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worried1

Are People Really This Stupid? Price Doubles In A Year With No Work Done

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I have posted a few of these in the regional forums, but this is the worst example I have ever seen.

This flat in SE London sold in July 2013 for £195k:

http://www.zoopla.co.uk/property-history/47a-marlow-road/london/se20-7yg/18381337

It is now back on the market for £380k under a year later:

http://www.zoopla.co.uk/for-sale/details/33341929

This is (ridiculously) not unusal in this part of London, but normally a wreck is purchased, refurbished and put back on the market at a much higher price.

In this case, the flat is just tired rather than a wreck, but almost NOTHING has been done to it. Even the old, thin, green carpets remain. The kitchen and bathroom are also exactly the same as they were. The only 'improvement' I can see is a bit of decking in the back garden.

The worst thing is that this profiteering is made totally clear on the Zoopla advert itself 'last sold for £195,000 on 30th July 2013'. I know people are being frightened into buying by the Government, but why on earth would anyone pay someone double what they paid last year for a flat which is exactly the same? The Daily Mail scare stories are talking about 10% increases in the last year, not 100%.

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I have posted a few of these in the regional forums, but this is the worst example I have ever seen.

This flat in SE London sold in July 2013 for £195k:

http://www.zoopla.co.uk/property-history/47a-marlow-road/london/se20-7yg/18381337

It is now back on the market for £380k under a year later:

http://www.zoopla.co.uk/for-sale/details/33341929

This is (ridiculously) not unusal in this part of London, but normally a wreck is purchased, refurbished and put back on the market at a much higher price.

In this case, the flat is just tired rather than a wreck, but almost NOTHING has been done to it. Even the old, thin, green carpets remain. The kitchen and bathroom are also exactly the same as they were. The only 'improvement' I can see is a bit of decking in the back garden.

The worst thing is that this profiteering is made totally clear on the Zoopla advert itself 'last sold for £195,000 on 30th July 2013'. I know people are being frightened into buying by the Government, but why on earth would anyone pay someone double what they paid last year for a flat which is exactly the same? The Daily Mail scare stories are talking about 10% increases in the last year, not 100%.

Mr B has just pointed out to me (zoopla again) a flat identical to those we were looking at with daughter about 3 yrs ago. Then AP would have been about £280K tops. This is now up for £525K - and under offer. This is in SW17 Tooting. Last sale was ages ago so not a case of a quick tart-up - just crazy state of local market.

Edited by Mrs Bear

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You might get lucky and get some naive Chinese person or some other foreigner buying it.

At bubble tops you always get the greedy and the chances giving it a go. I have been talking for years on here about properties in my area where I have seen 50% and 100% increase in asking prices from just a few years earlier. Problem is, once one person starts doubling their asking price everyone else does the same and then eventually people think it is the new normal price range.

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Mr B has just pointed out to me (zoopla again) a flat identical to those we were looking at with daughter about 3 yrs ago. Then AP would have been about £280K tops. This is now up for £525K - and under offer. This is in SW17 Tooting. Last sale was ages ago so not a case of a quick tart-up - just crazy state of local market.

It will be interesting to see if it actually goes through. If they can make £250k tax free out of nothing in three years why bother working for a living? You'd need to be earning a salary of £135k to clear that after tax, and most jobs paying that must be quite stressful, I'd have thought.

I have seen loads of examples of this all across London, but this one just interested me because it was almost 100% in a year with nothing done to the flat. I don't know how people have the cheek to put them on the market, but I guess if that is what the EA is telling them it is worth, then why not? EA in this case is KFH who have probably taken over from Foxtons as the best at ramping up prices.

If they do make their £185k profit in a year, they have done as well as somebody on a £330k salary all for buying a flat in the wilds of SE20 and sitting on it for a year.

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You might get lucky and get some naive Chinese person or some other foreigner buying it.

At bubble tops you always get the greedy and the chances giving it a go. I have been talking for years on here about properties in my area where I have seen 50% and 100% increase in asking prices from just a few years earlier. Problem is, once one person starts doubling their asking price everyone else does the same and then eventually people think it is the new normal price range.

Perhaps. I suppose the 'London postcode' might be attractive to foreign investors. 'SE' becomes 'BR' a couple of streets down, but that area seems to be going just as mad price-wise.

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It will be interesting to see if it actually goes through. If they can make £250k tax free out of nothing in three years why bother working for a living? You'd need to be earning a salary of £135k to clear that after tax, and most jobs paying that must be quite stressful, I'd have thought.

I have seen loads of examples of this all across London, but this one just interested me because it was almost 100% in a year with nothing done to the flat. I don't know how people have the cheek to put them on the market, but I guess if that is what the EA is telling them it is worth, then why not? EA in this case is KFH who have probably taken over from Foxtons as the best at ramping up prices.

If they do make their £185k profit in a year, they have done as well as somebody on a £330k salary all for buying a flat in the wilds of SE20 and sitting on it for a year.

Yes, the one I mentioned is with KFH. There is another identical one, same road, also good condition, up for £410K and sold STC, first listed back in Nov - also with KFH - but market has gone even barmier since then. These are a comparatively unusual type of PB period maisonette, much better space and layout than the average and with gardens, so they do usually go quite quickly, but I am stupefied at the way prices have rocketed lately. I was stupefied at the first AP of over £400K and that was just back in September.

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Just amazed by the scale of the price rises. I just can't work out what is driving prices other than fear and greed. Have I lost touch of what a decent wage is. Only last year I was working at a world class product development company in the south of England and I was earning £27,000pa as an engineer. This was considered by my peers to be a decent wage, I was 27. What are London wages really like? Are these prices even remotely realistic for the average joe to be able to buy?

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The thought process is this:

1, The previous buyer got a bargain.

2, They're going to make a fortune.

3, Comparable properties are the same price.

4, I might also get lucky and make the same again

5, [we just wanted a home / other excuse]

Easy come easy go. Debt is easy to take on, and just as easy to spend.

It's the banks who should be bricking temselves if they are lending ino this london madness. I suspect that's why the big banks have recently cut their exposure to it.

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It's the banks who should be bricking temselves if they are lending ino this london madness. I suspect that's why the big banks have recently cut their exposure to it.

indeed how many people are just going to go bankrupt and walk away leaving the debt !

if the market does crash that pile will be down to 140 in no time 195 was inflated to begin with

Edited by longgone

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It will be interesting to see if it actually goes through. If they can make £250k tax free out of nothing in three years why bother working for a living? You'd need to be earning a salary of £135k to clear that after tax, and most jobs paying that must be quite stressful, I'd have thought.

I have seen loads of examples of this all across London, but this one just interested me because it was almost 100% in a year with nothing done to the flat. I don't know how people have the cheek to put them on the market, but I guess if that is what the EA is telling them it is worth, then why not? EA in this case is KFH who have probably taken over from Foxtons as the best at ramping up prices.

If they do make their £185k profit in a year, they have done as well as somebody on a £330k salary all for buying a flat in the wilds of SE20 and sitting on it for a year.

For anyone sitting in the office reading this, that's me for one, this is my first thought, honestly what is the point of actually working? The people that make £330k a year on my floor went to Uni followed by working their way up the company for at least 25 years, to land a top job, with hideous hours and life reducing stress levels. I shall tell my Boss he should have just bought a flat in SE London and put some decking in the back garden.

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For anyone sitting in the office reading this, that's me for one, this is my first thought, honestly what is the point of actually working? The people that make £330k a year on my floor went to Uni followed by working their way up the company for at least 25 years, to land a top job, with hideous hours and life reducing stress levels. I shall tell my Boss he should have just bought a flat in SE London and put some decking in the back garden.

or just be a used car sales man and sell 1 a week :lol:

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honestly what is the point of actually working?

I've been like that for a good few years - to a point it's self destructive, but then I get done what I have to.

I've found he best way forward is a bit of moonlighting and that can be more profitable than the day job.

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I saw one the other day that was bought in February 2014 for something like £425k and it was back on sale now for £475k, so they were looking at a profit of £50k for holding it for 3 months.

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For anyone sitting in the office reading this, that's me for one, this is my first thought, honestly what is the point of actually working? The people that make £330k a year on my floor went to Uni followed by working their way up the company for at least 25 years, to land a top job, with hideous hours and life reducing stress levels. I shall tell my Boss he should have just bought a flat in SE London and put some decking in the back garden.

Imagine working to save for a deposit, I imagine saving £10,000 would be extremely difficult. I have about £100 spending money per week after tax, rent and bills. So even If I did not spend any of it I would only have £5,000 or so saved. but the house I was saving for would have jumped £200,000 in value in this case. Anyone saving for a mortgage right now must be thinking what is the ******ing point.

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You might get lucky and get some naive Chinese person or some other foreigner buying it.

At bubble tops you always get the greedy and the chances giving it a go. I have been talking for years on here about properties in my area where I have seen 50% and 100% increase in asking prices from just a few years earlier. Problem is, once one person starts doubling their asking price everyone else does the same and then eventually people think it is the new normal price range.

Same here in south Dorset.

Houses that have been on the market for over 2 years are being re-advertised with a 10/20% asking price increase.

Many have gone STC, in the last 6 months, but not one I have been watching has completed yet.

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I've been like that for a good few years - to a point it's self destructive, but then I get done what I have to.

I've found he best way forward is a bit of moonlighting and that can be more profitable than the day job.

Same as. Someone clever on here will know the name/terminology that describes the effect on workers when what they aspire to is within their reach, they experience motivation and desire to better themselves. When the carrot and stick are too far away in the distance apathy sets in.

Fortunately I do have a viable plan, so I'm only moderately fcked off.

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Just amazed by the scale of the price rises. I just can't work out what is driving prices other than fear and greed. Have I lost touch of what a decent wage is. Only last year I was working at a world class product development company in the south of England and I was earning £27,000pa as an engineer. This was considered by my peers to be a decent wage, I was 27. What are London wages really like? Are these prices even remotely realistic for the average joe to be able to buy?

I don't understand who can afford the ones I've mentioned. These might have been BTLs a few yrs ago - and some certainly were bought as such several or many yrs ago but yields now would be hopeless at these prices, so it must be OOs, probably young couples. This is def not Chinese investor territory - they go for shiny new builds. Can only think it is the few couples both on relatively high salaries - and even then very likely with BOMAD or legacy from Granny on top.

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It had new decking throughout the garden, thats doesn't come cheap! :P

indeed how many people are just going to go bankrupt and walk away leaving the debt !

if the market does crash that pile will be down to 140 in no time 195 was inflated to begin with

This is a bit of a misconception that people have because so many Americas walked away from their debts! It doesn't work the same in the UK. If you get repossessed and the market has fallen so much that the bank can't get all its money back from selling your ex-home, you are still on the hook for the remainder!

I wonder if more people knew this, would they borrow a little less!

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Imagine working to save for a deposit, I imagine saving £10,000 would be extremely difficult. I have about £100 spending money per week after tax, rent and bills. So even If I did not spend any of it I would only have £5,000 or so saved. but the house I was saving for would have jumped £200,000 in value in this case. Anyone saving for a mortgage right now must be thinking what is the ******ing point.

The problem now is that we are moving away from prices being too high and towards even the annual increases being unaffordable on their own!

I'd argue that this flat was already well over-priced given it's location. It would take a person earning £60k to buy it on a traditional 3x income salary and that is too much for that area.

Now, a £120k salary would be required. ONE YEAR LATER. FOR NO GOOD REASON!

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The only 'improvement' I can see is a bit of decking in the back garden.

'Improvement' indeed. My first thought was the cost of ripping out that decking is coming straight off any offer I'm never going to make because of that insane price.

Sometimes I don't understand people on a great many levels.

Edited by Parkwell

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Forget the banks for a minute, how many people would actually get hurt by a halving of house prices (on average - with London and the SE bearing the brunt)?

To roughly calculate this and leave only those that do not deserve to lose their house:

take the number of houses sold in the last years

subtract BTLers

subtract MEWers

subtract holiday home owners

subtract foreign buyers

Would the final number be so substantial? I would guess not. However, the biggest moaners would be those that have lost money on paper profits and I guess they're the ones who vote.

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Forget the banks for a minute, how many people would actually get hurt by a halving of house prices (on average - with London and the SE bearing the brunt)?

To roughly calculate this and leave only those that do not deserve to lose their house:

take the number of houses sold in the last years

subtract BTLers

subtract MEWers

subtract holiday home owners

subtract foreign buyers

Would the final number be so substantial? I would guess not. However, the biggest moaners would be those that have lost money on paper profits and I guess they're the ones who vote.

It is a good point, but halving from what point? I know this asking price is kite-flying in the extreme, but if this went down by 50%, it would still be at 2013 levels!

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I personally think that we are going to get some very positive news about the unaffordability of UK mortgages towards the end of the week. I just had a hot flash and came all over funny.

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