thecrashingisles Posted November 14, 2012 Share Posted November 14, 2012 True, but won`t stop middle class and working class dwellings collapsing in price though? The problem is that many of the London properties being bought by very wealthy people are working class dwellings. Terraces in Fulham weren't built to house the rich. Quote Link to comment Share on other sites More sharing options...
montesquieu Posted November 14, 2012 Share Posted November 14, 2012 To follow up on that ridiculous 'offer' I posted about earlier I send the following to the offending estate agent Dear X... Just reflecting on these ... can you please stop sending me stuff? (And ask your colleagues to do the same). My wife is checking Righmove daily and will find anything work looking at. Frankly everything I'm getting from [Offending estate agent] at the moment is either complete rubbish (like the property below) or overpriced by anything up to £100k. We do know how to search on the internet. I have to say [Offending estate agent] do seem to have a more,shall we say, enthusiastic view of the market than many of your competitors. (Unrealistic would be a better word). We've been looking for a year, we've seen a small number of places go for head-scratchingly silly money (to complete muppets, presumably) but on the whole most we have seen actually sell (as opposed to quietly slip off the market or move pointlessly between agents) have either been sensibly priced to start with or been reduced by anything up to 30% from starting point to sale. We are in a decent position, with a mortgage in principle offer, sitting on £xxxk deposit and £xxx joint salary (looking at a 10-12 year mortgage when we do buy), budget up to £500k and have had two rentals sell from under us in the last 4 years one at at £100k, the other at £120k less than they originally started on at (one of them sold by your good selves after getting the starting price hopelessly wrong). We have been looking to buy for a year and know local the market as well as any estate agent, possibly better than some from the degree of amateurishness we have seen around the place. We are looking quite actively at the moment but have no plans to buy any overpriced rubbish. Please take note. best regards .... Quote Link to comment Share on other sites More sharing options...
isg Posted November 14, 2012 Share Posted November 14, 2012 Just sitting here looking at asking prices of local properties and London ones ( where my wife sold as year at a 2007 peak price ). The prices are all ludicrous. Real incomes are continually being squeezed with the QE induced inflation. Actual sale volumes are tiny and sale prices are still at June 2004 prices. This stalemate can't continue and the insane london market must have priced out even the most desperate of foreign buyer. What next....collapse. It's just around the corner for sure. I could be wrong though My real income has increased because I move jobs regularly. If I had stayed in the same job I would be feeling the pince but I'm not. After a stint in Sydney prices in London actually look rather cheap (and I never thought I'd say that). Quote Link to comment Share on other sites More sharing options...
Tricksy Posted November 14, 2012 Share Posted November 14, 2012 (edited) To follow up on that ridiculous 'offer' I posted about earlier I send the following to the offending estate agent Dear X... Just reflecting on these ... can you please stop sending me stuff? (And ask your colleagues to do the same). My wife is checking Righmove daily and will find anything work looking at. Frankly everything I'm getting from [Offending estate agent] at the moment is either complete rubbish (like the property below) or overpriced by anything up to £100k. We do know how to search on the internet. I have to say [Offending estate agent] do seem to have a more,shall we say, enthusiastic view of the market than many of your competitors. (Unrealistic would be a better word). We've been looking for a year, we've seen a small number of places go for head-scratchingly silly money (to complete muppets, presumably) but on the whole most we have seen actually sell (as opposed to quietly slip off the market or move pointlessly between agents) have either been sensibly priced to start with or been reduced by anything up to 30% from starting point to sale. We are in a decent position, with a mortgage in principle offer, sitting on £xxxk deposit and £xxx joint salary (looking at a 10-12 year mortgage when we do buy), budget up to £500k and have had two rentals sell from under us in the last 4 years one at at £100k, the other at £120k less than they originally started on at (one of them sold by your good selves after getting the starting price hopelessly wrong). We have been looking to buy for a year and know local the market as well as any estate agent, possibly better than some from the degree of amateurishness we have seen around the place. We are looking quite actively at the moment but have no plans to buy any overpriced rubbish. Please take note. best regards .... To what end? Your letter says far more about you than it does about the matter in hand. Writing it - and sharing it here - may make you feel good for a few minutes, but it won't help you achieve your goals. Edited November 14, 2012 by Tricksy Quote Link to comment Share on other sites More sharing options...
DungBeetle Posted November 14, 2012 Share Posted November 14, 2012 (edited) My real income has increased because I move jobs regularly. If I had stayed in the same job I would be feeling the pince but I'm not. After a stint in Sydney prices in London actually look rather cheap (and I never thought I'd say that). There will be no crash. A slow bleed over the next 10 years, with prices only being eroded by inflation (just hope your wages increase by the same). London will continue to be the prop that supports the rest of the country. This generation will become a mass of renters, in low-cost, "modern" (crappy apartment) living space. If you can vote with your feet and leave the country. I am, and will take my tax revenues elsewhere. Edited November 14, 2012 by DungBeetle Quote Link to comment Share on other sites More sharing options...
Guest_James Toney_* Posted November 14, 2012 Share Posted November 14, 2012 There will be no crash. A slow bleed over the next 10 years, with prices only being eroded by inflation (just hope your wages increase by the same). London will continue to be the prop that supports the rest of the country. This generation will become a mass of renters, in low-cost, "modern" (crappy apartment) living space. If you can vote with your feet and leave the country. I am, and will take my tax revenues elsewhere. this is my fear to be honest, "There will be no crash. A slow bleed over the next 10 years, with prices only being eroded by inflation " and has been for the last couple of years, i keep thinking a crash will be around the corner, but always something stops it, Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 14, 2012 Share Posted November 14, 2012 There will be no crash. A slow bleed over the next 10 years, with prices only being eroded by inflation (just hope your wages increase by the same). London will continue to be the prop that supports the rest of the country. This generation will become a mass of renters, in low-cost, "modern" (crappy apartment) living space. If you can vote with your feet and leave the country. I am, and will take my tax revenues elsewhere. Where are you going? Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted November 14, 2012 Share Posted November 14, 2012 (edited) 'Cos all those liberal planning law countries such as Ireland, USA et al never had a bubble at all. In all those countries the credit/assets bubble trigger a construction boom, naturally, and in a few years this extra supply brought prices back down. . Edited November 14, 2012 by Tired of Waiting Quote Link to comment Share on other sites More sharing options...
mk1mini Posted November 14, 2012 Share Posted November 14, 2012 My real income has increased because I move jobs regularly. If I had stayed in the same job I would be feeling the pince but I'm not. After a stint in Sydney prices in London actually look rather cheap (and I never thought I'd say that). I have friends in both Sydney and Melbourne and I can't believe the prices they are paying when converted into £'s! My friends went over their boasting how they were trebling their money but when you consider they are spending $250+ a week on groceries and $2000 a month on bills I'm not too sure they are 'taking home' much more. Quote Link to comment Share on other sites More sharing options...
winkie Posted November 14, 2012 Share Posted November 14, 2012 The days of buying a property to make easy free money tax efficiently are over for a good many years yet.....buying a home over the long-term knowing that the real price will fall has to be the new way of thinking......most investments are falling....a house should be a home not a perpetual growth investment. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted November 14, 2012 Share Posted November 14, 2012 Yes. That's the correct conclusion. A land price bubble, NOT a house price bubble. Brought to you courtesy of your planning dept, which of course, you have to pay for, on penalty of imprisonment. A la Eric : + 1 Quote Link to comment Share on other sites More sharing options...
AvoidDebt Posted November 14, 2012 Share Posted November 14, 2012 Anyone had a look at 4 to 5 bed houses in places like pinner, northwood, ruislip, elstree? Yes, its an expensive area and its nice and commutable to London however they were 100% middle and lower upper class professionals a decade ago. Now you are talking millions.... Quote Link to comment Share on other sites More sharing options...
winkie Posted November 14, 2012 Share Posted November 14, 2012 Anyone had a look at 4 to 5 bed houses in places like pinner, northwood, ruislip, elstree? Yes, its an expensive area and its nice and commutable to London however they were 100% middle and lower upper class professionals a decade ago. Now you are talking millions.... The young well educated, innovative, and those that are looking for a challenge will be leaving these types of places and looking further afield. ....start low, add value, build up, create new jobs in new and better places to live....there are lots of new and better opportunities out there......the bottom can only go up, the top can only come down. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 Where are you going? Viewing a house this morning - first one since 2008. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 Viewing a house this morning - first one since 2008. I haven't viewed a house since 2005 and have just renewed my rental contract for another year. That will be seven years in the same rented house. Quote Link to comment Share on other sites More sharing options...
Guest_James Toney_* Posted November 14, 2012 Share Posted November 14, 2012 i think i will start some viewing next year, will see how things are in february Quote Link to comment Share on other sites More sharing options...
Errol Posted November 14, 2012 Share Posted November 14, 2012 Not just london. Got called specially and offered this today. http://www.prospect.co.uk/property-details/wainwright-close/wokingham Apparently was on at £600k, sale has fallen through near to completion on the new place, has been reduced and will take offers of 'just' £500k. Oh and it's 100 metres from the motorway. £600k who do these people think they are? I think not. LOL at this being worth anywhere near £600,000. £200,000 more like and even that would be pushing it. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 I haven't viewed a house since 2005 and have just renewed my rental contract for another year. That will be seven years in the same rented house. I am 4 years in this one. The fundamentals are a mess, as is the economy of the world but the goobermint is going to do everything in their power to prop up prices. They cant do it forever but they can do it for longer than I want to wait. £1200 a month would be better going towards getting rid of a mortgage, especially whilst inflation will eat away at it and the ptb are on my side. That said, if this place doesnt tick all the boxes and is the right price then I will go back to watching and waiting, I am in no rush. Quote Link to comment Share on other sites More sharing options...
LiveinHope Posted November 14, 2012 Share Posted November 14, 2012 (edited) I am 4 years in this one. The fundamentals are a mess, as is the economy of the world but the goobermint is going to do everything in their power to prop up prices. They cant do it forever but they can do it for longer than I want to wait. £1200 a month would be better going towards getting rid of a mortgage, especially whilst inflation will eat away at it and the ptb are on my side. That said, if this place doesnt tick all the boxes and is the right price then I will go back to watching and waiting, I am in no rush. Sigh paying to borrow money on a depreciating asset shows sound judgement Edited November 14, 2012 by LiveinHope Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 14, 2012 Share Posted November 14, 2012 The problem is that many of the London properties being bought by very wealthy people are working class dwellings. Terraces in Fulham weren't built to house the rich. True, but the 99% outnumber the 1%, it can`t go on indefinately IMO. The only thing that fuelled the ponzi was never ending cheap credit, not rich people buying houses that were once considered ordinary, there are not enough rich people to buy up all of London, and even if they did the ensuing riot would just bring prices clattering back down again We are close to an end game now, the Eurozone is going to be the source of some serious rebalancing/rethinking IMO. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 14, 2012 Share Posted November 14, 2012 I am 4 years in this one. The fundamentals are a mess, as is the economy of the world but the goobermint is going to do everything in their power to prop up prices. They cant do it forever but they can do it for longer than I want to wait. £1200 a month would be better going towards getting rid of a mortgage, especially whilst inflation will eat away at it and the ptb are on my side. That said, if this place doesnt tick all the boxes and is the right price then I will go back to watching and waiting, I am in no rush. In my case, as a potential cash buyer, the £65K I've paid out so far in rent has been more than covered by the £125K (after tax) I've received in bank interest on the money that would have been tied up in the house had I bought it instead of renting. As an added bonus, I could buy the house today for some £50K less than it would have cost me when I first moved in. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 14, 2012 Share Posted November 14, 2012 To what end? Your letter says far more about you than it does about the matter in hand. Writing it - and sharing it here - may make you feel good for a few minutes, but it won't help you achieve your goals. No, economic reality will do that Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 14, 2012 Share Posted November 14, 2012 There will be no crash. A slow bleed over the next 10 years, with prices only being eroded by inflation (just hope your wages increase by the same). London will continue to be the prop that supports the rest of the country. This generation will become a mass of renters, in low-cost, "modern" (crappy apartment) living space. If you can vote with your feet and leave the country. I am, and will take my tax revenues elsewhere. ? As I have posted elswhere, I don`t see the massive inflation that others seem to insist is there, but without wage rises your scenario will never come to pass, those who own outright or have a smaller maneagable mortgage will take the hit to get the market moving again, these people plus renters outnumber those who borrowed too much by quite a bit, therefore those who paid too much are to be sacrificed so the banks can get lending again at lower multiples/higher rates. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 In my case, as a potential cash buyer, the £65K I've paid out so far in rent has been more than covered by the £125K (after tax) I've received in bank interest on the money that would have been tied up in the house had I bought it instead of renting. As an added bonus, I could buy the house today for some £50K less than it would have cost me when I first moved in. Nice. Unfortunately, things are different here (SE Berks) prices have not only remained stubborn but increased since the low of jan 2009. Anything good that comes up sells quickly in the village. Recently a small 2 bed bungalow went on for £300k, big plot, sold for £385. Waiting is costing me in increasing prices and rent - I will need a mortgage so am only kicking that can down the road and getting much older will limit availability - as would an extra child Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 14, 2012 Share Posted November 14, 2012 Sigh paying to borrow money on a depreciating asset shows sound judgement They arent depreciating here. Paying to live in someone elses house isnt making much sense given the politics of the market. When I str'd much of the cash went into shiny metal, that was sound enough to make this painless and move along with a family home. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.