House prices

[Janh]

sml, to partly answer your question about the continent, i don't know what percentage of salary they pay (and a lot do rent) BUT i know that our estate agent/commission system does not exist in france and house price inflation does not exist either.

nuff said?

[Hmonty]

Hi Batters,
Come on down!

I live in Hurstpierpoint, just north of Brighton. Little village surrounded by fields etc but with excellent schools, good kids facilities and 10 mins on the train to Brighton (from Hassocks station). Good links also into London (direct trains to Victoria, Kings Cross, London Bridge etc). It's a lovely place. Of you want to check out property there's a Clifford Dann and a Mishon McKay in the village. You could also try Hassocks (the village next door). On a slightly larger scale there's Burgess Hill and Haywards Heath (although HH is a bit further out).

Let me know if you need any more info.

[manky]

We're desperate to have a garden. Have seen a house that would do. It's nice, fits the bill perfectly although I didn't have that overwhelming falling in love at first sight feeling. It has a great garden (west facing, 90ft long - will it get the sun?)and meets all our needs. BUT we would have to almost double our mortgage. Was thinking of moving to an interest only mortgage with a fixed rate for 5 years because I don't work but would hope to when kids are school. Question boils down to: doubling mortgage with added pressure and risks but gaining a house with a garden or staying where we are now with no garden but no huge mortgage? What to do?

[jasper]

Stretch yourself and go for it!It is extremely likely you will make more money on it in the long run anyway than by staying put.
I think this is definately the kind of thing which you would regret if you did not do it.
Getting what seems at the time like a huge mortgage is always really daunting, but once you move in and the money comes out your account every month you will make a mental adjustment and it won't seem like a big deal, even if you do have to tighten up in other areas.
I bought my house 8 years ago. I saw it, loved it, but could not afford it. I sat down and did my sums and worked out just how much I could really afford and discovered I could just about make it. Eight years down the line the house is now worth a lot more and the mortgage payments don't seem so daunting!
In fact my house is woth so much more now I probably could not afford to buy it in todays market!

[manky]

Thanks Jasper for your enthusiasm. I've actually spoken to a mortgage advisor today and was pleasantly surprised by how relatively little our mortgage repayments would be especially if we go onto an interest only mortgage. I agree with you about finding such a large mortgage daunting but lots of people who are now finishing their mortgage have all said that they strugggled with their mortgage at the beginning. And I agree - I do think you should stretch yourself a bit. The worse that can happen is we sell it and move elsewhere.

[Rhiannon]

I agree with Jasper. We moved to our present home 4 years ago. We couldn't afford it and scraped to get the mortgage. We paid £215,000 for a 5 bed Vic detached. It was valued the other day at £400,000 (applying for loan for loft conversion). Like Jasper there is no way we could afford this house today, only now we have our feet on the ladder and we are concentrating on paying our mortgage off as fast as possible.
You only live once. R.

[manky]

Rhiannon, thanks. I think you're right except I need to hear it from other people. As for actually buying a house does anyone know if there is someone who will advise you on making an offer, if the house if overpriced (is a valuation from a building society an accurate reflection of what a house is worth), basically somebody who is up with all the 'tactics' and 'tricks' used by estate agents. We saw a house before this one and I messed up by starting off on an opening bid that was roughly 7 grand below the asking price but it was all by seat of my pants stuff. It seems mad making such a huge purchase and then winging it and not having a clue what I was doing. I'd love to know someone who has inside knowledge of the business. Is there a website that gives good advice or should I look up a property broker or does anyone work for an estate agent? Or is it just a matter of luck?

[Rhiannon]

manky, when we finally decided on the house we wanted, we spoke to the vendor about it after we had been for about the 3rd look round. We told him we were serious and made an offer of £40K below the asking price, we finally haggled back up to £25K below (had been on the market for a year).

This we did between us without the estate agent but not everyone wants to do this. I personally find estate agents hard work as you never know if you're being told the truth or not.

If you have any trouble with getting a mortgage, I'd always recommend John Charcol. They have offices in the City, Tunbridge Wells and probably elsewhere. They came up trumps for us when 3 others couldn't. R.

[jasper]

Manky, a lot depends on where in the country you are.
Here is Scotland when a property if popular it will often sell way above the asking "offers over" price. My sil just paid £210000 for a house at offers over £175000 .
My mil just paid £95000 for one at offers over £69000.
In both cases they REALLY wanted the property. They will never know how close the next bid was to theirs.

I understand in many parts of the country it is common to place an offer UNDER the asking price.
Your lawyer should be able to advise .
Good luck and don't forget to tell us how you get on!

[manky]

Jasper, you're right. Was talking to a valuer today who said estate agents usually price a property accurately or above the going rate but never below it. I know that sounds naive but it only hit me properly. Have also been speaking to a rival estate agent who thought it was very overpriced. I always get so suspicious when talking to estate agents and never trust anything they say and I'm sure they do tell the truth sometimes. Which is why I feel so vulnerable in this house-buying situation - I wish I could pay someone to do all the wheeling and dealing. I know you can get housefinders but would they know the area any better than me. Maybe they are useful - has anyone used them to find a house local to them? Anyway I've cooled down a bit since my first viewing of this particular house - it looked smaller and my dad (builder)kept poking at bits of baggy woodchip wallpaper and the bathrooms looked dated and would need more work (more money)but it has lots of other plusses (garden, new lovely kitchen,). I still have that niggly feeling so suppose will keep dithering for a while. Have to go 'Location, location' is on. I wish they would sort me out! The clients always seem to know what they want and recognise it when they see it and never dither.

[manky]

Jasper, you're right. Was talking to a valuer today who said estate agents usually price a property accurately or above the going rate but never below it. I know that sounds naive but it only hit me properly. Have also been speaking to a rival estate agent who thought it was very overpriced. I always get so suspicious when talking to estate agents and never trust anything they say and I'm sure they do tell the truth sometimes. Which is why I feel so vulnerable in this house-buying situation - I wish I could pay someone to do all the wheeling and dealing. I know you can get housefinders but would they know the area any better than me. Maybe they are useful - has anyone used them to find a house local to them? Anyway I've cooled down a bit since my first viewing of this particular house - it looked smaller and my dad (builder)kept poking at bits of baggy woodchip wallpaper and the bathrooms looked dated and would need more work (more money)but it has lots of other plusses (garden, new lovely kitchen,). I still have that niggly feeling so suppose will keep dithering for a while. Have to go 'Location, location' is on. I wish they would sort me out! The clients always seem to know what they want and recognise it when they see it and never dither.

[MandyD]

Valuations - ha! I bought a flat for £50,000 in 1992 and sold it in 1997 (timed when market was low both times I suppose...) but when I got a valuation for the sale in '97 one agent said £139,000!!!! I sold it for £80,000 a few weeks later through a different agent. Didn't put it on the first one's books obviously - did make me laugh though. Beware of sales pitches!