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Everything posted by yekim1967

  1. Are you sure your talking about Canada? Maybe you didnt get benefits/healthcare as you were illegal? They are supposed to have some of the best social benefits in the world, health, education, and taxes are infact lower over there. Consistently rated as one of the best countries to live in. Vancouver and Toronto are beautiful cities, living standards are infinitely better than ours. The pound is also down 40% to the Cdn$ in the last 5 years, so it looks at the moment they are doing okay. One big difference is there attitudes towards pensions, 73% put this as a priority over holidays. I would guess in the UK its the complete opposite, so in 20 years when the pension bomb goes off we are in real trouble. Interesting that the Canadian pension funds are actually buying up UK assets at the moment as well, while we infact do not even fund the pension system, and its effectively bankrupt. I think they mainly use gas to heat their homes as well, at least in the cities, and their gas is incredibily cheap.
  2. I thought Paris, Vancouver or Hong Kong, had the hottest markets at the moment.... http://finance.yahoo.com/banking-budgeting/article/112579/worlds-hottest-real-estate-market-marketwatch?mod=bb-budgeting#mwpphu-container Is this the biggest bubble in the world? I hesitate to use the overplayed word "bubble." But in the case of London property, it's hard to avoid. What's happening here is absolutely ridiculous. Look in the window of any real-estate agent here and you think people have gone crazy — and then you realize that the prices are in British pounds, and that to convert to dollars you have to add another 60%. Half a million pounds ($800,000) for a one-bedroom condo with a small garden on the southern, unfashionable side of the river Thames? Really? And $2 million for a modest two-bedroom condo in Chelsea? As John McEnroe used to say at Wimbledon, you cannot be serious. While the rest of Britain grapples with austerity, falling real wages and budget cuts, London real estate — super-prime London real estate, the best of the best — is back in the grip of another mania. According to an index maintained by high-end real-estate firm Knight Frank, prime central London prices are nearing and may even be surpassing the giddy levels seen at the peak a few years ago. The brokers' windows tell the same story. It's like that whole Lehman thing never even happened. What's going on? "London property is the 'Swiss bank account' of the 21st century," Robin Hardy, an analyst at London investment firm Peel Hunt, explained to me. Rich people in places like Egypt, Syria and southern Europe are rushing to get their money away from the turmoil, and for want of a better alternative, they are plunking it down in the "millionaire's playground" of central London. "It's seen as a relatively safe place to put your money if your objective is capital preservation," he said. They think money is "safer invested in an apartment in Sloane Street than in a bank account in Damascus." Foxtons, a high-end real-estate agency, told me that 80% of its sales this year at its Sloane Square branch have come from overseas buyers. This is just the latest twist to a story that's been running for some time. Gulf sheikhs. Russian oligarchs. Newly rich Indian and Chinese tycoons. London has become a magnate for the international super-rich: a millionaire's playground. Russian money has been flooding in for at least a decade. One hedge-fund manager here told me London property was a "laundromat for Russian money." You can see it in the fanciest shopping districts, from Jermyn Street and Old Bond Street. The booms in oil and emerging markets have been very good for prices here for at least a decade. Great Britain, through generous tax treatment of foreign nationals, has cleverly encouraged the trend. A friend of mine a few years ago described how a Gulf sheikh was steadily buying up more and more of her condo development just north of Hyde Park. The sheikh liked to come to London for two months every summer to escape the Gulf heat, and he liked to bring his extended family and entourage. He didn't care much about price, and he wanted as many condos as he could get. There are other factors at work. London has become the financial capital of Europe. The giant money machine has spread far beyond the old financial district of the City of London. High-powered hedge funds and secretive commodity firms crowd the alleys and lanes of Mayfair and the towers of redeveloped Docklands. The windfalls have long been seen as a major driver of property prices. Housing supply is limited, especially in the best areas. London has tough zoning laws, so there is very little new development. And you can also throw into the mix low interest rates. A friend explained how his grossly overpriced home cost him very little every year, because he is paying just 1% interest on a flexible mortgage. To hear people tell it here, this miracle will go on indefinitely. Prices will keep rising skyward. You no longer encounter many bears of London property. Most have given up. But there are a couple of wrinkles that should give people pause. First, you see more and more dark windows. On Sunday I went to a pub with one of my oldest friends. He described how more and more properties in central London were simply unused most of the year. You'd look up at the windows as you walked down the street, and very few were lit up. A recent study by Knight Frank found that one of the top reasons the international elite gave for selling a London home was simply that it was surplus to their needs. The second concern is that more and more actual British are being crowded out of the city. Over dinners in the past 10 days, both a London member of Parliament and a top executive at a fund firm here have bemoaned the fact that young people can no longer afford to move into the usual London neighborhoods when they start their careers here. They've been priced out. Many of the middle-class are suffering the same fate. Ultimately, this simply becomes unsustainable. It will strangle the city's vitality. The third problem is that 1% interest rates will not last forever. Sooner or later they will have to rise, and when they do, a lot of home loans will become unmanageable as well as unrepayable. Happy times. The fourth issue is one that often gets forgotten. In the age of the Internet and modern technology, the comparative advantages of big, expensive cities like London are actually in decline. Twenty years ago, if you wanted to run a hedge fund in the British Isles, you probably had to do it in London. That is no longer the case. It is a lot cheaper — and the quality of life much better — if you move out of town. The fifth problem, though, is probably most ominous: the plunge in rental yields. According to Knight Frank, while prime London sales prices have doubled in the past 10 years, prime London rents have risen by less than 10%. The net result is that landowners are getting a gross yield of maybe 3.6% on average, compared to more than 6% a decade ago. Conversations I've had — with renters and owners — suggest some are getting even less. Once you subtract all the costs of buying and selling a home, maintenance, taxes and condo fees, some landlords are making very little — if anything. As usual, the defenders of current prices are quick with a rebuttal: "But people aren't investing for the yield," they say. "They are investing for the capital gains!" Alas for this argument, in a rational market, yields are the drivers of capital gains. The price of an asset goes up because the current owners are earning so much money that outsiders want in. The idea that people will keeping bidding up prices of an asset that makes no money is quixotic at best. Will it turn? If so, when? It's anyone's guess. But for those living and working in Britain, the conclusions are pretty obvious. If I moved back to this country, I would avoid living and working in London if at all possible. And if I had to be in London, I'd rent.
  3. Atleast 50% overpriced... http://www.rightmove.co.uk/property-for-sale/property-33609131.html
  4. Where is this area that us up 20% on the peak I would like to confirm that. Are you in the UK?
  5. Agreeing a sale right away would give the buyer so much more negotiating power. Right now the seller has all the power so it would be good to have a better balance
  6. With such extremely low volumes there is no boom. Prices are struggling to reach the 2007 peak. I have seen so many sellers desparate not to mention the agents and especially mortgage brokers who I am fighting off. Even in today's standard there is an ad for people who have there property on the market so long they state dust it off. If you can handle the truth go on property bee especially if you are buying
  7. I think you will find that they rocketed to 2008, then went essentially flat. Just like the rest of London.
  8. I agree the rental market is getting stronger, but still weak in at just over 5% gross yields The selling market is dead, just go to property bee and see the days on market and price reductions all across London. (if you can handle the truth)
  9. There are enough houses, the problem is some people are hoarding them as investments, and not even renting them out. So building more might not even solve the problem. I was really surprised how many places are just dolled up for show, when I was looking for a place. The owners only wanted full asking price and nothing below. They were all over priced by at least 20%
  10. Not to rain on anyone's parade but there seems to be a glut of new build developments in around the docks O2 Olympic near dome, thamesmead,woolwich,Stratford,canary wharf.
  11. I just looked on rightmove using property bee, and lots of reductions in Royal Docks, and stuff on the market many months. here is one, there are lots more... 14 November 2010 20:05:31 Price changed: £649,995 £625,000 08 July 2010 09:59:50 Status changed: New Premium Listing 17 June 2010 09:57:57 Price changed: £650,000 £649,995 16 June 2010 09:54:16 Price changed: £675,000 £650,000 28 May 2010 15:24:45 Status changed: Premium New Listing 21 April 2010 09:03:47 Brief Description found: MUST SEE PROPERTY A rare to the market three double bedroom penthouse apartment with a glorious roof terrace offering far reaching views over The River Thames. This large duplex apartment has been upg... Price found: £675,000 Status found: Premium Listing Title found: Barrier Point Road, E16
  12. Booming, ha ha, I am looking at buying at the moment in London and the market is DEAD. Stuff on the market a long time, prices being reduced and sales falling apart because sellers and buyers are both pulling out. Mortgage brokers, agents and surveyors are desperate for work. There is a definite lack of buyers, its not the lack of mortgage availability but just no buyers with decent jobs or incomes. Lots of places are empty with no tenants, there is no housing shortage if these people sold there places. Places are really presented well to attract buyers, but its not working. Asking prices are too high, some people asking at 2007 and above prices, but also stuff on at 2005-2006 prices and not selling either.
  13. A British person understanding Canada is like a Richard branson selling diet coke in America. Pointless thread
  14. Here is the response I got on there ad. I am emailing you in response to your enquiry into creatively financed properties in the London area. I am pleased to inform you that these properties are still available and just a few of many creatively financed properties provided by the Creative Finance Facility. The Creative Finance Facility (www.creativefinancefacility.com) is the most powerful investment mechanism in over 10 years allowing people, just like You, to purchase UK residential property without having to pay the traditional fees associated with a property purchase! That’s right!.....No Deposit, No Stamp Duty and No Legal Fees!.. With CFF we not only Source, Negotiate, Take pictures & Video footage, Legally Secure, and Creatively Finance our property deals but we provide everything including whole of market’, FSA approved brokers that will find you the best mortgage product suitable to your specific requirements. Plus all Solicitor’s used via CFF are fully regulated by the Law Society and have extensive knowledge within all aspects of property law & conveyancing! When You buy a Property through CFF the benefits are obvious: - Gain thousands of pounds in Instant Equity on every property you purchase! - A no hassle, Fully Comprehensive, Service through to completion! - Pay Little to No Fees throughout the entire process! - Waste none of your time travelling the length and breadth of the country viewing properties! - Have a qualified team of industry professionals searching for the best possible property deals for you! - Join absolutely Risk Free with our 100% Money Back Guarantee! - Purchase up to 25 Properties per Year! Our Service is Second to None! I must stress this is not a marketing scheme, scam or anything untoward!... Our deals are genuine and I Guarantee you that our CFF clients are buying creatively purchased properties on a daily basis! The details to the property deal you enquired into in Streatham SW16, Croydon, CR7 and South Norwood SE25 and Woodford are given below. Simply click the link below to view it: 1. http://creativefinancefacility.com/Property_Deal_Private_841.html - Croydon (CR7) 2. http://creativefinancefacility.com/Property_Deal_Private_843.html - Streatham (SW16) 3. http://creativefinancefacility.com/Property_Deal_Private_845.html - South Norwood (SE25) 4. http://creativefinancefacility.com/Property_Deal_Private_847.html - Woodford (IG8)
  15. I know the market is slow, but what do you think of this.... http://www.gumtree.com/london/75/72561675.html
  16. I did ask the agent, he slurred his words, but I think he said, its been on a little while... Checked property bee, its been on 34 weeks, listed at 15-20% above peak 2007 prices... and its in Hackney
  17. Does anyone know how to find out how long a specific property has been on the market?
  18. The stamp duty exemption only applies to those who have never bought before. Just wondering how they check who has not bought overseas. If you bought overseas, how will the tax office know?
  19. For most parts of London your looking at 4-6% rental yield, which is about the same as mortgage interest rates. If you plan to stay in one place long term, ok, but still no rush to buy. By renting you can save a fortune, because no, stamp duty, mortgage fees, legals fees, survey fees, ground rent/service charge, and maintenance alone could crush you if something bad happens. I put all of my extra savings over buying a home into my pension, as its much much more tax effective. I just do see the economics there to buy a place, unless your looking very very long term, but hopefully I am out of London in 5 years!
  20. I heard MBNA is increasing there minimum payments and ceasing to offer new loans. Also I got a huge shock when I paid my loan early, they charged me a penalty and asked me to pay the monthly amount again. I paid Jan 25, instead of Feb 7th, now 4 days after the due date, they call me and say my Feb payment is due. I told them I paid it Jan 25 th, and they are applying that as a lump sum payment. Now say the payment must be made in Feb, and now I am late, so late charge... Is this realistic???
  21. In two years you would have only paid off around £12K of the mortage, not £40K. Unless your talking about extra payments, which you could have saved renting anyway. Actually by not buying a 500K place, you would have saved atleast £30K renting similar accomodation, and alot more if your renting a smaller place, and thats before, stamp duty, mortgage, legal, survey, maintenance, and all those other fees. If your moving from renting to buying and expecting to pay the same each month, your in for a shock when you see what type of accomodation you will get. I think you are just trying to justify buying really like most, but its still a long way from being a time to break even (rent vs buy), so if you plan to move in a few years, you will end up losing a lot of money. Renting you can stay flexible, even better for a growing family, and not burdened will all the extra costs / headaches of home ownership. Someone else put it nicely, something like its a bad investment, but a nice extravagence. I am in North London N1 and dont see the same 30% bounce that you witnessed, although asking prices are pretty high still, nothing is moving, especially at the lower end. And the rental market is dead as well, lots of available places, I would like to see occupancy rates as I am sure they have dropped.
  22. People on higher rate tax who overlook private pensions are missing out on a very good investment. You immediately get 25% back on your contribution plus you can take out 25% tax free at 55, add some decent gains in there, and you could probably get all you contributions back tax free, and still have your 75% contribution in there with growth. Then all capital gains are tax free and contributions are tax free. It is the most tax effective way too save Pensions are protected from lawsuits and bankruptcy in many cases, other assets are not. Pensions can be invested in almost anything as non pensions the way the SIPP rules are. There are incredible benefits to a private pension so not sure why all this negative talk, although for lower income earners the current system does not work and is not beneficial for them.
  23. You either have a pension at old age, or face poverty, its that simple You choose BTL or personal pension plan, cash in the mattress whatever. I think a Personal Pension is better, you can see exactly how much you have Sarah, and you get a massive 67% uplift from the HMRC on high income contributions. Believe it or not the pension system in this country is very good, the tax deductions, SIPP are really excellent incentives, plus tax free withdrawals, retirement age 55. BTL is fine only if you hide the property from the tax man, otherwise you still face tax charges on a BTL like you would pension income. I know which route I am going, its all in SIPP and ISAs,
  24. Halifax must be excluding those with less than a 40% deposit, because a 1st time buyer with a 10% deposit is looking at a rate of around 7% and that maybe the highest in 12 years
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