wotnocrash

I wonder if Cerberus took out a 125% LTV mortgage to buy this!

The ONS statistics only talks about migration within the UK, i.e. The half million migrants from the EU and elsewhere each year are not included. Most migrants initially come to London and it is them driving population growth rather than the birth rate

I am not going to apologise for looking out for my daughter's future. Am I worried about a HPC? No - we have a low LTV in our main house and a mortgage 1times joint income. For me a crash would be a buying opportunity to trade up both our house and the flat for our daughter. I bought my first place in 2006 so I know how it feels to be screwed over by the ridiculous increase in prices.

I bought it and I let it so technically it is a BTL, but yes it is for my daughter, hence the price now or in the future is irrelevant to me. Does that make my experience irelevant when compared to his model? No - so f*** off back under whatever (rented) stone you crawled out from.

The model is way out for my BTL. Rent is £1350 pcm, purchase price was £270k and 3.5% interest bought a few months ago, whereas your model suggests a max price of £432k at 4%. That's in London too, where rent-price ratio is supposedly most out of line. It always used to be that the weekly rent roughly approximates to the price in £k, which would be closer but still a bit too high.

An EA is likely to suggest a vendor accepts the offer from the person using their FA, rather than someone else that is not as they are potentially going to make extra commission. The agent has no interest in pushing up the price by a few extra grand as the extra commission for then at 1-2% is just not worth it.

The tax regime may be completely different in 20 years, but I am aware that as it stands then we pay tax on any nominal gain unless we do some effective tax planning. It therefore helps that I am accountant!The main reason for buying now was to give us 20 years to pay off the mortgage for her rather than make a capital gain, though in all likelihood it probably will increase in value over that timescale

We have bought a property this way. It's quite simple, you just offer the fair price less the amount you will have to pay in fees. In fact it is the buyer that saves in this scenario, as stamp duty is paid on a smaller amount

What are you talking about. You quoted me, I responded saying you hadn't considered the benefit of leverage ***t

struggling even to form words now, let alone sentences it seems

What are you struggling to understand

You have to compare like with like, the capital opportunity is a lot less with other assets, as you don't benefit from leverage which currently gives us about a 12% return on our deposit sum invested.Anyway, we didn't buy it as an investment, it is a future home for our daughter

You are on the wrong website if you think prices will quadruple over the next 20 years!

Deposit is the standard 25%, rate is 3.5% fixed for 3 years.We intend to keep it indefinitely, in fact the plan is to hand it to our daughter mortgage free when she is 21 (she is 20 months now!) to help her get a foot on the ladder.

There are still plenty of places in London where someone on £70k can buy. I bought a 3 bed flat in a leafy part of zone 4 for £270k a couple of months back. It's also much cheaper to buy than rent. This flat is a BTL, it brings in £1300pm and costs me £580 in mortgage interest, it would be cheaper still with an owner occupier mortgage