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About geranium

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    HPC Poster
  1. Here's the full report Except for London, the South-East and Scotland, most areas don't look that strong. I know RICS is VI but they did produce suitably dismal reports when the market was weak in mid-2005.
  2. Not cheap at all but Foxtons newbuilds must be the worst value properties imaginable on the market.
  3. The moral is always to avoid Foxtons and newbuilds. I'm not saying that makes Islington affordable but it's a good starting point. This one works out at £572 per square foot whereas £500 per square foot it closer to the current asking average I think for a 2-3 bed in Islington (house or flat) at present.
  4. Please tell me ... think I should be able to check it out. What is HPC so afraid of? Unless the new one is much better of course.
  5. I sold because it was a nightmare property (neighbours from hell) - he may be lucky with these, he may not. Ex-council is a big risk in that way. Painting could happen soon I guess - depends if the freeholder (the council) remembers to do it or not. Ex-council does have a problem of OTT bills once in a while, although this block is small which limits the risk. Transaction costs tend to be added onto the mortgage so I included those in the cash flows. My £6363 included 1% stamp duty (if it's still 1% sub £250k anyway) and £1k for fees. An agency is managing the property so he'll be earning
  6. Good analysis RealistBear. City employment seems to be a key factor for the housing market in London. In 2003 the market was very weak in London and not surprising when thousands lost their jobs in the City. Now recruitment is tight. Headhunters call often and salaries are rising. Bonuses should be good again this year. It won't last forever - City downturns are deep and ruthless when they happen - but it hasn't ended yet. It's not a conspiracy that the weak market in the Midlands and elsewhere is not being reported, it's simply that the journalists are based ... guess where... in London! Re
  7. I doubt he spends 388 hours a year or 38 10-hour days a year managing it, it's probably just an irritant once in a while. The outside painting every 10 years is only for metal staircase railings and front doors in the block - the windows are aluminium framed and don't need painting. After 7 years with no paint it really didn't look any worse than when I bought it. I suppose if he bought the flat with mainly borrowed money then the sub £2k per annum just feels like free money - provided he has full occupancy and no problem with neighbours or the tenants - and he probably thinks he's in it for
  8. So a buy to let mortgage costs about 5%? Painting only happens once every 10 years - if that - so he might avoid it completely, as I did over a 7 year period. So I'll forget the painting in the equation. I suppose if he's a higher rate tax payer and he owns 100% of the flat the opportunity cost is closer to 3% or £6363 =0.03*((210000*1.01)+1). I included the transaction costs in that. But that's unlikely and I know he needed a mortgage. He'd have to pay tax on his £1940 per annum rent as well but there are some offsets on that and I imagine a lot of BTLs don't pay any tax on their income,
  9. Why does 6% gross yield offer a negative return? I STR'd in 2004, selling my 1 bed flat in North London to a local restauranteur who wanted a buy to let property. I sold for £210k. He rented it out immediately. I recently noticed the flat advertised for rent again at £250 pw with one agent and £260 pw with another. I guess he may get a slight discount to £250 pw? I worked out, including the costs he must have paid to purchase the flat, that his gross yield will be about 6% (assuming it's rented 52 weeks a year) and thought he must be quite pleased with that. =(245*52)/((210000*1.01)+1) The
  10. If you're a higher rate taxpayer then your return in a low risk account will be 3% net or thereabouts. If you have a significant deposit (sounds like you do) and you're a higher rate taxpayer, buying a decent-sized (eg 4-bed) house can be cheaper than renting that house and it'll be easier to find one you'd like to live in, probably. It's only when you have a small deposit and you want to buy smaller property that it can be cheaper to rent. Anyway, do the maths: 1. compare whatever return you'd be hoping to get from eg cash (3% if you're a higher rate taxpayer, 5% if not, or equities, i
  11. According to Hometrack reports back in 2005, when the London market really was weak, buyers were negotiating an average 7% discount from the asking price.
  12. Nice and polite - this makes perfect sense to me. Wasn't there a Nationwide (or maybe Halifax?) report out about a year ago, pointing out that the gap between London prices and rest of the UK was the narrowest it had been for years? This might have suggested that London was undervalued and the rest of the UK overvalued. The London market has been rising strongly for a year following 3 years when nothing much happened and the market in the rest of the UK carried on rising. A recovering equity market and the bonuses/employment that go with it helped the London market recover. If you look at
  13. Thanks, Jason. I guess people can ask what they like but if there really is going to be an interest rate rise, they might be well advised to price attractively and get out while they can.
  14. Has anyone managed to find the press release on Rightmove's website? I can't find it this month.
  15. Look at the May RICS survey - East and West midlands markets not in good shape - more prices going down than going up.
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