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House Price Crash Forum

Boffin

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About Boffin

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  1. Yes exactly, spot on. Buy now and if you stretch yourself to buy a 1-bed flat then thats' what you're going to be stuck with.
  2. Of course London will escape a slump, for the following reasons: 1. Property there is still highly affordable for those on average salaries 2. Public sector spending is set to increase, ensuring continued growth in demand for quality properties for young professionals to rent, supporting the BTL market 3. The economies of our major trading partners, the US and Europe, are in rude good health 4. Energy is cheap and getting ever more so, so producer costs are stable or falling 5. Interest rates are in historical terms high, so are likely to fall over the medium to long term, resulting in in
  3. Wrigglesworth is quoted by one of the reports as saying that there is no fundamental reason why the market should not recover. But more to the point, surely, is that there isn't any reason why it should. Prices are at record highs at what are very low interest rates, with the economic outlook set to worsen significantly. There is no rational basis for prices to be any higher, quite the contrary. Sorry, everyone here knows that, but there still seem to be some irrational exuberantists out there. (Round here there was a flat on the market at £150k since last August at least. Then in March it swi
  4. There seem to be some linguistically rather inventive property developers out there. Walking from Reigate to Redhill (Surrey) today I passed a new development of apartments rather pretentiously called 'The Silk Quarter', on account of some legal association. Several colossal signs pronounced 'All Apartments Now Sold' or words to that effect, and yet I had to step around a portable metal sign that was blocking the pavement outside the sales office. This was trying to alert me to the 'Deal of the Week' or some such nonsense to be had on Plot 10. Said sales office was staffed but otherwise lifele
  5. It has always been difficult to get 'on' the property 'ladder', we are constantly told by those who claim to know about these things. Maybe so, but not this difficult. I just checked out on Rightmove prices in the none-too-posh Oxford backwater where I rented in 1994/5. My landlord offered to sell me the 3-bed 1930s semi- for c.£70k. I was about to go freelance and - oh how I rue the day - I declined... Now apparently similar places there are on the market at £275-300k. If my pay then had increased by the same multiple I'd now be on £90k+, even if I'd managed to avoid getting promoted! Thank
  6. Ignorant Steve, I didn't say I've never bought. I had a 1-bed flat for 2+ years, until personal circs to do with relationship and work inclined me to relocate and rent for a bit. In that small amount of time the supposed 'value' of the place had increased by 65%, despite my having made essentially no improvements to it. Being a rational sort of person I thought that was really rather excessive and unjustified/unjustifiable, except by appeal to sentiment, given inflation of c.2%. Astonished that people were (are) prepared to buy such places at such prices, I decided to take the cash and live s
  7. Hmm, interesting. I'm renting a 'nice' 1-bed flat in a 'nice' block a 30 min commute from central London, for £650pcm. Owner reckons it's worth £180k or so, and there's a 2-bed in the same block on the market for £240k(!). 200 x £650 = £130k 180/130 = 1.38, so that's 38% too high by this formula? Sounds plausible to me.
  8. DoubleBubbleTrouble: Thanks! OnlyMe: Yes, I'd forgotten about MIRAS etc. There's only one way for prices I reckon. Nothing in the economy can justify 100%+ growth over 5 years. Incidentally I bought into a tech stock investment trust in 1997 - just a few hundred quid - and bailed out when my money had doubled in two years. No point being greedy! I felt slightly nervous as valuations rose still further over the next year or so, but then....
  9. Hello all, After spending far too much time browsing this site as a guest I have finally taken the plunge... and registered! My point is this: I notice that NegativeEquity (and many others, such as my parents) keep using the term housing or property LADDER, as if once you are on you are led inexorably towards a pot of gold and a larger home somewhere in property heaven. But in the market we've 'enjoyed' over the past few years this is clearly utter nonsense. In what sense can there be progression of any positive kind? If I bought now, say a 1-bed flat, I'd need a mortgage of £110k that would
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