DJ Dunk

iTrader: (5)

I am after some advice from those in-the-know about property prices etc.

My situation is this. Currently own a house in Kent but need to move due to the poor parking and worsening traffic - both of which I hasten to add are not being addressed by local MP's even though they have been using it as a tool to win votes every year

I will be moving within the same area but am unsure whether now is the right time to take the plunge.

My property is worth a lot more than it was 6 years ago when I bought it, as are everyones. But the prices of other properties and lack of houses on the market are leaving us with very little choice and we don't want to buy a house just because there is nothing else better.

So do I :

1) Sell now, bank the profits, rent a property for a year and hope the prices drop and market improves ?

2) Sell now, buy something that is 75% suitable ?

3) Stay put and stick it out, but risk making less on my property ?

I know there is no right or wrong answer as nobody has a crystal ball, but some educated opinions would be gratefully received

Gordo

wait until you spot something you want, then sell yours. it doesn't feel like property prices will go up much more but with the long term interest forecasts having fallen slightly again (reversing the increase in the previous quarter), they're unlikely to fall much in the timescale you're thinking either (i.e. the next 12 months). property 'profits' are something of a dual edged sword - if you're staying in an area then it just means the price of the next one has gone up by the same percentage, thereby widening the gap from yours.

i.e. selling and renting feels like a lot of effort and you'd kick yourself if prices did increase and you hadn't benefited. if values drop then whilst you'll feel bad about making less profit on yours it means the one you're buying is cheaper too so it's swings and roundabouts.

good luck
G

seejay555

Dunk,
You know what to do - sell up and move to Loonypool

DJ Dunk

iTrader: (5)

Thanks Gordo (and CJ ) for your advice

Really underlines what I am thinking.

So the general opinion is that property prices are unlikley to drop dramatically in the next year or so ? Even if we decide to join the European Union and interest rates are dropped in line with Europes ?

Alpine

feature on radio 5 this morning with a geezer saying that the average rate of house price increase over the next 20 years was likely to be 6.5% per annum.. compounded.. Especially in the south west... Don't know how much you can trust experts but property seems as good an investment as ever.. stay put until you see something you like..

dharbige

DJ,

Surely if interest rates drop, house prices will INCREASE, as the cost of borrowing will fall.

David H.

DJ Dunk

iTrader: (5)

Don't know much about this sort of thing (as you can tell ), but I was under the impression that if interest rates fell, more people could afford to move, hence more homes on the market, therefore cheaper house prices ?

Am I wrong in assuming that ?

MattN

sort of right - more people would buy houses but as there is a chronic shortage of houses on the market it will jsut meet the demand.

Allthough all the proerty prices have gone up in line with yours, you've still 'made' money it's just you have to re-invest it when you purchase a bigger property.

Stay put until you find something you like.

David Lock

DJ, We currently have our house on the market (Sussex area) and looking around in same area so I can offer some amateur comments. As you say no one can predict price movements but for sure having a property is the best long term investment you can ever make. Personally I wouldn't sell and rent (unless just for very short term whilst looking for the "right" place). For starters the interest earnings (taxable) aren't going to match probable house price rises. Yes you win out if prices drop but short of WW3 I don't think this will happen. At a guess your house will just about have doubled in value over the last six years?
We have found the market to be very thin on the ground and agents don't seem to know why but, of course, this helps when selling. Unless you have already done this go round to all - repeat all - the agents and get on their mailing lists. Have you worked out the actual cost of moving - it's horrendous. It's going to cost us circa £30k with agents fees, stamp duty, move costs, legal etc and that's before a penny is spent on things needed for any new house. I stress all this IMHO only. Good luck. DL

DJ Dunk

iTrader: (5)

David - All sounds very familiar

Think I have come to the conclusion that renting is not really a viable option, even in the short term, I think it will be more hassle than it's worth, as well as being money down the drain.

Have registered with most of our local estate agents and regulaly check the websites, best to register my interest with 'the rest' too Sound advice

Don't think my moving costs will be anywhere near yours , but then, this is my first time selling a property and it's hardly Leeds castle

Thanks for all your input, looks like we're staying put until that house turns up

DJ Dunk

iTrader: (5)

By the way, if anyone knows of any good property finding websites I would appreciate it

I already use Asserta Homes, Fish4, Right Move and Your Move.

NeilS

Try these. They list Estate Agents in whatever area you want with links to their website if they have one. http://www.ukpropertyshop.com/

Neil.

Dave P

And now for something completely different.....

I consider my house my home. I enjoy going back to it at the end of the day. I like the decor, the position, the garden and the drive. I lost 20 grand on my old house so would never consider a house as an investment again. Sure we have made money on it, but the primary reason for it's purchase was to provide a nice space to live and bring up the kids.

In terms of investment the only time you will ever realise the investment is when you sell your last house, which will probably be done by your relations when you die.

So my advise, buy a house you are happy in and stuff what it makes for you. So long as you can afford it and have a bit of room for upward interest rate moves (I remember 15.4% !!!) and you enjoy living there it's fine.

Sounds like you don't enjoy living where you are so buy somewhere else.

As an aside in my view first time buyers drive the market. When they can't afford properties things slow down. I believe we are getting close to that point of time. Properties in my bit of Sussex start at £97,000 for a one bedroom starter. That means a single person has to earn £30,000 to afford it. Work the rest out for yourself.

Dave

Nimbus

I'm in the same position. We bought our first house about 8 years ago and are now looking for something bigger. The house is worth 2.5 times what we bought it for all those years ago. We should have moved before now, but we were (and still are) happy with the house. The house is on the market and had some interest, but we have not found anything suitable to move into yet. We thought about renting as well, but will only do that now if we end up buying somewhere that needs renovating. Another option would be self build, but not sure if I could manage this...

Scooby Dooby Blue

"Properties in my bit of Sussex start at £97,000 for a one bedroom starter"

LOL @ House prices in England

£90K bought us a 4-bed villa in the posh part of Dundee

Viva Ecosse...

ChrisB

"It's going to cost us circa £30k with agents fees, stamp duty, move costs, legal etc and that's before a penny is spent on things needed for any new house"

*cough* *splutter* That stings!

MattN

30k -jeez how much is your house worth?!?!?!??!

imlach

Dundee!!! HAHA!

1 bedroom flat of a friend in Edinburgh recently sold for 105k.
It was in Roseburn (near Murrayfield stadium) and was nothing special (ie, not posh area like Marchmont/Stockbridge).

David Lock

I see there was some surprise at actual cost of moves. Without getting into “my house is faster than yours” debate here is a typical SE situation. Sell at say £400k and buy for £450k which would cover a lot of 4 bed houses in much of commuter land in SE. Sell through multiple agency arrangement at 3% fee plus VAT = £14100. Stamp duty on purchase which is the real killer at 3% = £13500 (note it is 4% over £500,000). Add £1500 for removals plus £1000 legal plus £500 survey. Total £30600 without any contingency included. Of course some of these costs can be reduced by say a sole agency at 2% and “man with van” instead of Pickfords. However my point was it comes as a shock when you sit down and work it out and might influence your decision in the overall debate about moving! David.

MattN

oh yeah - forgot agents charge a fee for selling! Never used one!

Tiggs

3% is a lot for agents in the SE. we just sold/bought and paid 1% (sole agencey)- had 3 quotes and they all wanted 1%.

Tiggs

DJ Dunk

iTrader: (5)

Most of the agents round here only charge 1% (if you haggle )

David Lock

Interesting re fees. Looks like I am being taken. I am using sole agency at 1.75% which they reduced from their "standard" 2% when I queried and said it would be 3% if I went multiple agency. I did check with a pal in another agency who said that was toppish but not unusual. I will get them to sharpen their pencils - greedy sods IMHO of course. DL

ChrisB

Cheers for the figures David.

I'll be dipping my toe into the housing market for the 1st time so point this year, so interesting to read info like that.

Living oop Norf has it's advantages