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Why Are London Prices Still So Ludicrously High?

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The first victim in central planning is liquidity ... don't stress it! this is normal. Be careful about who you think should take the blame ...

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I don't know who but somebody is buying it seems. BTL or foreign investors buying the bottom of the ladder ?????

It is 'so so oo soooo oo' frustrating. Buying a house seems to be a humiliation experience for many. Last weekend I went to see a property that was on the market for last 10 months. 30% over 2014 sold price. Agents (2) came in 10 min late. One stood outside and asked people to wait until the other on comes out and says it is ok to go. I didn't bother going in. I told him I don't like the area. But while I was waiting to be picked up the other viewers came out and clearly the ladies were very grumpy with the way the agents treated them. I suspect if some people were the agent's own people.

Edited by Fairyland

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The first victim in central planning is liquidity ... don't stress it! this is normal. Be careful about who you think should take the blame ...

So, being a rigged market, qe etc, there's poor price discovery?

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Could it be possible that many are buying in a shared ownership scheme just to have some freedom from rental problems? How does LG report a shared ownership transaction ?

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I am trying to console a work mate who is just off the phone talking to an EA. EA informed him that someone else has offered over the asking price. Friend offered 5% below asking price(30% more than last year/2007 peak) in a not so nice area of bucks. Earlier EA was quite please with his offer. Don't know what went wrong in last 2 days. Anyway, told my friend I smell a rat. EA probably knows that lender's surveyor would value the house very less so they may be waiting for some cash buyer. It is a probate sale BTW.

I don't know who but somebody is buying it seems. BTL or foreign investors buying the bottom of the ladder ?????

It is 'so so oo soooo oo' frustrating. Buying a house seems to be a humiliation experience for many. Last weekend I went to see a property that was on the market for last 10 months. 30% over 2014 sold price. Agents (2) came in 10 min late. One stood outside and asked people to wait until the other on comes out and says it is ok to go. I didn't bother going in. I told him I don't like the area. But while I was waiting to be picked up the other viewers came out and clearly the ladies were very grumpy with the way the agents treated them. I suspect if some people were the agent's own people.

I wish you and your mates hurry up and buy at the 2007+30% and 2014+30% asking prices, on your humiliating experience viewings.

Keep bidding higher until you're successful and buy.

Followed by massive MASSIVE HPC. :)

Edited by Venger

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I think Venger has 'hit the nail on the head'.....those people who let the EA think they are doing them a favour deserve everything they get...If you were buying any other product for £100s of £1000s would you let the shop assistant treat you like a second class citizen?....Some EA will only realise who the customer is when they are unemployed!....In fact some EA deserve to be unemployed as their ability (especially customers service skills) is severely lacking!

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If you were buying any other product for £100s of £1000s would you let the shop assistant treat you like a second class citizen?....Some EA will only realise who the customer is when they are unemployed!....

You arnt their customer - the seller is.

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The 10 minutes late thing is an intentional tactic to demonstrate the upper hand (needless to say). One of the best responses is, of course, to walk out/walk away if they treat you that way. It's probably good if any of the others remaining in the queue tell the late eas that people had left because of the lateness.

They might still sell to someone else but apart from anything else they lose a lot of their negotiating position.

Edited by billybong

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Two houses sold in my road last year. Both for 45% up on a house that sold the previous year (exactly the same kind of terrace house in fact this one is actually between the other two).

They sold for £1.4m and have been on the market for >6 months at a rental price of around £3k pm. I've no idea who bought them - I only met the PA to the guy who bought one of the houses when she was sent to check up on it - and no idea why buying them to rent out seems like a good idea.

Edited by repetitive bleats

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The 10 minutes late thing is an intentional tactic to demonstrate the upper hand (needless to say). One of the best responses is, of course, to walk out/walk away if they treat you that way. It's probably good if any of the others remaining in the queue tell the late eas that people had left because of the lateness.

They might still sell to someone else but apart from anything else they lose a lot of their negotiating position.

I'd disagree. For what it's worth, my advice is not too get involved in alpha-male emotional games. Ten minutes waiting is insignificant in a transaction like that. If you think it's worth buying then politely make an offer at the price you think it's appropriate. If the agents have discouraged other people from making offers then so much the better. Edited by 65243

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What is the sub mechanism in the bubble? Wtf is going on? Who's buying?

I'm going to jump straight in without reading the rest of the thread and give my honest opinion, which is that it's London. If you're some international BTL clown you think nice thoughts about Buckingham Palace and then take a punt. If you are some kid from the Shires looking to live life you find a job in London, you at first blanch at the proposal that you hand over more than half your net earnings to live in a house-share with four strangers and then step into the dream that is London.

London is like Las Vegas - it's a way of dreaming about the life that you'd like to have. People approach being a London wage slave the same way they approach the lottery - you've got to be in it to win it. It's an open hearted naive engagement with a dream and then a wait for the penny to drop. YMMD.

Edited by bland unsight

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The 10 minutes late thing is an intentional tactic to demonstrate the upper hand (needless to say). One of the best responses is, of course, to walk out/walk away if they treat you that way. It's probably good if any of the others remaining in the queue tell the late eas that people had left because of the lateness.

They might still sell to someone else but apart from anything else they lose a lot of their negotiating position.

If they want to be there, with loads of other viewers, pushing and falling over themselves to be allowed in to view, queueing with others wanting to pay 2014+ double-2007 prices... that may be appropriate.

I'm waiting for HPC. Another round of reflation came into the system... maybe China stimulus / ECBs €60 Bn per month QE.... but I'm waiting for market to buckle for HPC, whatever the trigger.

Let's have no excuses for these pushing-and-falling over each other queuers, slighted by 10 mins EA late, at these prices.

I'll slip in when the desperation is there, and EAs sending out a fancy car and driver to take me to another viewing... hanging on my every word in hope I'll put an offer in, very few other proceed-able buyers out there.

I don't know if it was a rush to get on before MMR kicked in, but it does seem of calmed down now, possibly less coming to market, but also have the desperate 'headless chicken' buyers dried up? A few agents now are ringing me constantly trying to get me to view houses, they can't be that busy now if they have the time to call people up? A 2 bed house in Sale, £280k! ("but you can extend it to a 3 bed Sir, and the owner has rendered it, it looks lovely", the agent says)

Spoke to a Mortgage Advisor in an Altrincham Estate Agents , EA staff were typical young lads being slightly aggressive covering up their inexperience, but mortgage advisor was actually a decent bloke. He told me that there were a lot of sales falling through in Altrincham at the moment, due to surveyors being 'cautious', under-valuing houses (valuing them at less than the agreed price I mean) as they couldn't find any comparable sales within a mile radius. Instead of re-negotiating the price the sellers typically put them back on the market.

Our view now is to sit tight, let any last dregs of panic buyers snap up the overpriced rubbish that's about, and hold out for something of value, however long that takes.

Not going to get my hopes up but would be good if MMR really does lead to something like more supply to market and a sudden cooling and more buyers unable to get the debt they want. Hope you get more EA phone calls. I'm waiting until the deals come to me.

----- / / -----

There's a worrying feeling of celebration and exaltation growing on this thread. Premature congratulation is something that has blighted HPC for a long time. There is still a long way to go. At present all we have is a slight slowdown in the rate of acceleration with some indicators that this slowdown might have legs. The horse is not yet confirmed as bolted. So ... keep calm.

That said, I am being contacted by EAs most days. You could not get a sniff from them a few months back.

And there are so many (horrible) new flats being built everywhere. In the last week I have driven through Twickenham, Vauxhall, East London, Canary Wharf and cranes are all over. As these come to market in the next few years, we might find there is going to be rather a lot of supply.

But, like I say, we are still in early foreplay - beware premature congratulation.

:lol:

EAs calling up is a good thing.

I know they've given others short-shrift last few years into the reflation, with other eager buyers pushing and falling over each other to pay higher prices. I've said there's no way I'm going to go out looking for the deals - but will wait until the deals begin coming to me. And then wait till EAs and owners are squealing, begging and crying.

Yes; beware. In 2008, the then hyperinflated 1.0 market going down quickly and too many hpcers were complacently celebrating like they'd finished off the Terminator with a few blasts in the Tech Noir bar, and showing it sympathy. They allowed it to get back up, and we've been experiencing the consequences for years.

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Those who want to buy at 20-30% + of 2007 prices are not going to come on this site with a hope of HPC to seek advice or vent about bad EA practices. They will just buy by whatever means they can.

For those who do come here, can we not do anything better than suggesting them to join the bidding war? This is indirectly feeding the VI interest.

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Goldbug, you are partially correct...

...on paper the seller is the EA customer but what happens if the EA 'customer skills' are so poor that any prospective buyer walks away and only deals with other EA...the seller makes no progress with his sale/EA and moves onto another...the original EA picks up his UB40.

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Goldbug, you are partially correct...

...on paper the seller is the EA customer but what happens if the EA 'customer skills' are so poor that any prospective buyer walks away and only deals with other EA...the seller makes no progress with his sale/EA and moves onto another...the original EA picks up his UB40.

I guess you mean P45! But it made me laugh! :D

But as wise men say, only fools rush in! :P

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