Trying to buy a house in this area is near impossible

[Jeremy]

I'd certainly be in favour of putting penalties on overseas property investment. It would obviously have a detrimental on the construction sector... and I can't imagine a Tory government prioritising housing affordability over the economy,

[DaveR]

The obvious target for penalties is vacant property, rather than specifically foreign buyers, although it would be likely to hit overseas investment buyers more than any other group. I do think the impact of overseas buyers, although material, is a bit overblown - it's a huge factor in Central London prime areas, and there's a certain amount of trickle down, but there is plenty of domestic demand. Supply is a far bigger issue IMHO.

[LondonMix]

From the Guardian. The question of foreign buyers isn't that straight forward. For one, many of the new build schemes they buy off plan potentially could not be developed otherwise. They act as a stimulus for supply which is certainly positive. Help to Buy is a bad idea (though I am very sympathetic to those who are making use of it as renting vs. being on a high LTV mortgage is tough). It would have been better if it was limitted to new builds in the South East as that would have stimulated building and supply which would have been a good thing.

http://www.theguardian.com/housing-network/2013/nov/14/london-property-foreign-investors

[Saila]

What we're experiencing is the direct result of government and central bank intervention.

Had the government or government appointed central banks (not just ours, but globally ie the Fed etc) not pumped the system with SOOOO much liquidity, I doubt this asset bubble would be happening. It's not just East Dulwich, it's not just London (New York, Singapore), it's not just house prices (equities).

Governments around the world sent a message out that they would underwrite the 'markets' when the capitalist model failed in 2008/09. They have made debt almost free and printed money which has thrown petrol on the fire.

It's unpredictable how this will all end

[Saila]

... but in the short term, it's making the rich (asset owners) richer and the poor poorer

[Sazzle30]

We have been trying to buy a home, we are first time time buyers looking around crystal palace ( cant afford ed!).we put offers on two properties, one at asking price and one 10k over and both got rejected back in Jan.

Now both are back on the market at a 'fantastic price reduction' according to the estate agents emails I received....

We did successfully put an offer on another- ?5k over,which was accepted... Our mortgage company went to do their valuation and deemed it over valued by 30k and wouldn't give us mortgage unless the price was reduced inline with their valuation. Nightmare!

This made me think that this must be a common occurrence in London with estate agents hiking prices and buyers having to place sealed bids?

[fazer71]

Saila Wrote:

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

> ... but in the short term, it's making the rich

> (asset owners) richer and the poor poorer

After 2008 it was pretty obvious money in the bank was worthless so everyone who realised that put their money into property.

Assets are inflation proof cash is not.

Sazzle30 Wrote:

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

> We have been trying to buy a home, we are first

> time time buyers looking around crystal palace (

> cant afford ed!).we put offers on two properties,

> one at asking price and one 10k over and both got

> rejected back in Jan.

>

> Now both are back on the market at a 'fantastic

> price reduction' according to the estate agents

> emails I received....

>

> We did successfully put an offer on another- ?5k

> over,which was accepted... Our mortgage company

> went to do their valuation and deemed it over

> valued by 30k and wouldn't give us mortgage unless

> the price was reduced inline with their valuation.

> Nightmare!

>

> This made me think that this must be a common

> occurrence in London with estate agents hiking

> prices and buyers having to place sealed bids?

It's weird how valuers have been pricing higher and higher all based on what ?

About time sq footage was used to compare properly we're so behind on using technical valuation methods and I don't think it helps anyone.

[ultraburner]

"It's unpredictable how this will all end"

Pretty badly imho.

[Blackcurrant]

> Assets are inflation proof cash is not.

Cash is crash proof, assets are not.

In any case, there isn't much inflation around at the moment outside the London property market. The bigger picture is still deflation. Wage inflation is practically nonexistent, so debt erosion isn't happening. We're right back where we were in 2006, but heading for a London crash rather than a national one, which means the government won't bail anyone out this time round.

[Blackcurrant]

Sazzle30 Wrote:

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

> We have been trying to buy a home, we are first

> time time buyers looking around crystal palace (

> cant afford ed!).we put offers on two properties,

> one at asking price and one 10k over and both got

> rejected back in Jan.

>

> Now both are back on the market at a 'fantastic

> price reduction' according to the estate agents

> emails I received....

>

> We did successfully put an offer on another- ?5k

> over,which was accepted... Our mortgage company

> went to do their valuation and deemed it over

> valued by 30k and wouldn't give us mortgage unless

> the price was reduced inline with their valuation.

> Nightmare!

>

> This made me think that this must be a common

> occurrence in London with estate agents hiking

> prices and buyers having to place sealed bids?

Yes very common, but surveyors are likely to turn more bullish as prices keep rising.

[ultraburner]

"Yes very common, but surveyors are likely to turn more bullish as prices keep rising."

very true^^

But BIG price hikes are going on all of the SE so I'm not sure its just London.

House of cards mk2.6.....

[Trudypeel]

Just thought it important to let people looking for houses in the area know that Acorn are behaving in a very unscrupulous manner. We had an offer accepted on a house 4 months ago, we were one week away from exchanging and Acorn encouraged the seller to pull out and re-market with themselves instead of the original agent who sold the house to us.

I realise this is a competitive market but buyers in the area should be aware that this kind of tactic is being encouraged by Acorn with a very low level of professional integrity. Also be aware that also there are clearly sellers behaving without integrity this has now cost us thousands of pounds in fees and costs and priced us out of the market as prices have gone up so much in the area.

[Blackcurrant]

ultraburner Wrote:

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

> But BIG price hikes are going on all of the SE so

> I'm not sure its just London.

>

> House of cards mk2.6.....

Yes the bubble has rippled outwards. In a crash, quality holds its value. In a boom, the rising tide lifts the scum faster than anything else. A year or two ago it was just big period houses doing well, but now it's everything anywhere near London, even ex council flats that were unmortgageable last year. Feels just like 89 - people panicking and fighting over poor properties before prices leave them behind. Every workplace watercooler conversation is suddenly about buying.

You only have to look at stagnant rents to see this isn't driven by a structural shortage or rising population. Ultimately it's government policy, and isn't sustainable or even controllable.

[Loz]

Blackcurrant Wrote:

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

> Feels just like 89 - people panicking and fighting over poor properties

> before prices leave them behind.

And around 2002/3. I remember my house then was 'earning' more than I was.

[miga]

S.

[v_the_gelfling]

Agree with Ultraburner, house prices are going up all over the SE. We're in the process of selling to move out of London and commute in and looking at properties I naively thought we would have a bit more time but houses are disappearing very quickly indeed. Cash buyers relocating from London are snapping up properties within commuting distance. We still need a mortgage on the property range we're looking at so have been pipped by outright cash buyers on a few properties.

[Crissy]

Sazzle30 Wrote:

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

> We have been trying to buy a home, we are first

> time time buyers looking around crystal palace (

> cant afford ed!).we put offers on two properties,

> one at asking price and one 10k over and both got

> rejected back in Jan.

>

> Now both are back on the market at a 'fantastic

> price reduction' according to the estate agents

> emails I received....

>

> We did successfully put an offer on another- ?5k

> over,which was accepted... Our mortgage company

> went to do their valuation and deemed it over

> valued by 30k and wouldn't give us mortgage unless

> the price was reduced inline with their valuation.

> Nightmare!

>

> This made me think that this must be a common

> occurrence in London with estate agents hiking

> prices and buyers having to place sealed bids?

I?m sorry that you had to go through that, it would really p*** me off! But I?m sure the buying frenzy will slow down after the General Election

[worldwiser]

SteveUK - as I suspected. Winkworth have already reduced the Frogley house to the far more reasonable 895 :-) At this rate, come summer it'll be affordable!

[SteveUK1978]

?5k change from ?900k....goes towards the stamp duty bill of ?35,800.

[Crissy]

This is an interesting: Ghost Gazumping!

http://www.thisismoney.co.uk/money/mortgageshome/article-2582541/Gazumping-makes-comeback-house-prices-accelerate-sellers-pull-deals-dont-buyer.html

[DuncanW]

Happened to us!

[EDLove]

DaveR Wrote:

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

> BTW, has anybody actually paid ?1 million yet for

> a 'normal' ED house?

Not sure what you mean by 'normal' but, having had a look on Mouseprice, it would seem that over ?1million was paid for a house on Rodwell Road (SE22) in December (4/5 bedroom) and a few on Underhill Road have also breached ?1million.

[Earl Aelfheah]

Never trust an incorporeal being when it comes to house negotiations.

Crissy Wrote:

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

> This is an interesting: Ghost Gazumping!

>

> http://www.thisismoney.co.uk/money/mortgageshome/a

> rticle-2582541/Gazumping-makes-comeback-house-pric

> es-accelerate-sellers-pull-deals-dont-buyer.html

[lane lover]

?1m is the new ?500k.

Still unsure how people can justify a pending crash. No practical economic theory supports it.

[DaveR]

"BTW, has anybody actually paid ?1 million yet for

> a 'normal' ED house?

Not sure what you mean by 'normal' but, having had a look on Mouseprice, it would seem that over ?1million was paid for a house on Rodwell Road (SE22) in December (4/5 bedroom) and a few on Underhill Road have also breached ?1million."

I guess by normal I meant not either (i) SE22 but really Dulwich Village, e.g. Woodwarde Road or (ii) properly big 5-6 bed houses, which are comparatively rare in ED other than in Marmora Rd and surrounds. I just had a quick look on Rightmove and most of the houses with ?1 million+ asking prices are still in one of those two categories. We'll see, I guess.