TeddyBear Posted November 15, 2012 Share Posted November 15, 2012 Could be wrong, but I get a feeling someone is going to pop up with links that disprove what you just said. I doubt they can, it is true sadly, South London tube zone 3. Properties selling for 2007 + at least 5% and right up to 20% more over past quarter. Flippers back in the area with gusto, buying up houses of the run down type where an old person has died and bringing them back on for high profits. Have a look on the Balham Hyde Farm thread in Greater London forum if you want links. We are turning into a third world country, a rich town with prices getting out of reach of majority of population with deterioration all around it. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 15, 2012 Share Posted November 15, 2012 (edited) I doubt they can, it is true sadly, South London tube zone 3. Properties selling for 2007 + at least 5% and right up to 20% more over past quarter. Flippers back in the area with gusto, buying up houses of the run down type where an old person has died and bringing them back on for high profits. Have a look on the Balham Hyde Farm thread in Greater London forum if you want links. We are turning into a third world country, a rich town with prices getting out of reach of majority of population with deterioration all around it. Overall sales volumes not what they were in 2007 though? I read the thread, there as many posters saying that it can`t last as there are saying it is booming? Pockets of madness in London won`t stop a wider UK house price crash. Edited November 15, 2012 by dances with sheeple Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted November 15, 2012 Share Posted November 15, 2012 We are turning into a third world country, a rich town with prices getting out of reach of majority of population with deterioration all around it. No, it's not what we are turning into that the explains the continuing inflation of the London bubble - it is what London already is; London is an asset bubble soaking up excess savings and other kinds of hot money from all over the world. Wait till the investment starts running the other way before we decide whether London is rich town, or just a place with (temporarily) over-priced houses. When you needed 25x median earnings to buy a family home in Zone 5, I call shenanigans. If these prices were holding up at normal transactions levels that would be one thing. In reality everyone is just holding their breath, (whilst waiting to drown). Quote Link to comment Share on other sites More sharing options...
I ♥ spreadsheets Posted November 15, 2012 Share Posted November 15, 2012 Seeing similar things in the Southampton area...any nice detached houses are selling at 2007+ prices in the areas I'm monitoring. Anything with obvious flaws e.g. tiny north facing garden, tiny rooms, dodgy neighbours, either hangs around forever or sells for around 10% less than the nice ones. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted November 16, 2012 Share Posted November 16, 2012 No, it's not what we are turning into that the explains the continuing inflation of the London bubble - it is what London already is; London is an asset bubble soaking up excess savings and other kinds of hot money from all over the world. Wait till the investment starts running the other way before we decide whether London is rich town, or just a place with (temporarily) over-priced houses. When you needed 25x median earnings to buy a family home in Zone 5, I call shenanigans. If these prices were holding up at normal transactions levels that would be one thing. In reality everyone is just holding their breath, (whilst waiting to drown). 11/10 Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2012 Share Posted November 16, 2012 I don`t really get what you are trying to say? The banks can`t lend, the city is shedding masses of jobs, and the politicians are desperately babbling over the top of it all trying to get your vote, meanwhile sales volumes have collapsed and most people have no chance of selling their house for anything near what they would like, that is the real world No, that is the hpc world and not the reality. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted November 16, 2012 Share Posted November 16, 2012 Overall sales volumes not what they were in 2007 though? You have gone and done it again Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 16, 2012 Share Posted November 16, 2012 (edited) You have gone and done it again Yes, I know what you are saying, but the drop off in volumes is an indicator of how behaviour and credit availability is changing things, many people who bought in `06 or `07 never dreamed they couldn`t just pop their house on the market two or three years later and get what they wanted for it. Are you saying today`s volumes are normal? I think they will increase as prices fall. Edited November 16, 2012 by dances with sheeple Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 16, 2012 Share Posted November 16, 2012 No, that is the hpc world and not the reality. So you are saying that the banks are lending as they did, the city isn`t shedding jobs, and the politicians are in control? Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2012 Share Posted November 16, 2012 So you are saying that the banks are lending as they did, the city isn`t shedding jobs, and the politicians are in control? the banks are lending, they are just choosing who to lend to whilst sitting on the money they were given and strengthening. the city is shedding jobs - and increasing profit the politicians are maintaining the status quo Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted November 16, 2012 Share Posted November 16, 2012 the banks are lending, they are just choosing who to lend to whilst sitting on the money they were given and strengthening. the city is shedding jobs - and increasing profit the politicians are maintaining the status quo The city is shedding jobs and shifting out. This country as been bled dry with debt, there's not much worth hanging around for. If the leaving execs can get top dollar for their box in london they will be more than happy to keep the pretence of this bubble going long enough for them bang out. Thanks for all the fish. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2012 Share Posted November 16, 2012 The city is shedding jobs and shifting out. This country as been bled dry with debt, there's not much worth hanging around for. If the leaving execs can get top dollar for their box in london they will be more than happy to keep the pretence of this bubble going long enough for them bang out. Thanks for all the fish. The country hasnt been bled dry yet - thats why all the new schemes and scams and trying to get the next generation involved any way possible instead of letting them stand back. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 16, 2012 Share Posted November 16, 2012 the banks are lending, they are just choosing who to lend to whilst sitting on the money they were given and strengthening. the city is shedding jobs - and increasing profit the politicians are maintaining the status quo Well no, the status quo used to be that it was easy to sell a house for a profit almost anywhere in the UK? Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2012 Share Posted November 16, 2012 Well no, the status quo used to be that it was easy to sell a house for a profit almost anywhere in the UK? I would have thought the longer term status quo was ridiculously priced houses at high multiples of earnings. Prices have remained high, they may have fallen in many areas but have wages increased? are they any more affordable than previously? has much really changed? Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 16, 2012 Share Posted November 16, 2012 The country hasnt been bled dry yet - thats why all the new schemes and scams and trying to get the next generation involved any way possible instead of letting them stand back. They are standing back though, as are the banks, you would need both fully engaged in lending and buying for the past ten years to be repeated. It won`t happen again in our lifetime. The majority of homeowners with no mortgage, and no ties or liabilities to the banks, will be forced to cut their prices so that the banks can lend again to the next generation at low prices higher multiples. Quote Link to comment Share on other sites More sharing options...
winkie Posted November 16, 2012 Share Posted November 16, 2012 Well no, the status quo used to be that it was easy to sell a house for a profit almost anywhere in the UK? No good selling a house for a profit if the next house you buy wipes that profit out...........Rents are far more important than house prices........rents are closely linked to income and more and more today on benefits.....there are big changes to come, when a job will not pay the rent why work in that job......move to a better place where the work will pay the rent and still have a bit left over for savings. RENTS are the tipping point. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 16, 2012 Share Posted November 16, 2012 No good selling a house for a profit if the next house you buy wipes that profit out...........Rents are far more important than house prices........rents are closely linked to income and more and more today on benefits.....there are big changes to come, when a job will not pay the rent why work in that job......move to a better place where the work will pay the rent and still have a bit left over for savings. RENTS are the tipping point. My rent in central Edinburgh was 350 p.m in 1997, and is 450 p.m today, I can`t comment on rents really, they have gone nowhere in 15 years in my experience. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2012 Share Posted November 16, 2012 They are standing back though, as are the banks, you would need both fully engaged in lending and buying for the past ten years to be repeated. It won`t happen again in our lifetime. The majority of homeowners with no mortgage, and no ties or liabilities to the banks, will be forced to cut their prices so that the banks can lend again to the next generation at low prices higher multiples. It may not reach the feverish levels again in the next couple of decades but the banks and government havent given up and have no intention of. Look at the part buy schemes, interest free deposit loans and many other new scams sucking in the next generation and putting them on the hook. The banks just have to wait for the older and mortgage free to die off because the next time that house comes on the market it needs a new mortgage to be bought. The asking price may be lower but the multiples and percentage of profit wont be Quote Link to comment Share on other sites More sharing options...
winkie Posted November 16, 2012 Share Posted November 16, 2012 My rent in central Edinburgh was 350 p.m in 1997, and is 450 p.m today, I can`t comment on rents really, they have gone nowhere in 15 years in my experience. Well if you have a good deal with your rent, are a good payer with added security that you won't be given notice to leave on the spur of the moment why buy you would be mad to imo. Quote Link to comment Share on other sites More sharing options...
winkie Posted November 16, 2012 Share Posted November 16, 2012 BTL rent ramping in the Daily Mail with one in eight mortgage being BTL; no wonder this country is finished, http://www.dailymail.co.uk/money/pensions/article-2233371/Four-landlords-live-rent-pension.html It is something that has not been good for this country......lambs to the slaughter springs to mind... Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2012 Share Posted November 16, 2012 It may not reach the feverish levels again in the next couple of decades but the banks and government havent given up and have no intention of. I've been renting for the last seven years and am substantially better off as a result and I have no intention of buying until value returns to the market, which it will. The decision not to buy when we moved area in 2005 was one of my better ones . Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 16, 2012 Share Posted November 16, 2012 BTL rent ramping in the Daily Mail with one in eight mortgage being BTL; no wonder this country is finished, http://www.dailymail.co.uk/money/pensions/article-2233371/Four-landlords-live-rent-pension.html The they worry, the more they ramp . Quote Link to comment Share on other sites More sharing options...
winkie Posted November 16, 2012 Share Posted November 16, 2012 I've been renting for the last seven years and am substantially better off as a result and I have no intention of buying until value returns to the market, which it will. The decision not to buy when we moved area in 2005 was one of my better ones . I will eat my hat when you buy.........but you rent in France and Spain where rents are good value and security of tenure is far better than your average bed sit Londoner. Quote Link to comment Share on other sites More sharing options...
Number79 Posted November 16, 2012 Share Posted November 16, 2012 I've been renting for the last seven years and am substantially better off as a result and I have no intention of buying until value returns to the market, which it will. The decision not to buy when we moved area in 2005 was one of my better ones . I agree but my issue is with all of this imminent collapse bolox. It aint gonna happen. When the people in charge have the most to lose and are the ones that set the rules they aint gonna let things play out in a way that cuts their throats and makes life easy for the majority. Interest rates to near zero, quantative easing - who saw those coming? what next? Quote Link to comment Share on other sites More sharing options...
winkie Posted November 16, 2012 Share Posted November 16, 2012 I agree but my issue is with all of this imminent collapse bolox. It aint gonna happen. When the people in charge have the most to lose and are the ones that set the rules they aint gonna let things play out in a way that cuts their throats and makes life easy for the majority. Interest rates to near zero, quantative easing - who saw those coming? what next? People will go where the money flows......where they can progress, improve and add value. 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.