London house prices?

[okgo]

croyde said:

Estate agents valued my house at 1.1 million but it didn't sell so now at 900,000 and still no bites.

I have been saying all along who'd pay these prices for a little terraced house. Looks like people are finally waking up.

They will if they've made a mint on their stty little flat and the money hasn't had to be earned.

[fido]

p1stonhead said:

Jesus, I wouldnt! And I say that as someone who grew up on the cambridge estate in Kingston. Surbiton is vastly nicer than Raynes Park or even Kingston.

It's all about compromise - many will choose Zone 4 over Zone 6. Actually I nearly moved to Surbiton but couldn't quite finance one of the Victorian-style townhouses (St James?). Lovely estate - but the commute to London may have got tedious. Raynes Park doesn't have the river or a park but it's got the advantages of Wimbledon (albeit a bus ride away - with at least 3 to choose from 24/7).

[kingston12]

p1stonhead said:

Jesus, I wouldnt! And I say that as someone who grew up on the cambridge estate in Kingston. Surbiton is vastly nicer than Raynes Park or even Kingston.

Indeed, but I am talking about the estate agents version of 'Surbiton' here. £300k will buy you a small terraced house on the Sunray Estate in Tolworth (Surbiton), and there are much nicer parts of Raynes Park than that, surely?

The nicer parts of Surbiton are great in my opinion, but as okgo says you don't seem to get much nearly as much change out of the cost of equivalent houses quite a lot closer in to town.

The difference is with big houses. No one with big money really looks at Surbiton so you get a relatively poor house for £1m but a really great one for £2m compared with other areas closer in and further out of London.

[okgo]

Its all about perception.

I wouldn't live somewhere because of what zone it is, I find that entire notion entirely irrational. Which is why people with lots of money often end up in places like Barnes, Richmond, Coombe etc - poorly connected in some cases, but are actually nice places without 45 chicken shops within 10 yards of each other and poor people fighting outside bookies.

Anyway, I for one and hoping for things to go down in price, I have a bit of equity but quite a lot of cash, so it suits me.

[p1stonhead]

okgo said:

Its all about perception.

I wouldn't live somewhere because of what zone it is, I find that entire notion entirely irrational. Which is why people with lots of money often end up in places like Barnes, Richmond, Coombe etc - poorly connected in some cases, but are actually nice places without 45 chicken shops within 10 yards of each other and poor people fighting outside bookies.

[Harry Flashman]

okgo said:

Its all about perception.

I wouldn't live somewhere because of what zone it is, I find that entire notion entirely irrational. Which is why people with lots of money often end up in places like Barnes, Richmond, Coombe etc - poorly connected in some cases, but are actually nice places without 45 chicken shops within 10 yards of each other and poor people fighting outside bookies.

Heh. Spot on.

[paralla]

z4RRSchris said:

you wont get 1100 in vauxhall. 750/800

You say that with some authority, I admired your Chutzpah. Given all that you know of the flat is that it's in Vauxhall I'd say you are not particularly well positioned to value it. Vauxhall spans council flats to £50M penthouses. Mine is somewhere in between.

Lucky I wasn't seeking validation from strangers on the internet.

[okgo]

[croyde]

okgo said:

nice places without 45 chicken shops within 10 yards of each other and poor people fighting outside bookies.

You have just described the scene outside my old rented one bedroomed flat that cost me £1225 a month. Worth, apparently, half a mil. Wandsworth.

Now pay similar rent for a detached house down a private lane with only the church bells on Sundays for a bit of outside atmosphere. Have to allow at least 4 hours a day for commuting though.

[fido]

kingston12 said:

Indeed, but I am talking about the estate agents version of 'Surbiton' here. £300k will buy you a small terraced house on the Sunray Estate in Tolworth (Surbiton), and there are much nicer parts of Raynes Park than that, surely?

But you wouldn't get anything for £300k in Raynes Park; maybe a bus ride away towards Morden. Flats are £400k+. And there is only 1 chicken shop - they are somewhat avoidable if you have a minicab rank!

http://www.zoopla.co.uk/for-sale/details/41903750?...

[z4RRSchris]

paralla said:

You say that with some authority, I admired your Chutzpah. Given all that you know of the flat is that it's in Vauxhall I'd say you are not particularly well positioned to value it. Vauxhall spans council flats to £50M penthouses. Mine is somewhere in between.

Lucky I wasn't seeking validation from strangers on the internet.

Sadly my job is to know as much as i can about the market. I speak to hundreds of agents a week.

local stock has a ceiling of about 750/800.

maybe yours is a new build, along with the 30,000 other new builds. I can buy at riverlight for 800psf..

the £50m penthouse was never really sold, and is still on the market.

[Adam B]

z4RRSchris said:

Sadly my job is to know as much as i can about the market. I speak to hundreds of agents a week.

local stock has a ceiling of about 750/800.

maybe yours is a new build, along with the 30,000 other new builds. I can buy at riverlight for 800psf..

So take a random example:

http://www.rightmove.co.uk/new-homes-for-sale/prop...

Up for £1.5M which equates to £1370 sqft

Using your 800/sqft ceiling, will they be biting my hand off if I offer of the equivalent £870k ?

and you mention Riverlight specifically
http://www.zoopla.co.uk/new-homes/details/41439652...

£1.2M but using your 800 number it should be £634k

You know far more about this than me, but I don't understand your numbers - what am I missing?

Edited by Adam B on Wednesday 19th October 13:03

[Justayellowbadge]

Adam B said:

z4RRSchris said:

Sadly my job is to know as much as i can about the market. I speak to hundreds of agents a week.

local stock has a ceiling of about 750/800.

maybe yours is a new build, along with the 30,000 other new builds. I can buy at riverlight for 800psf..

So take a random example:

http://www.rightmove.co.uk/new-homes-for-sale/prop...

Up for £1.5M which equates to £1370 sqft

Using your 800/sqft ceiling, will they be biting my hand off if I offer of the equivalnt £870k ?

9 Elms? I'd start negotiations at 500k.

[AyBee]

z4RRSchris said:

paralla said:

You say that with some authority, I admired your Chutzpah. Given all that you know of the flat is that it's in Vauxhall I'd say you are not particularly well positioned to value it. Vauxhall spans council flats to £50M penthouses. Mine is somewhere in between.

Lucky I wasn't seeking validation from strangers on the internet.

Sadly my job is to know as much as i can about the market. I speak to hundreds of agents a week.

local stock has a ceiling of about 750/800.

maybe yours is a new build, along with the 30,000 other new builds. I can buy at riverlight for 800psf..

the £50m penthouse was never really sold, and is still on the market.

There seems to be a lot of people in London believing their flats/houses are worth a lot more than they are. Once they start realising that, the market is only going one way

[IanA2]

Back in '81 I bought a poxy 1 1/2 bed flat in W3 for £20K. I discovered the other day that it has recently been sold for £500,000 At the time I was earning around £7K. God knows how anyone would buy it now.

[kingston12]

fido said:

It's all about compromise - many will choose Zone 4 over Zone 6. Actually I nearly moved to Surbiton but couldn't quite finance one of the Victorian-style townhouses (St James?). Lovely estate - but the commute to London may have got tedious. Raynes Park doesn't have the river or a park but it's got the advantages of Wimbledon (albeit a bus ride away - with at least 3 to choose from 24/7).

Surbiton definitely lacks flexible transport, and a lot of people ignore that when moving there. The commute itself is fine despite SWT - my trains get into Waterloo in the advertised sub-20 minutes most of the time, and the trains back are often less than 15.

The downside is that the trains finish at 1am so after that it is a £25 Uber or the dreaded night bus.

For me, it is more about convenience than zones. It is amazing how many people are supporting a campaign to move Kingston and Surbiton from zone 6 into zone 5. I'd much rather they invested to turn one of the stations into more of a hub and leave it in zone 6 than I would save a few quid each month by having the current service in zone 5. Of course, most people seem to believe that moving to zone 5 would mean an immediate 10% bump in the price of their house, and that is what they are really interested in.

[Adam B]

I quite fancied a place in the iconic BPS, a building I love

http://www.rightmove.co.uk/new-homes-for-sale/prop...

a smidge toppy at £3,200/sq ft

[kingston12]

fido said:

But you wouldn't get anything for £300k in Raynes Park; maybe a bus ride away towards Morden. Flats are £400k+. And there is only 1 chicken shop - they are somewhat avoidable if you have a minicab rank!

http://www.zoopla.co.uk/for-sale/details/41903750?...

Ok, the Sunray Estate was perhaps a bit of en edge example!

Take Tolworth (estate agent's Surbiton). Plenty of chicken shops, pizza takeaways and pound shops on the high street and not much else. The station is zone 5, but a very poor service. £700k for this:

http://www.rightmove.co.uk/property-for-sale/prope...

I'm sure I could find several houses in Raynes Park that I'd prefer to live in for similar money.

[okgo]

kingston12 said:

Ok, the Sunray Estate was perhaps a bit of en edge example!

Take Tolworth (estate agent's Surbiton). Plenty of chicken shops, pizza takeaways and pound shops on the high street and not much else. The station is zone 5, but a very poor service. £700k for this:

http://www.rightmove.co.uk/property-for-sale/prope...

I'm sure I could find several houses in Raynes Park that I'd prefer to live in for similar money.

To be fair that is on the cusp, nobody living around there would use that station, and I have a few mates on the Victorian roads (Ellerton, Cotterill etc) there which have really nice houses, but all use Surbiton station as its a 5 min bus ride.

But yes, some seriously dreamy pricing there lol!

Interested to hear back on the Vauxhall stuff ha...

[Harry Flashman]

Whomever posted in this thread about making a quick buck in London is right - those days are over for the foreseeable. Look at yield (tricky given high prices) for rent, or as a place to live.

We bought our house a year ago at a fair price for the wreck it was, and have since spent nearly a quarter of a million pounds renovating it. It is almost certainly worth less than the combined input. But it is where we want to live for a long time, so I don't care that much.

The issue will come at re-mortgage time - but luckily it isn't too leveraged. But should you be on an 85% mortgage and looking at 20% loss ov value in a couple of years, things could get a bit sticky - you will either be stuck on the default rate rather than your introductory offer and have to find tbhat cash, or get a poor rate on re-mortgage, if you can at all.

This might see some leveraged property back out in the market (not BTL generally as they won't let you leverage it that much, and are more interested in yield than LTV when lending), and further downward pressure on prices?