Is London property as expensive as some think?
Discussion
Blib said:
Calm down. 
I've owned my properties for decades.
The problem of ridiculously high prices was causd by "foreign investment vehicles" paying stupid money for homes, many unseen. They then nust sit on them for a year or two before spinning them over for a healthy profit.
These homes are no longer dwellings, they are merely cash cows like gold or shares.
I can’t be the only one who reads this as:I've owned my properties for decades.
The problem of ridiculously high prices was causd by "foreign investment vehicles" paying stupid money for homes, many unseen. They then nust sit on them for a year or two before spinning them over for a healthy profit.
These homes are no longer dwellings, they are merely cash cows like gold or shares.
“Dirty foreigners coming over here stealing the houses I should be making a tidy profit on”
Like it or not you are contributing to the issue, and if you daughter wants to blame someone for not being able to get her own place, she can start very close to home.
GavinPearson said:
London is horrendously expensive. Areas that aren't exactly upmarket like Camberwell have housing prices far beyond the reach of the average working person, let alone those at the start of their careers.
To my mind, most of this comes from governmental support of rental properties for low income people, if this were to be completely withdrawn and allow the market to correct itself, there would be a far more reasonable rental price and the home prices would reflect a reasonable rate of return for a given rental income.
i think you've missed the point there To my mind, most of this comes from governmental support of rental properties for low income people, if this were to be completely withdrawn and allow the market to correct itself, there would be a far more reasonable rental price and the home prices would reflect a reasonable rate of return for a given rental income.
rental property is expensive because as part of 'abolishing boom and bust' the Dear Leader and the Great leader created a whole class of over leveraged amateur property tycoons ... while robbing other investment vehicles ( certain pension funds) with a tax grab
the demand frenzy the promotion of BTL created is the reason for this ,nothing to do with HB - as if the demand frenzy wasn;t there, a lot more renters would own and the lower end of the rental market be far less pressured.,
Blib said:
TwigtheWonderkid said:
Yes, you thrived so much you bought up properties to rent out in Limehouse and drove the prices up.
FFS!!!!
Are your posts on this topic some kind of wind up, or can you genuinely not see that you've caused the problem you're moaning about.
Calm down. FFS!!!!
Are your posts on this topic some kind of wind up, or can you genuinely not see that you've caused the problem you're moaning about.
I've owned my properties for decades.
You should be able to afford a mirror. Suggest you buy one, and have a long hard look in it.
All of the projects I am working on (most of the major towers in canary wharf and a few prime developments in the centre) are being marketed and sold overseas.
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
vonuber said:
All of the projects I am working on (most of the major towers in canary wharf and a few prime developments in the centre) are being marketed and sold overseas.
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
Im not being funny, and we are probably in a fairly similar position by the sounds of it (2 of us, both qualified professionals, but not lawyers/bankers), but there are a lot of places which arent stab central where £750k either buys you more than a 2 bed, or a 2 bed is cheaper.Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
I bought a 2 bed in Blackheath this year for much, much less than that - 2 bed, Victorian flat, 920 sq ft with a garden. 2 bed terraced houses in Greenwich are sticking around £500k it seems (too much IMO, hence why we moved to the other side of the heath).
You're right about the affordability of deposits though - we were lucky as we sold my flat in Greenwich and cleared a decent deposit. Not sold to an anonymous foreign investor though, but to one of a queue of fairly young buyers (he worked in the City and had a decent deposit - it was his first property).
vonuber said:
All of the projects I am working on (most of the major towers in canary wharf and a few prime developments in the centre) are being marketed and sold overseas.
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
Where do you live?Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
The answer will be - the ones who earn more money than you or the ones who inherit?
100k HHI is not the territory of bankers of lawyers anymore either I doubt given some grad schemes are paying almost that (assuming two people) in year 1/2!
vonuber said:
All of the projects I am working on (most of the major towers in canary wharf and a few prime developments in the centre) are being marketed and sold overseas.
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
massive difference between new build sold as asset preservation to overseas and old stock which you could afford. Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
700k for a 4 bed. you can borrow 4x your earnings so let's say 400k mortgage and 300k cash deposit.
the stumbling blocks being finding 300k somewhere
http://www.rightmove.co.uk/property-for-sale/prope...
vonuber said:
All of the projects I am working on (most of the major towers in canary wharf and a few prime developments in the centre) are being marketed and sold overseas.
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
People with IO mortgages rather than RP. Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
vonuber said:
All of the projects I am working on (most of the major towers in canary wharf and a few prime developments in the centre) are being marketed and sold overseas.
Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
Genuine question, If you can’t afford to buy where you currently rent, why aren’t you looking in other areas?Me and the other half (both qualified professionals with a household income around 100k) can't afford to buy a house for our future child where we currently live.
It's not the mortgage repayments but the sheer size of the deposit and mortgage required (some £750k for a two bed).
If we can't afford it then who can? Who is going to own and live in London?
Given the spread of stock and prices ranges across the capital, is there a reason you can only live and therefore buy in the area you currently reside in?
Edited by Matt Sketch on Monday 29th December 11:45
TwigtheWonderkid said:
Oh, that's ok then. For a moment, I thought you'd bought in the last decade and made tens of thousands, but in fact you bought decades ago and have made hundreds of thousands.
You should be able to afford a mirror. Suggest you buy one, and have a long hard look in it.
I've come to the conclusion that the OP is trolling. There's just no other explanation for his cognitive dissonance unless he genuinely has a mile wide blind spot and can't see the elephant in the room.You should be able to afford a mirror. Suggest you buy one, and have a long hard look in it.
Prices do vary wildly in not so different parts of London.
About two years ago a woman in my old street in SW18 sold her terraced house that she had bought in 1998. Paid her mortgage off and the profit allowed her to buy for cash a similar sized house a mile down the road in SW17.
OK the road in SW18 is very much sought after, all the houses are kept in good order (apart from mine where the ex now lives) and almost all the neighbours are well off young professionals with young kids (no idea how they can afford little terrace houses that are now hitting £1 million) and very smart cars.
The road in SW17 is a main thoroughfare lined with closed down pubs, Wimbledon dog track and various car dealerships but as people get pushed a little further out the prices will rise and she is now mortgage free.
About two years ago a woman in my old street in SW18 sold her terraced house that she had bought in 1998. Paid her mortgage off and the profit allowed her to buy for cash a similar sized house a mile down the road in SW17.
OK the road in SW18 is very much sought after, all the houses are kept in good order (apart from mine where the ex now lives) and almost all the neighbours are well off young professionals with young kids (no idea how they can afford little terrace houses that are now hitting £1 million) and very smart cars.
The road in SW17 is a main thoroughfare lined with closed down pubs, Wimbledon dog track and various car dealerships but as people get pushed a little further out the prices will rise and she is now mortgage free.
Didn't incompetent politicians enable all this foreign speculation? Wouldn't it be better to go back to the old way of accounting for mortgage interest in inflation or is it too late?
Theres still options for a decent place, for instance the fast london midland train (using oyster card) to euston then tube.
Theres still options for a decent place, for instance the fast london midland train (using oyster card) to euston then tube.
sleep envy said:
People with IO mortgages rather than RP.
Given the £pm would be affordable to a lot of London couples, even on a repayment basis, I'd say it was probably people who had done ok on a previous property and had gained a reasonable deposit that way. I see very few (none!) of my professional friends buying £700k houses/flats as their first home - but a good number have managed it as second homes, after selling up their first buy at a decent 'profit'. IMO, its not the foreign buyers who push prices up for the majority of folk. Most people arent buying in W1 or SW1 anyway - and not too many people aspire to live in anonymous new build blocks (with high service charges) beyond their renting days. There are a huge number of young people coming into London every year - grad schemes are massive, and many of these grads get a little bit of parental help to buy a flat, or get together with friends. London is a massive draw for young professional, despite what people might like to think.
Its primarily the bank of Mum and Dad which are pushing prices up, IMO; along with a dose of younger people accepting higher property prices as they have no memory of when Brixton was £75k flat territory, or you didnt go out in Balham after dark, and thinking that a crippling mortgage in their 20s is ok, as things will get easier as wages rise.
The rhetoric of needing to be 'on the ladder' is perpetuated by parents who have seen property prices rise from '£5000 for a 3 bed semi' to where they are today - all bourne from the natural desire to help out your children and want the best for them.
LucreLout said:
TwigtheWonderkid said:
Oh, that's ok then. For a moment, I thought you'd bought in the last decade and made tens of thousands, but in fact you bought decades ago and have made hundreds of thousands.
You should be able to afford a mirror. Suggest you buy one, and have a long hard look in it.
I've come to the conclusion that the OP is trolling. There's just no other explanation for his cognitive dissonance unless he genuinely has a mile wide blind spot and can't see the elephant in the room.You should be able to afford a mirror. Suggest you buy one, and have a long hard look in it.
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