House Prices #2 Property market, buying and selling

[HoGi]

I think the rent on that properyy is an anomaly. My flat is worth 315k but if I rented out, I'd get atleast £1250 a month. My neighbour pays 1250 and landlord hasn't put the rent up for 3 years as they're great tenants

But a mortgage on 315k with 10% deposit would be around £1250 if not more.

My first mortgage on 275k was about that 5 years ago and rates are worse now

 

[whoareyouu]

I do agree with a lot of what you said.

I rented for 5.5 years then bought on a 95% mortgage. Our mortgage was 400pm more than our rent on an equivalent property.

I just get annoyed when people comment that renting is more expensive than buying but that is gerbally only true if you have a huge deposit. But most commenters think they should be given 100% mortgages as renting is proof they can afford repayments.

But owning is so much more than the monthly mortgage and yhe mortgage is rarely less than renting

Our rent is £600 on a 2 bed house, mortgage £460 on a 3 bed house.

We’ve put down 5%.

 

[Rippedjeanmaybe]

The current house I’m in was 82.5k and we put down a 10% deposit and our mortgage repayments are £282 a month. If we were to rent this property it would be about £600 per month.

I’m buying a five bed next with a 15% deposit. Monthly repayments are £971, but the same properties are renting for £1500 a month.

All varies by area, but round here it is generally cheaper to buy than rent. Obviously you’ve got your upkeep and maintenance, but I wouldn’t say that costs us £300 a month…

 

[a.pain]

We would have struggled to get on the housing ladder without a 95% mortgage. We bought a 3 bed detached house in 2017 for £163k with a 5% deposit, our mortgage was approx £600 a month at 3.6% interest, remortgaged after 2 years down to 2.7%. Sold up in 2021 for £200k, purchased a new house for £205k with 15% deposit and savings left over which we are using for flooring/fittings etc (it’s a new build) and an emergency fund.
I think 95% mortgages definitely have their benefits although the market was much more stable when we bought. Right now with a potential dip looming you risk negative equity if you don’t plan on staying long term. We plan to sell in about 4 years and absolutely no idea what prices will be like then but we have to buy as we sold last year and have been living with family while looking for a new place and renting here is a) difficult and b) extortionate so we had no choice not to buy. I’ve explained the whole story in previous posts but we ended up going for a new build and I’m relatively comfortable we aren’t overpaying as a few people in the estate we are buying in have sold up after only owning the house for 6 months or so and they’ve made large profits. Houses of the same size and type are selling (or being valued at) in our town for more than we have paid so a bit of wiggle room.

 

[Caffeine Fiend]

We put 10% down on a 3 bed back in 2016 which cost £130k. Our rent for a similar sized house was around £800. Our mortgage was about £450 albeit over 35 years. We've had a lot of change but have managed to really take our mortgage right down to under 20 years left. Our current payment is £340ish but we do overpay.

Rent in a similar sized house in the same area is pushing £1000 now. However the house we own is now selling for £190-£200k

So whilst we've had upkeep and costs whilst here and had to fix things like windows and roofs. Its not cost us around £25k which is 6 years worth of the difference of rent vs mortgage (£800vs£450) but likely to be more than 25k with mortgage reduction and rent increase.

 

[Happy Lady]

I agree with all of this. We have an ok sized home, both my kids have their own bedrooms, got a garden, a decent sized garage that affords me a home gym and I still feel pangs when I see friends or acquaintances moving into bigger and better homes. Noone is pressuring me but myself.

90% of the time Im sensible enough to know my out goings are low, I LOVE the area I live in, have lovely neighbours and if anything happened God forbid we could afford to live here on a reduced income.

However you do see what other people are doing on social media and feel like its not enough. As I say those thoughts are fleeting but I do have them.

Not a chance Id want to be mortgaged up to the eyeballs right now, not with so much uncertainty over prices for everything

Oh you'll get there. You sound sensible and caring, and have your ducks in a row. When I was much younger with young children, we were very much like you, but before you know it your mortgage will be paid and your kids won't depend on you, therefore you will have so much more money to buy whatever you wish.

Stick with it, you deserve whatever you can - but give it a little more time.

 

[emm]

I recently bought my first home. We had been looking for months and struggled to find what we needed. When a house came along that we loved we offered over asking and it went to best and final bids. Ours was accepted because we had no chain. I’m now concerned that the housing market will crash and we’ve paid over asking on a house that May lose its value. I don’t know what my point is really just looking for a bit of reassurance x

I think what you need to consider is that this is your home, not just an "investment"it is where you want to live. Also, utimately rent is just giving money to someone else, I don't know for you but I know my mortgage (I have shared ownership so pay half mortgage and half rent) is much less than the rent I pay

 

[a.pain]

Tides are turning for sure. A house in a new build development near me went up for sale a few weeks ago, was purchased new less than a year ago for £248k and they were asking £275k. They have reduced the price to £269,500. Surely price reductions are a sign of things slowing! Quite a few houses still up for grabs that six months ago would have been gone in days

 

[Anne1448]

Same story on my end.

The location where I was looking is experiencing severe price reductions. Back then people were bidding well over 50k and now prices have been dropped by 5-20%.

I am praying for further reductions until the hoarders finally put their houses on sale and house prices get close to the median wage.

 

[Notworthy]

Tides are turning for sure. A house in a new build development near me went up for sale a few weeks ago, was purchased new less than a year ago for £248k and they were asking £275k. They have reduced the price to £269,500. Surely price reductions are a sign of things slowing! Quite a few houses still up for grabs that six months ago would have been gone in days

Yes and No, some of it is people pricing in a projected increase in price, that isn't materialising so are having to reduce the asking price but I think it's more that house prices are stagnating right now. A friend had his house valued at £450 last year, his neighbour has put his identical house on for 600k. No way is that house worth more than 475k. The agent is a pretty reputable locally based one, so I'm certain that the asking price is at the vendors request because the agent isn't over pricing other houses in the area. My friend has just accepted an offer on her house in the same road, different style but still 3 bed and she got £465k

 

[a.pain]

Yes and No, some of it is people pricing in a projected increase in price, that isn't materialising so are having to reduce the asking price but I think it's more that house prices are stagnating right now. A friend had his house valued at £450 last year, his neighbour has put his identical house on for 600k. No way is that house worth more than 475k. The agent is a pretty reputable locally based one, so I'm certain that the asking price is at the vendors request because the agent isn't over pricing other houses in the area. My friend has just accepted an offer on her house in the same road, different style but still 3 bed and she got £465k

We are in Scotland so on the home report system, this house in particular was originally asking for home report value and now is asking for offers under it. Paying under home report value for a decent house in this area would be an actual steal! Most houses have been going for 10-50k above home report even the ones needing renovation. I suspect it will end up going for higher after the low price draws people in.

 

[Choco88]

Has anyone had new windows & doors recently? I’ve just had a quote for 8 new windows, composite door and French doors and have no clue if it’s a fair price or not

 

[HoGi]

Has anyone had new windows & doors recently? I’ve just had a quote for 8 new windows, composite door and French doors and have no clue if it’s a fair price or not

We had all the windows, doors (front door, side door and French doors at the back) and half clad the front a year ago.

Our windows are huge as it is a late 60s 3 bed (two of the windows are over 3m wide!)

And it was about 10k

We are south east so quite an expensive area.

 

[Yel]

Definitely noticing a lot of reductions around here. Previously people kept paying more than things were really worth. Looks like that mentality is running out of steam. Lots of people still putting things up at record highs and pretending as if all the economic shocks of this year didn't happen. Not suprised right move are reporting highest ever * prices.

*Asking

 

[Choco88]

We had all the windows, doors (front door, side door and French doors at the back) and half clad the front a year ago.

Our windows are huge as it is a late 60s 3 bed (two of the windows are over 3m wide!)

And it was about 10k

We are south east so quite an expensive area.

Thank you that’s helpful. We’ve been quoted 7k

 

[Notworthy]

Thank you that’s helpful. We’ve been quoted 7k

I think that sounds fair, the front door alone would be £600+

 

[HoGi]

I think that sounds fair, the front door alone would be £600+

Our front door was composite with panels either side. We went for a "standard" colour and it was over 1k

 

[Notworthy]

Our front door was composite with panels either side. We went for a "standard" colour and it was over 1k

Doors are expensive

 

[HoGi]

Doors are expensive

I know

We were thinking of only doing parts of ours but when the quote came in we were pleasantly surprised by how low it was and decided to go for the lot.

It has definitely improved the houses curb appeal and I'm not embarrassed pulling on the drive anymore haha

 

[hollowcrown]

Definitely noticing a lot of reductions around here. Previously people kept paying more than things were really worth. Looks like that mentality is running out of steam. Lots of people still putting things up at record highs and pretending as if all the economic shocks of this year didn't happen. Not suprised right move are reporting highest ever * prices.

*Asking

Before I got my offer accepted on where I eventually bought I offered on a house listed at £325k. It was eventually sold at over £360k which is kinda ridiculous.