The ridiculous, ridiculous price of property

[Snakesandpropertyladders]

This is really just a rant/moan/ whinge about how ridiculous house prices have got.
We are looking for a standard 3 bedroom house where the 3rd bedroom is actually a box room that would only just about fit a single bed. So nothing fancy. We have a pretty good budget but it is just not going to be nearly enough as house prices have risen so much recently.
We viewed 2 houses today. Both had pretty small rooms and needed quite a bit of work. The first was priced at 450k. It needed a new kitchen and complete redecoration. The second house was priced at 425k. This one was identical to the first but needed new kitchen, bathroom, complete redecoration throughout. It was a major project, though not being sold as one. If we bought the house we wouldn't be able to afford to do the work for years and years if at all. How on earth can these sorts of prices be justified!?
For that sort of money we'd expect a house that we can move into and that's it. It's a pretty high budget yet all that is coming onto the market are dilapidated houses or houses in dodgy unsafe areas. Even houses in not particularly savoury areas are edging closer to 500k.
We have even looked at moving further out from where we are, but the cost of commuting then becomes prohibitive. Both of our jobs only exist in London so we have to be within commutable distance. A 30 minute commute from Essex will cost us around £800 a month in train fares!
I'm despairing of us ever being able to leave our flat and buy a house of our own. Rents are pretty crazy too at the moment so even that isn't a great option.

Have you looked at Da7 / DA8? Bexleyheath, erith sort of area.

Bursted Wood School is fantastic and houses are less than 300k. It's somewhere we are considering.

I think something that people outside of London maybe don't realise is that an undesirable area does not just mean there's a council estate there. It often means high levels of violent crime, a drug problem, gun crime etc. I grew up on a council estate and my family still live there so I'm certainly not stuck up about it.
There can also be a lack of infrastructure in some of these places. So cheaper houses but no schools nearby or shops etc. Travel in London can be a nightmare so while on paper you may have to travel 20 minutes to take your child to school or to get some groceries in actuality it can take much, much longer.

Good suggestion there are some great houses in Bexleyheath. What is DA6 like?

Bexleyheath is great, local bakery and a lovely butchers near to the station. By the station is a great location or south Bexleyheath nearer to Danson park. Direct trains to charing cross/Victoria/London bridge/Peckham rye/new cross :-)

Would avoid welling or roads like bethel or Granville road. Good luck with the search!

DH and I have come to the conclusion that our small 3 bed 1970s house is probably our 'forever home'. We'd probably need another £150k to get another bedroom.

I'm very grateful that we have this house but do wonder who can afford £500k for a four bed.

Hmm.. I am in South London zone 4 and 3 bed houses sell around 350k. Nothing wrong with the area (in my opinion). But then everyone's to his/her own choice.

The whole house of cards is going to come crashing down pretty soon. I expect they are waiting till the election is out of the way before raising interest rates. People shouldn't overstretch themselves. I'd like to move but the gap is just too big to get anything much better than the house we have already. Would have to go to not such a nice spot or smaller garden or traffic noise or other such annoyances.

Come and move to where I am (midlands council estate) 3 bed houses on my estate are going for about 80k ATM

It's a shit hole though and there's no jobs

Well Gary you've sold it so well - I'll get me coat.

Jaded - I really like that house (the one in SE24). I'd buy it like a shot!

It's got bags of potential and the area is very vibrant a bit scary

I think it's called the 'bigger idiot' principle. Basically the idea is that someone in a year's time will pay £700k for that. And then £800k the next year.

And it's pretty much worked so far.

"The whole house of cards is going to come crashing down pretty soon."

Not while Chinese and Russian buyers still see London property as a profitable way to grow their wealth.

So many cash buyers in London.....

We had the same problem 30 years ago. The house we bought was similar to this www.rightmove.co.uk/property-for-sale/property-47277875.html That is £400k, terraced, freehold, garden although that one is really really done up. Ours was second hand furniture tatty carpets broken bath etc. in those day.

This is outer London, tube zone 5. costs about £6 a day to commute into London.

Prices in London dropped last month so you might find they get a bit cheaper too. Keep looking. It is worth it.

sorryforher that's a nice enough house but very overpriced. £700/sq ft.

Same sort of money in z6:

www.rightmove.co.uk/property-for-sale/property-48443102.html

Three times the size

And you won't get stabbed there.

The one aspect of modern life which for many is rubbish is the cost of housing. Many families earning decent wages are living in expensive insecure housing and it really does take the shine of your everyday life. It also affects long term plans including when you can retire.

Housing costs was one of the reasons for students in Hong Kong taking to the streets and demonstrating last week. Many felt housing was totally controlled and manipulated by the Chinese government who have used Hong Kong property to shelter their ill gotten gains, reward their cronies and buy off the banks. Many graduate Hong Kongers no longer believe they will ever be able to buy their own property and subsequently will have less control over their lives. I think we will see similar demonstrations in the UK if housing costs continue to rise at the current rate.

The British economy is propped up by a buoyant housing market, it brings in tax, keeps people employed, has spin offs for a multitude of businesses and professions (DI Y shops, tradesmen , solicitors, surveyors etc). It is not in any government s interest to put on the brakes. English economy minus housing market equals much smaller economy.

Have you thought about caterham/warlingham area? About 30 mins on train to London and a 3bed can still be had for about 325-375k

I'm sure it will crash as the young people coming in and wanting to buy or rent can't. DS, just graduated, is staying in his university city up north, he says he wouldn't consider London as he couldn't afford to rent or buy. At least where he is rent is cheap and he has got a hope of buying. He's also not coming home to us, we're East Midlands where there are hardly any jobs.

So OP thats what your DC have to do, make a new life somewhere cheaper, I'm sure my DS isn't the only one having to do this.

OP, have you looked at Cheshunt? It isn't that far from Essex and is an easy commute from London. You would get a nice 3/4 bed property with your budget because it isn't a trendy area.

What Mumzy said.

You hear all the time about people in places like Devon and Wales being priced out by second home owners. But its Londoners who suffer the most from non-resident investors pushing prices up. London property prices are utterly absurd, and people outside the capital often can't even grasp what its like.

Yanbu op. We have been on the property ladder for 16 years and still can't afford a 4 bedroom house in our area.

Feeling your pain. We would like a 4 bed, 2 reception ideally, currently in 2 bed + box room (ok for cot bed..) with 1 reception. Would need an extra £250-£300,000 to get in our area in Oxfordshire And we are two doctors ( one part time)....massively feel for those on average or below incomes :(
Could move out into countryside but it is still pricey and will logistically be more tricky with work etc. plus all friends and hobbies locally which we would prefer not to leave.