This weekend I have spoken to various people who wanted to know how my property search was going.
As I updated the tenth person I realised that property searches are like sex in Britain; people who aren't on a property search want to hear every morsel of information about your search life so they can live vicariously through you- in much the way people who either aren't having sex or aren't having interesting sex want to hear about other people's life between the sheets (or further afield).
I think it's also quite possible that our own peculiar obsession means the metaphor extends to us all thinking we're not having enough search and resenting it deeply. Do couples lie in bed silently at night worrying the other partner thinks not only are they not having enough sex but they certainly aren't having enough search at the moment? Do they each worry that one of them might stray away because they don't have that vital second or third investment property? Or that he/ she might lose interest because they don't have a project on the go?
Well I am happy to report that my search life is fine. I am a little disinterested at the moment but I suspect if the right property came up it might turn my head.
Monday 1 December 2008
Thursday 27 November 2008
Property prices tumble apparently
I loved this headline in The Times today Property prices tumble as reality sets in.
I really wish someone would tell estate agents this! They imply to me an offer of around five per cent off would be acceptable and I was actually laughed at about offering any less this week. There was proper wincing and giggling.
I really wish someone would tell estate agents this! They imply to me an offer of around five per cent off would be acceptable and I was actually laughed at about offering any less this week. There was proper wincing and giggling.
Tuesday 25 November 2008
Standing on your own two feet
It's still true to say that at 27 I have only one close friend who bought their own property without help from their parents/ grandparents or their partners family. That person works in banking.
I fully understand family who can help their children to have a roof over their heads and not be mortgaged to the hilt wanting to do so and don't have an issue with it.
(I do have quite a serious issue with those lucky people who have had help either bragging about how well they have done to get themselves on the property ladder and/ or talking about how stupid people are for renting but that is another issue! and parents who think the children you helped don't do that, think again I promise you they really do)
No my point is that really it's quite scandalous that these people, mostly couples, so two income mortgage applicants, all graduates, all with well paid jobs- all of these people basically could not have bought their one and two bedroom flats without very serious cash injections. These aren't all people who live in South West London or Islington either, they are out in Surrey (not prime Surrey), out in zone 5 or 6, all sorts of areas. Sure I'm sure they could all have saved better if Mummy and Daddy hadn't stumped up 100k but equally to be fair none of them are designer clad money wasters at all. It's just that they couldn't have bought without the help and where does that leave the people without help.
I am realistic and know that some people always got a measure of help to get on the property ladder but really did they have to get the value of a house in Sheffield plus a huge mortgage in the past. Probably not.
Now prices are falling a little it's true but the mortgage companies have gone so far the other way with their lending that ironically it's now even more important to have a very hefty deposit and in a way people who don't have access to a cash lump sum are worse off than they were before.
I have thought quite a lot (quite a lot!) about what I would do if I was given a lump sum I hadn't worked for. For sure I would take it very gladly and happily. Would I feel as much of a sense of worth about looking at places with that extra money? probably not. Would I care that I had lost that sense of worth? Probably not!
But really it's wrong that people are missing out on the feeling of being a grown up and having to ask Mum and Dad for a new flat isn't so different to being 12 and wanting the latest trainers. It's totally out of control if they will say yes or not and you feel powerless.
I fully understand family who can help their children to have a roof over their heads and not be mortgaged to the hilt wanting to do so and don't have an issue with it.
(I do have quite a serious issue with those lucky people who have had help either bragging about how well they have done to get themselves on the property ladder and/ or talking about how stupid people are for renting but that is another issue! and parents who think the children you helped don't do that, think again I promise you they really do)
No my point is that really it's quite scandalous that these people, mostly couples, so two income mortgage applicants, all graduates, all with well paid jobs- all of these people basically could not have bought their one and two bedroom flats without very serious cash injections. These aren't all people who live in South West London or Islington either, they are out in Surrey (not prime Surrey), out in zone 5 or 6, all sorts of areas. Sure I'm sure they could all have saved better if Mummy and Daddy hadn't stumped up 100k but equally to be fair none of them are designer clad money wasters at all. It's just that they couldn't have bought without the help and where does that leave the people without help.
I am realistic and know that some people always got a measure of help to get on the property ladder but really did they have to get the value of a house in Sheffield plus a huge mortgage in the past. Probably not.
Now prices are falling a little it's true but the mortgage companies have gone so far the other way with their lending that ironically it's now even more important to have a very hefty deposit and in a way people who don't have access to a cash lump sum are worse off than they were before.
I have thought quite a lot (quite a lot!) about what I would do if I was given a lump sum I hadn't worked for. For sure I would take it very gladly and happily. Would I feel as much of a sense of worth about looking at places with that extra money? probably not. Would I care that I had lost that sense of worth? Probably not!
But really it's wrong that people are missing out on the feeling of being a grown up and having to ask Mum and Dad for a new flat isn't so different to being 12 and wanting the latest trainers. It's totally out of control if they will say yes or not and you feel powerless.
Monday 24 November 2008
Safe as houses
I feel a bit like a child who isn't listening to their parents telling them to eat peas today.
I am sitting here with my hands effectively over my ears saying la la la while even more turmoil engulfs the economy looking at houses (yes houses, but ones I can't really afford in areas I don't want to live in because a house is perhaps a better investment). What always amazes me about houses is that they are often not that much more expensive than flats but you are obviously getting so much more. The problem is, of course, that they are still too expensive!
Still I can't help thinking there is a reason the expression safe as houses exists and that they probably are a better investment, even when they are somewhere you don't want to live as much.
I am sitting here with my hands effectively over my ears saying la la la while even more turmoil engulfs the economy looking at houses (yes houses, but ones I can't really afford in areas I don't want to live in because a house is perhaps a better investment). What always amazes me about houses is that they are often not that much more expensive than flats but you are obviously getting so much more. The problem is, of course, that they are still too expensive!
Still I can't help thinking there is a reason the expression safe as houses exists and that they probably are a better investment, even when they are somewhere you don't want to live as much.
Friday 21 November 2008
The low down on the low end of town
Well firstly last night's estate agent was a nice chap, not too pushy, understanding of first time buyers finding their way and happy to talk fairly honestly about buyers and expectations. I was pleasantly surprised, he was really very good. He was off on holiday today so that might have something to do with his good mood.
The flat I had booked to see in the less nice was an absolutely lovely flat. Very compact but I knew that when I went.
The location isn't good really, it wouldn't bother me too much but I really do think in a tough market being right on a very noisy, grubby road at a major London intersection might not be the best plan; still it was a very happy little place and you have to think, if I am considering it wouldn't other people? The price is certainly agreeable.
The agent, of course, wanted to show me a much bigger flat in a much nicer area that I can't afford.I should have resisted but the temptation to look at nice flats is always strong.
The second flat needed work but is a really good option. It's just 75k too expensive for me... and needs a bit of work, nothing too major though.
I had a really good feeling about both flats though, a positive vibe that has been really lacking in the recent viewings. I really think it was down to the agents good attitude- so I am newly excited... and of course very confused.
The flat I had booked to see in the less nice was an absolutely lovely flat. Very compact but I knew that when I went.
The location isn't good really, it wouldn't bother me too much but I really do think in a tough market being right on a very noisy, grubby road at a major London intersection might not be the best plan; still it was a very happy little place and you have to think, if I am considering it wouldn't other people? The price is certainly agreeable.
The agent, of course, wanted to show me a much bigger flat in a much nicer area that I can't afford.I should have resisted but the temptation to look at nice flats is always strong.
The second flat needed work but is a really good option. It's just 75k too expensive for me... and needs a bit of work, nothing too major though.
I had a really good feeling about both flats though, a positive vibe that has been really lacking in the recent viewings. I really think it was down to the agents good attitude- so I am newly excited... and of course very confused.
Thursday 20 November 2008
Change of address?
This evening I am back on the viewing wagon, but this time I am broadening my horizons and looking at flats in a slightly less salubrious and therefore slightly cheaper area.
What is surprising is that there are actually far more flats I would want to live in in the 'rougher' area. The vendors seem much more house proud and to have done more to their flats than those in the leafier part of town.
I suppose that is probably because to add value they have always had to improve where as in the pick of the South West London area flats were going up up and away in value without anything being done to them.
Still we are always told that location is all so perhaps the shabbier, smaller flat in the better area is still better.
Oh that we could buy a flat as a home rather than having to think about the possibility of having to sell and whether we could all the time.
What is surprising is that there are actually far more flats I would want to live in in the 'rougher' area. The vendors seem much more house proud and to have done more to their flats than those in the leafier part of town.
I suppose that is probably because to add value they have always had to improve where as in the pick of the South West London area flats were going up up and away in value without anything being done to them.
Still we are always told that location is all so perhaps the shabbier, smaller flat in the better area is still better.
Oh that we could buy a flat as a home rather than having to think about the possibility of having to sell and whether we could all the time.
Tuesday 18 November 2008
Location, Location, Location (or Kirsty and Phil) Special
So I, no doubt along with the rest of the property obsessed nation, tuned in dutifully to find out what the King and Queen of UK property TV had to say about the credit crunch (sorry I tried to think of another phrase but really it is what is, even if we're all fed up with the phrase).
I know there has been quite a lot of backlash against these too, which I don't think is entirely fair. I think the only thing they are a little guilty of is believing that there is no way you can lose on property if you stay in it long enough and perhaps in their endless pursuit of that idea they have perhaps perpetuated the idea that you HAVE to own property. Which in turn leads people to stretch themselves.
Basically speaking though I can't argue with their defensive little chat pointing out they have always said you have to buy for the long term, buy a home, look to add value if you want to add value and not over stretch yourself (although they, like all agents and home finders do tend to think the top of the budget rather than the bottom of the budget is the happiest place to look).
All this aside they made good points about saving a very healthy deposit, only buying something you would be happy to stay in for quite along time and that what is available is probably being sold because it has to be rather than because people want to be selling right now.
I thought the London flat was still bought at too high a price compared to the asking price but the buyer seemed happy with this and I suppose that is all that matters to some degree.
Whatever you say about these two they are engaging and I think I would like to see more focus on the process of negotiation in future programmes as I could certainly do with tips! or one of Kirsty and Phil on hand to deal with agents for me!
I know there has been quite a lot of backlash against these too, which I don't think is entirely fair. I think the only thing they are a little guilty of is believing that there is no way you can lose on property if you stay in it long enough and perhaps in their endless pursuit of that idea they have perhaps perpetuated the idea that you HAVE to own property. Which in turn leads people to stretch themselves.
Basically speaking though I can't argue with their defensive little chat pointing out they have always said you have to buy for the long term, buy a home, look to add value if you want to add value and not over stretch yourself (although they, like all agents and home finders do tend to think the top of the budget rather than the bottom of the budget is the happiest place to look).
All this aside they made good points about saving a very healthy deposit, only buying something you would be happy to stay in for quite along time and that what is available is probably being sold because it has to be rather than because people want to be selling right now.
I thought the London flat was still bought at too high a price compared to the asking price but the buyer seemed happy with this and I suppose that is all that matters to some degree.
Whatever you say about these two they are engaging and I think I would like to see more focus on the process of negotiation in future programmes as I could certainly do with tips! or one of Kirsty and Phil on hand to deal with agents for me!
Sorry blog
Hello poor, neglected blog.
I have been a very bad writer and neglected you at a time when you are most relevant and I can only apologise and try to do better.
In truth I don't want to constantly moan so end up not wanting to write about viewings because I often come away from them with a bad taste in my mouth.
I think there are two kinds of viewing when you are a first time buyer- and these are basically because there are 2 kinds of agents.
The first type of viewing/ agent is very positive about the fact you are a first time buyer, they realise everyone has been there, they are happy to answer questions and although their commission is lower respect you as they would a 2 million plus town house buyer.
The second type of viewing is where you are made to feel that you don't know anything and told you would be very lucky to get a flat for 5% off, your questions aren't answered quickly and if you don't make an offer within a week you get asked if you are serious about buying a flat. (What I would like to say is yes just not the really over priced one you showed me with a £200 a month service charge...)
However the more you view the more you become slightly immune to the estate agents and just learn to zone them out.
The more I view though the more I wonder if really listing a property without an agent is the way forward. There are literally some flats I would kind of prefer not to pursue because of the agent.
I have been a very bad writer and neglected you at a time when you are most relevant and I can only apologise and try to do better.
In truth I don't want to constantly moan so end up not wanting to write about viewings because I often come away from them with a bad taste in my mouth.
I think there are two kinds of viewing when you are a first time buyer- and these are basically because there are 2 kinds of agents.
The first type of viewing/ agent is very positive about the fact you are a first time buyer, they realise everyone has been there, they are happy to answer questions and although their commission is lower respect you as they would a 2 million plus town house buyer.
The second type of viewing is where you are made to feel that you don't know anything and told you would be very lucky to get a flat for 5% off, your questions aren't answered quickly and if you don't make an offer within a week you get asked if you are serious about buying a flat. (What I would like to say is yes just not the really over priced one you showed me with a £200 a month service charge...)
However the more you view the more you become slightly immune to the estate agents and just learn to zone them out.
The more I view though the more I wonder if really listing a property without an agent is the way forward. There are literally some flats I would kind of prefer not to pursue because of the agent.
Friday 3 October 2008
Mortgage calculators
As someone looking at flats of various prices with a set amount of money available I spend quite a lot of time looking at mortgage calculators to work out how much repayments would be.
What always baffles me is however lower I make the mortgage amount the repayment always seem to be roughly the same. So if I change the length of the mortgage from 25 years to 30 for example the total monthly payment drops by a whopping £40. It hardly seems worth working another five years and paying the bank thousands more for a £40 saving.
Likewise I think right I will just buy a studio in zone 6 15 minutes from the station, that will be £120,000. Brilliant the mortgage will be loads less. Well yes it's less but only about a £150 a month less. In that case it seems worth going for zone 3 and living off soup there!
What always baffles me is however lower I make the mortgage amount the repayment always seem to be roughly the same. So if I change the length of the mortgage from 25 years to 30 for example the total monthly payment drops by a whopping £40. It hardly seems worth working another five years and paying the bank thousands more for a £40 saving.
Likewise I think right I will just buy a studio in zone 6 15 minutes from the station, that will be £120,000. Brilliant the mortgage will be loads less. Well yes it's less but only about a £150 a month less. In that case it seems worth going for zone 3 and living off soup there!
Wednesday 17 September 2008
Weekend viewing= good
Weekend viewing does eat into my relaxing time but I definitely get a better look at the flats than the after work viewings where the estate agent wants to go home (fair enough) and I have rushed there.
The viewing on Saturday was a really nice flat in a good location.
The living/ kitchen room is a really good size and there is a nice balcony.
The only down sides are that the flat back onto a train line. All the flats locally do because they are the ones that are within a ten minute walk but it would affect the value in tricky market conditions, although I guess they are tricky now and I'm looking at it.
The bedroom was also the smallest one I have seen yet! literally room for a double bed and barely room on either side to get in and a single built in wardrobe and that was it.
So the living space is great but the sleeping space is not so good and I would have to come up with an amazing storage solution for my clothes! Still I'm sure a snug sleeping space makes you feel secure or something. Perhaps I could hang clothes from the ceiling.
It doesn't need any work doing- it has a lovely kitchen and bathroom.
I also I really like and know the area.
The 2 bed was not available to be seen as the owner has decided to let it which I guess isn't a surprise. He probably didn't want to get less than 250K for it and I certainly would have offered less than that.
So so far it's 2 one bed flats that have been of any interest which makes sense really because they are nicer and a 2 bed is a real stretch for my budget so I'm looking at the not so nice ones.
The search continues but with all the worry about finances, banks and jobs it does give you pause and make you think perhaps the rental life is good for the blood pressure. I do keep thinking panic panic what would I do if...
The viewing on Saturday was a really nice flat in a good location.
The living/ kitchen room is a really good size and there is a nice balcony.
The only down sides are that the flat back onto a train line. All the flats locally do because they are the ones that are within a ten minute walk but it would affect the value in tricky market conditions, although I guess they are tricky now and I'm looking at it.
The bedroom was also the smallest one I have seen yet! literally room for a double bed and barely room on either side to get in and a single built in wardrobe and that was it.
So the living space is great but the sleeping space is not so good and I would have to come up with an amazing storage solution for my clothes! Still I'm sure a snug sleeping space makes you feel secure or something. Perhaps I could hang clothes from the ceiling.
It doesn't need any work doing- it has a lovely kitchen and bathroom.
I also I really like and know the area.
The 2 bed was not available to be seen as the owner has decided to let it which I guess isn't a surprise. He probably didn't want to get less than 250K for it and I certainly would have offered less than that.
So so far it's 2 one bed flats that have been of any interest which makes sense really because they are nicer and a 2 bed is a real stretch for my budget so I'm looking at the not so nice ones.
The search continues but with all the worry about finances, banks and jobs it does give you pause and make you think perhaps the rental life is good for the blood pressure. I do keep thinking panic panic what would I do if...
Friday 12 September 2008
2 to view
2 more viewings this weekend.
Both are 60s/ 70s architecture- not my favourite on the outside but they're not horribly ugly and buildings from this period always have lots of light and are bigger inside than more modern stuff.
A one bed and a two bed again.
No estate agent related problems this week except one who seems to have IT problems and has sent details of one property 20 times in the last 24 hours!!
Both are 60s/ 70s architecture- not my favourite on the outside but they're not horribly ugly and buildings from this period always have lots of light and are bigger inside than more modern stuff.
A one bed and a two bed again.
No estate agent related problems this week except one who seems to have IT problems and has sent details of one property 20 times in the last 24 hours!!
Thursday 4 September 2008
Are estate agents deaf?
So yesterday I had a follow up call from the estate agent for viewng 2.
I asked if he could find out about service charges.
I said this was my only break today (I definitely work in a deskfast and dunch type of office) and I can't answer the phone at work so could he either leave me a voicemail with the informaion or e-mail me. I leave work after the estate agents and I don't think they have to speak to me every time they impart information.
He said yes of course, no problem. He would e-mail me or leave a message with the information and I could call him back when I could or at the weekend. He completely understands and there is no need to talk to me about a simple bit of information like a service charge.
He phoned back later that day and did leave a voicemail... however it gave no information and said could I call him back as soon as I could- he has the information I want!
Great... and he is going to hold it hostage until I sneak out to phone him apparently!
Why say it's okay to not constantly talk to me if it's not?!
Well I will wait until the weekend then. I appreciate this might mean someone else gets in there first but estate agents seem to think I should treat my search as a full time job and I already have one of those and I need to keep it to pay the mortgage on the still very expensive flats they don't want to give me information about.
I asked if he could find out about service charges.
I said this was my only break today (I definitely work in a deskfast and dunch type of office) and I can't answer the phone at work so could he either leave me a voicemail with the informaion or e-mail me. I leave work after the estate agents and I don't think they have to speak to me every time they impart information.
He said yes of course, no problem. He would e-mail me or leave a message with the information and I could call him back when I could or at the weekend. He completely understands and there is no need to talk to me about a simple bit of information like a service charge.
He phoned back later that day and did leave a voicemail... however it gave no information and said could I call him back as soon as I could- he has the information I want!
Great... and he is going to hold it hostage until I sneak out to phone him apparently!
Why say it's okay to not constantly talk to me if it's not?!
Well I will wait until the weekend then. I appreciate this might mean someone else gets in there first but estate agents seem to think I should treat my search as a full time job and I already have one of those and I need to keep it to pay the mortgage on the still very expensive flats they don't want to give me information about.
Wednesday 3 September 2008
No change
I feel I can write about yesterday's property news with more clarity today.
As virtually all the commentators have pointed out the stamp duty changes don't really affect people looking to buy in London as much as in some areas, however they might help me to some extent.
I was looking in the £200,000 or so bracket, I think (all things bank, interest rate, charges etc being equal). I would like the smallest mortgage possibly and it's possible that this news will help me.
Realistically for what I want I am already looking at properties out of my price range, because there aren't really any in my price range, and am hoping I can make cheeky offers. So I'm looking at properties 10-20% above budget- and I would love to come in under budget!
Now this news might mean I can make even more cheeky offers, at around the £174,999 price. However there is certainly no guarantee they would be accepted. It is still about a vendor being happy to take an offer. My offer would be low but I would intend to stick to it bar anything coming up in terms of extra costs in surveys and so on. I am not looking to gazump someone.
However looking outside my own situation this new legislation seems potentially extremely damaging for anyone looking to sell for between £175k and £225k or above. If I had bought a flat in recent years and was needing to sell now I would be very unhappy with the government.
As a potential buyer I feel a real lack of confidence in the government's ability to hold firm with policies and to try and have a long term outlook.
I am first and foremost looking for a roof over my head and a place to make a home; a secure place of my own where I can live my life. We have all been trained into thinking that with a home purchase we will also get a gain in value. This has to be seen as an extra and is not my only reason for looking to buy. However I plainly don't want to lose money that I have worked hard to save ever since I left University. I'm afraid I don't feel confident the government won't totally change all their plans again in 6 months time and I don't feel like they really want to help me!
If they had wanted to help me they could have tried a year or two years ago, or even four years ago. They didn't seem interested then, they were very happy for my parents who had worked hard all their lives to now approaching retirement act as guarantors on a huge loan for me (I would not have been). They were very happy for me to buy a property if I was a key worker, but I'm not, except that I pay lots of tax, which is in some ways key. They were very happy for me to have to consider living an hour and a half away and pay £3k a year in rail fares. Or perhaps I could have moved somewhere else entirely, away from all my family friends and connections so that I could live in a small affordable flat somewhere where I knew no one and had no quality of life at all.
As virtually all the commentators have pointed out the stamp duty changes don't really affect people looking to buy in London as much as in some areas, however they might help me to some extent.
I was looking in the £200,000 or so bracket, I think (all things bank, interest rate, charges etc being equal). I would like the smallest mortgage possibly and it's possible that this news will help me.
Realistically for what I want I am already looking at properties out of my price range, because there aren't really any in my price range, and am hoping I can make cheeky offers. So I'm looking at properties 10-20% above budget- and I would love to come in under budget!
Now this news might mean I can make even more cheeky offers, at around the £174,999 price. However there is certainly no guarantee they would be accepted. It is still about a vendor being happy to take an offer. My offer would be low but I would intend to stick to it bar anything coming up in terms of extra costs in surveys and so on. I am not looking to gazump someone.
However looking outside my own situation this new legislation seems potentially extremely damaging for anyone looking to sell for between £175k and £225k or above. If I had bought a flat in recent years and was needing to sell now I would be very unhappy with the government.
As a potential buyer I feel a real lack of confidence in the government's ability to hold firm with policies and to try and have a long term outlook.
I am first and foremost looking for a roof over my head and a place to make a home; a secure place of my own where I can live my life. We have all been trained into thinking that with a home purchase we will also get a gain in value. This has to be seen as an extra and is not my only reason for looking to buy. However I plainly don't want to lose money that I have worked hard to save ever since I left University. I'm afraid I don't feel confident the government won't totally change all their plans again in 6 months time and I don't feel like they really want to help me!
If they had wanted to help me they could have tried a year or two years ago, or even four years ago. They didn't seem interested then, they were very happy for my parents who had worked hard all their lives to now approaching retirement act as guarantors on a huge loan for me (I would not have been). They were very happy for me to buy a property if I was a key worker, but I'm not, except that I pay lots of tax, which is in some ways key. They were very happy for me to have to consider living an hour and a half away and pay £3k a year in rail fares. Or perhaps I could have moved somewhere else entirely, away from all my family friends and connections so that I could live in a small affordable flat somewhere where I knew no one and had no quality of life at all.
Tuesday 2 September 2008
Helping first time buyers? thoughts on government help and shared ownership
I really enjoyed this article by Ross Clarke in The Times this morning.
He is basically arguing that most of the governments scheme to help first time buyers are motivated out of self interest to keep votes. Which of course we probably do all know if we think about it but it can be very difficult if you have been waiting for years to have your own place to be level headed so an article like this is very helpful in giving perspective.
Furthermore he discusses the government's plans to increase shared equity schemes. These are something I have always avoided like the plague. I have felt that they leave you open to risk. Fine you can buy 50% of an often lovely flat in an area that you could never afford otherwise but what happens about the other half?
I'm sure the housing companies who own the other half aren't investing purely to break even. I don't mean the housing companies are looking for anything more than a healthy return on their investment but surely if the housing market continues to fall they will need to start cashing in investments.
Also what would happen if one of these companies was unfortunate enough to go into administration?
No when I finally own I want to own the whole property or own with someone I trust going into the purchase.
He is basically arguing that most of the governments scheme to help first time buyers are motivated out of self interest to keep votes. Which of course we probably do all know if we think about it but it can be very difficult if you have been waiting for years to have your own place to be level headed so an article like this is very helpful in giving perspective.
Furthermore he discusses the government's plans to increase shared equity schemes. These are something I have always avoided like the plague. I have felt that they leave you open to risk. Fine you can buy 50% of an often lovely flat in an area that you could never afford otherwise but what happens about the other half?
I'm sure the housing companies who own the other half aren't investing purely to break even. I don't mean the housing companies are looking for anything more than a healthy return on their investment but surely if the housing market continues to fall they will need to start cashing in investments.
Also what would happen if one of these companies was unfortunate enough to go into administration?
No when I finally own I want to own the whole property or own with someone I trust going into the purchase.
Monday 1 September 2008
Viewing number two and the re sale factor
As the snappy title suggests I had another viewing today.
This property was a one bed and much smaller (about 400 square feet). It was also in a beautiful house that has been converted into flats rather than a purpose built block.
The location is great and it doesn't need too much work.
I also definitely got a good feeling about the place.
Walking home I was trying to think in an impartial way about the good and bad points of a really quite small property.
On the plus side the utility bills would be cheap, as would the Council tax (well cheaper... still obviously very expensive...)
I would have to get used to having a capsule wardrobe (something that sometimes feels appealing for about five minutes) but that would probably save me money- money which I would need to pay the large mortgage I would have on my teeny property.
But really the selling point of this flat is it's location, 2 minutes from the overground and about 4 minutes from the tube.
Of course we all know how important location is but does it make up for loosing about 400 square feet?
I kept thinking that for some people, possibly men, it might- but that a lot of women might not appreciate a small living space.
I am trying to focus on buying somewhere that would have wide appeal when I want to sell it on and it's distracting me to some extent I think- but then surely if you buy a one bedroom flat you don't expect to live in it forever and you should buy something that has wide appeal for selling on or renting should you need it.
The problem is it's hard to think with your head and not your heart when you see somewhere you really like...
This property was a one bed and much smaller (about 400 square feet). It was also in a beautiful house that has been converted into flats rather than a purpose built block.
The location is great and it doesn't need too much work.
I also definitely got a good feeling about the place.
Walking home I was trying to think in an impartial way about the good and bad points of a really quite small property.
On the plus side the utility bills would be cheap, as would the Council tax (well cheaper... still obviously very expensive...)
I would have to get used to having a capsule wardrobe (something that sometimes feels appealing for about five minutes) but that would probably save me money- money which I would need to pay the large mortgage I would have on my teeny property.
But really the selling point of this flat is it's location, 2 minutes from the overground and about 4 minutes from the tube.
Of course we all know how important location is but does it make up for loosing about 400 square feet?
I kept thinking that for some people, possibly men, it might- but that a lot of women might not appreciate a small living space.
I am trying to focus on buying somewhere that would have wide appeal when I want to sell it on and it's distracting me to some extent I think- but then surely if you buy a one bedroom flat you don't expect to live in it forever and you should buy something that has wide appeal for selling on or renting should you need it.
The problem is it's hard to think with your head and not your heart when you see somewhere you really like...
Friday 29 August 2008
It's good to share
In many ways I am nervous about living on my own (if I ever get a flat). I am someone who really enjoys their own company but there is also nothing quite like the banter you can have with the friends you live with and you do form a kind of family bond which I would really miss.
Of course a lot of people buy a flat and rent out a room to a friend but I'm not sure that I can afford the extra room. More to the point I have never really liked the idea of making money out of friends and also of the relationship being that of landlord and tenant and all the problems that could create.
The relationship a landlord and tenant have, even if they are friends, is fundamentally different. You don't have that shared bond of not owning the place, you can't complain about the hideous colour of the curtains or why they chose those tiles and you can't just phone someone if something breaks.
So eventually we all move on and we couldn't share with friends forever but it can be really fun and I think sometimes people are a bit too keen to miss out on the experience.
Of course a lot of people buy a flat and rent out a room to a friend but I'm not sure that I can afford the extra room. More to the point I have never really liked the idea of making money out of friends and also of the relationship being that of landlord and tenant and all the problems that could create.
The relationship a landlord and tenant have, even if they are friends, is fundamentally different. You don't have that shared bond of not owning the place, you can't complain about the hideous colour of the curtains or why they chose those tiles and you can't just phone someone if something breaks.
So eventually we all move on and we couldn't share with friends forever but it can be really fun and I think sometimes people are a bit too keen to miss out on the experience.
Wednesday 27 August 2008
Stagnant propery pool
So I am still here and still looking for a potential first flat to purchase.
I don't think there is ever a good time to be looking and although all the talk of a possible freeze to stamp duty and further price falls on flats does concern me I have waited a long time to be able to afford anywhere so I want to keep looking- and hope that I might be able to get a bit of a bargain.
The real problem I have found and am finding is that the market is so stagnant and there aren't very many new flats becoming available where I am looking.
I assume this is because those who don't have to move are probably waiting. I feel like I spend my days looking at the same details hoping that somehow the 500 square foot flat will have morphed into a 600 square foot one or stopped having scary looking bars on the windows.
I don't want this blog to be like a constant moan about estate agents because I am hearing back from some very good ones but some of them really do mystify me.
There are at least 2 properties which I have requested details for more than twice and I am just not hearing back from them. I have said i have a 25% deposit and am ready to go and... nothing... but they never appear to be sold or under offer.
I think they don't like you enquiring over the internet but I always list all my contact details so they could try and call me!
I wonder how many vendors know that enquiries have been made about their flats and those enquiring are not being answered.
Bizarre.
I don't think there is ever a good time to be looking and although all the talk of a possible freeze to stamp duty and further price falls on flats does concern me I have waited a long time to be able to afford anywhere so I want to keep looking- and hope that I might be able to get a bit of a bargain.
The real problem I have found and am finding is that the market is so stagnant and there aren't very many new flats becoming available where I am looking.
I assume this is because those who don't have to move are probably waiting. I feel like I spend my days looking at the same details hoping that somehow the 500 square foot flat will have morphed into a 600 square foot one or stopped having scary looking bars on the windows.
I don't want this blog to be like a constant moan about estate agents because I am hearing back from some very good ones but some of them really do mystify me.
There are at least 2 properties which I have requested details for more than twice and I am just not hearing back from them. I have said i have a 25% deposit and am ready to go and... nothing... but they never appear to be sold or under offer.
I think they don't like you enquiring over the internet but I always list all my contact details so they could try and call me!
I wonder how many vendors know that enquiries have been made about their flats and those enquiring are not being answered.
Bizarre.
Thursday 21 August 2008
Estate agent notices I exist
Interestingly the agent for the property I saw on Saturday has obviously been chased up by the vendor.
Having called me and been very brief on Monday saying he understood I was very interested (which I had never said to either him or the vendor)and he would leave me to arrange a second viewing for myself as I already had the vendor's number (because I had been left a voicemail saying he was too busy to arrange things and could I the first time around).
Well now that I haven't arranged a viewing myself he is apparently going to be very kind to me and arrange one for me. I feel blessed with his kindness.
Unfortunately I don't think the property is for me and I don't want to waste the vendors time. I hope for their sake I have had a bad experience with this agent, if I was them I might think about changing!
Having called me and been very brief on Monday saying he understood I was very interested (which I had never said to either him or the vendor)and he would leave me to arrange a second viewing for myself as I already had the vendor's number (because I had been left a voicemail saying he was too busy to arrange things and could I the first time around).
Well now that I haven't arranged a viewing myself he is apparently going to be very kind to me and arrange one for me. I feel blessed with his kindness.
Unfortunately I don't think the property is for me and I don't want to waste the vendors time. I hope for their sake I have had a bad experience with this agent, if I was them I might think about changing!
Let's go inside
The Independent's house and home section is a bit of a find today.
Firstly they have a piece on designer Sara Berman's home with the all important pictures (the bedroom above is my favourite).
They also have a piece about Jamie and Jessica Seaton's (the founders of Toast) secret address book for interiors here
Wednesday 20 August 2008
Viewing
So this weekend's two viewings became one because one agent could only see me at 12pm when I was at the other viewing.
This was my first viewing as a serious potential buyer. I have been to viewings with friends and family but never on my own.
The agent couldn't come as they had such a busy weekend of viewings. I know this is very common and I didn't mind meeting the owner on my own (his partner was there too). With hindsight although the vendor was very nice and helpful as I am new to this I really could have done with the help of an agent to wrap things up and put a bit of space between the vendor and I. I am a born people pleaser and have to train myself out of the mindset of it always being suitable to be friendly with people.
I came away with all sorts of confused ideas about not being that keen on the flat but really liking the people- which I am not so silly as to think matters but they know where I live (thanks for telling them agent!) and presumably have my number as I had to phone to say could I come because the agent was too busy (thanks again!) so I don't want them to hound me!
I think the rule about having to see somewhere is definitely true. However on the other hand it also complicates issues more. I knew the block and location and that the flat needed work, had seen the measurements and pictures online (all of which were accurate I must say, not too rose tinted) but seeing the place gave me a more romatizised view of living there and having my own place.
Practically though I think that the location of the flat in the block isn't very strong and I think if I needed to re sell it people would say they didn't like it because they would feel overlooked.
From talking to other agents I know that all this having to do everything myself is unusual but the whole thing has left me with a real feeling of dissapointment in my mouth.
Is it because I am a first time buyer that the agent were so uninterested in me? Is it because I don't have enough to spend? Is it because they just don't care anymore? This flat had been on the market for months and I was really keen and the whole thing just left me feeling vulnerable to being chased by the vendor and like perhaps I was a waste of time and would never find someone I like.
I have still been looking this week but with a lot less zeal.
I am away this weekend so no viewings but I am going to continue to keep my diary of my experiences with all things property/ first time buyer.
This was my first viewing as a serious potential buyer. I have been to viewings with friends and family but never on my own.
The agent couldn't come as they had such a busy weekend of viewings. I know this is very common and I didn't mind meeting the owner on my own (his partner was there too). With hindsight although the vendor was very nice and helpful as I am new to this I really could have done with the help of an agent to wrap things up and put a bit of space between the vendor and I. I am a born people pleaser and have to train myself out of the mindset of it always being suitable to be friendly with people.
I came away with all sorts of confused ideas about not being that keen on the flat but really liking the people- which I am not so silly as to think matters but they know where I live (thanks for telling them agent!) and presumably have my number as I had to phone to say could I come because the agent was too busy (thanks again!) so I don't want them to hound me!
I think the rule about having to see somewhere is definitely true. However on the other hand it also complicates issues more. I knew the block and location and that the flat needed work, had seen the measurements and pictures online (all of which were accurate I must say, not too rose tinted) but seeing the place gave me a more romatizised view of living there and having my own place.
Practically though I think that the location of the flat in the block isn't very strong and I think if I needed to re sell it people would say they didn't like it because they would feel overlooked.
From talking to other agents I know that all this having to do everything myself is unusual but the whole thing has left me with a real feeling of dissapointment in my mouth.
Is it because I am a first time buyer that the agent were so uninterested in me? Is it because I don't have enough to spend? Is it because they just don't care anymore? This flat had been on the market for months and I was really keen and the whole thing just left me feeling vulnerable to being chased by the vendor and like perhaps I was a waste of time and would never find someone I like.
I have still been looking this week but with a lot less zeal.
I am away this weekend so no viewings but I am going to continue to keep my diary of my experiences with all things property/ first time buyer.
Sunday 17 August 2008
Am I a WOFT?
I read this article in Friday's Telegraph with interest, tried to commit to memory some of the witty abbreviations and carried on with my reading.
Later that day the agent rang about my first viewing on Saturday morning. They were sorry but they were very busy (really?) and the vendor would show me themselves. I didn't mind this, I know it's quite normal and didn't really think more of it. However when they didn't bother to reply to my e-mail confirming the details or to follow up with a call I started to wonder- do they think I'm a WOFT? (waste of time).
I found myself slighly offended. I am certainly serious about looking, although this flat was at the very top of my budget I felt almost that I should go back to them and say I was interested just so they didn't call me a WOFT.
To be honest I feel it's the agency that are the WOFT. They failed to respond to 2 e-mail requests for information in 2 seperate weeks. They didn't come to the one viewing on a weekend of a flat they are the sole agent for, which has been on the market for a year.
More on my first viewings to follow...
Later that day the agent rang about my first viewing on Saturday morning. They were sorry but they were very busy (really?) and the vendor would show me themselves. I didn't mind this, I know it's quite normal and didn't really think more of it. However when they didn't bother to reply to my e-mail confirming the details or to follow up with a call I started to wonder- do they think I'm a WOFT? (waste of time).
I found myself slighly offended. I am certainly serious about looking, although this flat was at the very top of my budget I felt almost that I should go back to them and say I was interested just so they didn't call me a WOFT.
To be honest I feel it's the agency that are the WOFT. They failed to respond to 2 e-mail requests for information in 2 seperate weeks. They didn't come to the one viewing on a weekend of a flat they are the sole agent for, which has been on the market for a year.
More on my first viewings to follow...
Friday 15 August 2008
How to avoid buying the wrong property
So this morning The Times offers us these top 10 tips on how to avoid buying the wrong property.
The advice feels very timely as I'm off to look at flats this weekend.
It's good to know that the factors they think are important are mostly the ones I had in my mind.
However when I read the article as a whole I did think that many London flats should be discounted altogether. Point 1 tells us to 'Avoid at all costs: busy roads, train and Tube lines, and the flight-paths of major airports, especially those marked for expansion' surely all of London is on the Heathrow flight path at some point during the week, all of London is near busy roads (unless you can bag a lovely mews house which is not quite in my price range)okay not all of London is near a noisy train but if you want to be near enough for a five minute dash in the morning you can often hear the tube/ overground train.
Perhaps the list should be a bit different for London.
The advice feels very timely as I'm off to look at flats this weekend.
It's good to know that the factors they think are important are mostly the ones I had in my mind.
However when I read the article as a whole I did think that many London flats should be discounted altogether. Point 1 tells us to 'Avoid at all costs: busy roads, train and Tube lines, and the flight-paths of major airports, especially those marked for expansion' surely all of London is on the Heathrow flight path at some point during the week, all of London is near busy roads (unless you can bag a lovely mews house which is not quite in my price range)okay not all of London is near a noisy train but if you want to be near enough for a five minute dash in the morning you can often hear the tube/ overground train.
Perhaps the list should be a bit different for London.
Thursday 14 August 2008
Toaster perfection?
I just received one of those e-mails companies send you about new products they have available for you. It was entitled kitchen essentials... I thought it's always worth a peek, for research you understand.
This product strikes me as absolute genius, a toaster that also poaches eggs- what's not to like about that?
Granted it's not the prettiest toaster I have ever seen but I would be willing to overlook that (or put it away after use) in return for a perfect poached egg on toast being made while I was in the shower every morning!
This product strikes me as absolute genius, a toaster that also poaches eggs- what's not to like about that?
Granted it's not the prettiest toaster I have ever seen but I would be willing to overlook that (or put it away after use) in return for a perfect poached egg on toast being made while I was in the shower every morning!
Higher or lower: which floor?
Following on from yesterday's dilemna regarding whether it's better to buy a one or two bed flat I wanted to discuss another issue that plays on my mind- whether it's better to go for a higher floor or the ground floor.
In short the ground floor positives are: no stairs to deal with for anyone older or with any mobility issues, being far easier when bringing in/ taking out furniture, shopping etc, more sense of space and often a garden or the sense of a garden.
Ground floor negatives are: less security- a big one.
The pro's of going for something higher up, as I see it, are: greater security, possibly nice views, possibly better leg muscles.
The cons of higher floors are: the issues with shopping, buggies, getting furniture in and out, access for older people.
I have done some web based research and can find no mention of ground floor flats either being worth less or harder to sell. Neither can I find any information about flats in tall buildings being sold for more/ less (except where they are in an awful block where the lift doesn't work or isn't safe- but that's a whole other issue).
In truth no property is ever going to be perfect to everyone- or it's price would certainly be far out of my reach- still in a tough market these things are being considered more- and therefore I have to think about them when I think about any potential properties.
In short the ground floor positives are: no stairs to deal with for anyone older or with any mobility issues, being far easier when bringing in/ taking out furniture, shopping etc, more sense of space and often a garden or the sense of a garden.
Ground floor negatives are: less security- a big one.
The pro's of going for something higher up, as I see it, are: greater security, possibly nice views, possibly better leg muscles.
The cons of higher floors are: the issues with shopping, buggies, getting furniture in and out, access for older people.
I have done some web based research and can find no mention of ground floor flats either being worth less or harder to sell. Neither can I find any information about flats in tall buildings being sold for more/ less (except where they are in an awful block where the lift doesn't work or isn't safe- but that's a whole other issue).
In truth no property is ever going to be perfect to everyone- or it's price would certainly be far out of my reach- still in a tough market these things are being considered more- and therefore I have to think about them when I think about any potential properties.
Wednesday 13 August 2008
One bed or two?
Looking for a property to purchase is surely never simple. This is my first time but I'm sure the dilemmas are no different whether like me you can't decide if you should stretch to a 2 bed or go for a more keenly priced one bed, or if you can't decide between the 5 or 6 bed house. There always has to be compromise.
I am currently speaking to mortgage brokers and estate agents about if I can afford anything in the area I would like! However it does seem with the softening in the market that some 2 bed flats are becoming within my reach. However it would be my extended, more highly mortgaged reach.
I am by nature cautious about this kind of thing but the security of having an extra room to potentially let out if needed feels attractive on the one hand. On the other of course I have read that it's 2 bedroom flats that the country as a whole is over supplied with. Added to that were I to sell a one bed might be more attractive to the first time buyers I would be most likely to sell on to.
An estate agent told me during the boom times that a one bedroom flat was the best investment because people were always looking for them. However given that at the time I was clearly a single person who might potentially be looking to purchase a broom cupboard perhaps that's what he would have said...
So this weekend I have two to view, a one bed and a two, oh what would be best to do!
There should be one of those guides for dummies on property, or an equation. First time buyer+ low attitude to risk+ uncertain economic outlook=
But what would the equation say- 1 bed or 2?
I am currently speaking to mortgage brokers and estate agents about if I can afford anything in the area I would like! However it does seem with the softening in the market that some 2 bed flats are becoming within my reach. However it would be my extended, more highly mortgaged reach.
I am by nature cautious about this kind of thing but the security of having an extra room to potentially let out if needed feels attractive on the one hand. On the other of course I have read that it's 2 bedroom flats that the country as a whole is over supplied with. Added to that were I to sell a one bed might be more attractive to the first time buyers I would be most likely to sell on to.
An estate agent told me during the boom times that a one bedroom flat was the best investment because people were always looking for them. However given that at the time I was clearly a single person who might potentially be looking to purchase a broom cupboard perhaps that's what he would have said...
So this weekend I have two to view, a one bed and a two, oh what would be best to do!
There should be one of those guides for dummies on property, or an equation. First time buyer+ low attitude to risk+ uncertain economic outlook=
But what would the equation say- 1 bed or 2?
An introduction
A Home of One's Own borrows from Virginia Woolf's famous essay title: A Room of One's Own.
Woolf argued in this essay that 'a woman must have money and a room of her own if she is to write fiction'. I am stretching this idea to say that in the modern world young women and men must have a home of their own to both feel and be perceived as successful and, to my mind more importantly, to develop and grow.
I am female and am 27 but I would like this blog to be relevant to anyone of any age, whether they own or aspire to own property, or not, or don't!
For the sake of background and context I live in south- west London and work in central London. That hopefully doesn't mean this blog will be Londoncentric. I love London very much and obviously it is perhaps what I know best and what I will have experience of- but I am interest in the property market madness across the UK.
Woolf argued in this essay that 'a woman must have money and a room of her own if she is to write fiction'. I am stretching this idea to say that in the modern world young women and men must have a home of their own to both feel and be perceived as successful and, to my mind more importantly, to develop and grow.
I am female and am 27 but I would like this blog to be relevant to anyone of any age, whether they own or aspire to own property, or not, or don't!
For the sake of background and context I live in south- west London and work in central London. That hopefully doesn't mean this blog will be Londoncentric. I love London very much and obviously it is perhaps what I know best and what I will have experience of- but I am interest in the property market madness across the UK.
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