New_Paradigm

It is a new paradigm, my friends! Price can rise ad aeternum. Savers will pay for it

Equity market will do great with the US/UK/EU QE. It is a great time to buy stocks like Foxtons which have lost value recently and are absolutely undervalued.

TheCountOfNowhere, where can I see price reductions in RightMove.co.uk? I know in Zoopla you can see them on the side.

I would buy 2, but I am not a greedy person. I just want to buy one flat not only as an speculative investment but also as a place to live.

Forever HPI is a natural law, like gravity. Get your facts right. Well u know... worst case scenario my £400k 1-bed flat in kennington will just increase its value to £600k in 5 years' from now. I can spend £10k in some new IKEA cabinets for the kitchen, a new shower with Hansgrohe mixers and some fancy new wood flooring for the living and bedroom, and that would easily add up another £50k to the total value... so if I end up selling it for £650k it is a £240k profit in 5 years. Not too bad, don't you think? That is the the total catastrophic scenario. Still better than renting, and ending up living in a cage in Poplar like most of you.

It looks like a bargain to me. You got a convenience store next door... that would add about +£200,000 in value to the house.

So if I buy my £400k 1-bed in Kennington or Clapham today... how much do you think it will be worth under the NEW PARADIGM? I was thinking to sell it for £800-£1M in 2020. Will 1 million pounds be achievable in 5 years from now? Worst case scenario it is just a +£6,000 profit per month for 5 years. I think it is not bad. And I save the rent What do you think guys?

I am a visionaire, and I am already talked about this in my thread: London is the new Dubai or new Hong Kong. You better it understand it sooner than later.

You named it! Absolutely, don't have any doubt! Worried1, I think we are finally in the same vibe!

There are more than 100,000 secondary residences in Paris for a population of 2 million So 22,000 for London is nothing! Sorry!!! You don't need to speak French; look at the numbers in central districts: 8e (Champs-Elysees), 4e (Marais)... http://www.slate.fr/story/84525/paris-logements-vacants-residences-secondaires Well it is very funny you talk about Ile St-Louis. My studio flat (which I expect to sell to buy a flamboyant flat in SE London ) is actually on that plan (but in the "mainland"). That part of Paris (the "Iles" - the other is where Notre-Dame is -, Marais - North - and Latin Quarter - South -)... I would compare it to Leicester Square or Soho. So they don't really attract the Arab/Chinese/Russian which will head to the West (around Champs-Elysees, which would be the local "Mayfair") but maybe wealthy artists and so on.. Prices are not that high. My flat is about 10-12,000 EUR/sqm now. Yeah some top locations can command higher prices. For instance at Place des Vosges, Place Dauphine... if you have good views it can go up to 20-25,000 EUR/sq (very rare). Also new construction which is EXTREMELY rare there (just some old buildings completely rebuilt). There are less and less residents in those areas indeed but the secondary residences is just one of the reasons. To me, the main reason is tourism. Tourism in Paris (like London) seems to never stop growing (now you have all those Chinese, Russian, Arabs... that you didn't have 15 years ago). In those thin streets in those areas (like the Marais, Quartier Latin)... there is literally no space. So every weekend (no matter the season) they are PACKED. Well that is very annoying for a resident. You literally step out of your house to be in a flow and crowd of tourists. You have to queue in the metro station to go through the gates (no joke). My building has an historical feature (so it is featured in guides) and I see continuously tourists taking pictures of it (I can see it from my kitchen) since it seems to be in some itinerary with local guides. Sometimes it is funny, sometimes it is annoying. Second thing... because of tourists... retail becomes totally oriented for them (vicious circle). So it is not very cool if they close a supermarket to open who knows what (an art gallery, some flagship store, some antiquarian...). And even local shops are more expensive. My local PAUL (the bread chain that you have in London) is about 10-20% more expensive than others in areas just about 2 or 3 metro stations. The reason? (I asked a manager once). Tourists (which count for most of the customers there) are willing to pay more and rentals are more expensive. I am lucky enough to have a large supermarket next door (probably the largest in that whole area) but even there is full of tourists which means that they gradually orient it more to "take away" products rather than a real supermarket (and of course it is ridiculously expensive... it is like living in Piccadilly and having Whole Foods as your supermarket) And then finally tourism means AirBNB. Those small apartments in central Paris (mine is 300 sqft) are just PERFECT for AirBNB (really nobody cares about size; it is all about location when renting in AirBNB, and the location is top). Why rent full-time or live there when you can rent a 300sqft studio for 70 EUR a night? Just make your numbers! You cannot rent that apartment for much more than 1000 EUR. But even if you rent it for 15 days... you already break even compared to a full-time rental (and they don't pay income tax usually on AirBNB ). Of course in Ile St-Louis that is even crazier because you are in an island where (I think) there is not even a proper supermarket. It is cool because it is very quiet at night (and you are in the middle of the city), but it is definitely not handy (not to mention if you have kids, a car...it just doesn't work). So yeah it is a vicious circle. Many people "give up" and move to areas just about 500 meters or 1 km. that are more livable and prices are lower (not only property, but shops). Because otherwise you end up living in a tourist trap with all the inconveniences: you street flocked with tourists; crossing Chinese tourists in your elevator going to their AirBNB flat (really nothing against them, but it doesn't make a lot of "community" if you see the point) and having more retail choices to buy €1,000 shoes than a bottle of milk or some meat in a supermarket.

50% ? Does anyone know his dealer?

That it is. They are wrong. Beautiful house. I bet it will be on the market for £2.5M in a couple of years. It just more than doubled in 8 months. It is a new paradigm.

worried1, it is a NEW PARADIGM Prices by 2020 are likely to double.

You better understand it sooner than later. Have you seen the new apartments at Centre Point? 1-bedroom starting at £3.2M. £400k in Kennington is a bargain. It is a new paradigm, my friends.

It very much depend on location/type of property. Had you bought in 2004 in Hackney, now you would have a very good profit. The reality is that most properties in London in 2014 are way more expensive than the previous peak of 2007. Those that are not are the exceptions. You get a good point, but where do you invest otherwise? If we are looking to a deflationary environment in Europe (including the UK), a 3% is not that bad. There are less and less places where an average investor can get good returns. And you are forgetting that if that flat doubles its price, that is a huge return if you ever sell. I can only see that properties in prime markets will continue to rise.

You both are obsessed because you are waiting for the market to collapse so you can get that flat for £100,000. Bad news, it is not gonna happen.

You will cry when that £400k 1-bed at Kennington sells for £800k in 2020. Wait and see

Yeah I know I am not rich, I haven't pretend it to be. But I am well educated. Money does not buy class. anyway as I told you my parents would buy the rest of the flat, so no problem. I will reimburse it to them.

Ahah you are hilarious. I am not working for Foxtons. I don't have a car! I take the public transportation like low-class people. I wish I had a car but as I told you I am working class, and I would rather invest my hard-earned money in an asset that will value with time like property in London. But yeah I like a Mini. Maybe I will get one when my new flat will increase its value by 20% a year. That is at least 80,000 GBP... enough even probably for a Range Rover (I like it too!) But indeed being inside the Congestion Charge (which are parts of Kennington, Lambeth and Waterloo) is another plus if I ever expect to buy and maybe buying a car. I think you get a discount. And you got a great point. Can you tell me about another area inside the Congestion Charge as affordable as those areas in SE London? It is bound to skyrocket in the near future.

Not really. Look at how the other half live in places like Dubai or Hong Kong. In bedsits or "hot beds". There is no social breakdown there. And there are 1 million cameras in London. No problem. Watch "Children of Men"... the future of London I dunno who "libertas" is. I discovered this forum yesterday. I must say I love talking to you guys... you are so jealous of successful home owners... insane.

I can't see what is funny about people renting cages for £600 in SE11 in 2025 while those 1-bed apartments in Kennington will be on the market for £1 million or more.

I am not a real estate agent! Not that I think that is shameful; don't get me wrong or take me for an elitist or snobbish. It is probably as honest as being a server or a cleaner. Not for someone with my position and upbringing though. Anyway guys, i feel you are trolling me and not being helpful. I will keep you updated. Unfortunately I think I can't get out much of this forum. I just wanted some different perspective, but I have just found a bunch of jealous renters waiting for an impossible collapse of prices in London. Good luck!! I hope it is all well for you and you will not end up renting a cage in Streatham like those guys in Hong Kong because you didn't buy at the right time. Just have some perspective.

What is P45?

Definitely Kennington and Clapham are more premium than Stratham. I would say they will be the new Pimlico in 20 years from now. And with all the removal of disturbing elements around Elephant & Castle, SE London can only go higher and higher.

Streatham is not Kennington or Clapham, honey. And how much are those reductions? If a house sold for 500k in 2013, was in the market for 700k in 2014 and now is "down" to 600k... do you call that collapse? I would call it correction, and that is the very reason I started this thread! Get your facts right.