commission yourself. You will have no problem attracting buyers in E17!

Gooseysgirl · 02/04/2014 23:45

Crystal it's showing no signs of cooling down where we are (East London).. Good news for selling DH's flat but bad news for trying to buy a house, as soon as the flat sells we will have to start offering on houses straight away or we could be priced out within a couple of months if things don't slow down. He's using Central EAs to sell the flat and we are doing our best to avoid Douglas Allen when buying.

PennieLane · 03/04/2014 03:14

This reply has been deleted

Message withdrawn at poster's request.

spotty26 · 03/04/2014 07:04

Pure greed. As if £10k is not enough for a few digital photos and phone calls and opening the front door before. 10 people offer. I suppose they want to make hay while the sun shines and have had a rough few years back in. 2008 but still disgusting.

I am a part time property finder. Anyone looking to sell in West Norwood, Furzedown, Nunhead... Let me know!

Unfortunately I do not charge 2% I just charge for my time!

HairyPorter · 03/04/2014 11:57

Market is definitely slowing down in nw London... We had offered under asking price for a flat 1-2weeks ago which was rejected, but I've just gotten a call from the agent saying the seller is now willing to accept our offer!

lessonsintightropes · 03/04/2014 13:49

I've posted about our woes elsewhere in Property/DIY but have just been let down on our second attempt to purchase, this time due to an acrimonious divorce and wife unwilling to leave. Shame we didn't know this before spending £2k in searches, surveys and fees.

We are looking in Greenwich/Blackheath at the moment but in the 2 months since our offer was accepted, property prices have continued to rise - having already been priced out of Crystal Palace.

So I guess we are now starting from scratch again. DH has just started a new job in Lewisham, I work in Croydon, so we need easy commutes to both (him cycling, me by public transport). Any suggestions on areas? Our budget is up to £500k and we need a 3 bed house - don't want to live in a flat again.

Suggestions?

Onelittlepiglet · 03/04/2014 14:10

Lessonsintightropes - have you looked at forest hill/Sydenham areas? I think for your budget you could get a 3 bed house and the station has trains to London bridge/Victoria, plus the overground direct to Croydon. Crystal palace is also on that line or a bus ride away.

It's a lovely area with lots of parks, nor imam museum, good primary schools, shops etc.

lulupeg · 03/04/2014 14:14

Sorry to hear that lessons, remember how excited you were... :(

I'd recommend looking at Penge and Catford (FH side or near Corbett Estate). Both would work for commutes I think? Love the area round the Alexandra Nurseries in Penge and think area will change/already is changing quickly...

phonebox · 03/04/2014 14:15

Is it too much to hope that the market will crash and then pick up again in say, 20 years time when we want to sell up and move?

lulupeg · 03/04/2014 14:16

FH is over budget - you could possibly get a doer-upper 30s for more like 550-600 but there's lots of competition... Possibly you could get an ex local but hardly anything decent like that on market...

lulupeg · 03/04/2014 14:22

OK slim pickings but here are a few SE23 houses (I personally much prefer FH to Blackheath but very personal choice!).

Dacres Road, Forest Hill
www.rightmove.co.uk/property-for-sale/property-45390992.html
Reasonable street and close to Mayow park

Hennel Close, Forest Hill, SE23
www.rightmove.co.uk/property-for-sale/property-45366428.html

Vestris Road, Forest Hill
www.rightmove.co.uk/property-for-sale/property-29447859.html
Small but lovely street and could put in a loft

Bampton Road, Forest Hill
www.rightmove.co.uk/property-for-sale/property-42510364.html
Tiny garden, near park which is lovely

The Fieldings
www.rightmove.co.uk/property-for-sale/property-29744994.html
Don't know street but very central location

Loxton Road, Forest Hill
www.rightmove.co.uk/property-for-sale/property-45542099.html
Over budget but I love these houses.

lessonsintightropes · 03/04/2014 14:48

Thanks Lulupeg. We were priced out of Forest Hill I thought - we lost out on a 2 bed flat (massive though) which went over asking price by 80k. That property on Bampton Road has been on the market for ages - I recognise it from last time! Will have a look at the others thanks, really helpful!

lulupeg · 03/04/2014 14:51

You're welcome! Buying a two bed and putting a loft on might be a good way to go? Could consult with a loft company before open day / bids to get your eggs in a row...

It's a fabulous area, totally recommend it.

littlecrystal · 03/04/2014 14:52

lessonsintightropes SE25 area next to South Norwood lakes (close to Crystal palace, too).

lulupeg · 03/04/2014 14:58

Few more interesting ones, not strictly SE23 but I don't mind the areas:

Winsford Road, London
www.rightmove.co.uk/property-for-sale/property-44916401.html

Selworthy Road, Catford, London
www.rightmove.co.uk/property-for-sale/property-45587810.html

Lovely
Ravensbourne Road,London
www.rightmove.co.uk/property-for-sale/property-45232553.html

Could be gorgeous and could add loft;
Adamsrill Road, London
www.rightmove.co.uk/property-for-sale/property-43283257.html

LondonGirl83 · 03/04/2014 15:17

Hither Green?