Venger Posted March 3, 2014 Share Posted March 3, 2014 Why is this dunce trying to buy if he believes the market is already in a bubble? Zillions of reasons. Belief in more future HPI (and house prices gone even zanier past few years, back when HPC were feeling sorry for buyers when prices were 50% cheaper than now... convinced only they are right, and thinking we can afford such sympathy for buyers, when they continue to set ever more painful high prices, without any market softening at all).... Don't want to risk missing out, or delayed getting a mortgage, when lender stress testing comes in for mortgages, next 8 weeks. Racey racey to view and overpay (ohh but they're victims). Lady on regional forums asked suggestions for area the other week. Wants to buy before she moves from employed to self-employed status... which could be a telling weakness for wage/incomes going forward. Quote Link to comment Share on other sites More sharing options...
Venger Posted March 3, 2014 Share Posted March 3, 2014 I listen to people on here but one thing I don't understand. http://www.rightmove...y-43208665.html This house is in London at £250,000. That's not too bad is it? Around my neck of the woods Gloucester it would be £170,000 £180,000 It looks expensive to me. Everything does, including 'value' Gloucester and all the other areas you've talked about where prices have been stagnant for 9 years. Quarter million pounds... if not in a very good area either. Young professionals I know have to work flat out for £40-£45K a year, always getting performance reviews, burning out, doing free overtime. Positions not totally secure. All that so they can afford something like that.... not for them. It only looks value against the rest of the bubble, which you may refuse to believe exists. Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted March 3, 2014 Share Posted March 3, 2014 I listen to people on here but one thing I don't understand. http://www.rightmove.co.uk/property-for-sale/property-43208665.html This house is in London at £250,000. That's not too bad is it? Around my neck of the woods Gloucester it would be £170,000 £180,000 Check back tomorrow, it'll be £300k then! Quote Link to comment Share on other sites More sharing options...
sf-02 Posted March 3, 2014 Share Posted March 3, 2014 You don't have to pay 4x too much money to live in a slum, you can merely pay 2x much to live in a different slum. (And in Gloucester I guess you could find a decent school not full of non-English speaking Somalians, might struggle with that there.) There are no nice, well-located areas at all, however, that aren't completely mad. I wouldn't say that is a nice area by a long shot, but it is reasonably well-located as I said with quick links to Canary Wharf and central London. No worse than other areas where people are paying 500k for small flats which completely baffles me. Not gonna argue it's way too much like everywhere else in London. Quote Link to comment Share on other sites More sharing options...
gf3 Posted March 3, 2014 Share Posted March 3, 2014 It looks expensive to me. Everything does, including 'value' Gloucester and all the other areas you've talked about where prices have been stagnant for 9 years. Quarter million pounds... if not in a very good area either. Young professionals I know have to work flat out for £40-£45K a year, always getting performance reviews, burning out, doing free overtime. Positions not totally secure. All that so they can afford something like that.... not for them. It only looks value against the rest of the bubble, which you may refuse to believe exists. Yes it is pricey but not insane. Quite often when people show places in London the prices are insane. Would a house like this go to sealed bids? Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted March 3, 2014 Share Posted March 3, 2014 (edited) I listen to people on here but one thing I don't understand. http://www.rightmove...y-43208665.html This house is in London at £250,000. That's not too bad is it? Around my neck of the woods Gloucester it would be £170,000 £180,000 Bloke fixing his car looks like an armed robber, that might have something to do with the price? Plenty of affordable housing in London, but it would have been bought a few years ago for a fraction of the now asking prices? Don`t know this area, but assuming it isn`t near "good" schools, it is more like the sort of place The Sweeny would have been filmed, and the real Sweeny would chase villans? Edited March 3, 2014 by dances with sheeple Quote Link to comment Share on other sites More sharing options...
gf3 Posted March 3, 2014 Share Posted March 3, 2014 (edited) Bloke fixing his car looks like an armed robber, that might have something to do with the price? Plenty of affordable housing in London, but it would have been bought a few years ago for a fraction of the now asking prices? Don`t know this area, but assuming it isn`t near "good" schools, it is more like the sort of place The Sweeny would have been filmed, and the real Sweeny would chase villans? Personally I wouldn't want to live in London full stop. I do wonder if there is a herd instinct though. People want to live in expensive area because they are expensive not because they have any more amenities. Locally a builder could build two identical estates one near Cheltenham and one near Gloucester and people will pay loads more money for the Cheltenham house. It's the same air in Cheltenham as it is in Gloucester They are both lit by the same sun And if the person that lived Glouceser wants too. He can shop in Cheltenham but in will mean spending 10 minutes more in the car. Don't understand humans glad i'm a bot. And I don't think the bloke fixing his car is a villain. Because He's not wearing a suit and tie. Edited March 3, 2014 by gf3 Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted March 3, 2014 Share Posted March 3, 2014 Personally I wouldn't want to live in London full stop. I do wonder if there is a herd instinct though. People want to live in expensive area because they are expensive not because they have any more amenities. Locally a builder could build two identical estates one near Cheltenham and one near Gloucester and people will pay loads more money for the Cheltenham house. It's the same air in Cheltenham as it is in Gloucester They are both lit by the same sun And if the person that lived Glouceser wants too. He can shop in Cheltenham but in will mean spending 10 minutes more in the car. Don't understand humans glad i'm a bot. And I don't think the bloke fixing his car is a villain. Because He's not wearing a suit and tie. Hopefully the expensive property dreams of millions of sheeple will be derailed soon Quote Link to comment Share on other sites More sharing options...
Venger Posted March 4, 2014 Share Posted March 4, 2014 Yes it is pricey but not insane. Quite often when people show places in London the prices are insane. Would a house like this go to sealed bids? Recent sold price for the same postcode suggest not, unless things have suddenly changed, which is possible. http://www.rightmove...cation=SE18+1EH Quote Link to comment Share on other sites More sharing options...
disenfranchised Posted March 4, 2014 Share Posted March 4, 2014 Most people today buy as a couple. A typical professional first-time buyer couple in London will be on about £40k each or so, so its more like £80k*4 = £360k. Throw in a £40k deposit from the BoMaD, and thats basically what is supporting the market. Of course, when the woman scales back her working hours to have children, and interest rates go up, supporting a £350k mortgage on a single earner salary isnt going to be pretty. Don't doubt this is true. Halve salary & price, and you have much of the country outside the SE... Of course, many will simply NOT have kids, and we'll get another 200k net immigrants a year to fill the gap. Income multiple test based on one income should be baked in to the application process IMO. Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted March 4, 2014 Share Posted March 4, 2014 I listen to people on here but one thing I don't understand. http://www.rightmove.co.uk/property-for-sale/property-43208665.html This house is in London at £250,000. That's not too bad is it? Around my neck of the woods Gloucester it would be £170,000 £180,000 Both prices are insane by historical standards. Even as a couple you can't guarantee that both of you will either want to or be able to work for 25 years. At the very least, it's unlikely you'll both be earning as much as you are now while facing increased costs due to interest rate rises, kids etc. That's why the traditional multiples are good ones. The average of the FTB is getting close to 40 - so near peak earnings. You aren't on the ladder with this - it's likely where you'll be staying for next couple of decades as you've maxed out your income and mortgage servicing ability. A grim area on the very outskirts of London. Parts of east London have their charms - and I wouldn't have put Woolwich on the list. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 4, 2014 Share Posted March 4, 2014 Why can always get a job as a childminder looking after working peoples children and at the same time paying another childminder to look after your own.......keeps house prices affordable. 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.