Anyone interested in a 2-bed in South-East London?

[WarmSwan]

Evening all, I am trying to sell my two-bed flat in Shooters Hill, London (Woolwich). It was previously under offer twice, but buyer 1 had mortgage issues, and buyer 2 got cold feet. Now I am struggling to get people to look at it. Any advice/hugs much appreciated. Thank you! Zoopla Listing

Well presented, yes, quarter of a million? No, not going to sell for that.

Thanks for looking at the listing. May I ask why? You seem very sure of your opinion.

It’s a good flat for a couple and nicely presented, and I think the price seems reasonable for the area. There’s nothing you can do re leasehold so ignore those comments. I think buyers just very cautious currently, so it might just not sell right now at that price. Depends how eager you are to sell I suppose?

Mainly; Changes to interest rates/potential for much higher mortgage rates, people were just not processing the amounts they were borrowing when the cost of money (debt) was super low, also multiple price drops in a short space of time, indicates someone not knowing the market or just trying it on? And, no price history, is it a very new build?

It's 40 years old. I bought it in 2016 for 250k, which was the average, even a good price for a flat that size in the area at the time.

It has been on the market since the end of last year, and I have gradually decreased the price, as suggested by agents and in line with market conditions.

Hi I’m local to this area and this is in a lovely road but might not be so appealing to buyers who can buy down the hill and be 10 mins walk from the Lizzie line. I just sold my leasehold maisonette with the same agent actually and there does seem to be an over supply of these smaller leasehold flats. Mine was bigger and closer to transport though. Best of luck!

In terms of interest rates in 2016 compared to now, and the potential for mortgage rates to go much higher in the present economic climate which is almost the opposite of 2016 in terms of sentiment and general outlook on ;property/ property values you overpaid for this property, of course you couldn"t predictt the future but it was well fllagged at the time on forums etc. that rates were likely to go up?

Thanks for your super helpful advice. 🙄

It is realistic advice, if there is demand for the area and the price point is correct you should have a number of people viewing and showing interest.

Do you want people to say - Yes, it will sell at whatever price you think it is worth, or - Yes, of course you always get back what you paid (borrowed) for property? That would just be untrue and unrealistic.

1. Electric heating would put me off
2. The details actually say there is no gas, so I wouldn't take this any further
3. The 2nd bedroom is tiny.
4. Is it former social housing ? I guess it is at that price.
5. Tho I wouldn't touch it with a barge pole for the above reasons, surely a young couple would snap this up at that price.
6. I don't know the area at all so maybe there are lots of flats at this price for the young couple re no 5 above

Why would a young couple "snap up" a flat you wouldn"t touch with a barge pole for Quarter of a Million pounds! ?

Of course I want to be realistic. I want to sell, and I have said in the thread that I will consider dropping the price further. However, your tone is pretty unpleasant, so I will stop responding to your replies. Thanks.

It’s a good price (bit dated and small second bedroom) but a bit of a schlep down to Woolwich. Plus the Woolwich Common estate nearby might put some people off. No nearby proper shops either apart from awful Herbert Rd.

I’m surprised it hasn’t sold at £250k but the traditional landlord market is a bit stagnant at the moment in SE18. Most landlords are buying the bigger houses on Plumstead Common and Greenwich Council seem to be approving HMO’s left, right and centre. Bigger yields than a small flat. Young couples attracted by Crossrail will want to live closer to the station/river.

@KeepPumping

Why

because I am not in the market for an all electric first floor flat in London

but surely £250,000 is a bargain in London ?

my last flat in London went under offer recently for £450,000 and it has been many many years since I bought it and many many years since I sold it.

Not a bargain any more IMO, London is full of unsold basic flats, there has been overbuilding, a 40 year old all electric 1st floor flat a bit of a walk from public transport is not a greatly sought after thing any more, IMO people were piling in previously because they seriously believed the price would always go up, the sort of person who would have bought this a few years ago probably still lives with their parents now.

Any progress?

Any progress?

Really nice flat

The photos make the rooms all look very long and thin. I know that's to make everything look bigger and more spacious but it looks the opposite to me. The shape of the rooms in the photos would put me off.

Any chance of putting some furniture in? I know that's a cost and a hassle.

I think this is unfair. Firstly, interest rates didn’t go up for six years! The forum posters confidently predicting rate rises were wrong for at least five years. Hindsight is 20/20 and all that.

Secondly, people need a place to live and most young people are bombarded with older relatives telling them to get on the property ladder “because prices only ever go up!” Even today on MN lots of people confidently state that property prices always go up over the long run.

I don’t think OP overpaid in 2016. She has just been very unlucky that the property she bought happens to be in the category (small leasehold London flats) which had been the weakest over the last few years, and so the price appreciation over a decade has been zero, or maybe slightly negative. It’s nobody’s fault and very few people were predicting this at the time - quite the opposite.

Posters feeling smug in their freehold detached houses should bear in mind that with likely government policy the same thing could well happen to them very soon.

My predictions were more along the lines of - Things will be difficult for people with heavy mortgage debt loads, especially if they need to sell, WHEN rates inevitably go up, no one can predict accurate timelines for rate rises but you have to read the signs and the signs were there for a long time.

Most people "confidently stating" that prices always go up are confusing natural wage based house price inflation with mental cheap debt heavily manipulated market house price inflation, that bubble has to be removed from the equation before we can get back to a "normal" market.

You don"t need vast amounts of intelligence or market sense to see that the prices flats etc. were changing hands for in recent years was purely based on cheap mortgage debt and euphoric sentiment, it was inevitably going to end in tears.

I wouldn’t want to live on a council estate or close to one, not even if the nearest tube or train station was nearby. Transport links for this flat are a bit shit as is the distance from the other amenities in Woolwich town centre. Nothing you can do about all that and the cosmetic side of things don’t need changing, so all you can do is reduce which I appreciate would mean you sell at a loss, but the flat is a dud, especially in this gloomy market. More and more people are becoming aware of the problems with leasehold flats, people are nervous of buying in this economy, so you’re up against it, really.

@everyoldsock Vast numbers of flats are leasehold in London. They do sell. A buyer could be waiting a very long time if they insist on freehold. It’s important to look at costs of course but leasehold is pretty normal.

It’s a nice flat but the service charge is what would put me off. All my younger colleagues and family are buying smaller houses for the out to avoid flats and moving again