Owning your own home

We've got corporate-branded merino tops, with our surnames on the arms. #trufact

I spoke to the agent again and raised our offer from £300k to £310k (versus sale price in November 2012 of £200k). The agent intimated that there have been offers over £325k (it was marketed in the range £300-325k), and told me that he thought it was 'a bit ridiculous'. The most anything comparable has sold for in the area is £290k, and there are other similar layout being marketed at £250k (albeit without period features).

We could get and comfortably afford a mortgage well beyond £325k, but I don't want to get burned, as the price is a big outlier at the moment.

Don't get involved in a bidding war - agents love this. Playing one off against another is their way of getting the money that their client wants. Generally there isn't another offer - more a case of "what an applicant thinks it's worth etc" but nothing firm. The agent is clearly doing a decent job if he's convincing you enough to pay 20k over the nearest comparable.

Besides, the figures achieved a year ago were achieved a year ago and don't really have any place in your conversations with him/her/it.

I don't know where the year ago bit came from but you can get historical prices from the Land Registry at the end of the month for the previous month, so October's figures will be out tomorrow.

So T-V if there have been offers over £325k why is the agent even talking to you?

I hate it when they give a range. What does that even mean? That the completion price is going to be between those figures? If they say £300-£325 they're expecting it to go for at least £325k, the £300k is just click-bait

The agents must be loving this. They're doing fuck all work - open days so they don't even have to fuck about with viewings - and getting paid the same percentage rates as before on massively inflated house prices.

Where do I apply to be one?

If you've got 50 applicants all wanting to see the same place why not show everyone the same day instead of organise 50 seperate viewings?

^^ Yes. The £300k gets it into the next range down on Zoopla/ Rightmove so more people click on it.

I can't help but think that Zoopla / Right Move becoming the main (even only) port of call for buyers doing their research isn't helping things. I haven't worked out why yet, but something about it troubles me. I'm looking to buy (again) and I have a dream of getting a place from a nice independent agent who isn't on those sites.

It's not going to happen is it?

When I was looking, there were very few options on the direct-dealing sites. So, yeah, you might get lucky but most people list with real estate agents and they push towards the big sites.

Catford prices look quite flat. Sell some of your bike fleet and you will be most of the way to a mortgage.

But i want to buy a place so i have somewhere to put all my bikes!

I'm all over Catford. My girlfriend ain't.

House prices seem to be rising in other places too.

The house around the corner from us has just gone on the market for 40k more than we paid and has one less bedroom.

I'm amazed. Although our place needed complete refurbishment I don't think we'll spend that much,

Not that I'm thinking of moving!

The agents must be loving this. They're doing fuck all work - open days so they don't even have to fuck about with viewings - and getting paid the same percentage rates as before on massively inflated house prices.

Where do I apply to be one?

Apply in writing (must be in your own blood) to Mr. Lucifer, Seventh Circle of Hell, The Underworld. Enclose a picture. It helps if it's a picture of you wearing a very shiny suit and an unconvincing smile.

Pretty sure Hefty will back me up on this one. Although the above may only apply to Foxtons.

Even I find letting agents and estate agents to be a right bunch of horrible cunts.

I'm a journalist at the moment so to be regarded as a horrible cunt would be a case of onwards and upwards.

So T-V if there have been offers over £325k why is the agent even talking to you?

They weren't. I called them three times, they didn't call me once. The third time I called they told me it had gone and I should stop bothering them.

It is tempting to view this as the agents being Machiavellian, but the reality is that the market is bonkers.

house on my street with asking price above anything i've seen 2008 or prior
regular three bed terrace

I'm all over Catford. My girlfriend ain't.

Convince her. Its alright. One of the places where the smart money is at the moment.

I'm working on it. We've got Sydenham and Anerley in our sights too, which I like. And Bromley, which I'm not so keen on.

Disagree on Catford.

It has bit and bobs of decent housing stock but the fact remains it will always be carved up by infrastructure, which limits the amount of pavement life and the amount of community/smug middle class momentum.
Think about all the places that have blown up.
East Dulwich - urban village, small roads, local shops and restaurants.
Stoke Newington - same
Walthamstow village - similar
etc etc

That's not to say there aren't the odd row of shops that might end up with a half decent cafe or pub, but as wider area it will always be limited and the whole sale goldrush that we can see in Brockley is unlikely to happen there.

anecdotal - 4 of my peers have moved to Catford and they have ALL fucked off elsewhere as soon as they have had kids. It's just not a pleasant environment to exist in.

Interesting

I am so loathe to get into this but I also don't feel like I have a huge amount of choice (alternative lifestyling not an option.. yet). I hate it and I haven't even started.
our rent is currently well below market (major agency) rates in the area. we are anticipating a big rise in new year. landlord keen for us to move out so he can sell. the ground floor flat is under offer - same layout as ours except plus small rear yard, minus front spare bedroom (it's the communal hall on ground floor) - it went on at £425k two weeks ago and presumably is selling for more.
if we stay, rents go up. if we move, comparable rents are even more.

but buying right now seems so ridiculous. when we started looking at mortgages 6 months ago, we could afford a small house somewhere not too far out. now it seems a house is out of the question. the little flat downstairs will sell for more than my sister's Arts & Crafts semi-detached cost a year ago, admittedly a less desirable area but still. what is the point? I have no enthusiasm for this. reluctant spending (on borrowed money) feels so wrong.

^Know how you feel, the last 12 months' rise has been absurd. When we started looking last year, we were considering the Warner flats near Lea Bridge Road on for about £180/£190k. Now you'll be lucky to get one of those for less than £300k. You haven't missed the boat, the boat's just moved. We decided to look for something in Stratford/Maryland instead. Not as nice, but your money goes further.

I think hippy hit the nail on the head:

Not living in your castle with some spare coin is better than having an unaffordable mortgage.

Maryland is creeping up cos it's on Crossrail and so close to E20.

Im not sure why people are so keen to spank a load of their own and the banks money buying property at the moment. Its utterly insane that people are even considering paying 300k for a modest flat at the end of the victoria line (as fine as I imagine the stow is to live in)

I say this as someone who has a vested interest in the london property market. I moved to old ford to live in a rickerty old warehouse very nearly 3 years ago, and paid 250k for our flat. Its now been valued the other week at 385k. I certainly wouldnt pay that for it but the agent assures me someone would. IMO if you only have a small deposit you would be utterly bonkers to buy in london at the moment if you can rent for roughly what the interest element on the mortgage would be.

If you are cash or have a massive deposit - well take the risk if you think its worth it. I wouldnt want to be in a position where I shit myself at remortgage time in 3 or 4 years time and the bank makes a margin call on my loan to value..

i'm just by maryland if you need any assistance / info on the area ^^^

Im not sure why people are so keen to spank a load of their own and the banks money buying property at the moment. Its utterly insane that people are even considering paying 300k for a modest flat at the end of the victoria line (as fine as I imagine the stow is to live in)

This is always a dilemma though isn't it? Do I spend and potentially risk a drop in prices, meaning negative equity in most cases, or do I wait and hope prices drop as the bubble bursts? If you go for the latter, the risk is that you are locked out of owning your own home in London if prices don't drop.