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jcpricewatcher

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  1. I know a few people from China who have bought several properties in London. Some have bought for their children to live in whilst studying in London (for some reason they still think that it is prestiguous to have a UK education). Others have bought as a safe store for their cash (they don't trust the Chinese government and cash in the bank in China earns no interest, much safer to spread your cash overseas out of the reach of the government. - Just like cash rich people in this country would be wise to spread their cash amongst multiple currencies). None have borrowed - all straight cash buys. I don't know of any who have bought to migrate over to London in order to raise their young children. Why would you do that? - Run you company in China, live like a king with cheap labour providing a house full of staff - use London property as relatively safe store for your cash. Some rent them out, but others can't be bothered with the hassle (as pointed out the yield is so low, just keep the place as good as new by not renting it out at all - no one trashes it, no worry about non payment of rent). Remember the culture in China is you make money, then you buy things outright. Pretty much summed up by the fact that China runs a trade surplus, vs the UK's deficit. You may joke that the Chinese people are not good business men, but one day people may wake up to realise that China has bought all the assets of the entire country! It's starting to happen in Mexico, a friend of mine has said that they have bought up many of the major shipping ports people are only just starting to cotton on. (It's also been happening in parts of Africa). At the end of the day, the Chinese government is spending all this trade surplus buying up assets (and govt debt) of other countries. Whilst the rest of the world continues becoming more indebted obliviously buying cheap tatt made by the Chinese enabling them to do this!
  2. I'd hate to commute 3hrs each way per day. I moved a further away and my commute changed from 20 mins each way to around an hour each way. At first it was much worse, but I guess after a while you sort of get used to it! An interesting question though... Whats the minimum you would have to be paid to consider taking a job which meant you had to be involved in a 6hr round trip daily commute? (for arguments sake lets say it costs 900 per month and you cant live closer because of family and you commute to different places of work which all happen to be exactly 6hr rounds trip from you home using mode of transport of your choice thus preventing local stop overs). I'm assuming most people have their price!
  3. I do agree with the others and that mortgage rates will rise (for new mortgages the spread to boe will rise). For that reason if you are to buy now or own now, remortgage yourself to a nice low lifetime boe tracker. A lot of people I know who either own or buying now/soonish are booking up with the HSBC 1.49%+boe lifetime tracker. (1.99% though need 40% deposit not a problem for most who bought 4+years ago) new buyers can still get 1.68%+boe with 30% deposit. But to be fair if you're spending 500k plus on a house in London hopefully you'll have at least 25% deposit built up.. I definitely do think that the desirable areas such as chiswick, Kingston and clapham plus nice z1-2 should suffered a lot less, since crash or no crash the desirable areas will still be sought after... From personal knowledge those who bought around 06 with lifetime trackers and 25% deposit will probably be paying 0.49%+boe... So yes 2% mortgages new or existing (from a house move) is perfectly achieveable...
  4. I say scrap road tax, reduce fuel duty and put tolls on the roads in a similar way to france. Oh and makepublic transport cheaper. At least foreign vehicles would actually have to pay to use the UK roads then. At the moment UK lorries have to pay UK road tax, then French and Spanish tolls. Whereas foreign ones pay nothing towards the UK roads!
  5. In the scenario you mention, it makes complete sense, especially if it's to be used frequently like you say. Accommodation during holidays is especially expensive in this country and if the place is just a drive away (a few hours), then there isn't the hassle of taking flights with kids. The familiar place for the kids would also be good. Of course if you are paying a big monthly mortgage in order to pay for the holiday home then it starts to make a lot less sense. Its also nice of them to let their friends stay for free... As some people say it's not all about maximising rate of return!
  6. Lol very true! And I completely agree with you. However years ago had I instead of investing in rbs shares, spent the same money "investing" on a new car, I would have lost a hell a lot less! I do also remember once a used car salesman trying to convince me that if i traded up to a newer car of more prestige branding, I was building up equity in my car and that you can then keep stepping up the ladder with each successive car change.
  7. This flat is up for sale, and it's going cheap for the area... £265k http://www.rightmove.co.uk/property-for-sale/property-26606772.html Hope no one buys it without googling the address first! Interestingly, I wonder how much of a discount someone would need in order to buy it. It seems the typical storyline for a horror movie - People unkowingly buying a haunted house because it was cheap... How much discount would someone need in order to buy a property with a bad past?.... --------------- f.y.i..... It's top floor flat of 23 Cranley Gardens... http://en.wikipedia.org/wiki/Dennis_Nilsen Killed 12 people before moving here, where he then killed 3 people in the flat. Storing them in bags in the flat... Only caught by police when neighbours reported a smell. No mention of that on rightmove or in estate agent literature though...
  8. If you don't mind ex-council hi-rise, you can pick something up around the Canada Water area for well under your budget.. For example this 2 bed with great views of London is on at what seems a reasonable 185k. Though of course given most ex-Council 2 beds fetch 250k and most non-ex-Council flats cost about 400k, you'll have to look closely yourself to see if there's any problems with this flat itself... http://www.rightmove.co.uk/property-for-sale/property-40520468.html I used to live around the area and it's a quick commute on the tube (about 15 mins to city and 5 mins Canary Wharf), Cycling to the city took about 15 mins. Edit: Just seen the catch... You need to have saved up the entire 185k in cash, assuming that no credit it available ... (And possibly some big reason why the banks won't lend against it). Then you're stuck with things like this at 250k:- http://www.rightmove.co.uk/property-for-sale/property-27746274.html or this at 200k:- http://www.rightmove.co.uk/property-for-sale/property-42064232.html
  9. That's the sort of idea I had in mind when I first moved to London over 10 years ago (taking a London pay premium). Oops on the last bit though!.... Has completely negated any of my original plans... So you're completely right!
  10. I completely agree. Though could you imagine trying to buy either a new car or a house with cash these days? - People would think you were a criminal....
  11. Exactly why quite a lot of geeky and academic types end up in the industry. Instead of working for 10 years doing something else, you can work for 3-5 years and do whatever you want for the remainder. Alternatively it's one of the very few ways you can afford to buy a nice house and be able to raise a family in Greater London without saving until you're about 40.
  12. Someone might try and claim that the salesman said: "'Interest Only' means you pay the interest only, as in you only have to pay the interest and nothing else each month...." Buyer: "Oh, that's so much cheaper than the other mortgages, what a great deal, I'll take it."
  13. I think your underestimating how stupid people can be. Have a read of this thread if you want some representation of 'normal' middle class family thoughts on mortgages.... http://www.mumsnet.com/Talk/legal_money_matters/a1672390-what-happens-when-a-mortgage-ends Extracts from the beginning of the thread... which hilight some of the lack of understanding, before other people join and break the bad news.... KatherineKrupnik Wed 30-Jan-13 14:20:15 Our mortgage was a 2 year mortgage that finishes in a couple of months. What happens?! Do we arrange a new mortgage to carry on seamlessly or are we expected to pay off what we owe in a lump sum...? (surely not) Presumably we will have to be assessed all over again, can't remember how long the process took last time, but how long should we allow for that so that we do have something in place? Thanks in advance. Message poster nipersvest Wed 30-Jan-13 14:22:42 once your current deal ends you just go automatically on to the svr (standard variable rate) offered by your mortgage company. you might want to check the % of interest rate against what you are on now to see how much your payments will change. you don't need to apply or be assessed for this to happen. you can get in touch with your lender and see what other deals they have to offer if you wanted. Message poster KatherineKrupnik Wed 30-Jan-13 14:23:50 No - our mortgage ends. It was a 2 year mortgage, not a 2 year mortgage rate. We have to re-mortgage. .... KatherineKrupnik Wed 30-Jan-13 14:29:03 Interest only mortgage. The duration of the mortgage was 2 years. KatherineKrupnik Wed 30-Jan-13 14:49:45 Because one of the mortgage holders retired in 2 years so they wouldn't give it for longer, but got better rates than doing it another way. We explored lots of options! .... CunfuddledAlways Wed 30-Jan-13 14:38:47 sorry i dont really understand? do you still owe money?? .... Message poster Viviennemary Wed 30-Jan-13 14:39:33 Sorry I understand now. Interest only. In that case I'm not sure. I apologise! .... fabulousathome Wed 30-Jan-13 14:53:34 So do you have the 70K to pay it off or do you need to get another mortgage? You will need to have your property valued again I would assume.
  14. As a previous thread discussed, although 100k sounds like a lot, many people on that would say it doesn't actually go all that far if you're living in London with a family. Which then further underlines that it must be so much worse for the majority of people who are on far less. (Particularly those who earn just above the threshold of any government help). £100K Isn't A Decent Salary For A Family In London If that's 10k a year without taking a single penny of tax credits or housing benefits, then that's very highly impressive going.
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