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Reading Hpi Of 43% Over 5 Years Due To Crossrail

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Just seen this pop up on my Facebook News Feed ;

As expected, boomer types celebrating their advantageous position on the GetReading Facebook Page, with no comprehension or appreciation of the economic impact this will have on the generations behind them.

The sooner this becomes a political hot potatoe the better. These people aren't in this position due to success or intuition on their own part, but in the large, economic circumstance.

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The sooner this becomes a political hot potatoe the better.

I never knew Dan Quayle moved to Reading.

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Yip, 43% increase on top of already insane unaffordable prices.

Maybe in a speculative bubble......

Someone's having a laugh.

LMAO :D

Exactly.

So new build semis are £450k now and they will be £650k in 5 years because you can get a train to London a few minutes faster than the existing one...

Just noticed a lot of 2 bed properties are on at £300k in Reading now. I mean are people really that desperate to live in Reading that they will pay that for starter homes?

Ridiculous.

Feels like end game stuff to me.

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Oh my... when we left in 2012 our landlady was selling her 2 bed terraced house for 199k. we toyed with the idea but then we thought that since we were leaving it would have been impractical to buy and then let out straight away. The house was sold for 194k but I think that in that area the prices have not gone up that much. Last time I looked it was an increase of around 20k.

In the university area, though, prices really seem crazy!

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On 17/04/2015 at 8:44 PM, streamingfreedom said:

LMAO :D

Exactly.

So new build semis are £450k now and they will be £650k in 5 years because you can get a train to London a few minutes faster than the existing one...

Just noticed a lot of 2 bed properties are on at £300k in Reading now. I mean are people really that desperate to live in Reading that they will pay that for starter homes?

Ridiculous.

Feels like end game stuff to me.

The 43% figure is 2014 - 2020, between now and then it will be 29%.

So that £450k house will be a mere £580k in 2020 :-)

People keep coming and there's a lot of foreign landlords buying here now, where I am in Tilehurst most houses are sold with two weeks, even 3 bed bungalows with loads of work to do at £450k, in 2020 these prices will look cheap.

Bottom line is there is no crash in the south east, too much demand, nothing being built really and this is where all the money is and social cleansing is the name of the game, just like it was and is in london.

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12 hours ago, pricesmad said:

The 43% figure is 2014 - 2020, between now and then it will be 29%.

So that £450k house will be a mere £580k in 2020 :-)

People keep coming and there's a lot of foreign landlords buying here now, where I am in Tilehurst most houses are sold with two weeks, even 3 bed bungalows with loads of work to do at £450k, in 2020 these prices will look cheap.

Bottom line is there is no crash in the south east, too much demand, nothing being built really and this is where all the money is and social cleansing is the name of the game, just like it was and is in london.

Houses are yielding ~3% gross : £450k *3% /12 = £1125 pcm for example.  Therefore, rental is very similar to buying but without the downside risk at the moment.  Massive HPC potential

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23 hours ago, pricesmad said:

The 43% figure is 2014 - 2020, between now and then it will be 29%.

So that £450k house will be a mere £580k in 2020 :-)

People keep coming and there's a lot of foreign landlords buying here now, where I am in Tilehurst most houses are sold with two weeks, even 3 bed bungalows with loads of work to do at £450k, in 2020 these prices will look cheap.

Bottom line is there is no crash in the south east, too much demand, nothing being built really and this is where all the money is and social cleansing is the name of the game, just like it was and is in london.

There could be a crash in and around Reading but I suspect even if there is it will not be as severe as other parts of the country. During 2007- 2009 prices did not really come down that much they just took longer to sell or people just put off selling which caused a coiled spring effect 2013 onwards and prices have risen 30-50%. I think any fall in prices will be softened by the arrival of Crossrail in Dec 2019, regardless of how many minutes are shaved of the London commute there will still be a buzz once that date gets nearer.

 

I notice a lot of properties like have dropped 10-15% but these are from astonomical prices in the first place, I just wonder if we are going to drift for a few years and then come Brexit finishing/Crossrail opening we could get that coiled spring again, who knows.

http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=REGION^8824&insId=2&radius=0.0&minPrice=&maxPrice=&minBedrooms=&maxBedrooms=&displayPropertyType=&maxDaysSinceAdded=&_includeSSTC=on&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&newHome=&auction=false

 

 

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On 14/07/2017 at 11:34 AM, fandanman said:

There could be a crash in and around Reading but I suspect even if there is it will not be as severe as other parts of the country.

Just 2 parts, Aberdeen and Worthing.

LSE: The Local Economic Effects of Brexit

http://cep.lse.ac.uk/pubs/download/brexit10.pdf

Reading projected to be third worst performing primary urban area from hard brexit in the country, 4th if soft. Slough and Swindon close behind.

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On 14/07/2017 at 0:30 AM, Bear Hug said:

Houses are yielding ~3% gross : £450k *3% /12 = £1125 pcm for example.  Therefore, rental is very similar to buying but without the downside risk at the moment.  Massive HPC potential

you won't get a 450k house to rent for £1125, more like £1700, therefore what are you talking about? where's the HPC potential coming from?

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On 8/4/2017 at 3:03 PM, pricesmad said:

you won't get a 450k house to rent for £1125, more like £1700, therefore what are you talking about? where's the HPC potential coming from?

Of course, you can if someone can afford to pay. Reading average salary is around 30k. BTW you make £1700 from £25200 salary.

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On 8/4/2017 at 3:03 PM, pricesmad said:

you won't get a 450k house to rent for £1125, more like £1700, therefore what are you talking about? where's the HPC potential coming from?

£1700 is unlikely, even when marketed for sharers.  At £1125 it will go quickly, at £1700 it will be visible on rightmove but certainly not rented out.   

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The thing about Cross Rail is it will depend on the price of the ticket. If the ticket costs £500 a month to get to Liverpool street, then those houses are over valued. 

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6 minutes ago, 999house said:

The thing about Cross Rail is it will depend on the price of the ticket. If the ticket costs £500 a month to get to Liverpool street, then those houses are over valued. 

I can't see it costing less than £500 going by present costs and its worth mentioning that you have to earn about £750 extra a month to pay the £500 travel costs.  Commuting is expensive and destructive to individuals (their lives and sanity) and to the environment.  There is a mean side to me that always enjoys hearing about rail price rises because its going to help damp down the commuting madness.

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I commute to my current contract in Liverpool Street from Reading. And monthly ticket costs £492. I get a discount if I keep renewing bringing it down to £466. So I think Crossrail will be even more than £500 a month. 

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7 hours ago, heffsta said:

I commute to my current contract in Liverpool Street from Reading. And monthly ticket costs £492. I get a discount if I keep renewing bringing it down to £466. So I think Crossrail will be even more than £500 a month. 

So that's almost £10k a year before tax (for a higher rate tax payer) + 2-3 hours a day just to break even, compared to staying in London.

If you can afford to do it, then you are probably in a long hours investment banking job, and wouldn't even have enough time left to have a proper sleep in your home in Reading after long hours at work and commute. 

Evening Standard: Property prices in commuter towns slashed as rail season tickets continue to rise

 

Edited by Bear Hug

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9 hours ago, dougless said:

I can't see it costing less than £500 going by present costs and its worth mentioning that you have to earn about £750 extra a month to pay the £500 travel costs.  Commuting is expensive and destructive to individuals (their lives and sanity) and to the environment.  There is a mean side to me that always enjoys hearing about rail price rises because its going to help damp down the commuting madness.

I'm thinking about taking a contract in London but I wont be commuting. Its cheaper and better for my mental state to get a b n b or cheap hotel rool than pay 500 a month to be squashed every morning. Plus I can claim the tax back for travel, food and accomodation.

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9 hours ago, heffsta said:

I commute to my current contract in Liverpool Street from Reading. And monthly ticket costs £492. I get a discount if I keep renewing bringing it down to £466. So I think Crossrail will be even more than £500 a month. 

I agree with Cross Rail being more expensive. The Gov are spending billions on it, so the tickets are not going to be cheap. 

IMO the numpty landlords have not done their maths right. The journey may be easier / quicker to central london, but they havnt factored in the cost. Therefore Reading house prices, especially in the town centre are well over priced. The differential between mortgage and rent at the moment is about 30-35% - ie its 35% cheaper to rent the same flat as it is to buy it.

Prices have to drop accordingly.

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Has there been any official announcement on Crossrail ticket prices (or a good hint if not) as its possible, if unlikely, it may be included as just another Zone 1 route?  For those who cant justify its likely higher prices, will presumably benefit from those who do freeing up space on existing zone 1 overground & tube trains.

The madder situation is there is plenty of office space to let in Reading itself.

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On 24/08/2017 at 11:13 PM, 999house said:

I'm thinking about taking a contract in London but I wont be commuting. Its cheaper and better for my mental state to get a b n b or cheap hotel rool than pay 500 a month to be squashed every morning. Plus I can claim the tax back for travel, food and accomodation.

Well ..... HMRC are clamping down on IR35/personal service company setups at the mo.

One you start staying Tues-Thurs the option of commuting down from the North becomes more appealing.

Why not live in Orth Yorks and travel an extra 4h/week rather than live in Reading?

 

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7 hours ago, spyguy said:

Well ..... HMRC are clamping down on IR35/personal service company setups at the mo.

One you start staying Tues-Thurs the option of commuting down from the North becomes more appealing.

Why not live in Orth Yorks and travel an extra 4h/week rather than live in Reading?

 

Its an option Ive thought about.

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4 hours ago, 999house said:

Its an option Ive thought about.

Yep.

Especially if like me you're Northern.

Once kids have done school  Im travelling down Tue-Thurs + B+Bing it.

Providiing something like IR25 or I can get a one band company rolling.

The (slow) train from Reading to Wloo is over 1h.

The fast train to KX from York can be under 2h.

The M4 valley is horrednous in terms of car congestion. No attractive to live or drive around.

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