Ash4781 Posted January 4, 2014 Share Posted January 4, 2014 My experience of youngish 30+ London professionals in London is that they house share. So who in London buys? Looking at the Land Registry stats I read them as 10k a month. It's not many at all but on higher prices I guess the estate agents get by. Help to buy won't help as the prices are too high. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted January 4, 2014 Share Posted January 4, 2014 I know two 30 year old couples who bought in London in the last year or so, both in dual income households on about £60-£70k gross combined. They both had family help for the deposit and both bought 1 bedroom leasehold flats in rough bits of south or east London which would have cost around £180k. One of the flats is definitely ex-LA, don't know about the other. I assume the ex-LA flat owners have Hackney council as the freeholder, which may come back to hurt them since Hackney council has been known to dump huge repair bills on private leaseholders living in their blocks. Another triumph for Right to Buy. I also know a couple of 30-ish medics who bought a tiny 2 bedroom terraced house in a really unpleasant street near Peckham for about £450k last year. I assume there was some inheritance money in there somewhere. I don't envy these people at all. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 Rich investors from here and overseas.......people moving within London......buyers who have been fortunate to have family who can help with a very large deposit......people with rich family who allow them to live in the family investment for little or nothing. Quote Link to comment Share on other sites More sharing options...
slacker Posted January 4, 2014 Share Posted January 4, 2014 It's not average or slightly above average London income citizens. - 900K+ band driving most of the boom headlines is all down to external influences like QE and currency hedging - 400K-900K is a small number of over-leveraged dual income high earners who now can't afford food, and the chavvy end of the QE winners - 150K-400K is over-leveraged dual middle-income couples or multiple couples buying property that was being considered for demolition 20 years ago, or amateur BTL barons buying same dilapidated kennels to rent out to the aforementioned hard workers who can't afford a deposit due to overspending on ipads I'm just glad 90% of next year's GDP growth doesn't depend on these prices going higher ... oh Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 (edited) I'm 30 something and have bought in London. I know plenty of other who have purchased too. We are just normal professionals. I've moved properties selling and buying 3 times since the "crash" and have done well. With current mortgage rates it makes sense to buy instead of rent - monthly outgoings are substantially less on 2% mortgage than renting. Edited January 4, 2014 by Neitherland Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 (edited) I'm 30 something and have bought in London. I know plenty of other who have purchased too. We are just normal professionals. I've moved properties selling and buying 3 times since the "crash" and have done well. With current mortgage rates it makes sense to buy instead of rent - monthly outgoings are substantially less on 2% mortgage than renting. You have moved within London and most probably have had pay increases or bonus that matches the London HIP. Edited January 4, 2014 by winkie Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted January 4, 2014 Share Posted January 4, 2014 With current mortgage rates it makes sense to buy instead of rent - monthly outgoings are substantially less on 2% mortgage than renting. Bcos you and the others are expecting to get out before the next crash. You may but bulk won't. Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 You have moved within London and most probably have had pay increases or bonus that matches the London HIP. Yes west London. I like experiences over buying stuff - so always found it easy to save. Salary is OK for London. There never really was a crash in west London. Can't imagine there ever will be. Lots of areas in west London - Chiswick is a good example has never on record seen a fall in house prices. Rent is so much more expensive than buying if you can get the low rate mortgages in west London. Schools are good. Work is plentiful. Crime is low. And London has endless experiences to enjoy. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 Yes west London. I like experiences over buying stuff - so always found it easy to save. Salary is OK for London. There never really was a crash in west London. Can't imagine there ever will be. Lots of areas in west London - Chiswick is a good example has never on record seen a fall in house prices. Rent is so much more expensive than buying if you can get the low rate mortgages in west London. Schools are good. Work is plentiful. Crime is low. And London has endless experiences to enjoy. Born, lived and worked there for over 40 years......I would not say it is as wonderful as you make it out to be....and if I had the money and the work I would not buy there or rent there....horses for courses. Quote Link to comment Share on other sites More sharing options...
Balloonist Posted January 4, 2014 Share Posted January 4, 2014 I and most of my close friends have bought for the first time over the past few years. Properties have been bought generally in zones 2 and 3. We're all professionals and mostly earning significantly above the national average, but nothing out of the ordinary for professional jobs in central London. Generally it's couples both of whom are working. From when I was looking it seems that there are plenty of people earning >£100K between them willing to drop £300-500K on a property. Prices seem incredible now and I don't see how they can continue to rise like this, but there still seem to be lots of people eager to buy at current prices. Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 Bcos you and the others are expecting to get out before the next crash. You may but bulk won't. I'm saving 1000s a year buying over renting - which provides some insurance against a possible crash. I use it to over pay mortgage. I've been kicking around this web site since 2005 and not yet seen a crash in west london. Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 Born, lived and worked there for over 40 years......I would not say it is as wonderful as you make it out to be....and if I had the money and the work I would not buy there or rent there....horses for courses. It's not for everyone. But there are so many amazing places in the world - why stay here if you don't like it? Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted January 4, 2014 Share Posted January 4, 2014 (edited) I know two 30 year old couples who bought in London in the last year or so, both in dual income households on about £60-£70k gross combined. They both had family help for the deposit and both bought 1 bedroom leasehold flats in rough bits of south or east London which would have cost around £180k. One of the flats is definitely ex-LA, don't know about the other. I assume the ex-LA flat owners have Hackney council as the freeholder, which may come back to hurt them since Hackney council has been known to dump huge repair bills on private leaseholders living in their blocks. Another triumph for Right to Buy. ..snip... I don't envy these people at all. Sadly, I've seen three 30 something London based couples do this in the last year. Similar salaries too. The alternative of continuing to pay huge amounts of rent for crap and having to regularly move was equally unappealing. I guess, or rather know, most are just comparing monthly payments and have a misplaced belief they are more secure. Lambs to the slaughter. I hope it works out for them. Edited January 4, 2014 by StainlessSteelCat Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 I'm saving 1000s a year buying over renting - which provides some insurance against a possible crash. I use it to over pay mortgage. I've been kicking around this web site since 2005 and not yet seen a crash in west london. Doesn't a crash mean a crash all over.....should be good for all, your next move will be cheaper....less debt for all. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 (edited) It's not for everyone. But there are so many amazing places in the world - why stay here if you don't like it? Would you live there if you thought your house was losing money......does high rising prices sometimes keep people living in places they otherwise would not choose to live? Edited January 4, 2014 by winkie Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 (edited) Doesn't a crash mean a crash all over.....should be good for all, your next move will be cheaper....less debt for all. When i joined this site I was totally convinced there would be a property crash in London. In fact I sold a property in 2006 and went off travelling expecting to buy back in at a cheaper level. It never happened. House prices are crazy. But the demand is also crazy. Having majority equity in my place and always wanting to moving to somewhere bigger a fall in prices would be good but I just don't see it happening. Edited January 4, 2014 by Neitherland Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted January 4, 2014 Share Posted January 4, 2014 Possibly quite a few mortgage free individuals in the 45-65 age group looking for an alternative ''investment'' for their six figure cash balances earning nothing in bank and building societies. ZIRP has a lot to answer for in fueling house prices via BTL. Indeed some just get the lot on debt by using equity in their main homes. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 When i joined this site I was totally convinced there would be a property crash in London. In fact I sold a property in 2006 and when off travelling expecting to buy back in at a cheaper level. It never happened. House prices are crazy. But the demand is also crazy. Having majority equity in my place and always wanting to moving to somewhere bigger a fall in prices would be good but I just don't see it happening. Why do you think the demand is so crazy....only interested? Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 Would you live there if you thought your house was losing money......does high rising prices sometimes keep people living in places they otherwise would not choose to live? I like the success of the place - if house prices were falling it probably wouldn't be the type of place i'd like to live. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted January 4, 2014 Share Posted January 4, 2014 When i joined this site I was totally convinced there would be a property crash in London. In fact I sold a property in 2006 and went off travelling expecting to buy back in at a cheaper level. It never happened. House prices are crazy. But the demand is also crazy. Having majority equity in my place and always wanting to moving to somewhere bigger a fall in prices would be good but I just don't see it happening. You could always buy just about anywhere else in the country at about 10% below 2006 prices or 30% in real terms. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 I like the success of the place - if house prices were falling it probably wouldn't be the type of place i'd like to live. .....so you would say there is a vested interest from various sources to maintain and increase demand and credit, thus prices? Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted January 4, 2014 Share Posted January 4, 2014 There never really was a crash in west London. Can't imagine there ever will be. Lots of areas in west London - Chiswick is a good example has never on record seen a fall in house prices. Such delusion. Fell 20% 2008. Wasn't noticed bcos asking prices remained... Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 Why do you think the demand is so crazy....only interested? The number of people moving to London is insane. London is booming in a way I've not seen in my life time. There is so much development, so much life, the entrepreneurialism, the food, everything. I guess it's more a "want" to buy rather than demand as not all can afford. But places are regularly going to sealed bids. Properties disappear within days of going on the market. Quote Link to comment Share on other sites More sharing options...
Neitherland Posted January 4, 2014 Share Posted January 4, 2014 Such delusion. Fell 20% 2008. Wasn't noticed bcos asking prices remained... Check land registry - west london didn't fall. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 4, 2014 Share Posted January 4, 2014 The number of people moving to London is insane. London is booming in a way I've not seen in my life time. There is so much development, so much life, the entrepreneurialism, the food, everything. I guess it's more a "want" to buy rather than demand as not all can afford. But places are regularly going to sealed bids. Properties disappear within days of going on the market. ......you are rather good at hyping the situation.....many people living in London I would say don't feel they are 'booming'.....are you in sales? Quote Link to comment Share on other sites More sharing options...
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