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spunkbubble

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  1. Greenwich? Blackheath? No wealthy owner occupiers (or part of the year owner occupiers)? I totally agree that most wealthy investors looking for a home will buy them in central London or the fringe to the west of it, but there are some very affluent and desirable parts of south east London. Foreign money has had a big effect on London over many, many years. Completely agree a globetrotting millionaire is not going to move into somewhere like Lewisham, hang out with the local monkeys and eat fired chicken though. That doesn't mean that those people are not buying property as investments outside of 'Zone 1'. I know one guy personally (a foreign investor) who has bought up huge amounts of property in the area you mention (£millions worth!) over the past decade, taking big chunks of apartment blocks off plan in a really dirty part of London called Woolwich - that place where they were all rioting in the summer. Okay, they are in some stunningly beautiful development separate from the town which is nothing like Woolwich itself but it illustrates the point. London is not a straightforward place and as a 'world' city it is always going to attract global interest interest be it for enjoying or making money. At the other extreme of it is in my eyes far worse. A buy-to-let frenzy where people have borrowed huge amounts and the taxpayer paying off mortgages via an out-of-control benefits system. I can't be bothered to go into the details of why this is so wrong, the scandal behind it, the cheating that goes on within it - I'm sure it has been done to death on here already. The cost of paying for the inhabitants, be they dressed in head-to-toe Burberry with a dangerous dog on a leash, or wrapped in a curtain pushing a stroller with 5 kids hanging off it must be eye watering. An outright crash if it comes could be horrific - a complete collapse of the system, mass unemployment, the welfare system bankrupt, violent crime, food shortages and all the joys that poverty brings.
  2. London is a much more complicated market than the rest of the UK (which also has differences from area to area). As someone said already there is a lot of foreign money investing into it and it is not just at the top end but all the way down to the little shitty holes owned by landlords renting to people who don't work, or at least if they do not enough to support their breeding habits which are housed by the UK welfare system. I can't see London crashing in a way that benefits anyone? Falling prices I can see, but not a crash without economic armageddon (in which case buying property won't be top of my list).
  3. I took all my own photos on a place I sold recently. Full day (8-10 hours) shooting, selecting and retouching. Under offer in 2-weeks. No idea if the shots helped but the thinking is you do what you can to help it sell.
  4. ...and as for prices heading down over the next year there is every possible factor discussed on this site. You will have to make your own mind up as know one knows until it happens. There has already been falls in prices since the market last peaked in 2007, recent falls around the UK are widely reported but you are looking to buy in London which has some differences. Some will tell you prices will continue to rise strongly (although I think that is just the Daily Express and their property empire building owners and reporters), others that they will stay supported by a lack of availabilty, not enough new building and investors looking to find a way to make returns (savings and stocks not being attractive). As for it going the other way the most common theory is that prices will fall back gradually over the coming years or at best stay pretty much flat with values eroded by other economic factors (inflation, interest rates...), or there will be an almighty crash which if it does happen will most likely be driven by the collapse of the Western economies, our banking system and currencies as we all struggle to pay our debts. If the latter happens I doubt there will be many people in a position to buy (hence why the prices will have crashed). Anyone's guess!
  5. Most are probably leasehold because it alows the developer to make more money. There are some advantages to it as the responsibility and effort involved in maintaining the outside of the building, structure and common areas sits with the freeholder. In a large block it would probably be almost impossible for all the leaseholders to agree on how much gets spent on what and when but even in a smaller block or a house conversion it only takes one **** to make everyone's life a nightmare. Often the leaseholders do actually own the building, usually through an allocation of shares in a holding company. A managing agent is then appointed by the owners (or the owners having some say in who the developer appoints) which does help keep costs in check. Many different scenarios so it is worth looking into what you are getting into. Some advice here: http://www.lease-advice.org/publications/documents/document.asp?item=7
  6. £250k will not buy much in Clapham. Very established south London area with nice bars, restaurants, open space, good supply of quality houses and flats, easy access to the City. Would of thought £400k is more like it for an okay 2-bed there. A friend recently spent Almost £700k on a 2-bed there (a very, very nice one). Would look elsewhere - maybe somewhere like Tooting?
  7. Not surprised by this. They are what will probably limit any falls or even push prices a little further. Savings are returning nothing, shares a nightmare the past few years. BTL in a market where rents are rising makes a lot of sense. While BTL is still attractive people trying to get on the ladder will be up against these 'investors' competing for property at the lower end (which is where most of them buy). Doubt we will see it taxed properly which is what it should of been to begin with. Some reduction in available mortgages might help but not by much. In my view BTL is the biggest reason prices have climbed so high and become out of reach for so many.
  8. I have just sold one in London. Offer I accepted was 2.5% below asking (two identical offers).
  9. Yes, that one in particular is quite something. It is a garage! To turn it into a home is going to need a lot of cash. And when it is done it will still look onto a benefits estate - well, they will be looking onto you at least waiting for you to go out so they can rob/mug/rape/graffiti/piss-though-the-letterbox/beg-for-change-and-fags. Think I am becoming addicted to Property Bee - only discovered it yesterday. Should be at work instead of downing even more coffee and being nosey! http://www.rightmove.co.uk/property-for-sale/property-31180009.html 4-weeks. £65k drop. Wed Sep 14 09:23:06 2011 Price changed: £389,950 Offers in Excess of £324,950 Wed Aug 17 21:41:17 2011 Initial entry found. Awful busy road full of fast food outlets for scum, a Wikes, Kwik-Fit, countless dirty flats above businesses. Owner has obviously watched too much 'Homes needing a Hammer' and 'Colin and Justin'. You can even buy next-door to it! http://www.rightmove.co.uk/property-for-sale/property-14335609.html Mon Aug 22 15:53:55 2011 Brief Description changed: Freehold shop and upper part with advertisement hoarding investment currently generating £52,500 £23,500 p.a. Sat Aug 20 20:11:11 2011 Brief Description changed: Freehold shop and upper part with advertisement hoarding investment currently generating £23,500 £52,500 p.a. Wed Jul 27 21:43:43 2011 Brief Description changed: Freehold shop and upper part with advertisement hoarding investment currently generating £52,500 £23,500 p.a. Wed Jul 27 16:59:10 2011 Price changed: from '£550,000' to '£280,000' Fri Jul 15 16:17:11 2011 Brief Description changed: Freehold shop and upper part with advertisement hoarding investment currently generating £52,500 p.a. Mon Jul 11 18:05:48 2011 Initial entry found. Price cut in half! And the business turnover as well!! Would love to see this monkey on Dragons den going though his business figures: "Mr. Dooduu, I just want the numbers - year one, how many doner kebabs did you actually sell?"
  10. This caught my eye earlier: http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=OUTCODE^2310&minPrice=375000&maxPrice=400000&index=10 Thu Aug 18 21:18:28 2011 Price changed: from '£460,000' to '£384,995' Subtitle changed: 1 bedroom terraced Terraced house Tue Feb 8 20:29:53 2011 Price changed: from '£525,000' to '£460,000' Thu Aug 26 22:08:51 2010 Initial entry found. The property is in 'east' Greenwich - which for those who don't know is very different to 'west' Greenwich. This particular property is right in front of a horrid council benefits estate and backs onto a row of kebap shops and fast burger/chicken eateries. It has no kitchen, bathroom, central heating, insulation. Thought it was a great example of how: • prices are totally unrealistic • a lot of property has been on the market over a year • sellers are realising their asking prices need to drop • in a falling market differences in areas can make polarise interest Another actually made me laugh: http://www.rightmove.co.uk/property-for-sale/property-17254405.html Tue Sep 13 22:27:32 2011 Price changed: from '£405,000' to '£395,000' Thu Mar 20 02:06:09 2008 Initial entry found. March 2008! In that time they have dropped £10k. By any standards the price is incredible - 775sq ft, one bedroom. Again, for those who don't know the area, 'north' Greenwich is where the O2 is. Really nice concept 10 years ago when they first started putting homes there but the concept never materialsed. It feels utterly soul-less, no shops, bars etc. Very industrial, a lot of air pollution and the ground must be contaminated from the old gas works. Tube is at least a 15-minute walk, Greenwich itself probably 40-minutes. Reports of sick and piss in the corridors and lifts, high service charges and an environmentally better but useless and expensive combined heat and power system. Finally, I wonder if this shows how when the price is reduced there are buyers out there - but how easy is it to get the money from the lenders? http://www.rightmove.co.uk/property-for-sale/property-18965493.html Fri Sep 2 10:35:18 2011 Status changed: from 'Under offer' to 'Available' Wed Aug 3 21:25:45 2011 Status changed: from 'Available' to 'Under offer' Thu Jul 14 07:36:48 2011 Price changed: from '£445,000' to '£399,500' Sat May 28 19:29:39 2011 Initial entry found. Probably lots of far better ilustrations out there but London we are told is the only area bucking the trend, apparently is still recording price rises and according to some is a safe haven investment for the world's money.
  11. True. That one is in a dirty stinking ghetto full of scum. Not all of it is like that though.
  12. Personally I would go East. Long-term I think it is a much better bet as it is where all the development is, better/newer transport links etc. Although it could get hit a bit harder if the prices do fall for a while - maybe that is a good thing? I can't see £350k buying a house in Finchley. Maybe a nice conversion flat though? Not all the flats in E14 are new build boxes: http://www.rightmove.co.uk/property-for-sale/property-34204433.html
  13. Interesting reading the above. Pretty much agree with the content of it - right now is probably quite a good time to buy if you can find a property at a fair price. Rents are rising in London and will continue to do so as there simply are not enough properties available. With the sales market slowing as people struggle to buy/move for whatever their reasons are the shortage is likey to get worse. Combined with prices falling a little, savings earning nothing and stocks doing badly, BTL is probably going to see a bit of a surge again at some point.
  14. Fixed rates benefit the lender far more than the borrower. Borrowers buy the product based on how they feel at the time, sometimes without much research. Big purchase like a house, worrying about what might happen, hearing that interest rates could rise. Fixing takes the fear away (for 3 or 5 years at least). The lenders is the experts. They have huge teams of people crunching all the numbers, massive resourses, access to data the buyer does not even know exists, an in-depth understanding of not just a local housing market but global capital markets. They offer fixed rates so they make money, not lose it - they have bonuses to pay! It is pretty widely accepted that rates will remain low for years to come. Not saying they won't rise as they will at some point - but by how much? And how quickly? Over 5-years what is the likelyhood of the BBR rising enough to push the variable mortgage rate higher than the fixed? And even if it did on what year? Year 5 of the deal? The borrower would of still paid way over for the previous 4-years! And then be faced with being back on the variable rate soon after. Or the rate remains below the fixed for the entire 5-years! Fixed rate historical data: May 2001 Bank Base Rate 5.5% Portman Building Society and Leeds were both offering five-year fixes at 5.49%. 2003 (the last time interest rates bottomed out) Bank Base Rate 3.5% the best five-year fixed rate was Chorley & District's 4.25% – at a time when, like now, interest rates were expected to go up. May 2007 (pre the credit crunch) Bank Base Rate 5.5% Britannia had a ‘best buy’ five-year fix at 5.49% (+ fee of £399) loans up to 95% September 2011 Bank Base rate 0.5% First Direct offering a 5yr fixed rate mortgage at 3.49% (+£1499 fees) or 3.99% fee free!
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