Truly Incredible Price Achieved

[Si1]

My worry is that it is a bubble which may not burst. It may be a bubble which changes the nature and distribution of property ownership across the UK. Last figures I saw the percentage of owner occupation had gone down (perhaps for first time in the last 100 years?).

While some people can borrow money cheaply and command huge rents - I can't see things changing significantly in the future.

but what you describe now is NOT bubble - in all cases I have seenrental income has not been very good, and also low IRs and favourable mortgges will not last very long. You forget that the bubble exists in govt fscal and financial policy too - and this is is cyclical and in an increasing downswing.

But again, yes, 20 year cyclic down easly. I think the likely return over this time look terrible on property.

[miko]

so what you are saying is that their personal wealth is highly tied up in property and is about to crash? excellent...

No what i am saying if you care to read a bit more of the topic and the post's on it before you answer with a one liner that just makes you look dim , is that prices people pay for property is not just based on what they earn and what they can borrow , is that more simple for you.

[Si1]

No what i am saying if you care to read a bit more of the topic and the post's on it before you answer with a one liner that just makes you look dim , is that prices people pay for property is not just based on what they earn and what they can borrow , is that more simple for you.

your inability to use correct sentences or grammar marks you out as dim yourself

then you cover up your lack of argument or flow by abusing me

you are a grade A wally if not worse

[miko]

your inability to use correct sentences or grammar marks you out as dim yourself

then you cover up your lack of argument or flow by abusing me

you are a grade A wally if not worse

Touchey touchey today !!

my sentences got across the message , loud and clear by the looks of things .

Never abused you just said you looked dim as your one liner had nothing to do with the line of the topic and the thread , due i guess to you not reading it correctly. Take it on the chin man , i have no need to cover up any lack of argument or flow as i was making a statment not arguing again you seem unable to grasp the basic concept of the thread, but you just want to look smart and clever . In this instance you did not look smart or clever but dim , accept it and move on.

[Si1]

Touchey touchey today !!

my sentences got across the message , loud and clear by the looks of things .

Never abused you just said you looked dim as your one liner had nothing to do with the line of the topic and the thread , due i guess to you not reading it correctly. Take it on the chin man , i have no need to cover up any lack of argument or flow as i was making a statment not arguing again you seem unable to grasp the basic concept of the thread, but you just want to look smart and clever . In this instance you did not look smart or clever but dim , accept it and move on.

sto patronising me you look worse yourself

[miko]

sto patronising me you look worse yourself

No if you want to post on my post's in the manner that you did that is fine , no problem with that , but i have a right to reply in any manner i choose , don't like it tough .

[lets get it right]

No if you want to post on my post's in the manner that you did that is fine , no problem with that , but i have a right to reply in any manner i choose , don't like it tough .

Private fight lads, why not take it outside eh?

[Si1]

No if you want to post on my post's in the manner that you did that is fine , no problem with that , but i have a right to reply in any manner i choose , don't like it tough .

hello? you started by insulting me and then totally reverse the situation? are you some kind of weird psychological experiment?

[miko]

Private fight lads, why not take it outside eh?

I never started it im just replying to it

[miko]

hello? you started by insulting me and then totally reverse the situation? are you some kind of weird psychological experiment?

No you were the first to answer something i had posted and answered it in a sarcastic manner without having read the thread and therfore answered it in a way that made you look dim. You looked one dim and two jealous , when stating that the couple i had mentioned were going to losse half their wealth and stated the word excelent .

That speaks volums , volums about your jealously for anyone that has got anything. I told you to read the threads before putting in your one liners as they were out of context with the thread and made you look dim. It then took off from there , i told you on one occasion to accept that you had looked dim and move on but you could not do that , so it took of from there .

[REP013]

I was talking to a friend last night who told me about a neighbour of his who has just taken an offer on his 3 bed semi. It's in a Outer London suburb a couple of miles from the end of the M3. The house in question is identical to my friend's and is as follows.

Traditional 1930s 3 bed semi - completely unextended. So ... small hall, 12' x 12' lounge, kitchen/dining where the kitchen area is about 8' x 9' and the dining area is about 12' x 8'. Downstairs loo squeezed into what would originally have been the cupboard under the stairs. Upstairs two 12' x 11' bedrooms, one 9' x 7' bedroom and one 6'6" x 6'6" bathroom. Bathroom and kitchen have been nicely refitted by all accounts and the ground floor has the ubiquitous stripped floorboards and a nice fireplace in the lounge etc.

BUT, this is a small house. It's typical of tens of thousands of 3 bed semis found throughout Ealing, Hounslow, Isleworth etc. The road is a bit variable - the houses are all similar but some are close together (no garage at the back) - others have a gap between just big enough for a car to get down. Some of the other houses have been extended in all directions, out the back, porch on the front, into the loft etc. But this one hasn't. This one has the gap between the houses just big enough to get a car down and has a garage in the garden about 15' from the house. The gardens, of these houses, are not the traditional 100' - in fact they are small - the backs of the garages are the ends of the garden. Parking in the area is a nightmare. The houses were built when owning cars was unusual and now that most houses have got 2 cars or more, the whole street is chocked with cars parked two wheels up on every bit of pavement space available.

Yet, someone has seen fit to offer the vendor 50k short of HALF A MILLION pounds.

I'm really struggling to understand this London madness - if it were Kensington or Chelsea you'd kind of understand. But it's an Outer London suburb which I have visited a number of times and it is by no means on the 'highly desirable' list. It's okay, but there's plenty of undesirable looking herberts about.

I know people will say 'Ahh, but he hasn't exchanged yet'. Which is true but, even so, someone thinks it's worth nearly half a million quid.

I live two junctions down the M3 - about half an hour away by car. 450k here buys you a decent sized 4 bed detached with double detached garage, utility room, reasonable garden, three bogs (family bathroom, en-suite, downstairs loo) etc.. But in Outer London, just half an hour away, it buys you a small 3 bed semi with a shared drive, one off street parking space (which takes up the whole front garden) and a small garden. And, in this case with almost no room to extend. If you extended out the back you'd block your access to your garage. You might just fit a small conservatory on the back of the dining area.

I've been preaching the house price crash mantra to my friend for some years now - and although he doesn't really argue with me - I know he thinks I'm a nutter. In 2008 it began to look as if I was correct in my (as far as he was concerned) gloomy predictions. When he was telling me yesterday about his neighbour I just has to keep my remarks to 'wow, the market there must be unaffected by everything that's going on'.

I'm walking around this morning muttering to myself 450 grand, 450 GRAND! for a poxy 3 bed semi - in an area not many miles from where I grew up. There were various house price booms in the 1970s - those houses used to fetch about 12k when I was say 20 and 25k by the time I was 30. My brother bought a similar property in the same area in the early 1980s for 27k. I'd say that house has increased in price by a factor of 45 since 1970 and by a factor of 17 since 1980.

Let, correct me if I'm wrong but we're talking Vince Cable land here (his constituency is, I believe, Twickenham)?

Properties there have always been stupid, in fact, I would suggest that prices anywhere that side of the river; East Sheen, Richmond, Teddington, Twickenham, Roehampton (think that's not an SW postcode), Whitton (to a lesser extent) have always, always been "aspirational areas" where prices are high and those that live there "special". People pay a premium for this, even in these times.

However, cross the road to places like Hounslow and it's a different game entirely.

I wonder if, when (I'm still a when) this crash really takes off these areas will remain as insulated as they have done historically?

Edited August 31, 2010 by REP013

[Bloo Loo]

renters are scum

people with no debt are terrists.

[Si1]

when stating that the couple i had mentioned were going to losse half their wealth and stated the word excelent .

actually you have a fair point there - I was rather triumphal (when of course it has not happened anyway yet)

I MEANT in a general sense but you are quite within your rights to bring me up on that point - wasn't very nice of me

[worried1]

Let, correct me if I'm wrong but we're talking Vince Cable land here (his constituency is, I believe, Twickenham)?

Properties there have always been stupid, in fact, I would suggest that prices anywhere that side of the river; East Sheen, Richmond, Teddington, Twickenham, Roehampton (think that's not an SW postcode), Whitton (to a lesser extent) have always, always been "aspirational areas" where prices are high and those that live there "special". People pay a premium for this, even in these times.

However, cross the road to places like Hounslow and it's a different game entirely.

I wonder if, when (I'm still a when) this crash really takes off these areas will remain as insulated as they have done historically?

If it is in those areas it will be the very less sought after parts. In decent parts of Richmond, even the tiny 2 bed terraces are well over £500k now. Twickenham and Teddington are a bit cheaper, but it will have been a while since a 3 bed semi sold for £450k in the good parts of those towns.

I am a bit further down the river in Surbiton which is a lot cheaper than those areas and you'd have to pay £600k+ for a 3 bed semi in the nice part of town even here (it does get much cheaper than that as soon as you move out of the town centre slightly, though.)

I reckon the original post was about Hampton, Whitton or somewhere right by the M3/A316.

In terms of individual areas remaining insulated, I am a strong believer that this can't happen in the long term. Take these two houses in Surbiton and Richmond as an example.

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=7041815

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=7025455

Both are small terraced houses, both are in one of the most sought after central roads in their respective towns. The Richmond house is over 50% more expensive than the Surbiton one. This is expected because Richmond is a much more fashionable and sought after area than Surbiton.

That differential must be there for a reason, though. Most people who are looking to buy in this area would prefer Richmond to Surbiton and will always pay more to live there, but surely if that differential gets too big then a proportion of them will save the extra cash. If the Surbiton house goes down to £250k but the Richmond one stays up at £700k that proportion might get quite big.

It will be interesting to see how it pans out....

[REP013]

If it is in those areas it will be the very less sought after parts. In decent parts of Richmond, even the tiny 2 bed terraces are well over £500k now. Twickenham and Teddington are a bit cheaper, but it will have been a while since a 3 bed semi sold for £450k in the good parts of those towns.

I am a bit further down the river in Surbiton which is a lot cheaper than those areas and you'd have to pay £600k+ for a 3 bed semi in the nice part of town even here (it does get much cheaper than that as soon as you move out of the town centre slightly, though.)

I reckon the original post was about Hampton, Whitton or somewhere right by the M3/A316.

In terms of individual areas remaining insulated, I am a strong believer that this can't happen in the long term. Take these two houses in Surbiton and Richmond as an example.

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=7041815

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=7025455

Both are small terraced houses, both are in one of the most sought after central roads in their respective towns. The Richmond house is over 50% more expensive than the Surbiton one. This is expected because Richmond is a much more fashionable and sought after area than Surbiton.

That differential must be there for a reason, though. Most people who are looking to buy in this area would prefer Richmond to Surbiton and will always pay more to live there, but surely if that differential gets too big then a proportion of them will save the extra cash. If the Surbiton house goes down to £250k but the Richmond one stays up at £700k that proportion might get quite big.

It will be interesting to see how it pans out....

I was more talking about Twickenham, you can find many 3 bedders there for 450 or less - doesn't have to be good, perhaps Let will let us know?

I've always thought Richmond was a bubble within a bubble and will suffer badly.

I've been interested for 4 years now and unfortunately the panning has only proved worthwhile for gold and not houses - ho hum!

[200p]

Perhaps similar threads started out like this in Harare on www.housepricecrash.zim.?

They were still scratching their heads when people were paying $50million ZWDs for a 3 bed terrace, north of the river (is there a river in Harare?)!

Who's the Mugu now?

Remember the £ is just another vehicle to your destination, is there another vehicle that could be faster?

[endofcrash2]

If it is in those areas it will be the very less sought after parts. In decent parts of Richmond, even the tiny 2 bed terraces are well over £500k now. Twickenham and Teddington are a bit cheaper, but it will have been a while since a 3 bed semi sold for £450k in the good parts of those towns.

I am a bit further down the river in Surbiton which is a lot cheaper than those areas and you'd have to pay £600k+ for a 3 bed semi in the nice part of town even here (it does get much cheaper than that as soon as you move out of the town centre slightly, though.)

I reckon the original post was about Hampton, Whitton or somewhere right by the M3/A316.

In terms of individual areas remaining insulated, I am a strong believer that this can't happen in the long term. Take these two houses in Surbiton and Richmond as an example.

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=7041815

http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=7025455

Both are small terraced houses, both are in one of the most sought after central roads in their respective towns. The Richmond house is over 50% more expensive than the Surbiton one. This is expected because Richmond is a much more fashionable and sought after area than Surbiton.

That differential must be there for a reason, though. Most people who are looking to buy in this area would prefer Richmond to Surbiton and will always pay more to live there, but surely if that differential gets too big then a proportion of them will save the extra cash. If the Surbiton house goes down to £250k but the Richmond one stays up at £700k that proportion might get quite big.

It will be interesting to see how it pans out....

That one in surbiton is interesting as it sold last August at auction for £251k. Needed a lot of work , possibly £100k . Still sitting on a £100k profit though. And before everyone say's it won't sell- it will as it is in a river road and they are sought after. Recon it will go for c£450k.

[miko]

That one in surbiton is interesting as it sold last August at auction for £251k. Needed a lot of work , possibly £100k . Still sitting on a £100k profit though. And before everyone say's it won't sell- it will as it is in a river road and they are sought after. Recon it will go for c£450k.

Well f--k me backwards i knew that Richmond was expensive but 3/4 of a million for a two bed cottage , that is well words fail me !!!!!!!!

[Si1]

That one in surbiton is interesting as it sold last August at auction for £251k. Needed a lot of work , possibly £100k . Still sitting on a £100k profit though. And before everyone say's it won't sell- it will as it is in a river road and they are sought after. Recon it will go for c£450k.

awful yield but good flipping profit if can be sold for that - squeal lil piggies!

[worried1]

That one in surbiton is interesting as it sold last August at auction for £251k. Needed a lot of work , possibly £100k . Still sitting on a £100k profit though. And before everyone say's it won't sell- it will as it is in a river road and they are sought after. Recon it will go for c£450k.

I have been following this one with interest. I thought it was good value at £251k even though there was a lot of work to do.

I had a look around the finished product last week. The finish is not bad, and there is a useful extra room in the basement, but they have used plastic windows which is disappointing, and I am not sure how they got it past the conservation area rules.

The deal breaker for me is that outside space. When it came up at auction, there was no garden at all but they have knocked down a small outbuilding to make a space which seems to be about 8 feet square (much smaller than it looks in the photo)

I think that the main reason people choose small houses over flats is to get the outside space. Nice flats are in plentiful supply in these roads for around £300k and I am not sure that this 'garden' will persuade too many people to stump up the extra.

You are right, though, the location will sell this. I think it may be nearer £400k that £450k, though.

[worried1]

awful yield but good flipping profit if can be sold for that - squeal lil piggies!

The yields are always awful on these houses. There are so few of them that their 'value' is pushed up very high compared to surrounding flats.

Flats yield 5%, houses 3-4%. Not quite sure why anyone would bother with either, even with interest rates as low as they are now.

[jplevene]

I was talking to a friend last night who told me about a neighbour of his who has just taken an offer on his 3 bed semi. It's in a Outer London suburb a couple of miles from the end of the M3. The house in question is identical to my friend's and is as follows.

Traditional 1930s 3 bed semi - completely unextended. So ... small hall, 12' x 12' lounge, kitchen/dining where the kitchen area is about 8' x 9' and the dining area is about 12' x 8'. Downstairs loo squeezed into what would originally have been the cupboard under the stairs. Upstairs two 12' x 11' bedrooms, one 9' x 7' bedroom and one 6'6" x 6'6" bathroom. Bathroom and kitchen have been nicely refitted by all accounts and the ground floor has the ubiquitous stripped floorboards and a nice fireplace in the lounge etc.

BUT, this is a small house. It's typical of tens of thousands of 3 bed semis found throughout Ealing, Hounslow, Isleworth etc. The road is a bit variable - the houses are all similar but some are close together (no garage at the back) - others have a gap between just big enough for a car to get down. Some of the other houses have been extended in all directions, out the back, porch on the front, into the loft etc. But this one hasn't. This one has the gap between the houses just big enough to get a car down and has a garage in the garden about 15' from the house. The gardens, of these houses, are not the traditional 100' - in fact they are small - the backs of the garages are the ends of the garden. Parking in the area is a nightmare. The houses were built when owning cars was unusual and now that most houses have got 2 cars or more, the whole street is chocked with cars parked two wheels up on every bit of pavement space available.

Yet, someone has seen fit to offer the vendor 50k short of HALF A MILLION pounds.

I'm really struggling to understand this London madness - if it were Kensington or Chelsea you'd kind of understand. But it's an Outer London suburb which I have visited a number of times and it is by no means on the 'highly desirable' list. It's okay, but there's plenty of undesirable looking herberts about.

I know people will say 'Ahh, but he hasn't exchanged yet'. Which is true but, even so, someone thinks it's worth nearly half a million quid.

I live two junctions down the M3 - about half an hour away by car. 450k here buys you a decent sized 4 bed detached with double detached garage, utility room, reasonable garden, three bogs (family bathroom, en-suite, downstairs loo) etc.. But in Outer London, just half an hour away, it buys you a small 3 bed semi with a shared drive, one off street parking space (which takes up the whole front garden) and a small garden. And, in this case with almost no room to extend. If you extended out the back you'd block your access to your garage. You might just fit a small conservatory on the back of the dining area.

I've been preaching the house price crash mantra to my friend for some years now - and although he doesn't really argue with me - I know he thinks I'm a nutter. In 2008 it began to look as if I was correct in my (as far as he was concerned) gloomy predictions. When he was telling me yesterday about his neighbour I just has to keep my remarks to 'wow, the market there must be unaffected by everything that's going on'.

I'm walking around this morning muttering to myself 450 grand, 450 GRAND! for a poxy 3 bed semi - in an area not many miles from where I grew up. There were various house price booms in the 1970s - those houses used to fetch about 12k when I was say 20 and 25k by the time I was 30. My brother bought a similar property in the same area in the early 1980s for 27k. I'd say that house has increased in price by a factor of 45 since 1970 and by a factor of 17 since 1980.

I hear that all the time, 60% never go through due to surveyor valuation being far lower, the other 40% are either lies or wishful neighbours exaggerating which exposes itself once the house has been sold.

You will always get buyers who have no clue and have just started to try and buy. They look around at the overpriced houses and think one overpriced is a deal.