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About ldavison81

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  1. I've already factored in ground rent and service charge (both small) to that calculation. Maintenance costs will be negligible, besides no guarantee that I will have a decent landlord in that timebeing. Much better than having to move every 6-18 months when the rent is hiked, or the landlord wants to sell the property etc. Plus not having the freedom to do with the property as I wish e.g. letting it out via AirBnb when I go away on holiday to cover the cost of my trip etc. On the flip side, the opportunity cost is if there is not a crash, and prices stay stagnant with perhaps 0-1% growth for the next 5 years - I will be significantly better off by around £85-90,000 than had I been renting. Makes sense to lock in a low interest rate while I can.
  2. Difference between mortgage and rent savings over 5 years = £45,000 (with a very modest rent increase of 6% yoy). My last landlord increased my rent by in one year by 19%, needless to say I had to move out and find a cheaper property. Equity gained by paying a mortgage and not renting = Approx £40,000 (£8k repayment of capital each year) Saving of £85,000 over 5 years compared to renting the same property. So as long as property prices don't fall by more than 20% in the next 5 years, I will have been better off than if renting.
  3. Hi All, Thanks for your responses. I suspect the drop was something to do with a cheaper flat (a studio), selling in a nearby building in the past few months, this obviously brought the average price paid down a little because it's the only studio nearby these flats (mostly 1/2 beds). The strange thing is this sale was a few months ago and has been appeared on Zoopla for over a month, I think there must be a delay in actually refreshing the actual Zoopla estimates. Also, this purchase is for a relatively large 2 bed flat in Zone 3, not a 1 bed flat in Notting Hill - that's a different poster. I'm aware that I could pick up a 400sq foot 1 bed in some parts of Zone 2 for the same money but I value the extra space in the place I am purchasing. In terms of the rationale of buying right now, my monthly mortgage repayments (capital + interest) on a 5 year fix will be around £500 per month cheaper than renting, this is not to mention the fact that the rents on flats in this area have been rising by approx 6% yoy for the past 6 years.
  4. Hi All, I'm currently in the process of buying a flat in London and have spent many hours researching the sale of comparable properties to ensure I am paying the right price. One of the tools that I have looked at, but not relied on, has been the Zoopla property price estimate. I understand that this is an estimate, and is based on the house price index data uploaded by the government and also I appreciate that it is not that accurate. However, I'm concerned as the Zoopla estimate dropped by 7% overnight for the particular property I am looking at, from around £400k to £370k, as well as comparable drops for all other flats in the building. I also noticed that my current property, over 50 miles away, also dropped in price overnight, albeit just by 1%. I contacted Zoopla and they sent me a generic response: "The Zoopla Estimates on our website are our opinion of the market values of homes, based on publicly available data from the Land Registry and Registers of Scotland, which in some cases may be incomplete or inaccurate. Our value estimates are calculated using a proprietary algorithm that we have developed by analysing millions of property data points, and are constantly refined using the most recent data available." Has anybody else noticed this downward trend? Have property prices in the area really dropped by 7% in the space of one monthly/quarterly update from the land registry data of house prices? Thanks.
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