How far will house prices fall [volume 4]

[Magog]

okgo said:

http://www.zoopla.co.uk/for-sale/details/32479904?... - 300k 4 years

599,950 - 345,000 ≠ 300,000

[scenario8]

jonha35's mate is now 26 and bought the property aged 22 or 23 - hence the time frame - making £350k profit on the sale of their flat. I think it's fair to say you'd most likely need to have bought a flat worth £x to have made £350k profit in that time. Whatever "x" is it would likely be quite a value in order to have made that much profit. Few 22 year olds would have access to £x.

All a bit academic, mind. Also nearly off topic, there are an extraordinary number of London buyers/owners I see each year with what I perceive to be extraordinary access to extraordinary pounds. It's difficult to get your head around to be honest. Clearly I fecked up not just in this life but presumably in previous lives too.

[okgo]

Anyway, pretty clear its possible to make a lot of money in the right part of town.

Just had a quick skim through the burbs round my way, 200k over last 4-5 years quite easily possible, more in some cases. Though a little more to start with as were not quite as grim as places like Camberwell in the first place!

[menousername]

but that 350k (if real) will need to be put into the new house, leaving.... how much to live a part time life for how long...?

its all relative

[z4chris99]

unless you sell and rent and wait for the crash

my mates place is on ballanter road, £315k he got it

this is similar, except he has a garden...

http://m.zoopla.co.uk/for-sale/details/32557952

[NomduJour]

scenario8 said:

there are an extraordinary number of London buyers/owners I see each year with what I perceive to be extraordinary access to extraordinary pounds

If you look at prices vs income, it's clear that the vast majority of first-time (and maybe second-time) buyers are only in the market because they're taking a six-figure bung from family. A two-bed flat is over £750k in most reasonable areas; as first-time buyers, a couple earning £100k between them aren't going to have saved £350k in the five or six years since they graduated.

[okgo]

We are in the wrong thread, there is a house price RISE thread

Re living full time lifestyle on part time wage, if they could combined find part time work that paid 60-70% of what they earned before then their lifestyle likely wouldn't suffer (assuming that 30-40% of their full time salary was on mortgage which I think is quite standard among FTB?) hugely so it would be possible to do it, pending what they manage to find on a PT basis...

[scenario8]

And (dare I say it) outside of PH land those in their mid twenties earning £50k pa are doing very well for themselves indeed. (Yes, I know there are many who do earn that much at that age. My only point being they are far outperforming the wider (non-PH) populace).

[okgo]

scenario8 said:

And (dare I say it) outside of PH land those in their mid twenties earning £50k pa are doing very well for themselves indeed. (Yes, I know there are many who do earn that much at that age. My only point being they are far outperforming the wider (non-PH) populace).

Of course.

£50k puts you above most people regardless of your age I think!

[z4chris99]

okgo said:

Of course.

£50k puts you above most people regardless of your age I think!

still not enough to buy a house though it appears!

[Sonic]

z4chris99 said:

okgo said:

Of course.

£50k puts you above most people regardless of your age I think!

still not enough to buy a house though it appears!

I concur with that.

[ClaphamGT3]

Justayellowbadge said:

okgo said:

Justayellowbadge said:

Did he have help?

Not many 22 year olds buy half a million plus properties.

You could have made that on a lesser property in the right parts of London I think. Somewhere like Camberwell you'd have managed it on far less than a 500k place.

Zoopla has Camberwell overall as an increase of 22% in the last 4 years.

Trying to think of anywhere that has more than doubled in that period, but can't.

Ours in Clapham has pretty much done that

[WCZ]

okgo said:

You could have made that on a lesser property in the right parts of London I think. Somewhere like Camberwell you'd have managed it on far less than a 500k place.

Quite a few examples from a quick look, but this one looks like it shows the maths

http://www.zoopla.co.uk/for-sale/details/29858674?...

Under 5 years, 400k increase if they sell for £600k

Edited by okgo on Monday 14th April 15:57

this property was on an episode of a place in the sun home or away or whatever the same show is called without the away bit :P

[jonah35]

menousername said:

but that 350k (if real) will need to be put into the new house, leaving.... how much to live a part time life for how long...?

its all relative

Theyre a couple, both solicitors, borrowed max they could when 22 ish. Don't know what they paid initially but they cleared £350k profit.

I know their part time jobs now pay about £40k each.

When the music stops someone is going to find themselves with a £500k mortgage on a property in Brixton for which theyre paying £2500pm interest!

[princeperch]

http://www.zoopla.co.uk/for-sale/details/32634025?...

my mate purchased a house in this road 2010 for 340k. he put an extension on for 30k and spent 15/20k-ish on new kitchen/boiler/SDLT.

if that sells for around 700k he has v nearly doubled his money in 4 years. nice work for some.

that said I had my 1 bed flat in E3 valued before Xmas and the agents all said put it on for 385k and you should be ok. I paid 250k in Q2 2011. bonkers.

[okgo]

princeperch said:

http://www.zoopla.co.uk/for-sale/details/32634025?...

my mate purchased a house in this road 2010 for 340k. he put an extension on for 30k and spent 20k on new kitchen/boiler/SDLT.

if that sells for around 700k he has v nearly doubled his money.

Nah mate, can't be done, some bloke from Wimbledon Village says so

[NPI]

jonah35 said:

Theyre a couple, both solicitors, borrowed max they could when 22 ish. Don't know what they paid initially but they cleared £350k profit.

I know their part time jobs now pay about £40k each.

Hmmm...I know this is PH, but in the real world £40K would be a decent salary for a full-time solicitor in the north-west. For part-time mid 20-somethings it's going some.

[princeperch]

NPI said:

jonah35 said:

Theyre a couple, both solicitors, borrowed max they could when 22 ish. Don't know what they paid initially but they cleared £350k profit.

I know their part time jobs now pay about £40k each.

Hmmm...I know this is PH, but in the real world £40K would be a decent salary for a full-time solicitor in the north-west. For part-time mid 20-somethings it's going some.

I would have thought that for a newly qualified solicitor in the north 25-35k would be an average full time salary..

[scenario8]

okgo said:

princeperch said:

http://www.zoopla.co.uk/for-sale/details/32634025?...

my mate purchased a house in this road 2010 for 340k. he put an extension on for 30k and spent 20k on new kitchen/boiler/SDLT.

if that sells for around 700k he has v nearly doubled his money.

Nah mate, can't be done, some bloke from Wimbledon Village says so

Without unnecessarily getting bogged down by specific numbers, and not paying too much attention to this specific property, some of the returns in East London during this last recession are astonishing. I don't know that part of Town very well at all but one can only wonder at how relatively low they must have been to have seen such growth. Bonkers. Good for all these astute all knowing investors.

Oh for a bit of Crossrail and/or underground investment in the far reaches of (Greater) South London. (That will never ever happen).

[scenario8]

princeperch said:

NPI said:

jonah35 said:

Theyre a couple, both solicitors, borrowed max they could when 22 ish. Don't know what they paid initially but they cleared £350k profit.

I know their part time jobs now pay about £40k each.

Hmmm...I know this is PH, but in the real world £40K would be a decent salary for a full-time solicitor in the north-west. For part-time mid 20-somethings it's going some.

I would have thought that for a newly qualified solicitor in the north 25-35k would be an average full time salary..

Quite how much can one borrow at 22? You wouldn't even be qualified at that point and would be carrying a bagload of student loans and other debts. Where would one find the required (very substantial) remaining deposit I wonder?

I've always said I must be doing life wrong.