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roblpm

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Everything posted by roblpm

  1. Just to clarify as the OP - when we bought our first flat at £94k I think we just about had a joint income of £94k. When we bought the second flat at about £320k we only needed a £200k mortgage, actually I think my wife had stopped working but I was earning about £75k. So not exactly nutty multiples. My original point in this thread was that is it obviously easy to be overleveraged, but in a low interest, cheap money, asset inflation bubble if you want to keep up with the jones's you need a bit of leverage. We sold up, and are now completely debt free (actually I owe £320 on my amex credit c
  2. No train noise at all where we live in Edinburgh now. Every train in and out of London Bridge went past our flat, 900 in, 900 out!!
  3. As you say the London boom has been going for about 18 years. I agree that the government has propped up the prices. The problem for London is the additional demand from abroad. I have lived in zone 2 myself and havent seen any oligarchs. But if there werent any I wouldnt have been living in Brixton I would have been living in Marylebone. Actually we used to have 1800 trains go past our back window when we lived just off Tower Bridge Road. I quite liked it!! Christmas Day was weird!
  4. I am sure I agree whatever way you put it! Where I disagree is that the government printing money ZIRP etc stopped a massive crash in the rest of the country. London didnt need it and therefore boomed. I suppose what I am saying the rest of the country reacts to UK economics. London reacts to world economics.
  5. Couldn't agree more. My wife who is from Camden Town originally thinks I am crazy to want to spend my time sailing, travelling, doing adventurous stuff with the kids, sport etc. Its only about work and buying property! Maybe a little light relief of going to a museum and and overpriced and overcrowded posh cafe!
  6. Well it seems like its 10 years that I have been a member on here. Haven't posted much for the last 5 years though................... I lived in Central London, and was convinced of a forthcoming crash well before I "found" hpc in 2005. We bought a flat in Brixton for £97k in 1997, (joint income about 80k!), then kept that and bought a flat in Bermondsey for about £320k in 2000, in what we thought was stretching ourselves to the limit kind of a way! Current values probably £300k and £800k conservatively. So we wanted a family home which we couldnt afford in London in 2005 so moved to Edinb
  7. If the rent covers the mortgages etc I would keep them. I think in the long term London will outperform everywhere else. We sold in london 8 years ago. Bad mistake! SO what if it goes down 20%? I think most of the sell pressure on here comes from people who are not in the market. I would stay in it if you can.
  8. OK maybe Islington was a bad example. A nice area of London 50 years ago was probably quite expensive!
  9. I have been a bear since 1997 when we first bought in london. I was an IT contractor and my other half was a trainee doctor and we bought a plce of 94k, didnt want to stretch to 137k. All I mean is that we are not going to go back to those sort of prices. I think it was around 1997 when Buy to Let mortgages came in. The yield where we bought in Brixton would have been 10-15%. That's one reason why prices went up so fast. I then got cold feet around 2005, sold up and moved to edinburgh. Was convinced it was going to be armageddon. Since then the last place we sold has gone on to double in pr
  10. I was at a meeting with a regional agent from the bank of england last week. Hell will freeze over before they raise rates significantly. 0.25 % a time if you are lucky. So I have bought an off plan place in London!! Only logical thing to do! If prices go up by 50% I am ok. If prices go down 50% I will sell at a loss and buy a better place at 50% off. London is never going to crash in a big way. I think people forget that it has always been expensive? I am not sure a teacher could have afforded a nice house in Islington 50 years ago?? If we had kept 2 flats we owned in the mid 2000s and no
  11. If no annuity I read 4% safe withdrawal rate as someone mentioned already. In the USA they seem to understand these things much better. Great calculator at: http://www.firecalc.com/
  12. Well we sold 2 places in London in 2005 and 2007, moved to Edinburgh and on paper are now about 500k worse off than if we had stayed. Problem is that i cant see how we could have done any different. I used the profit from the move to set up a business that now supports our family. Also my mate who stayed might now live in a flat which he bought for 400k and is now worth 700k but he is still trapped! Who cares how much the house you live in is worth??!! Why does it matter! Just enables people to get more debt! We now don't have a mortgage and can save money. Though of course what i am
  13. OK but say the bubble bursts, there is so much demand that people would start buying even if prices were falling I think. As not everone is in it to make money, some people just want a place to live. The other main piece on the news was on south east airport expansion, seems the government has no interest in the regions and the south east will just keep getting more congested and more expensive. Crazy really when the rest of the country (bar maybe birmingham and manchester) is empty!
  14. Well I am off work sick and there was just an item on the London news about the Walthamstow bubble!! Prices up 50% in a year! The only thing about London is that I have been waiting for the crash since 2004 and dont see it coming any time soon. There are so many people waiting to buy that even if the prices dropped there would be massive demand. Luckily I now live in Edinburgh. Wont ever own a million pound house but then again I have a great house, can go sailing after work and dont have to go on the tube or sit on the M25!!
  15. Pros and cons? Pros: Cheap Doesn't look rough Nice by the dock Cable car! Crossrail in 5 years at custom house Cons Nothing there Under flightpath Anyone know any more????
  16. I have zero debt. As i also pointed out in the original post i have been reading this site daily since 2005. My real point under the rant is the low interest rate environment making it extremely difficult to create income from capital. My maths is good enough for that!
  17. Thanks for that. However I hold vanguard funds in a sippdeal sipp so my annual charges are around 0.3% And also I am planning on selling the business in about 15 years as my business partner is older than me and not sure I want all my eggs in that basket!!
  18. Great, thanks for that. So my original point was that this job is then equivalent to a private sector job at £55,600 and should be advertised as such! Then private / public sector jobs could be compared properly.
  19. So someone cleverer do the maths for me. 40k job for 20 years means 10k pension. 3.3% annuity requires 300k. Someone adjust that for inflation and investment growth and tell me what the equivalent person would have to contribute to a private pension per month to get the equivalent?
  20. Well tbh the only flip side of that is i know if i had become a property speculator i wouldnt have stopped and would now be wiped out! Or waiting for an interest rate rise to wipe me out. I am now so underleveraged it hurts!!
  21. Civil service? Universities? Nhs But maybe someone else can confirm so i can tell my wife!!
  22. Well thats true, but i think what that doesn't take in to accoubt is that the pension funds will pay agents to do the admin, management etc whereas a btl landlord is doing some of that themselves to make the return slightly better.
  23. Thats a bit harsh. I have been an accidental landlord before, i have a physics degree (so can do sums to a certain degree) and am a Chartered Tax Advisor so have a reasonable knowledge of tax and financial products. I just meant the figures are not exact. The point is that the government Zirp drives down annuity rates and makes property investment more attractive.
  24. Ok, good point and thanks for trying to calm me down, however i think unless you are very wealthy they limit incone drawdown to 120% of the equivalent annuity. Isas are an option i suppose. And then spend the capital slowly!!
  25. I have been a member of this site for nearly 10 years.I am 44. Sold in 2005 in London. Bought 2009 in Edinburgh. So for somewhere to live we are in OK shape. HOWEVER...................................... On the pension front we are shafted: http://www.guardian.co.uk/money/2013/apr/23/falling-annuity-rates-cost-retirement -> 3% annuity rates mean to get an income of 25k at 65 need to have a £750k pension pot. Unfortunately I have my own business, should have been a Doctor/Police Man/MP etc etc Wife isnt working but I have told her she can only get a job with a final salary pension! I ha
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