How can anyone afford to buy a house in Aberdeen?
Discussion
Small rant time. We have been on the lookout for our first house for a good few months now. Put an offer in on one and fell short by 10k. So close. We have found another house that we really like, this one quite a bit cheaper at £220,000. It went on the market on Thursday and has already gone to a closing date - Wednesday at 3pm. There have so far been 6 notes of interest. Now, this is where my problem is. My solicitor thinks if we want any chance of getting the house then an offer of £230,000ish is what it will take. Problem being, the house is valued at £220k on the home report in which my solicitor says 99.9999% of lenders go by. So to be able to buy this house we will need to stump up the extra £10,000. Plus £22,000 for the deposit & £~4000 stamp duty and legal fees. So a grand total of £36,000 up front. We have £36,000 currently in our savings, which I (wrongly) thought was pretty good going and an adequate amount to secure us a house under the £250k mark. Now if I was to buy the house we like, we will be left with diddly squat to buy any furniture etc with so it's not an option.
It's going to be the same scenario with any decent house in Aberdeen regardless of price. It's seems like they are all going for 5-7% over their valuation. So by the looks of things we are going to need closer to £45,000 saved before we stand much chance of buying somewhere! Crazy!
It's going to be the same scenario with any decent house in Aberdeen regardless of price. It's seems like they are all going for 5-7% over their valuation. So by the looks of things we are going to need closer to £45,000 saved before we stand much chance of buying somewhere! Crazy!
See the thread about the guy in London with £45k deposit and a £50k salary looking at 1/2 bed flats!
Property prices in Aberdeen seem to be pretty similar to the south east. And salaries are good due to the oil industry.
Yes it's a ridiculous situation (my house is worth more than my parents' and is 1/3 the size) but it's certainly not just Aberdeen!
Property prices in Aberdeen seem to be pretty similar to the south east. And salaries are good due to the oil industry.
Yes it's a ridiculous situation (my house is worth more than my parents' and is 1/3 the size) but it's certainly not just Aberdeen!
B17NNS said:
The 'offers over' system really is nonsense.
A friend has been looking at flats in London namely Barnet and Finchley. Three houses they have put an offer in for have all sold for more than the asking price by 5-10% without the offers over rubbish. The offers seem to be coming in before the seller even has a chance to review it I.e within days of the property coming on the market.Shaoxter said:
£220k will get you a deposit
That buys a nice 3 bed flat with roof terrace where I live.http://www.kingstoneproperty.co.uk/apartments/apar...
£250k gets you a glass hole in your roof.
http://www.kingstoneproperty.co.uk/apartments/pent...
Edited by B17NNS on Monday 13th January 22:14
Yea I don't expect much sympathy from the Londoners. I don't expect any sympathy from anyone. It's just a crap system. I work in oil and gas and do okay for myself, I have no idea how folks on average wages can afford to get a deposit together. No wonder everyone is jumping on these help to buy schemes. The problem is, they are a catch 22 because now the house builders are inflating their prices due to people who previously couldn't afford them, now can thanks to the government, which in turn, pushes all house prices up. It's nonsense!
My brother has £120k to put dowon (profit from renovating old flat, no family hand outs in my family) on a flat in London on a £65k salary and you should see some of the s
t holes he's looking at for £400-425k and he is getting out bid on all of them as they are going over asking. Most of the flats in the nicer areas are going for cash from foreign buyers who aren't even at the viewing day!
He is 28 and wants SW london as that's where his friends are and has even had to venture into Tooting (gash area) to find something suitable. He needs 2 beds really as he needs the option to rent a room out should interest rates rise to oblivion.
I think his salary is pretty good; what do you need to earn in the southeast to be able to buy a dencet home for a family (he does not need right now).
Sorry OP I've gone into a rant now.
I would be ecstatic if I could buy a decent house for under £250k as a first time home but can sympathise with you as you sound as though you've saved a decent deposit and work hard so you should be able to buy a house to live in becase of that.
t holes he's looking at for £400-425k and he is getting out bid on all of them as they are going over asking. Most of the flats in the nicer areas are going for cash from foreign buyers who aren't even at the viewing day! He is 28 and wants SW london as that's where his friends are and has even had to venture into Tooting (gash area) to find something suitable. He needs 2 beds really as he needs the option to rent a room out should interest rates rise to oblivion.
I think his salary is pretty good; what do you need to earn in the southeast to be able to buy a dencet home for a family (he does not need right now).
Sorry OP I've gone into a rant now.
I would be ecstatic if I could buy a decent house for under £250k as a first time home but can sympathise with you as you sound as though you've saved a decent deposit and work hard so you should be able to buy a house to live in becase of that.
Edited by decadent on Tuesday 14th January 09:25
You don't get much at all for your money in SW London, I'm not really sure why so many people want to live there (maybe it's the golf courses?)
What I've found also in the last few years is that there are fewer and fewer places for sale which are outdated and need renovating - seems like most people have caught on and done the refurbishment themselves before selling.
What I've found also in the last few years is that there are fewer and fewer places for sale which are outdated and need renovating - seems like most people have caught on and done the refurbishment themselves before selling.
Shaoxter said:
You don't get much at all for your money in SW London, I'm not really sure why so many people want to live there (maybe it's the golf courses?)
I'm not sure either, I lived in Putney for a short while and hated how overcrowded it was. Forget trying to get anywhere in the car.I'd prefer he lived in North London near me but his circile of friends are down that way so hands are tied unfortunately.
Lefty said:
It's good if you're selling.
But if you're selling then presumably you're buying something else as well? Anyway the asking price is just a figure, the value of the property is what someone else is willing to pay for it. If the seller has lots of offers over the asking price then it was priced too low to start with.I'm going to the 'Shire as well. So much more for your money.
I was brought up in Aberdeenshire so I am looking forward to moving back out, my other half is born and bred in the city so has taken some convincing but seems to be looking forward to it now. Promise of a dog is swaying this I think.
But for what we have to spend (budget seems to be similar to OP) there is nothing that I want in the City in a decent area and a new build is not something I'm interested in.
I was brought up in Aberdeenshire so I am looking forward to moving back out, my other half is born and bred in the city so has taken some convincing but seems to be looking forward to it now. Promise of a dog is swaying this I think.
But for what we have to spend (budget seems to be similar to OP) there is nothing that I want in the City in a decent area and a new build is not something I'm interested in.
Shaoxter said:
But if you're selling then presumably you're buying something else as well? Anyway the asking price is just a figure, the value of the property is what someone else is willing to pay for it. If the seller has lots of offers over the asking price then it was priced too low to start with.
Unfortunately mortgage lenders probably don't see it like that, and therein lies my problem. If the home report value says the house is worth less than than the eventual purchase price then surely the lender will go with the lower figure. I mean, why wouldn't they? If they went with the actual purchase price then I would be delighted, I would be able to buy this house we are looking at with no problems what so ever. However, since i can't bank on the lender upping the valuation on the house I can't put in the high offer which my solicitor thinks will be needed to secure it. We are going to offer £227,000. Part of my hopes it doesn't get accepted as after all fees, deposit etc we will be lucky if we are left with £3000. Which isn't exactly much to spend on furniture etc.
Shaoxter said:
Lefty said:
It's good if you're selling.
But if you're selling then presumably you're buying something else as well? Anyway the asking price is just a figure, the value of the property is what someone else is willing to pay for it. If the seller has lots of offers over the asking price then it was priced too low to start with.Lefty said:
Quite. And the offers-over system drives that "value" up. Hence it being good for people selling. I sold a flat right slap in the middle of the city centre, valued at 100k, offers over 110k and got 127k for it. I expected only to get 110 or 115 for it but some competition evidently drove the price up.
If it sold for 127k then it's worth 127k. Sounds like it was undervalued.Gassing Station | Finance | Top of Page | What's New | My Stuff