Who Buys These Things?

[IsThisRealLife]

I've been looking at property in Bristol recently, and have been coming across more and more ridiculously priced properties.

This for example, just under a million for a three bed flat (not the best location either!)

http://www.rightmove.co.uk/new-homes-for-sale/property-52726304.html

I don't understand what sort of person is buying property like this at these prices!

[Captain Tightwad]

But... look at picture #6! It has running water and vegetables!

If that's not worth a measly million, I don't know what is.

[rayman740]

Money laundering criminals if the Daily Rags are to be believed.....)

[nome]

I'm seeing lots of overpriced dregs getting snapped up lately that would have otherwise sat on the market for ever.

Worrying.

[rayman740]

Mike, there's not enough building activity to produce a true HPC such as we have seen in Spain. The UK continuing house asset climb is based on availability and unless rates are to raise to 6-7% there remains absolutely no downward pressure on housing assets.

[macbeth79]

Mike, there's not enough building activity to produce a true HPC such as we have seen in Spain. The UK continuing house asset climb is based on availability and unless rates are to raise to 6-7% there remains absolutely no downward pressure on housing assets.

Perhaps that is why we are not having a HPC in london but you go to the NE and they have very low house prices.

[Venger]

Mike, there's not enough building activity to produce a true HPC such as we have seen in Spain. The UK continuing house asset climb is based on availability and unless rates are to raise to 6-7% there remains absolutely no downward pressure on housing assets.

Mr.Bought-At-Peak 2007, days before HPC-lite.. here to defend his house price. "Buy buy buy" he says. "There can be no crash."

Great track record you have Ray.

Some sensing a threat to their HPI and coming on to HPC push their VI?

The point is there will not be a true HPC, and those hanging on indefinitely are making a mistake. Young people should of course buy and if both are working which is the norm in the past generation the multiplier is still around 4x.

We did buy in Tavistock area without a loan probably the evening before the 2007 'crash', and no idea if the house has gone up or down in value but it's lovely here without any intent to sell.

Sick of the 'volatility' word, much over used and over hyped by those with the most to gain

Mods going to be busy.. busier than very busy now.. into any renewed house price weakness.

[katchytitle]

if people lived in "the matrix" how would you convince them it doesn't exist? Most people won't take the red pill - they would be happy to live in the ignorant bliss they had created because it gave them some way of making sense of the world.

If you "pulled the plug" the shock would be too great and people would not cope. If you incessantly talked about it you would be branded a loony toon. But if you were successful because you knew, people would marvel at your "skills" and "entrepreneurship"....just a thought for this Monday morning. Think about it.

[Pedro2706]

£550 psf for an apprtment in Bristol-steep or what.

[janch]

It's probably for someone who just sold his London property for a fortune and can afford to pay £1m with cash to spare and thinking themselves very clever to have got out at the top before the inevitable crash which will ripple outwards from PCL (Prime Central London). Unfortunately the locals havn't got a hope in hell in this market when competing against folks moving out from PCL.

[SoldTooSoon]

I've been looking at property in Bristol recently, and have been coming across more and more ridiculously priced properties.

This for example, just under a million for a three bed flat (not the best location either!)

http://www.rightmove.co.uk/new-homes-for-sale/property-52726304.html

I don't understand what sort of person is buying property like this at these prices!

Have a listen to the Radio 4 Monebox Buy to Let episode from last Saturday: http://www.bbc.co.uk/programmes/b0631nq3 TBH I'm suprised I haven't seen anything on the forum about it

This will give you an idea of who is paying these ridiculous prices. E.g. late middle aged couple payed £490,000 for a one bedroom flat, with stamp duty and furnishings that must be at least £510,000 outlay. They receive £1300 pcm rent, net after service charge etc. That's 3% yield gross! they seem to be happy about probably losing money month to month on the rent because they are in it for the long haul and the massive capital appreciation that will unboubtedly materialise over the next couple of decades. After all, the lady being interviewed bought her own flat in the area for £107,000 which is now worth £650,000!

There will be no price correction until these types of people have been well and truly scared away from BTL

[sPinwheel]

Twig enthusiasts.