House Depreciation....

Leonard osbourne

Leonard osbourne

Striker
Young Rodney is looking to buy his first house with his girlfriend, they have found on they like, 4-bed town house with offers in the region of 200k, they both really like it....

His girlfriends parents have looked at the area and done a bit research and have said that houses in that area are depreciating so they would not advise them to but the house....

Is this a thing, I may be naive but i thought house prices just went up and down with demand and interest rates meaning you can borrow more....

The house is in Hebburn on the old Reyrolles site (St Aloysius View)....

Any one set me straight on this?
 


Depending on many factors
What’s happening around there?
has someone just got permission to build-something next door?
Have the houses been developing problems if they are new?
are they cladded?
flooding?
Unemployment?
Has the schools been put in special measures?
the list goes on but if the prices are dropping when everyone else is seeing a rise then I’d keep well away
 
Leonard osbourne said:
Young Rodney is looking to buy his first house with his girlfriend, they have found on they like, 4-bed town house with offers in the region of 200k, they both really like it....

His girlfriends parents have looked at the area and done a bit research and have said that houses in that area are depreciating so they would not advise them to but the house....

Is this a thing, I may be naive but i thought house prices just went up and down with demand and interest rates meaning you can borrow more....

The house is in Hebburn on the old Reyrolles site (St Aloysius View)....

Any one set me straight on this?
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Depends how old the estate is. I would imagine demand is high so they as a premium when new then they level out over 5 year as the demand to move becomes more apparent. Sell at the top of a curve buy at the bottom but to fair on a 200k it’s not that much of a gamble. It only becomes a nightmare if they break up or decide to move early on.
Tommasi said:
If they like it, buy it. Houses shouldn't be seen as an investment but somewhere you want to live - a home. I find that way of thinking a bit depressing tbh. It's not like the thing is about to fall off a cliff.
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100%.
 
Don't know the area but if they like it and are happy and intend to stay there - to live and not just in vest- for a while engage a surveyor to get a full report. Then put and offer in for what they think its worth. Had two new builds and to be honest won't do it again as the cost to get everything in to move was a bit expensive with a lot of hidden costs you don't get back but each to their own.
Tommasi said:
If they like it, buy it. Houses shouldn't be seen as an investment but somewhere you want to live - a home. I find that way of thinking a bit depressing tbh. It's not like the thing is about to fall off a cliff.
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This ^^^
 
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the boot said:
Depends how old the estate is. I would imagine demand is high so they as a premium when new then they level out over 5 year as the demand to move becomes more apparent. Sell at the top of a curve buy at the bottom but to fair on a 200k it’s not that much of a gamble. It only becomes a nightmare if they break up or decide to move early on.

100%.
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Isn't even finished being built yet. Nice estate though, my cousin lives there

I'd be wanting a detached for £200k in Hebburn mind
 
Leonard osbourne said:
Young Rodney is looking to buy his first house with his girlfriend, they have found on they like, 4-bed town house with offers in the region of 200k, they both really like it....

His girlfriends parents have looked at the area and done a bit research and have said that houses in that area are depreciating so they would not advise them to but the house....

Is this a thing, I may be naive but i thought house prices just went up and down with demand and interest rates meaning you can borrow more....

The house is in Hebburn on the old Reyrolles site (St Aloysius View)....

Any one set me straight on this?
Click to expand...

If they like the house/like what they could do with the it, and it suits their needs if they have a family (4 bed, probably would do?) then no reason not to go for it.

If they were trying to get on the ladder and it was a smaller house which they'd need to move out of if/when kids are a consideration then they might think twice.
 
Tommasi said:
If they like it, buy it. Houses shouldn't be seen as an investment but somewhere you want to live - a home. I find that way of thinking a bit depressing tbh. It's not like the thing is about to fall off a cliff.
Click to expand...

I agree but plenty of people split up unfortunately. If they come to sell the house they'll at least want their deposit back.

£200K is a canny sum for a first time buyer anarl! Do they need 4 bedrooms?
 
Leonard osbourne said:
Young Rodney is looking to buy his first house with his girlfriend, they have found on they like, 4-bed town house with offers in the region of 200k, they both really like it....

His girlfriends parents have looked at the area and done a bit research and have said that houses in that area are depreciating so they would not advise them to but the house....

Is this a thing, I may be naive but i thought house prices just went up and down with demand and interest rates meaning you can borrow more....

The house is in Hebburn on the old Reyrolles site (St Aloysius View)....

Any one set me straight on this?
Click to expand...
wait 6-9 month and will be 10-15% cheaper.
 
Our last house was the only one out of 3 houses we’ve actually made any money on. It’s been our career progression (and some inheritance) that’s allowed us to climb the property ladder rather than using profits from previous houses.

We bought our first flat in 2006, just before the 2008 recession. Neighbours of ours sold in 2007 for £20k more than we paid for ours. We lost £10k on it in 2009 when we sold (and we were selling to relocate so staying put and waiting for a rise wasn’t really an option).

Our second house didn’t move in value during the 5 years we lived there. I’m not sure how - we lived in a pretty desirable area. The house was suited to first time buyers though so maybe a case of them getting more for their money elsewhere in the city.

We made £15k in 5 years on the last house though, despite doing absolutely nothing to it (it was desperately needing new kitchen and bathroom) which was great though. That was the part exchange offer from Taylor Wimpey as well.
 
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