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rantnrave

Land Reg November 2015 Full Report

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London is just getting silly with average prices now at £506k! Just who is buying at these prices?

I'm the first to admit that I am incredibly fortunate having now manoeuvred myself into a position where I am in the top 1% of earners in this great country. If I was to stay in 'relatively centralish' London somewhere near a tube station this looks like my future:

http://www.rightmove.co.uk/property-for-sale/property-36215937.html

Yep, feast your eyes on that beauty. Two box rooms for bedrooms and the 'Agent' kindly tells me that it 'benefits' from a 'fitted kitchen'. Here I was thinking that for £345k (EUR468k) I wouldn't get one of those - what a bargain! The garden doesn't quite look big enough to swing a cat in either. Oh once I've paid the stamp duty I might want to make sure I have enough for a stab vest as well as after all it is an 'up and coming area'.

Alternatively, I can emigrate leaving London to the spivs and rentiers. Go as far as Cyprus and this is my future:

http://www.fitzgeraldcyprus.com/en/property-for-sale/all-properties/property/1717.html

£276k (EUR375k) leaving me £69k change for wine, wo/man and song. 3 bed, 3 bath, 200m^2, a plot of 1150m^2, off street parking, swimming pool, sea views and a lot more sunshine.

I think I know where my future lies.

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London is just getting silly with average prices now at £506k! Just who is buying at these prices?

I'm the first to admit that I am incredibly fortunate having now manoeuvred myself into a position where I am in the top 1% of earners in this great country. If I was to stay in 'relatively centralish' London somewhere near a tube station this looks like my future:

http://www.rightmove.co.uk/property-for-sale/property-36215937.html

Yep, feast your eyes on that beauty. Two box rooms for bedrooms and the 'Agent' kindly tells me that it 'benefits' from a 'fitted kitchen'. Here I was thinking that for £345k (EUR468k) I wouldn't get one of those - what a bargain! The garden doesn't quite look big enough to swing a cat in either. Oh once I've paid the stamp duty I might want to make sure I have enough for a stab vest as well as after all it is an 'up and coming area'.

Alternatively, I can emigrate leaving London to the spivs and rentiers. Go as far as Cyprus and this is my future:

http://www.fitzgeraldcyprus.com/en/property-for-sale/all-properties/property/1717.html

£276k (EUR375k) leaving me £69k change for wine, wo/man and song. 3 bed, 3 bath, 200m^2, a plot of 1150m^2, off street parking, swimming pool, sea views and a lot more sunshine.

I think I know where my future lies.

:D Just ridiculous. How long can this continue?

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London is just getting silly with average prices now at £506k! Just who is buying at these prices?

I'm the first to admit that I am incredibly fortunate having now manoeuvred myself into a position where I am in the top 1% of earners in this great country. If I was to stay in 'relatively centralish' London somewhere near a tube station this looks like my future:

http://www.rightmove.co.uk/property-for-sale/property-36215937.html

Yep, feast your eyes on that beauty. Two box rooms for bedrooms and the 'Agent' kindly tells me that it 'benefits' from a 'fitted kitchen'. Here I was thinking that for £345k (EUR468k) I wouldn't get one of those - what a bargain! The garden doesn't quite look big enough to swing a cat in either. Oh once I've paid the stamp duty I might want to make sure I have enough for a stab vest as well as after all it is an 'up and coming area'.

Alternatively, I can emigrate leaving London to the spivs and rentiers. Go as far as Cyprus and this is my future:

http://www.fitzgeraldcyprus.com/en/property-for-sale/all-properties/property/1717.html

£276k (EUR375k) leaving me £69k change for wine, wo/man and song. 3 bed, 3 bath, 200m^2, a plot of 1150m^2, off street parking, swimming pool, sea views and a lot more sunshine.

I think I know where my future lies.

Looking at the flat in Walthamstow, I just can not understand why my parents continue to advice me to buy?! Can they not see what madness this is! There is no way that flat is worth more than 10 times the average London income!

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Looking at the flat in Walthamstow, I just can not understand why my parents continue to advice me to buy?! Can they not see what madness this is! There is no way that flat is worth more than 10 times the average London income!

What about the median income

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:D Just ridiculous. How long can this continue?

I'm at the point where I really no longer care. For many years I used to track UK house values religiously. I no longer bother as it's now just farcical.

I have no skin in the BTL or UK residential property market. All that I hope is that if it does blow up then it doesn't take to much of my UK/International Equities, UK/International Bonds, UK/EU Commercial Property, Gold and Cash holdings with it. I need that to buy that non-UK home for my family and to generate enough passive income (looks like £21k this year which is more than enough for a good life) for the rest of my life.

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Looking at the flat in Walthamstow, I just can not understand why my parents continue to advice me to buy?! Can they not see what madness this is! There is no way that flat is worth more than 10 times the average London income!

Because they bought at a time when inflation eroded the debt while their high leverage and high interest rates turned their £1,000 deposit into a £1,000,000 empire?

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I'm at the point where I really no longer care. For many years I used to track UK house values religiously. I no longer bother as it's now just farcical.

I have no skin in the BTL or UK residential property market. All that I hope is that if it does blow up then it doesn't take to much of my UK/International Equities, UK/International Bonds, UK/EU Commercial Property, Gold and Cash holdings with it. I need that to buy that non-UK home for my family and to generate enough passive income (looks like £21k this year which is more than enough for a good life) for the rest of my life.

I don't think I'd wait too long to put your plan into action if I were in your shoes as I think it's a question of when not if the whole thing blows and it may be sooner than you think :) Hopefully....

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London is just getting silly with average prices now at £506k! Just who is buying at these prices?

I'm the first to admit that I am incredibly fortunate having now manoeuvred myself into a position where I am in the top 1% of earners in this great country. If I was to stay in 'relatively centralish' London somewhere near a tube station this looks like my future:

http://www.rightmove.co.uk/property-for-sale/property-36215937.html

Yep, feast your eyes on that beauty. Two box rooms for bedrooms and the 'Agent' kindly tells me that it 'benefits' from a 'fitted kitchen'. Here I was thinking that for £345k (EUR468k) I wouldn't get one of those - what a bargain! The garden doesn't quite look big enough to swing a cat in either. Oh once I've paid the stamp duty I might want to make sure I have enough for a stab vest as well as after all it is an 'up and coming area'.

Alternatively, I can emigrate leaving London to the spivs and rentiers. Go as far as Cyprus and this is my future:

http://www.fitzgeraldcyprus.com/en/property-for-sale/all-properties/property/1717.html

£276k (EUR375k) leaving me £69k change for wine, wo/man and song. 3 bed, 3 bath, 200m^2, a plot of 1150m^2, off street parking, swimming pool, sea views and a lot more sunshine.

I think I know where my future lies.

£352,500 to buy in riot-friendly Walthamstow. You'd think the vendor would throw in a stab vest for free! :lol:

2D293DC500000578-3262459-image-m-17_1444

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I don't think I'd wait too long to put your plan into action if I were in your shoes as I think it's a question of when not if the whole thing blows and it may be sooner than you think :) Hopefully....

Trust me I'm going as fast as I can. I'm 8 years into Plan B and with a fair wind I might just about make it in 2016.

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London is just getting silly with average prices now at £506k! Just who is buying at these prices?

I'm the first to admit that I am incredibly fortunate having now manoeuvred myself into a position where I am in the top 1% of earners in this great country. If I was to stay in 'relatively centralish' London somewhere near a tube station this looks like my future:

http://www.rightmove.co.uk/property-for-sale/property-36215937.html

Yep, feast your eyes on that beauty. Two box rooms for bedrooms and the 'Agent' kindly tells me that it 'benefits' from a 'fitted kitchen'. Here I was thinking that for £345k (EUR468k) I wouldn't get one of those - what a bargain! The garden doesn't quite look big enough to swing a cat in either. Oh once I've paid the stamp duty I might want to make sure I have enough for a stab vest as well as after all it is an 'up and coming area'.

Alternatively, I can emigrate leaving London to the spivs and rentiers. Go as far as Cyprus and this is my future:

http://www.fitzgeraldcyprus.com/en/property-for-sale/all-properties/property/1717.html

£276k (EUR375k) leaving me £69k change for wine, wo/man and song. 3 bed, 3 bath, 200m^2, a plot of 1150m^2, off street parking, swimming pool, sea views and a lot more sunshine.

I think I know where my future lies.

If someone has a job in London that requires reporting to a desk/computer every day they can`t live in Cyprus though? That is why the madness has continued. If the New Internet Age/Everyone Working from Home guff that was spouted 20 years ago had come to pass that flat would be 5k. I still believe it will be under 100k, but I can`t predict when.

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I don't think I'd wait too long to put your plan into action if I were in your shoes as I think it's a question of when not if the whole thing blows and it may be sooner than you think :) Hopefully....

Agreed, I am moving some money back into tracker funds as I think there is massive volatility coming in equity markets.

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We stay in London a couple of times a year for a few nights. I have been asked if I should buy to save on the daft hotel prices....and it would save me a fortune.

I have explained 4 star (desk rate £450 per night) can - with a little shopping round can be picked up for £70 per night.

6 nights a year = £420.

Or I could buy a bolt hole in princes square Bayswater for £420,000. Should get my money back only after only 1000 years. Bargain.

And the reason for my meandering off thread tale?......to highlight that the prices for property sales bear absolutely no resemblance AT ALL to the local economy.

In fairness the timing for a London crash will depend on the other 'world cities' and this current fashion of buying places across the globe. That is generating unprecedented confidence in this asset. But if the money does leave - it will go quick and you will need to keep ear mufflers on because it will pop.?

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If someone has a job in London that requires reporting to a desk/computer every day they can`t live in Cyprus though? That is why the madness has continued. If the New Internet Age/Everyone Working from Home guff that was spouted 20 years ago had come to pass that flat would be 5k. I still believe it will be under 100k, but I can`t predict when.

There are plenty of other options than that though. I just wonder why more people just don't take a different coloured pill. Instead they just seem to ask can I afford this then leverage up rather than do I see value in this. There is no value in that place and I personally couldn't think of anything worse than buying that and living in it until I pop my clogs in 30-40 years knowing that was it. What a life!

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We stay in London a couple of times a year for a few nights. I have been asked if I should buy to save on the daft hotel prices....and it would save me a fortune.

I have explained 4 star (desk rate £450 per night) can - with a little shopping round can be picked up for £70 per night.

6 nights a year = £420.

Or I could buy a bolt hole in princes square Bayswater for £420,000. Should get my money back only after only 1000 years. Bargain.

And the reason for my meandering off thread tale?......to highlight that the prices for property sales bear absolutely no resemblance AT ALL to the local economy.

In fairness the timing for a London crash will depend on the other 'world cities' and this current fashion of buying places across the globe. That is generating unprecedented confidence in this asset. But if the money does leave - it will go quick and you will need to keep ear mufflers on because it will pop.

I see the same thing with people buying holiday homes 'in the sun'. Even £50k for a studio seems crazy if you're only going to spend a couple of weeks in it a year which would cost what £1,000 max. That's 50 years excluding running costs to 'break even'. Alternatively, today a FTSE All Share tracker would yield £1,840 per year in dividends alone on that £50k which would more than cover the apartment costs and probably get the family the flights as well.

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The flat is actually 9 miles south of Walthamstow (that's where the estate agent is based though) in Bow. I'm not sure if you need the vest there.

That's funny. I have a toy model for house prices, (as usual h/t lastlaugh). When I tried it with the Outer East London BRMA LHA it didn't work.

You take the price and find 75% of it, giving you the BTL mortgage at 75% LTV. You then apply a stress rate of 5% to give you the annual interest charge, and then 125% of that to give you the annual rent needed to meet the BTL affordability measures on mortgage arising from the rental cover. Here that gives £345k*0.75=£260k, 5% of £260k is £13k and 125% of £13k is £16k

You compare that number to the LHA in the BRMA. The Inner East London BRMA LHA for a 2-bed is £302.33 a week, which is £15.7k per annum.

These prices make perfect sense in a market where rents have an LHA floor, given the BTL mortgage products available.

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I suspect the more relevant calculation concerns the 40% HTB

Try buying a second-hand house with an HTB loan. You won't get far.

If you want to explain something in London property using HTB look for the way that the sales in the £500,001-£600,000 tranche are the only slice of the market where sales volumes were materially up in the September 2015 figures as per the November 2015 report released yesterday. (Sales volumes essentially flat YoY in the £1m-£1.5m tranche (up to 459 from 456), and aside that, down across the board.

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Ive seen one way they are keeping prices high on developments. I have 2 colleagues at work on less wages than me and nothing like my deposit buy £500k 1 bed flats.

Its shared ownership schemes for key workers, they buy 33% share with mortgage and remaining 67% is rent fee plus £200 month service charge. Once sold the developer can show it being sold for £500k, it covers the social housing by providing homes for police or doctors. Sounds like a good deal but I can't see who would be permitted to buy it off them and guess they will be trapped with flat.

This is 2 separate developments on a west London borough they work on.

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Ive seen one way they are keeping prices high on developments. I have 2 colleagues at work on less wages than me and nothing like my deposit buy £500k 1 bed flats.

Its shared ownership schemes for key workers, they buy 33% share with mortgage and remaining 67% is rent fee plus £200 month service charge. Once sold the developer can show it being sold for £500k, it covers the social housing by providing homes for police or doctors. Sounds like a good deal but I can't see who would be permitted to buy it off them and guess they will be trapped with flat.

This is 2 separate developments on a west London borough they work on.

Is that rent-free for the entire time they own the 33% share? Or is it just for a limited period?

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