Two Grand On Your Credit Card To Get £250K Docklands Flat

[R K]

There's a concerted effort to get the pai gow gamblers living over here in ever greater numbers. Naturally, Boris Johnson is at the heart of the treachery.

London property is a 'global asset class' - Boris Johnson, Davos 2014.

Edited February 4, 2014 by R K

[fluffy666]

Who can blame them. They know now, after the Brown Bailout and the Osbourne handout, both liebour and the CONs will cover their idiocy.

Its liblabcon we must blame for this crap. If it wasnt for them, spivs like Galman would be doing a del boy and never worrying anyone with a grain of sense, let alone every taxpayer and saver in the country.

It would be funny, at least partially, if the Government decided to sell off Lloyds and RBS in, say, November this year, and then had to re-nationalise them as the whole system collapsed again the following April.

Well, funny as long as you weren't a taxpayer in the same country, obviously..

[billybong]

ABP is already working on a £1bn plan to transform London’s Royal Albert Docks into a European headquarters for hundreds of Chinese firms.

.....

“More and more Chinese firms are seeking a foothold in the UK and Europe. Our dedicated China team provides hands on, practical assistance to make it as pain-free as possible for Chinese companies to set up here and make inroads in the UK market."

So are these hundreds of Chinese firms going to take over the hundreds of thousands of UK zombie firms and make them work. What are they going to be doing - apart from buying up tiny dockland flats at daft prices.

Is there insufficient business in China already. It'll be interesting to see how they manage to expand in the house price bound UK if there's not sufficient scope left in an economy like China itself.

Edited February 4, 2014 by billybong

[EmmaRoid #FBPE#JC4PM#GTTO]

London property is a 'global asset class' - Boris Johnson, Davos 2014.

Can't they swap tulips and leave us proles alone?

[@contradevian]

It would be funny, at least partially, if the Government decided to sell off Lloyds and RBS in, say, November this year, and then had to re-nationalise them as the whole system collapsed again the following April.

Well, funny as long as you weren't a taxpayer in the same country, obviously..

Probably all in the plan. I can remember buying shares in TSB first time round.

Pump and dump, rinse and repeat. Its all the 'Labour/Tory' have to offer.

[FallingAwake]

I guess a quite a few BTL's will also be at these fairs. We should be grateful they are being marketed at UK buyers at least.

Personally, I think it's great if more BTL's buy them than first time borrowers. That means BTL's will be the first to get shafted when these flats inevitably lose their value. Should FTB's really be spending £250k on a flat?

[AvidFan]

Isn't getting a loan for your deposit mortgage fraud or something? The father of an old school friend of mine was sent to prison for dodgy mortgage dealings. I never got to the bottom of what exactly he'd done wrong, but I think he was writing loans for deposits as well as arranging the mortgages.

[AvidFan]

http://en.wikipedia.org/wiki/Mortgage_fraud

I guess it's only fraud if you fail to disclose the loans you've got:

Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, to reduce the amount of monthly debt declared on the loan application. This omission of liabilities artificially lowers the debt-to-income ratio, which is a key underwriting criterion used to determine eligibility for most mortgage loans. It is considered fraud because it allows the borrower to qualify for a loan which otherwise would not have been granted, or to qualify for a bigger loan than what would have been granted had the borrower's true debt been disclosed.

[TheBlueCat]

Quarter of a million quid for a flat in Canning Town. Dear god.

[bomberbrown]

Jesus wept! 40 years ago, these would have been council flats in all but name......and built to a better standard!

[Ah-so]

But back in 2001/2 I lived a stones throw from where these apartments will be (E16) and you could pick up an apartment then in the Royal Docks/Galleons Reach/Canning Town area for £250k. There has really been very little 'growth' in HPI in that neck of the woods, despite this massive bubble. Must be the only place in the UK where supply/demand is more finely balanced.

It sounds pretty implausible to me that there has been so little growth in the area over a dozen years.

Home.co.uk shows over 100% growth in Canning Town. I expect the other areas are similar.

[Cigarillo]

But is there demand?

[@contradevian]

It sounds pretty implausible to me that there has been so little growth in the area over a dozen years.

Home.co.uk shows over 100% growth in Canning Town. I expect the other areas are similar.

Probably. I was looking at 2bed Fishguard Way, North Woolwich

http://www.zoopla.co..._years=all&pn=7

£170,000 in 2001 when they were new builds (but loads were sold to investors off plan). They now think £274,132.

This one is £259,995

http://www.zoopla.co.uk/for-sale/details/31420580?search_identifier=f426faf6415f6ecba47742d549fe01ef

I'd say £250k was about right for a two bedder in outer Docklands, probably costing £170-200k when new.

Actually less HPI than my home town Huddersfield, where a terrace house in the street I was born in has doubled from £32k to £64K over the same period.

The only reason I think these flats in Canning Town are being offered to retail, is perhaps there isn't as much interest from investors.

There are currently 570 properties for rent in E16, if you can pay the rents, you are not spoilt for choice.

http://www.zoopla.co.uk/to-rent/property/london/fishguard-way/

Edited February 4, 2014 by aSecureTenant

[lastlaugh]

Good luck pursuing 谁扔粪 through the courts if he decides not to bother paying his service charge or even his mortgage.

The article actually says the buyer has to find the full 10% deposit in 20 days. A Chinese investor needs to cough up £25K to buy a flat in Canning Town. Off plan. If the promised yield fails to materialise they are stuffed. Just like all those Brit investors in Bulgaria, Cyprus, Greece, Spain, Florida, etc, etc,etc.

[Cigarillo]

The article actually says the buyer has to find the full 10% deposit in 20 days. A Chinese investor needs to cough up £25K to buy a flat in Canning Town. Off plan. If the promised yield fails to materialise they are stuffed. Just like all those Brit investors in Bulgaria, Cyprus, Greece, Spain, Florida, etc, etc,etc.

25k is nothing to those Chinese buyers.

[JPJPJP]

And remember, £250k is the bottom of the range

From the article

"Prices start at £250,000 for a 550 sq ft one bed flat"

[plummet expert]

Basically a 100% mortgage + fig-leaf (a very small fig-leaf)...

Just out of curiosity, did you spot this on the Priced-out FB page?

IT IS SHOCKING - ABSOLUTELY SHOCKING! NOTHING HAS BEEN LEARNT ABOUT CREDIT FUELLED BOOMS !! The pruchasers can even use the developers line of 'brokers' to raise the 10% deposit !!!!

This is exactly what keeps prices sky high and stops them returning to what an income can support. If only I was Chancellor or PM none of this woud be happening - there would have been a proper correction - a proper set of lending and savinga arrangements in place - a big fall in land prices - no more mum and dad banks or even grandad banks needed - no more equity which does not represent the increase in wages over a long time. No more Carney.......

[Habeas Domus]

Good luck pursuing 谁扔粪 through the courts if he decides not to bother paying his service charge or even his mortgage.

Nah that won't be a problem, they'll just add the service charges onto everyone elses bill - thats what many of these service companies do and amazingly the others pay up.

[Ah-so]

And remember, £250k is the bottom of the range

From the article

"Prices start at £250,000 for a 550 sq ft one bed flat"

£450 per sq ft out there is mental.

[renting til I die]

Personally, I think it's great if more BTL's buy them than first time borrowers. That means BTL's will be the first to get shafted when these flats inevitably lose their value. Should FTB's really be spending £250k on a flat?

Thats right, plus more BTL's and likely falls in rent...... well once some of them realise it is a market and not a free money tree!