Trying to buy a house in this area is near impossible

[v_the_gelfling]

Completely agree with KK, people are doing it to themselves. When I first bought my house my fist choice was to ED but I couldn't afford it, plain simple it wasn't an option, so I purchased in Nunhead. The urge to live in the exact are did not outweigh the benefits I could get from a longer term investment in Nunhead in my budget.

[KidKruger]

More accurately put, the demand in SE22 has driven prices up. But it's the people's choice if they 'buy-in'. It's a bind if you really want to live there and can't afford it, but tough, it's the same with Mayfair and Belgravia isn't it. Other people are busting their balls trying to live in those areas too. I used to see a girl who just 'had' to live in Highgate, she payed double the rent she'd pay in Finsbury but it was her choice I suppose !

[LondonMix]

I suppose the question is-- if you had the extra income and savings it takes to live in ED, would you live here? If not, what would you do with the extra dosh itself that would bring you more satisfaction? That's always the choice people are making.

v_the_gelfling Wrote:

-------------------------------------------------------

> Completely agree with KK, people are doing it to

> themselves. When I first bought my house my fist

> choice was to ED but I couldn't afford it, plain

> simple it wasn't an option, so I purchased in

> Nunhead. The urge to live in the exact are did not

> outweigh the benefits I could get from a longer

> term investment in Nunhead in my budget.

[Luana]

Hi there,

Interesting thread. I am one of those that bid on a property and offered in the end a lot above asking price. I know there are other places and I could have bought a bigger house elsewhere or the same type of property for much less, but I simply did not want it. I am in love with ED, I am happy here and this is just a choice. Nobody is taking advantage, it is just market driven, I have decided to go for it , knowing the market might go down, the mortgage up etc. But if I am taking on board all these risks, is simply because the value of living here is to me higher than the latter. Of course not all of us give the same importance to where we live but if, like me, you think location has a big impact on a (happy) life, then - assuming you can afford it - all makes sense.

[Mick Mac]

Top post Luana. Well said.

[willma]

Oily Telly Tyke,

Just like you, I sold my flat in E Dulwich after finding that I could afford a house in Penge for the price of a two bed flat in ED. I'm really pleased that I've moved here. The area has so much going for it like you say. Penge is definitely on the up and I've noticed that more people seem to be moving from places such as E Dulwich looking for more space and better transport links. ED is still an awsome place but it's only a short bus ride on the 176 when you want it!

[citykid]

Lots of predictions out there that price increases set to continue..

Southwark prices predicted to go up 21.5% over next 5 years

http://www.telegraph.co.uk/property/investmentinproperty/9775932/Property-investment-top-20-places-to-make-money-in-London.html?frame=2441103#?frame=2441053

Found the earlier points about sentiment being the driver rather than fundamentals very interesting. Whilst I completely understand the points made here I do think there is a flaw.. simply because people buying flats / houses are not (usually - although, sure, sometimes) borrowing 80pc - they are more likely borrowing much less - particularly on bigger purchases as they would have accumulated equity if not a first time buyer. Also, many first time buyers are now in this category too courtesy of help from the bank of mum and dad.

[Blackcurrant]

citykid Wrote:

-------------------------------------------------------

> Lots of predictions out there that price increases

> set to continue..

>

> Southwark prices predicted to go up 21.5% over

> next 5 years

>

> http://www.telegraph.co.uk/property/investmentinpr

> operty/9775932/Property-investment-top-20-places-t

> o-make-money-in-London.html?frame=2441103#?frame=2

> 441053

>

> Found the earlier points about sentiment being the

> driver rather than fundamentals very interesting.

> Whilst I completely understand the points made

> here I do think there is a flaw.. simply because

> people buying flats / houses are not (usually -

> although, sure, sometimes) borrowing 80pc - they

> are more likely borrowing much less - particularly

> on bigger purchases as they would have accumulated

> equity if not a first time buyer. Also, many

> first time buyers are now in this category too

> courtesy of help from the bank of mum and dad.

Savills also predicted that SE England will outperform central London, so outer suburbs like Penge are expected to beat East Dulwich.

It's worth remembering that the prediction is based on bank rate barely moving, but unexpected things can happen sometimes.

[Otta]

I've just spent the morning on Zoopla looking at huge areas, and I'm now feeling pretty miserable.

There seems to be a big gap between ex council flats in blocks for about ?200k, then nothing until the ?250k mark. This is disappointing as not long ago there were loads for 220-230, but now it's just a void. So it looks like a tower block for us.

[beer_hound]

i was going to buy in east dulwich, until i read this forum

[Otta]

I've also discovered that the websites are pretty useless. 6 places we've tried to arrange viewings for have actually gone. One agent said to me "they're going as soon as they get put on there or often before they're on there".

[woodland]

Otta - I live in an ex-council flat in a four story block. It's really spacious and in a lovely area. My neighbours are lovely and it's a quiet place to live. Ex-council flats are worth considering you just have to remember to check that there are no major works due as this can add cost to your outgoings. . For the price of a one bed conversion in East Dulwich I have a three bed a ten minute walk away. I know it won't suit all but worth considering.

[Otta]

Don't get me wrong, I've got absolutely no problem living in an ex council flat, most of the one's I've been in have been lovely. It's just that at the moment it's bloody hard to even get a viewing of those!

[Loz]

They can be more difficult to get a mortgage for, though. And, therefore, harder to sell on if the market isn't bats**t crazy like it is at the moment.

[????]

beer_hound Wrote:

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> i was going to buy in east dulwich, until i read

> this forum

:)

[indiepanda]

Otta Wrote:

-------------------------------------------------------

> I've also discovered that the websites are pretty

> useless. 6 places we've tried to arrange viewings

> for have actually gone. One agent said to me

> "they're going as soon as they get put on there or

> often before they're on there".

Yes, in a hot market you really have to get to know the agents and frankly suck up to them a bit to ensure they think of you when something that suits you comes onto the market. May sound incredibly unappealing, but other people will do that and will get in first.

Even when I bought when the market was a lot quieter here (3 years back) not all agents were quick to get back to me about places I'd inquired about. Was very different to when I first went house-hunting back in the mid 90s when the estate agents had plenty to sell and few buyers - they were chasing me then.

[Loz]

When I bought here waaay back in 1999, plus when I nearly changed house in 2006, you had to physically walk into each estate agent each Saturday morning and talk to them. 'Registering' really meant sod all.

[Otta]

Yeah I'm getting that impression and have made some appointments. I'm not even looking in ED, there is not a single 2 bed property in the whole area that we could afford.

[Grotty]

So far, every property we have tried to view has already been sold by the time we rang up to make an appointment. We are putting our house on the market this week. It will be interesting to see how different the experience of buying and selling in this area is.

[LondonMix]

You have to register with the agents and get in for the previews. I first bought here many years ago and recently bought a bigger place (still in ED). Most houses are sold on a preview open day that only a select group of clients on an agents books is invited to.

When we first bought in ED the process was totally different but now with demand so high, things have changed.

[natalieh101]

woodland Wrote:

-------------------------------------------------------

> Otta - I live in an ex-council flat in a four

> story block. It's really spacious and in a lovely

> area. My neighbours are lovely and it's a quiet

> place to live. Ex-council flats are worth

> considering you just have to remember to check

> that there are no major works due as this can add

> cost to your outgoings. . For the price of a one

> bed conversion in East Dulwich I have a three bed

> a ten minute walk away. I know it won't suit all

> but worth considering.

Woodland - which block did you buy in? We are looking at ex council blocks as we simply can't afford anything else! Any recommendations welcome!!!

[woodland]

Natalieh101 It was on Wood Vale - Forest Hill road end but it was four years ago now. That said they are still better value in terms of space. A 3 bed in teh block was just on the market for ?250,000. Good luck with your searching - hope you find something soon.

[alice]

http://www.rightmove.co.uk/property-for-sale/property-27183036.html?premiumA=true this house would be 3 times the price if it was moved 3 miles north. If there's an ed bubble buyers made it.

http://www.rightmove.co.uk/property-for-sale/property-35842738.html

[aileking]

My experience: you look at Zoopla every day. As soon as something of interest comes up you phone and get an appointment. They do a block viewing a few days later on the Saturday where at least 30 other people are looking at the property (apparently at the latest one 60.....). Offers in on Monday where there is often 10-14 offers on the table (you are out of the game if you would want to think about it or have a second viewing). I've done this at least six times without success. I've got no chain, 20% deposit and usually have ended up bidding over the asking price, but still haven't succeeded. And this isn't even East Dulwich, it's the surrounding areas. Sometimes I could have afforded to bid higher, but you start feeling uneasy about paying such ridiculous prices. On Zoopla it often says what the property last sold for and in some cases the seller bought that property for half the price about 5 years ago. Most have gone up at least ?100,000 in the last 3 years. But what do you do? Pay ?15,000 a year in rent towards your landlords mortgage or pay your own mortgage at an over inflated price?

[Blackcurrant]

aileking Wrote:

-------------------------------------------------------

> My experience: you look at Zoopla every day. As

> soon as something of interest comes up you phone

> and get an appointment. They do a block viewing a

> few days later on the Saturday where at least 30

> other people are looking at the property

> (apparently at the latest one 60.....). Offers in

> on Monday where there is often 10-14 offers on the

> table (you are out of the game if you would want

> to think about it or have a second viewing). I've

> done this at least six times without success. I've

> got no chain, 20% deposit and usually have ended

> up bidding over the asking price, but still

> haven't succeeded. And this isn't even East

> Dulwich, it's the surrounding areas. Sometimes I

> could have afforded to bid higher, but you start

> feeling uneasy about paying such ridiculous

> prices. On Zoopla it often says what the property

> last sold for and in some cases the seller bought

> that property for half the price about 5 years

> ago. Most have gone up at least ?100,000 in the

> last 3 years. But what do you do? Pay ?15,000 a

> year in rent towards your landlords mortgage or

> pay your own mortgage at an over inflated price?

Amazing. It was never this bad during the boom that led up to the financial crisis. The last time people were panic buying london property was during the MIRAS fiasco back in 88. Like the current frenzy, that was caused by the government meddling clumsily with the market. After MIRAS was withdrawn and the panic to buy ended abruptly, prices in London fell 30% on average but a lot more for cheaper properties in less salubrious areas, such as ED and Peckham - neither were remotely trendy back then.

There currently seems to be a conviction that London property is a one-way bet and that buyers have to get on ladder before it's too late. The faster prices rise, the greater the pressure to buy. I've heard tales of prices rising 50% a year in SE London. Clearly unsustainable, and likely to end messily.