London house prices?
Discussion
ChocolateFrog said:
Putting aside the damage it would do to the country part of me would love to see the housing market in the SE crash.
What do you mean my basement bedsit is not worth £500k.
Wht u mean my ex-council flat in Deptford i bought from da council for 50k isnt wrth £400k?? Come on fam. I got 10 kidz to feed.What do you mean my basement bedsit is not worth £500k.
One of the many benefits of gentrification is that the monkeys cash out and move on.
I sold my one bed flat in q4 2014 for 435k after paying 250 for it in q2 2011. I think, looking at the market in bow , that the couple who purchased it from me would be pretty lucky to get 470kish for it. So not a disaster for them but no major profit either. What I have noticed, in the block I sold it, is rents have gone down a bit primarily because there were lots of flats on the rental market so demand went down. So my old flat would have rented for 410 weekly a couple of years ago, but now it would rent for about 385. Ok small beer, but still.
My house near the Olympic park was valued recently at 525k and I paid 388k for it 2 odd years ago, and have redecorated and put a new kitchen in. Next spring we are having an L shaped dormer put up to turn it into a 4 bed 3 bath house. That'll cost 45k to do and I think the end value will be about 625k.
If we have kids in the next 18m or so then I guess I'll need to make a decision whether to stay in London or take the money and run off to Essex or Hertfordshire. It'll be a tough call because all convievable logic would suggest prices should correct in London zones 1-3 by somewhere in the order or 15-30pc area dependant. But logic seems to go out of the window with London. And once you are out, you are out. My bro in law is experiencing this. He lived in bow, then moved out to Brentwood, hates it, and now wants to move back to London where we are. But to do this its going to cost him another 100k or so and he is essentially downsizing from a big semi with 100ft garden to a more modest terrace like mine with a 40ft garden...
My house near the Olympic park was valued recently at 525k and I paid 388k for it 2 odd years ago, and have redecorated and put a new kitchen in. Next spring we are having an L shaped dormer put up to turn it into a 4 bed 3 bath house. That'll cost 45k to do and I think the end value will be about 625k.
If we have kids in the next 18m or so then I guess I'll need to make a decision whether to stay in London or take the money and run off to Essex or Hertfordshire. It'll be a tough call because all convievable logic would suggest prices should correct in London zones 1-3 by somewhere in the order or 15-30pc area dependant. But logic seems to go out of the window with London. And once you are out, you are out. My bro in law is experiencing this. He lived in bow, then moved out to Brentwood, hates it, and now wants to move back to London where we are. But to do this its going to cost him another 100k or so and he is essentially downsizing from a big semi with 100ft garden to a more modest terrace like mine with a 40ft garden...
princeperch said:
I sold my one bed flat in q4 2014 for 435k after paying 250 for it in q2 2011. I think, looking at the market in bow , that the couple who purchased it from me would be pretty lucky to get 470kish for it. So not a disaster for them but no major profit either. What I have noticed, in the block I sold it, is rents have gone down a bit primarily because there were lots of flats on the rental market so demand went down. So my old flat would have rented for 410 weekly a couple of years ago, but now it would rent for about 385. Ok small beer, but still.
My house near the Olympic park was valued recently at 525k and I paid 388k for it 2 odd years ago, and have redecorated and put a new kitchen in. Next spring we are having an L shaped dormer put up to turn it into a 4 bed 3 bath house. That'll cost 45k to do and I think the end value will be about 625k.
I've seen you quote this a few times before, and sorry to be so predictable, but i know the building, know the area, and know the time scales involved. Your estimation of what the new flat owners could sell for is some way off i think. Rightly or wrongly 2015 was a very strong year in the area for capital appreciation, and the area continues to 'gentrify' (man i hate that word).My house near the Olympic park was valued recently at 525k and I paid 388k for it 2 odd years ago, and have redecorated and put a new kitchen in. Next spring we are having an L shaped dormer put up to turn it into a 4 bed 3 bath house. That'll cost 45k to do and I think the end value will be about 625k.
Also, im not sure about your anecdotal musings on local rents, however my direct experience recently is as follows, i own a flat which is very close, and very similar in style to your old place, it rented in 2014, start of q2 for £1950 a month. It rented in q4 2015 for £2100, not a huge increase, but certainly not bad. No cosmetic or otherwise change to the flat.
Poor quality, poorly implemented, over hyped new builds in london could get hammered, there may well be an oversupply. Well done period buildings in good locations, will good transport links will always be relatively bid imho.
gibbon said:
princeperch said:
I sold my one bed flat in q4 2014 for 435k after paying 250 for it in q2 2011. I think, looking at the market in bow , that the couple who purchased it from me would be pretty lucky to get 470kish for it. So not a disaster for them but no major profit either. What I have noticed, in the block I sold it, is rents have gone down a bit primarily because there were lots of flats on the rental market so demand went down. So my old flat would have rented for 410 weekly a couple of years ago, but now it would rent for about 385. Ok small beer, but still.
My house near the Olympic park was valued recently at 525k and I paid 388k for it 2 odd years ago, and have redecorated and put a new kitchen in. Next spring we are having an L shaped dormer put up to turn it into a 4 bed 3 bath house. That'll cost 45k to do and I think the end value will be about 625k.
I've seen you quote this a few times before, and sorry to be so predictable, but i know the building, know the area, and know the time scales involved. Your estimation of what the new flat owners could sell for is some way off i think. Rightly or wrongly 2015 was a very strong year in the area for capital appreciation, and the area continues to 'gentrify' (man i hate that word).My house near the Olympic park was valued recently at 525k and I paid 388k for it 2 odd years ago, and have redecorated and put a new kitchen in. Next spring we are having an L shaped dormer put up to turn it into a 4 bed 3 bath house. That'll cost 45k to do and I think the end value will be about 625k.
Also, im not sure about your anecdotal musings on local rents, however my direct experience recently is as follows, i own a flat which is very close, and very similar in style to your old place, it rented in 2014, start of q2 for £1950 a month. It rented in q4 2015 for £2100, not a huge increase, but certainly not bad. No cosmetic or otherwise change to the flat.
Poor quality, poorly implemented, over hyped new builds in london could get hammered, there may well be an oversupply. Well done period buildings in good locations, will good transport links will always be relatively bid imho.
here is a one bed flat in my old building, in fact, it is the flat that was next to mine and is identical to my old one (I was flat 27, and this is flat 26)
http://www.rightmove.co.uk/property-to-rent/proper...
its now rented out against an asking of 395 so he probably got a bit less after having reduced it twice. it was originally rented out 18 months ago for 410 a week.
further evidence:
http://www.rightmove.co.uk/property-to-rent/proper...
http://www.rightmove.co.uk/property-to-rent/proper...
2 bedroom flats in the same block, eventually rented recently, after having the rent reduced. if these flats are apparently worth 550-600k then getting 400 quid a week for them is s
te. its now rented out against an asking of 395 a week.
anyway with regards capital values, apart from one development I've seen on the bow road and Tutelage Court (where I think a lot of people might end up taking a bit of a bath) no flats are really selling for anything over 2014 money. even flats in the medway conservation area aren't holding up all that well, stuff like this http://www.rightmove.co.uk/property-for-sale/prope... which probably sold for what I sold my 1 bed for 2 years ago...
that's fair enough. given all the properties I linked to above were subject to one, if not more, reductions I think it is safe to say they were having problems renting them out. even if they went for the asking, the one bed flat has a yield significantly less than 4pc, if we assume its worth say 500k. that's crap. and the yield would be even less when the new tax changes kick in. oh and they will all be receiving a letter telling them the communal areas are being redecorated. as there is only 50 grand in the sinking fund they'll all be asked to write a nice cheque. so in that particular block, the figures didn't really stack up for me in 2014 and to be honest I still don't think they stack up all that well 2 years on. most of the flats will be washing their faces but its unlikely the owner will be getting a nice income from it. I also have friends still in the block. my good mate has a 3 bed 3 bath in the block and he spent 550k on it in 2013. it was valued by the bank at 650 3 months ago. so I think that all these valuations are pretty aspirational - not much is completing at strong prices (and yes I do torture myself by checking each month)
friends of friends have just moved to your square - dropped £1.55M on the house. you might know them. she drives an AMG merc?
friends of friends have just moved to your square - dropped £1.55M on the house. you might know them. she drives an AMG merc?
princeperch said:
that's fair enough. given all the properties I linked to above were subject to one, if not more, reductions I think it is safe to say they were having problems renting them out. even if they went for the asking, the one bed flat has a yield significantly less than 4pc, if we assume its worth say 500k. that's crap. and the yield would be even less when the new tax changes kick in. oh and they will all be receiving a letter telling them the communal areas are being redecorated. as there is only 50 grand in the sinking fund they'll all be asked to write a nice cheque. so in that particular block, the figures didn't really stack up for me in 2014 and to be honest I still don't think they stack up all that well 2 years on. most of the flats will be washing their faces but its unlikely the owner will be getting a nice income from it. I also have friends still in the block. my good mate has a 3 bed 3 bath in the block and he spent 550k on it in 2013. it was valued by the bank at 650 3 months ago. so I think that all these valuations are pretty aspirational - not much is completing at strong prices (and yes I do torture myself by checking each month)
friends of friends have just moved to your square - dropped £1.55M on the house. you might know them. she drives an AMG merc?
I get your point, the issue is, we've witnessed a global shift in paradigms of whats a decent yield. 4% for a relatively safe long term asset is not a bad yield anymore. Try getting that yield from other traditional AAA financial products.friends of friends have just moved to your square - dropped £1.55M on the house. you might know them. she drives an AMG merc?
A live a street off the square, but theres quite a few AMG mercs, along with the collection of defenders, so hard to tell if i know her, only one aston though.
gibbon said:
princeperch said:
that's fair enough. given all the properties I linked to above were subject to one, if not more, reductions I think it is safe to say they were having problems renting them out. even if they went for the asking, the one bed flat has a yield significantly less than 4pc, if we assume its worth say 500k. that's crap. and the yield would be even less when the new tax changes kick in. oh and they will all be receiving a letter telling them the communal areas are being redecorated. as there is only 50 grand in the sinking fund they'll all be asked to write a nice cheque. so in that particular block, the figures didn't really stack up for me in 2014 and to be honest I still don't think they stack up all that well 2 years on. most of the flats will be washing their faces but its unlikely the owner will be getting a nice income from it. I also have friends still in the block. my good mate has a 3 bed 3 bath in the block and he spent 550k on it in 2013. it was valued by the bank at 650 3 months ago. so I think that all these valuations are pretty aspirational - not much is completing at strong prices (and yes I do torture myself by checking each month)
friends of friends have just moved to your square - dropped £1.55M on the house. you might know them. she drives an AMG merc?
I get your point, the issue is, we've witnessed a global shift in paradigms of whats a decent yield. 4% for a relatively safe long term asset is not a bad yield anymore. Try getting that yield from other traditional AAA financial products.friends of friends have just moved to your square - dropped £1.55M on the house. you might know them. she drives an AMG merc?
A live a street off the square, but theres quite a few AMG mercs, along with the collection of defenders, so hard to tell if i know her, only one aston though.
princeperch said:
ok well here is the evidence:
here is a one bed flat in my old building, in fact, it is the flat that was next to mine and is identical to my old one (I was flat 27, and this is flat 26)
http://www.rightmove.co.uk/property-to-rent/proper...
I nearly bought one of those off-plan in 2004, or whenever it was built (2005?)!here is a one bed flat in my old building, in fact, it is the flat that was next to mine and is identical to my old one (I was flat 27, and this is flat 26)
http://www.rightmove.co.uk/property-to-rent/proper...
Decided to buy south in Dulwich instead, for various reasons. An ex owns one of the ex-council houses (1960s?) in front of it: really nice house inside, actually: I lived with her for a while whilst looking for my own place.
I really enjoyed living there. Victoria Park is ace.
z4RRSchris said:
many different segments of the london market in both price and location, all supported by different factions of society and the world.
What i can say with absolute truth is the top and middle is falling hard and fast, and i would imagine it will push the rest down with it.
C
That's interesting,What i can say with absolute truth is the top and middle is falling hard and fast, and i would imagine it will push the rest down with it.
C
What do you consider the top and the middle price/ location wise, and is there any significant difference between developers for new builds? I can imagine some offering immense discounts but only in limited circs/ develoments, which is how it always has been (at least to an extent).
Croutons said:
That's interesting,
What do you consider the top and the middle price/ location wise, and is there any significant difference between developers for new builds? I can imagine some offering immense discounts but only in limited circs/ develoments, which is how it always has been (at least to an extent).
massive variance between developers, all depends on their funding structure, need for pre-sales to satisfy the bank, holding completed stock etc etc etc. What do you consider the top and the middle price/ location wise, and is there any significant difference between developers for new builds? I can imagine some offering immense discounts but only in limited circs/ develoments, which is how it always has been (at least to an extent).
most i've seen off since brexit ona new build is 55%
z4RRSchris said:
Croutons said:
That's interesting,
What do you consider the top and the middle price/ location wise, and is there any significant difference between developers for new builds? I can imagine some offering immense discounts but only in limited circs/ develoments, which is how it always has been (at least to an extent).
massive variance between developers, all depends on their funding structure, need for pre-sales to satisfy the bank, holding completed stock etc etc etc. What do you consider the top and the middle price/ location wise, and is there any significant difference between developers for new builds? I can imagine some offering immense discounts but only in limited circs/ develoments, which is how it always has been (at least to an extent).
most i've seen off since brexit ona new build is 55%
55% was in SE1. there are a few places you can get 30% off, more so 20% off.
i'm just speaking from my experience across new build, from 500-5000psf. I speak to agents every day and think i have good coverage of knowledge.
As the prices drop in new build it will push everything else down with it.
Sub 500k is government supported so doesn't count.
C
i'm just speaking from my experience across new build, from 500-5000psf. I speak to agents every day and think i have good coverage of knowledge.
As the prices drop in new build it will push everything else down with it.
Sub 500k is government supported so doesn't count.
C
z4RRSchris said:
55% was in SE1. there are a few places you can get 30% off, more so 20% off.
i'm just speaking from my experience across new build, from 500-5000psf. I speak to agents every day and think i have good coverage of knowledge.
As the prices drop in new build it will push everything else down with it.
Sub 500k is government supported so doesn't count.
C
not trying to call u out on this but I have a se1 investment i'm just speaking from my experience across new build, from 500-5000psf. I speak to agents every day and think i have good coverage of knowledge.
As the prices drop in new build it will push everything else down with it.
Sub 500k is government supported so doesn't count.
C
could u post a link to a block with these discounts ?
thx sir
housen said:
z4RRSchris said:
55% was in SE1. there are a few places you can get 30% off, more so 20% off.
i'm just speaking from my experience across new build, from 500-5000psf. I speak to agents every day and think i have good coverage of knowledge.
As the prices drop in new build it will push everything else down with it.
Sub 500k is government supported so doesn't count.
C
not trying to call u out on this but I have a se1 investment i'm just speaking from my experience across new build, from 500-5000psf. I speak to agents every day and think i have good coverage of knowledge.
As the prices drop in new build it will push everything else down with it.
Sub 500k is government supported so doesn't count.
C
could u post a link to a block with these discounts ?
thx sir
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