silver surfer Posted March 24, 2011 Share Posted March 24, 2011 No, I said the only thing keeping them up was the government money they have bunged the financial companies. Like the Royal Bank of Scotland and Northern Rock? Quote Link to comment Share on other sites More sharing options...
arrgee1991 Posted March 24, 2011 Share Posted March 24, 2011 House on my street just gone on market for 450k. One sold in Dec 2010 for 436k, which broke the ceiling price. BTW the just on market hse is a far inferior spec by about 40k. My chin is down - what a mess London is in. Yes, happening around here. One sold in our street last year for £495K, and now house across road (only difference is a loft room) asking £650K. Definitely not £155K better, even half that would be stretching things. Quote Link to comment Share on other sites More sharing options...
Bosh Posted March 24, 2011 Share Posted March 24, 2011 Chin up everyone. The house price crash is happening, it has been for 3 years now...another 3 or 4 to go im afraid. I agree with your guestimate.. You have to feel sorry for the folks who have been on this website since 2004 waiting for a correction in house prices. If your guestimate is correct and people are prepared to sit and wait, then some will have been waiting an estimated 10+ years and still no guarantees. I have read many posters stating they have put off starting a family until they can afford a house. Madness Quote Link to comment Share on other sites More sharing options...
pyewackitt Posted March 24, 2011 Share Posted March 24, 2011 Who's going to support the bottom of the london ponzi/housing pyramid ? I know solicitors in london, couple, earning £200K+ between them and they are looking at buying a 2 bed flat in a cr*p area. Meanwhile, housing benefit spongers are living in houses paid for by their taxes. Wake up, it will eventually collapse, it is not sustainable, people are sounding like it's July 2007 all over again and prices will just keepign going up and up....they cant. Agree completely... London is in its own little world right now. Even a one bed flat in places that used to be the worst areas of town will cost the same as a 3/4 bed semi in much of the commuter belt. Very few people in London earn enough to do more than live let alone to buy especially with a 20% deposit. The average house in London (not flat) is over £400k which means an £80k deposit before you even think about the monthly repayments. The median income is about £33k last time i checked the figures (http://www.statistics.gov.uk/cci/nugget.asp?id=285 - £642 x 52)... that's a huge differential! The median income outside of London for working males was just under £28K which means if you rationalised it you might expect london prices to be 20% higher than elsewhere but ofc that's not the case and prices are 50-100% or more higher depending on where in London you are looking. For the price of a two bed flat in a low quality area in London you could buy a substantial house in almost any other part of country. some people will say that's normal and it's always been that way due to the external demand and higher high-end incomes in London but in the 15yrs i've lived here i've never seen it as out of balance as the last few years since we hit peak in 07. Elsewhere prices fell, in some places substantially... in London all we are seeing is lower volume of sales! The latest gimmick in the budget to help FTB's by propping up the market by giving them a non-taxed 'loan' for 5yrs is a complete waste of taxpayers money when so many essential services are being cut. so often the government talks about 'market solutions' or letting 'the market decide' but it's obvious in the case of housing that the government is desperate not to let that happen and nowhere is this more evident than in London. We're at a cross-roads between a collapse and a new paradigm and that new paradigm is multi-generation mortgages for 50+ year terms what will take your childrens children to complete repayment. That's the case in some of the extreme cases we've seen in places like Hong Kong and could happen here if we contiue to underwrite institutional investment over private. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 24, 2011 Author Share Posted March 24, 2011 Agree completely... London is in its own little world right now. Even a one bed flat in places that used to be the worst areas of town will cost the same as a 3/4 bed semi in much of the commuter belt. The latest gimmick in the budget to help FTB's by propping up the market by giving them a non-taxed 'loan' for 5yrs is a complete waste of taxpayers money when so many essential services are being cut. so often the government talks about 'market solutions' or letting 'the market decide' but it's obvious in the case of housing that the government is desperate not to let that happen and nowhere is this more evident than in London. [\quote] Mind you to quote from Northampton ( 1 hour ) or MK ( 40 mins ) into london is about £35-£40 a day + parking + time/petrol to get to the station. F**king madness. That's a serious amount of money per month. And if the 25K is a 5 year interest free loan then they, the FTB's will be paying a heft amount of repayments on that...so better to get a mortgage....better still, dont buy and wait till prices collapse. Quote Link to comment Share on other sites More sharing options...
Sledgehead Posted March 24, 2011 Share Posted March 24, 2011 % OF LOCAL ECONOMY THAT COMES FROM PUBLIC EXPENDITURE London 36% South East 41% East England 45% South West 49% East Midlands 49% West Midlands 55% Yorks & Humber 55% Scotland 55% North West 57% North East 64% Wales 69% Northern Ireland 71% I know where the carnage will be, and it's not London! so does that London figure include all the dolies in Canary Wharf? Quote Link to comment Share on other sites More sharing options...
STRboomer07 Posted March 24, 2011 Share Posted March 24, 2011 Granted there are people who are hoping prices will shoot back up and make them lots of money !!! But generally, with the people I speak with, the realisation is there that house prices aren't going to shoot back up to 2007 peak prices. Prices will definitely recover though...they've already recovered (?) to 2005 prices in Northants. Agreed, well not quite, from what I see prices are going 'south', not recovering! Chose a postcode today, and logged all prices for 2 bed semi's back to 2003. From the information gathered the current prices ('for sale', not 'sold' prices!) are a direct comparison to figures achieved in dec '04/jan '05. So current sold prices (allowing for negotiating downwards ) are probably similar to late '03/early '04 figures. Crikey, probably gone back 7+ years in valuations, hope not too many have MEW'd. Quote Link to comment Share on other sites More sharing options...
200p Posted March 24, 2011 Share Posted March 24, 2011 I'm not sad, each day I think of what I can do. I've got it all planned out. I'm so excited. Buy my house. Lightly redecorate over a week or two, add a few vases with twigs, immediately put it on sale +£50K more than what i'd paid for. Once sold, buy another bigger house, lightly redecorate, put it on sale +£100K more than what I'd paid for. Keep repeating until I have £1m in equity in 5 years. Aim to flip 5 times per year. The ponzi will reset, aim to buy in early at the bottom so you can be the old fart that bogs off at the top of the chain. Excellent mad laughter (Muahaha). ---- Anyone remember the TV documentary about the University lecturers back in 2004 who made a fortune flipping property? Quote Link to comment Share on other sites More sharing options...
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