I work in the property sector and though things are more expensive than ever, the seasonal fluctuations in the market seem, this year, to have been mistaken for the 'end of the boom'.

Summer has always been a quieter time to sell, xmas and so on...  I am still witnessing a healthy market when property is priced in accordance to the market and, crucially, not to people's often wild expectations.  Sensibly priced property is selling fine, and comments from owners like, "If I sell at that price then I can't afford the house i want" has always had my alarm bells ringing.  They won't sell!  I'd like a porsche but my Audi ain't worth ?40K.  I could always put it in Autotrader at that price though!......

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I am a tax consultant for about 18 years and I can say that the market is definitely "worried" but look for a property, and you will spend hours and hours seeing "STC", "Under Offer", "another wanted" and so on. I tried looking within a 10mile radius and it took me over a week to find a property and that shows that although people are selling, there are more buyers then sellers and unless you have a good relationship with Estate Agents, allowing them to contact you early, there is no chance of getting anywhere. By the time you look at a property in the newspaper or internet, it is very likely, I say about 90% likely that the property will have gone under offer.

In two weeks I have seen two properties in the price I am looking for and the gut feeling is that properties are overpriced, but the chasers are still edging the "market" forward due to relentless demand.

Even some Council Tenants living in Council Estates have bought B2L properties, whilst enjoying there main accomodation in Council owned blocks. They can do this, according to what I know and they will eventually even buy their council flat, after profiting from B2L properties.

So this will destroy the myth that Council tenants cannot afford to climb the propert ladder, as I have seen this happen myself. Council Tenants buying properties and still keeping their Council flats. They will even get a discount of upto ?38,000 in London, if they decide to buy their main residence. Is that another scam, people do not talk about?

Since Tax Credits were introduced many people who still share their homes have classed themselves as single parents, saying they live with their parents just so that their children can get into the right school, but they couple still live together and there are so many scams that that people feel that TCO is just another bank with free money.

Anyway hope those that are looking for a new home find one, before they see SOLD, SOLD & SOLD and just give up!

M Bharwani - London (Croydon)

The worst home buying mistake is not buying a home.

Look at my experiences  in 1989 i bought a tiny 2 bed end of terrace in walker,Newcastle upon tyne whilst astudent for 5.75k my building society threw me the money as they could see the benefit it was cheaper than renting even at 15% interest rates.(funnily enough the Barclays bank manager sent me away with a flea in my ear)
Now I sold in 1990 for 21k,and the house then sold in mid 90s for 42k , last year 2006 it was advertised although dodnt sell for 85k.
This was ex council 2 bed tiny little end of terrace in a working class area.
No one absolutely no one would have thought back in 1987 it would be worth 85k thats an increase of 1478% in 228 months (988 weeks.

It doesnt matter when you buy a house at all However you have to keep it long term yes you can make money doing renos or if your lucky  in the market but time will always be your best friend.
A 250k house today will (unless it falls down) be worth at least 500k in 20 years  thats an increase of 240 pounds a week. Maybe it will be worth 500k in 15 years maybe 10 years but I dont think before that date. Thats supposing its in good nick and  not going to have an airport or main road built next to it.

So go out and buy ,hold onto for as long as you can,cos if you need to sell in the next 2 years yes you may well lose money( estate agents,solicitors,removalists,etc) but 5 years will show a profit 10 years better still and 20 years youll double your money.
happy hunting

property might crash but it will only be temporary
if you can afford it now is a good time to buy as you can pick and choose

Hi Im not a property developer infact im in catering, Im 32 and 5 years ago I bought my first house semi detached 3 bedroom for ?110,000, I put a conservatory on and done it up lovely, By chance i came across another house I loved and looked into options and rented my first house out to my sister (which is valued now at ?170,000) and went ahead and bought a lovely house 5 bedroom in a lovely area for ?348,000 I put ?53k deposit down (my savings, and car) and now have a mortgage for ?295,000 interest only.I read and was advised that to go for your dream house now or you will never get it due to house prices rising continually. However I have to say with interest rates going up has made me very nervous even though Im fixed until May 2008 but it does worry me. I forgot to mention though the house im in now does have a self contained annexe attached which I can rent out bit im considering converting it into a catering unit and working from home (save paying rent on my cafeteria I have now) I would like to think I have done the right thing (hopefully ! ) any comments or advice will be most welcome.
Have a good day.

I bought a house for 235,000 in December 2006. 8 months later, similar houses on the same developement are selling for 249,000. 14k mark up in 8 months is not to be sniffed at. Good long term investment I feel. I just feel a little sorry for the youngsters just starting out who are trying to get on the property ladder. Trust me, the sooner you get on the sooner your investment will show you a return. People harp on about a housing crash and negative equity. Simple answer - If you can't sell for a profit, don't sell.

Can I talk about another topic? Am trying to buy out divorced husband so daughter and I can stay in home. Friend wants to join me and build an extension/annex for her to live in. Seems a great idea - only need lots of money. Any others out there who have done similar? Any advice on who can help financially and legally with the inevitable complications?

Thanks for this tips, unfortunately, i bought a property in a wrong place and also with a bad advicer, pick the wrong lender and mortgage deal.
i bought the property for 220k in july 2004, and now its worth only 225k, only because its neer on the same road with both a premireship football stadium and a secondary school, so please any advice will highly be appreciated.

It is true that Central London is leading the way in property but it is also leading the way in prices!

Very true.

Michael,
Can the property be converted and licensed to provide something that the school or premiership crowd can need and buy?

Michael,

Can you supply a few more details.
The area,the size of your property, your present mortgage? fixed,std var, etc,Interest only,.
realistically speaking  mid 2004 in some places was quite a peak although in other places growth has occured of up to 30% however it really depends on what the value was ewhen you purchased your property ie did you pay over the odds?
My advice is we need more info because it may pay to either hold on and wait for the inevitable price rise which may take place whenever and be quite dramatic or sell now and buy something else that is going to be a better deal.
Its difficult to be more helpful when the info we have is so sketchy.
cheers
billy

I am 24 and myself and my partner really wanted to get on the property ladder before it's to late. We tried to save 5% but with house prices rising and the shortage of properties we decided to go for a 110%. We are buying in Northolt for 148,000 (1 bed), we got a fixed (at 6.24) mortgage for 2 years and I am really scared that we won't make any money back. the 15k is being used to  do up the flat as it needs new everything.

I personally hope that in 2/3 years there is still a big demand for property or I will be in big trouble.

I am having to move further out that it worries me when I have kids where they will have to be moving to.

I would be interested to hear people's view's on if I am making the right decision?

Thanks

This is a message for Miranda

Hi Miranda, no one appears to have posted any messages after yours, which was on 7th August.

Miranda, if your flat needs work and you wish to save costs (labour costs), I know people who do excellect standard of work and if you have bought your property or are about to complete, you could save lots, just give me a call on 07951 585 039, I posted earlier comments on this message board or contact me via www.taxfirst.biz" rel="nofollow">www.taxfirst.biz

I hope that if you do not contact me that all goes well with your refurbishment and redecoration. Anyone who has bought a property and lives in it and then LETS it out later or convert it for part business use, should seek advice to make sure your changes do not go against building regulations, which could cost your thousands to fix and some specialist advisers may help save that future CGT that you might end up paying.

If anyone needs help with all these matters and more please contact me and where I cannot assist, it is likely I know a person who can, so keep developing properties but avoid paying huge amount to the taxman!

All the best

M Bharwani(Croydon)
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