AnotherEDer

It's disgusting. I overheard an estate agent admitting that they deliberately over value properties, then some more, for contingency. In other words, the price that you see in May is not what it's worth at that time, but the agent is giving its expected October value. Of course, this system doesn't help buyers because they don't know the price is forward-shot. So they *still* go over asking price. But this won't change unless buyer behaviour changes. As long as people keep panicking and buying at these rampant prices, the cycle will not stop, instead of asking 'hang on a second, is this place really worth it?' Right now, estate agents are exploiting buyers' panic so much.

HAha, if you are talking about the shop I think you are, we were walking past when they were intalling the lit shop sign. Without exaggeration, we had to shield our eyes and cross the street! It is so obnoxiously bright. I feel sorry for the houses opposite..

I see. But you weren't worried that your buyers would pull out? And during the period of searching for a new place, were you paying estate agent fees?

Getting away from the debate on BTL here, but do you think the current market conditions will alter the process for mid chain purchases? For instance, the idea was always to accept an offer on your current property BEFORE going hunting for your next purchase. But with so little supply, which means so much pressure, will sellers now wait to secure their next house before accepting offers on their own place (especially as it seems almost guaranteed they won't have problems finding a buyer). Risky for the whole chain I realise, but isn't the alternative that the first time buyers at the bottom of the chain could be waiting months & months for the second part of the chain to find something?

Hi Mr Ben - Thanks for your advice. I think the major influencing factor is that any investment we make is only going to be short term. We'd like to buy a family house in 3 or 4 years, and that, I imagine is the deciding factor. If not, I might be more inclined to take on more risk. As for earnings, we have done extensive research into our industry, its average salaries over time, etc and I think realistically our joint income will not exceed ?80k over the next 15+ years. That doesn't take into account any maternity implications. With buy to let, I will have another look, although I'm dubious that we would get approved for a mortgage. The one on our own place is 85% LTV. Choices!

Heh, that's OK. Please don't make me move to Penge. I had considered a BTL property too. Need to look into this more, sounds a bit scary. Plus my mum had a bad experience with her tenants so this might be clouding my judgement. Also I'm 27 and who wants a 27 year old landlord?! As I need to access the cash within 4 years, I think 5 year fixed savings accounts, FTSE or S&S ISAs might not be the best options as I can't imagine they will yield enough in this period. I'm really grateful for all the replies here.

I suppose our risk appetite is more influenced by the fact we will need our circumstances to change in 3 years or so. That's the control factor we see on the horizon - starting a family will mean we need to buy a bigger place. That's why I'm skeptical about stocks and shares.. I thought the benefit to those was only felt if you leave it in there long term. As for down paying on the mortgage, please can you explain the real benefit? Our monthly repayments are manageable at the moment and we're not really in need of extra disposable. Or have I misunderstood? Sorry I'm not being much help am I?! - Young & foolish.

Thanks for all replies so far. Some answers - We could only realistically make say ?5k's worth of cosmetic improvements to this place as we're in a 1 bed maisonette, so not a lot of room to greatly improve the space, and certainly not structurally - Our interest rate is 3.9%. Not worried about job security, touch wood. - Thanks, definitely keeping 5-10k in a rainy day ISA. - We have no other debt - I'd never thought of making down payments as it doesn't 'feel' like the money is going to tangible use! Perhaps a naive view. - Our biggest long term worry is ever finding a family sized home, and we'd like to start a family within 4 years. Even the usual suspects like moving out to Nunhead/ Brockley or even further to Herts (or ED favourite Beckenham) and commuting in are seeing increasing prices every month. It seems to be spiralling beyond control. Can't believe that I noticed a 4 bed house in East Dulwich going for over ?1M the other day. Cripes, you're right Reg, wrong forum. Admin, feel free to relocate.

Hello Doing some financial spring cleaning. Wondered if the worldly-wise could offer their thoughts on what they'd do with a small investment sum. My missus and I have owned our 1 bed flat in ED for about 2 years. We owe about ?230k on our mortgage and believe the property has increased in value by ?30k. Completely by surprise, we have just come into some money (?40k - 55k) and not sure what the most sensible course of action would be, considering the scary rate at which house prices are increasing. Would it be worth trying to look at a second step on the ladder, given our joint income has also increased since we first bought (in which case, our beloved ED would no longer be an option). Nothing seems to be rising as fast as property values. Or, chuck it in a S&S ISA and worry about the elusive 3 bed house a few years down the line? We're just worried that by this time we might be priced out altogether. I am very privileged to be in this situation I realise, so please resist any snarky comments. Thanks! (ps, I am a long time forum poster but posting under a diff address for this post)