Sydenham house prices up by 50k?

[leenewham]

I'd wait IB203, I'm pretty sure we will have another crash in house prices soon. There is nothing coming onto the market.

[Steveofsyd]

I doubt there will be a real crash as demand is outstripping supply and interest rates are low. Remember that the last crash in the1990s had "over-inflated prices and overstretched borrowers, as we do today, but also had 15% interest rates, severe recession and massive unemployment."
I spoke to an Agent friend the other day and he said that some houses had risen 25% in the last year in Sydenham but they were very high quality examples. They were being bought by families with expectations of quality moving from other more expensive areas and taking advantage of the new Overground. That is starting to influence our prices a lot more than previously and Sydenham is running ahead of the general market.
I for one am happy as I own a house which I have worked very hard to get. I have a larger mortgage than I would like due to personal circumstances so would not favour an interest rate rise ...

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[Steveofsyd]

When I bought my first flat, I sold my car, stopped renting and going out for ages so I could save and moved to an area I could afford rather than expecting that I could afford where I lived/ rented. I had no help at all as mother was disabled etc.

In my workplace we have 2 camps of the young...
- those who scrimped and sacrificed in their 20s and now own property so can now relax as they hit 30 ...holidays, cars etc.
- those who have been going out for years, holidaying, renting in trendy places, and even buying cars in their 20's. Now they are no closer and have no savings.

Don't get me wrong...this is only an example and obviously does not apply to all.

Yes prices are high but if you buy somewhere like Welling (as a young colleague has just done) it is affordable for a young couple on very mediocre salaries. Being clever when choosing places to buy is also important especially concerning transport. People ignored Sydenham for years...now they have woken up to the fact that they can be in The city or Central London so quickly.

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[Rachael]

When I bought my first flat, I sold my car, stopped renting and going out for ages so I could save and moved to an area I could afford rather than expecting that I could afford where I lived/ rented.

Me too - big night out was a pint for my husband, a half for me, a shared bag of Brannigan's crisps and if we were feeling flush £1 in the quiz machine.

[bensonby]

I earn an average salary, my wife is a PhD student and I bought a 3 bedroom house aged 24 with no "bank I mum and dad" loan and went on nice Holidays and meals out. How? I moved out of London (still within commuting distance) having lived with mum and dad for 3 years after Uni (paying modest rent).

It is perfectly do-able. I was slightly resentful that I didn't have the option of living where I gre up. But returning to Sydenham on a regular basis I must say I much prefer my local area's shops, pubs, Restaurants, schools, countryside etc etc.

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[coldand]

It's just pure jealousy that people blame buy to let all the time.

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[Alfred Adler]

The help to buy Gov scheme is only going to fuel demand for properties up to 600k. That means even more demand for places like Sydenham where you can still (although this might change soon) buy a 3 bed house for under 500k in a nice with original features.

[Steveofsyd]

I think you'll be lucky to get a nice one now a days, but a doer-upper can be bought. Best buy is the 3 bed terrace and then spend c.40-50k on a nice loft conversion. You'll get at least double the money back if not more if it's done well.

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[Alfred Adler]

Steve,
something tells me you are in the building game?

[Manwithaview1]

Bit fuzzy but the message is clear

[Steveofsyd]

Steve,
something tells me you are in the building game?

Actually no...just that a lot in my Road hade done conversions and I know an Agent. We are running ahead of the market and the fact that one can get back considerably more than invested if done properly shows this.
The people paying the big money are looking for top quality decor as they can't be bothered to do it themselves. I know a few who have or are still enduring huge pain with unscrupulous builders so people who don't want to risk this will pay for the privilege.

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[Alfred Adler]

From what i know Sydenham estate agents are engaging in practices such as unaccepting offers and forcing up prices by creating hype. What happened to the principle of shaking on a deal and being honourable? In a sellers market you discover the worst side of human nature.

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[leenewham]

I expect that's the same everywhere. Until houses are seen as homes rather than investments, or we change how homes are bought, this will always be the case. It happens the other way too. Perhaps we should adapt the Scottish system?

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[Alfred Adler]

My sympathies IB203, the painful truth in a rising market is that you are forced to keep going higher. Dont listen to the clowns advising to wait for the crash. A 450k house today might be 550k next summer. SE London will continue to have extra rates of growth for some time due to improved transport links etc imo

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[Maria]

Perhaps we should adapt the Scottish system?

The Scottish system does eradicate the horrific practice of gazumping which is every house buyers' nightmare but it isn't perfect either.
Basically, over there the great majority of sales involves you in sealed bids type situations; all you need is for the agent to tell you there is somebody else making an offer (either true or not, you have no way to know...); you are given a date and a time to make a legally binding written offer to the agents. If you really feel that is the house you want you either offer well above the asking price or risk loosing it for the sake of £100 or something ridiculous like that. Been there, done that - awful!

[Alfred Adler]

But perhaps somewhere in between is needed as bidders have no legal protection until exchange of contracts in England, and vendors can unaccept an offer at any stage up to the point of exchange without any penalty.

[roundasapound]

A 4 bedroom house on my road, sale has just been agreed £775k! The For Sale sign was up for less than a week before the Sale Agreed sign was mounted

[leenewham]

I don't believe this current spurt in prices in sustainable. If there was a reasonable supply I'd think differently, but people just aren't selling and there are too many buyers.

Banks are being really awkward with lending which also has it's problems. We still have huge amounts of debt, the price of living is going up, wages aren't increasing, house prices going up way beyond what many can afford. New affordable housing is still extremely expensive. Even houses in Lower Sydenham are selling for close to 400K. On in Kangley Bridge Road is on the market for nearly half a million (although that is way way too much!).

I know someone is bound to say 'it's worth what someone is willing to pay' but most aren't paying with their money. It's borrowed. It's debt. It's not real. If mortgage rates go up I see the whole thing tumbling like it did in 2008 again.*

ib203, be patient, don't just jump at the first house that comes along. We had the same thing happen to us as you. Something will come up. We missed out on a lot of properties in 2008. We were told similar things to you are, that prices will carry on going up. But eventually a property came that was right for us. At them moment there is a bit of a frenzy, but get yourself in a good position with your mortgage etc and I'm sure it will be fine. Too many people panic buy. Prices seem to fluctuate, even identical houses (in design and layout, not decor) in the same road vary by huge sums. The best advice I've been given is buy the worst house in the best road. Good luck.

I'm off to put on my clowns nose and squirt water at Alfred.

[Eagle]

round as apound

I would imagine the buyer has more money than sense. I would assume a cash buyer as cannot believe and building society would lend such a figure.

I have no idea what road. If Hall Drive then possibly correct figure , but most other roads well overpriced.

The chickens will come home to roost. The bubble will burst again soon.

[MATILDA]

that was before our wandering guests - those of us with a 50k increased house value could offer our 3 toilets per household facilities - en-suites are out of bounds - any ideas what the going rate is to 'spend a penny ' or a Leu or a lev