Guest Cletus VanDamme Posted January 6, 2006 Share Posted January 6, 2006 looks good... apart from the fact that it's in Bethnal Green! How about this: Highgate, Zone 3, nice area http://www.findaproperty.co.uk/agent.aspx?...prop&pid=207242 Or, if you can stretch to 4x salary, this: http://www.findaproperty.co.uk/agent.aspx?...prop&pid=269333 Or plenty of houses down the road in Muswell Hill in your price range, e.g. http://www.findaproperty.co.uk/agent.aspx?...prop&pid=204864 Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 6, 2006 Share Posted January 6, 2006 (edited) Ah well, as tonification was saying you're obviously looking for something a bit special. So until you're earning above the average London wage, this will have to do. Notting Hill? Yes, I know its a flat but there's a second bedroom in the attic you know! Some people don't know how lucky they are! 375k for what is almost a bed-sit? Living Room, Dinette (too small to be a dining room) and mini-kitchen all in the same open space with a BR stuck in a split level attic (without separation from below). Looks like the photos were taken with a very wide angle lense. When will all this madness end? How about an organized house purchase strike! Edited January 6, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
AgeingBabyBoomer Posted January 6, 2006 Share Posted January 6, 2006 Personally, I wouldn't buy at all. I would get my head down, save hard, when you have about £150K stashed, find a lesser job away from stressful, shitty, expensive London, and walk into a home somewhere nicer with little or no mortgage. ABB Quote Link to comment Share on other sites More sharing options...
Guest Posted January 6, 2006 Share Posted January 6, 2006 (edited) I earn 65k pa in the Midlands wife earns a lot more. We cannot afford to buy our house. Currently valued at 700k. Up with the crash!!!! Mr Powell, as ever I admire your unselfishness and total honesty. worth repeating this bit: "EVEN THE CRAPPIEST OF HOUSES ARE UNAFFORDABLE FOR THE TOP 1% EARNERS IN THE COUNTRY!" Sherwick, you are just jealous and are wishing ill on other people. Don't wish ill on other people, because it's still the season of goodwill to all men. (I think this includes Estate Agents). Otherwise, I believe you will have to wait until tomorrow. The top 1% of all earners are going to have to learn that everyone starts at the bottom, even when they're at the top. It is a great shame that house prices have stopped rising, and we should all just get down and have a jolly good cry over it, because how else are new home-buyers going to have an excellent pension and luxury retirement? EDIT - Note: this post includes p-taking and sarcasm that isn't aimed at Sherwick. Edited January 6, 2006 by megaflop Quote Link to comment Share on other sites More sharing options...
ben_bear? Posted January 6, 2006 Share Posted January 6, 2006 how about this in West Greenwich... 2_bed_house or... E14_house or you could just rent this...it's been available for 2 months, so would no doubt be attainable at a lower rate: Limehouse This doesn't look like an overly impressive yield for whoever "invested" in it. Quote Link to comment Share on other sites More sharing options...
Bemused Posted January 6, 2006 Share Posted January 6, 2006 Personally, I wouldn't buy at all. I would get my head down, save hard, when you have about £150K stashed, find a lesser job away from stressful, shitty, expensive London, and walk into a home somewhere nicer with little or no mortgage. ABB Ahhh someone on the same wavelegnth! Also you can move away from Po-faced, uptight selfish $hits (broad generalisation) Saying that though I do have a huge love\hate relationship with London. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 6, 2006 Share Posted January 6, 2006 Or how about this for about 125k less than target price? http://www.coldwellbanker.com/servlet/Prop...1&page=property Is it time to emigrate--is it worth working like a slave in a dirty city to afford a crap little hovel to raise your kids in! Quote Link to comment Share on other sites More sharing options...
Bemused Posted January 6, 2006 Share Posted January 6, 2006 looks good... apart from the fact that it's in Bethnal Green! Wimbledon? OK could do with some redecoration - but easy train\tube ride to waterloo? Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted January 6, 2006 Share Posted January 6, 2006 You should be taking home about 66K a year on a 100K salary. I'd suggest living off 26K and saving 40K for 4-5 years then buy outright and get a job you really enjoy. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 6, 2006 Share Posted January 6, 2006 (edited) I like that idea, Ozz. Stick away a load of dosh, and post-recession bugger off to Lanzarote and open a bar. Small beers only, for English tourists though! Edited January 6, 2006 by megaflop Quote Link to comment Share on other sites More sharing options...
Come On Down Posted January 6, 2006 Share Posted January 6, 2006 In summary SHERWICK you have hit the nail on the head. They're too expensive. And I dont resent you for earning 100k unlike some other people on this post. Come on Down! Quote Link to comment Share on other sites More sharing options...
E Powell Posted January 6, 2006 Share Posted January 6, 2006 megaflop I have seen it all before the country went to the dogs in 1976 - the labour government had to get a blank cheque off the IMF and the tories messed the country up. Quote Link to comment Share on other sites More sharing options...
aussieboy Posted January 6, 2006 Share Posted January 6, 2006 yeah that sounds like party central ? book me into the adventure. alive and licking.... bah dah dah dah. bah dah dah dah. ba bah dah owah. ba bah dah owah. repeat Quite. You'll be living the dream along with a this year's crop from the county's minor public schools (v. handy for the family home over the river in Chelsea) Quote Link to comment Share on other sites More sharing options...
Adam Posted January 6, 2006 Share Posted January 6, 2006 On a 3.5 multiple You can't buy anything decent on a 3.5 multiple. Get real man. Listen to what the sheeple are telling you - you'll need to go to 8 times your salary, just like everyone else. Or you could just shortcut straight to the agony part, and put your balls in a blender. Shocking isn't it?. 100k pa and a reasonble multiple might get you a shed! Quote Link to comment Share on other sites More sharing options...
frugalista Posted January 6, 2006 Share Posted January 6, 2006 Personally, I wouldn't buy at all. I would get my head down, save hard, when you have about £150K stashed, find a lesser job away from stressful, shitty, expensive London, and walk into a home somewhere nicer with little or no mortgage. ABB YOU STOLE MY PLAN! frgualista Quote Link to comment Share on other sites More sharing options...
zorn Posted January 6, 2006 Share Posted January 6, 2006 The question (what can I afford on 100k a year with a 3.5 multiple in the London area) and the response just about sums it all up doesn't it! The UK property market is so out of touch with earnings that even the crappiest of houses are unaffordable for the top 1% earners in the country! No, because he's artificially restricting himself to a 3.5X earning multiple that was appropriate with base rates of 10%, and you're not taking his £50K of savings into account. So if we take a more realistic budget of £550K as what he can actually afford with a 5X mortgage (which should leave him with around £3,000 per month of spending money after the mortgage repayments, not counting his partner's salary), then we should be looking at asking prices between £550K and £600K. So if we're looking at what someone in that position can afford, instead of what they choose to restrict themselves to, we find some pretty nice houses: http://www.rightmove.co.uk/viewdetails-5010637.rsp http://www.rightmove.co.uk/viewdetails-4427607.rsp http://www.rightmove.co.uk/viewdetails-4929874.rsp Quote Link to comment Share on other sites More sharing options...
underpressuretobuy Posted January 6, 2006 Share Posted January 6, 2006 No, because he's artificially restricting himself to a 3.5X earning multiple that was appropriate with base rates of 10%, and you're not taking his £50K of savings into account. You just don't understand do you. Just because base rates are low now that does not mean they always will be. I just don't understand why you don't understand why someone on £100pa should have to stretch themselves to buy a decent house. Tonification is wrong and so are you if you think that £100pa is a pretty average salary these days. If you believe that houses should only be affordable to those on £150pa and above and that from now on they always will be - just say so. The point is not, what can I or Sherwick stretch to afford? The point is - who is going to buy this off me when I want to move? Will they be prepared to pay as much as I did? The one thing bulls never take into consideration when considering affordability is factoring in an ability to cope with a change in circumstances, if you have to stretch just to get into your home it means there is no room to manoevre at all if your circumstances change. You just can't advise people to take on a mortgage if they have no manoevring room - to do so would mean asking them to bet their financial future on the fact that their circumstances will never change, times will never be hard, they will never be a forced seller. I wouldn't take that bet and hope no one else here does. Quote Link to comment Share on other sites More sharing options...
Goat Posted January 6, 2006 Share Posted January 6, 2006 No, because he's artificially restricting himself to a 3.5X earning multiple that was appropriate with base rates of 10%, You do appreciate that he actually has to repay the loan and not just the interest on it. I only mention this because the VI's try to focus our attention on the nominal interest rate but ignore the fact that it is the real rate of interest that matters, the real rate of course being not particularly low at the moment. Quote Link to comment Share on other sites More sharing options...
chatterly Posted January 6, 2006 Share Posted January 6, 2006 sherwick, It depends what are you want to live in london - obviously there is huge variablity - and some of it due to fashion. Most places in South East London are cheaper than other parts of London (but just as nice in my opinion). The obvious drawback - lack of tube - although this is a positive for some of us who dont like using the tube! Overground rail can be more pleasant most of the time. An earlier poster recommended East Dulwich - it is a lovely area, recently 'gentrified'. If you like having facilities like nice bars, delis, cafes etc on your doorstep. Transport isnt wonderful - but overground to London Bridge. http://www.findaproperty.co.uk/agent.aspx?...4&photo=3#photo Plenty of terraced houses in decent areas near train stations in SE postcodes for 300k-350k. have a look on www.findaproperty.com. I do still think they are overpriced! as highest earners shouldnt be looking in traditionally 'cheaper' parts of London - but that is entirely up to you of course! Quote Link to comment Share on other sites More sharing options...
Lovely Lolly Posted January 6, 2006 Share Posted January 6, 2006 You just can't advise people to take on a mortgage if they have no manoevring room - to do so would mean asking them to bet their financial future on the fact that their circumstances will never change, times will never be hard, they will never be a forced seller. I wouldn't take that bet and hope no one else here does. You are so, so right. I fed up of hearing this 6 multiple salary rubbish from commentators, friends etc. The one and only thing keeping this hpi show afloat is the public's unshakeable faith that low interest rates are here to stay and of course that is reinforced on a daily basis by the media. It's as if everyone just got brainwashed and cheap money is now the norm. Quote Link to comment Share on other sites More sharing options...
lampkin Posted January 6, 2006 Share Posted January 6, 2006 Get a better paid job! ho ho.. Quote Link to comment Share on other sites More sharing options...
jrbxyz Posted January 6, 2006 Share Posted January 6, 2006 (edited) How about a terrace in East London? E17 Terrace This particular property about sums up the nonsense in London. I know Walthamstow well, and while this property is convenient to the tube & town centre, this area is rather tatty, dodgy, over-rated (estate agents trying to make it seem trendy call this area 'the village'), and now desperately overpriced -- just three years ago this would have gone for no more than 250,000-260,000. What nonsense! Rent the same thing for £1,200 and save the rest of your £100,000 salary for when prices go back to some sort of 'equilibrium'. ------------ Edited January 6, 2006 by jrbxyz Quote Link to comment Share on other sites More sharing options...
jrbxyz Posted January 6, 2006 Share Posted January 6, 2006 No, because he's artificially restricting himself to a 3.5X earning multiple that was appropriate with base rates of 10%, and you're not taking his £50K of savings into account. So if we take a more realistic budget of £550K as what he can actually afford with a 5X mortgage (which should leave him with around £3,000 per month of spending money after the mortgage repayments, not counting his partner's salary), then we should be looking at asking prices between £550K and £600K. So if we're looking at what someone in that position can afford, instead of what they choose to restrict themselves to, we find some pretty nice houses: http://www.rightmove.co.uk/viewdetails-5010637.rsp http://www.rightmove.co.uk/viewdetails-4427607.rsp http://www.rightmove.co.uk/viewdetails-4929874.rsp How many times does one have to show the faulty logic in this 'affordability' argument based on lower base rates!!! Real 'affordability' is what the mortgage payer has to spend on his/her mortgage over the life of the mortgage, which is not based simply on the initial base rates but REAL interest rates adjusted to inflation. A 10% mortgage during a period where inflation ranged from 6-8% carries roughly the same affordability as a 5% mortgage during a period where inflation ranges from 3-4%. Salary inflation eroded the mortgages for people who bought in the 1970s, 1980s, and into the 1990s; the inflation outlook for next 10-15 years is, by all accounts, much more modest, and hence the relatively low base rate. THEREFORE THE BURDEN OF THE MORTGAGE WILL NOT EASE, DESPITE THE ALLEGED 'SAVINGS' AND 'AFFORDABILITY' THAT THE LOWER BASE INTEREST RATE SEEMS TO SUGGEST TO SOME PEOPLE. That 5% base rate will in fact hit the wallet in real terms just like the old 10% mortgage did before. And if you've take out a mortgage for 5-6x salary instead of 3.5-4x, it will hit the wallet, well, about 50% harder. Quote Link to comment Share on other sites More sharing options...
CrashIsUnderWay Posted January 6, 2006 Share Posted January 6, 2006 basically, very time zorn posts. He doesn't WANT to understand. It will ruin his day. Give it up, he has a brain like a 90 year old man's shrivelled ba11sack. Quote Link to comment Share on other sites More sharing options...
geranium Posted January 6, 2006 Share Posted January 6, 2006 The question (what can I afford on 100k a year with a 3.5 multiple in the London area) and the response just about sums it all up doesn't it! The UK property market is so out of touch with earnings that even the crappiest of houses are unaffordable for the top 1% earners in the country! Its really a great tragedy that HPI ever happened. I work with a lot of high earners (somebody has to). The really scary thing is, even the ones earning well in excess of 100k pa, probably in excess of 200k pa, who can and have bought houses, complain about how much of their income is going on their mortgages. They talk about their salaries going into their accounts and getting swallowed up straight away by standing orders - mortgage, bills, school fees. Quote Link to comment Share on other sites More sharing options...
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