Prices To Boom In The Next 5 Years!

[Flightman]

Well according to this quote on another forum I frequent.

"My younger brother has just bought in Acton (West London) good location, on the central line, 15 min walk from Westfield etc. He is a FTB, the property is a really nice light and spacious 3 bed maisonette, 300k, put down a 60k deposit and easily got a mortage for the rest (banks have plenty of money to lend)

repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that.

he the lives rent free and gets the capital gain (it will be 400k in under 5 years easily) - double bubble"

I despair I really do. :angry:

[LittlePiglet]

Well according to this quote on another forum I frequent.

"My younger brother has just bought in Acton (West London) good location, on the central line, 15 min walk from Westfield etc. He is a FTB, the property is a really nice light and spacious 3 bed maisonette, 300k, put down a 60k deposit and easily got a mortage for the rest (banks have plenty of money to lend)

repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that.

he the lives rent free and gets the capital gain (it will be 400k in under 5 years easily) - double bubble"

I despair I really do. :angry:

What forum is that, [email protected] reunited?

[Tonkers]

Acton is not a fifteen minute walk from the Westfield centre.

[eightiesgirly]

Mate do yourself a favour, stop reading comics on the internet. Try moneywise or denninger.

[Executive Sadman]

Acton is not a fifteen minute walk from the Westfield centre.

A 10 minute run,duck and cover, maybe...

[TeddyBear]

and you don't get 600 a month for a room in a houseshare in Acton unless it's a large double room, prob ensuite, very much doubt that maisonette would have 3 lge doubles and ensuites...and the 1.2k mortgage will be resetting higher and prices to more than double in Acton? ???

[winkie]

Well according to this quote on another forum I frequent.

"My younger brother has just bought in Acton (West London) good location, on the central line, 15 min walk from Westfield etc. He is a FTB, the property is a really nice light and spacious 3 bed maisonette, 300k, put down a 60k deposit and easily got a mortage for the rest (banks have plenty of money to lend)

repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that.

he the lives rent free and gets the capital gain (it will be 400k in under 5 years easily) - double bubble"

I despair I really do. :angry:

...any offers folks.

[Kilham]

repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that.

he the lives rent free and gets the capital gain (it will be 400k in under 5 years easily) - double bubble"

And will Sir be declaring this to Mr. Taxman?.

[azogar]

What forum is that, [email protected] reunited?

lol

[Quiet Guy]

Well according to this quote on another forum I frequent.

"My younger brother has just bought in Acton (West London) good location, on the central line, 15 min walk from Westfield etc. He is a FTB, the property is a really nice light and spacious 3 bed maisonette, 300k, put down a 60k deposit and easily got a mortage for the rest (banks have plenty of money to lend)

repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that.

he the lives rent free and gets the capital gain (it will be 400k in under 5 years easily) - double bubble"

I despair I really do. :angry:

The numbers sound a bit dodgy.

"repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that."

Jut out of curiousity, I had a look on Rightmove for rooms/properties at £600 p/m. There are plenty of flats available at that price so getting that for the two rooms sounds tricky unless they are really nice rooms and the brother will cover all the utility bills as well.

By the way, what's going to happen to that £1.2K p/m when interest rates start rising? Even if we have to wait years before IRs rise, that's a bit of a gamble.

"it will be 400k in under 5 years easily"

Well it's London we're talking about so maybe. I wonder if he will be able to hang on for five years if IRs rise?

Interest rates seem to be the key to this speculative venture. Maybe the brother will make this work if we adopt a Japanses style ZIRP economy for the next decade or maybe he'll end up in debt if the opposite happens. Nobody has a crsytal ball and nobody knows for sure what will happen so there are real risks in this situation. I presume that the brother has an income to give himself a bit of slack if the numbers go against him?

Edited May 7, 2011 by Quiet Guy

[Giordano Bruno]

The numbers sound a bit dodgy.

"repayments = circa 1.2k a month, but will easily let 2 bedrooms to cover that."

Jut out of curiousity, I had a look on Rightmove for rooms/properties at £600 p/m. There are plenty of flats available at that price so getting that for the two rooms sounds tricky unless they are really nice rooms and the brother will cover all the utility bills as well.

By the way, what's going to happen to that £1.2K p/m when interest rates start rising? Even if we have to wait years before IRs rise, that's a bit of a gamble.

"it will be 400k in under 5 years easily"

Well it's London we're talking about so maybe. I wonder if he will be able to hang on for five years if IRs rise?

Interest rates seem to be the key to this speculative venture. Maybe the brother will make this work if we adopt a Japanses style ZIRP economy for the next decade or maybe he'll end up in debt if the opposite happens. Nobody has a crsytal ball and nobody knows for sure what will happen so there are real risks in this situation. I presume that the brother has an income to give himself a bit of slack if the numbers go against him?

A flat is not a bedroom. A bedroom is not a flat! Phfff.

I have a really nice big studio flat in London, a lot closer to centre than Acton. It is £475 a month. Partly cos the LL knows me to be a good tenant.

Prices will rise in London? Not for long or for much, imo. More likely to fall over the next five years.