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A17

My housing experiences in London

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Hi,

I'm a long time reader, but I've finally decided to join.  I'm not sure if this is the best place to post, but I wanted to get it straight.

I purchased a flat in London in early 2013 as a first-time buyer.  This was funded by heavy saving, a period working overseas, a period of time staying with family for reduced rent, and an inheritance.  This gave me a decent deposit (35%), which kept the mortgage down to a level I was comfortable with, and which I could cope with in the event of a property crash. Since then, Zoopla has suggested that the property has increased in 40% in price, with similar flats on the market at 65% above what I paid (extreme kite flying in my opinion).  So far, so good, people tend to think!  PM me if you'd like the actual numbers to get an idea of scale.

However, the time has come to move on.  Once again, I've been saving hard.  Well meaning acquaintances go on about what a good investment it has been, but they fail to see that the "second step" homes are even more out of reach in London!  When I say that I'd be very happy with a fall in prices to 2013 level, and indeed less than that they look at me as though I'm insane!  I can ride out a crash, but I'm not sure how many others can.  

My solution:  I'm joining the brain drain.  London has nothing to offer those who are on comparibly good incomes once you get past the fun of youth.

Probably not the best place to post this, but just an introduction to how I see London.

Thanks for reading :-) 

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19 hours ago, A17 said:

Hi,

I'm a long time reader, but I've finally decided to join.  I'm not sure if this is the best place to post, but I wanted to get it straight.

I purchased a flat in London in early 2013 as a first-time buyer.  This was funded by heavy saving, a period working overseas, a period of time staying with family for reduced rent, and an inheritance.  This gave me a decent deposit (35%), which kept the mortgage down to a level I was comfortable with, and which I could cope with in the event of a property crash. Since then, Zoopla has suggested that the property has increased in 40% in price, with similar flats on the market at 65% above what I paid (extreme kite flying in my opinion).  So far, so good, people tend to think!  PM me if you'd like the actual numbers to get an idea of scale.

However, the time has come to move on.  Once again, I've been saving hard.  Well meaning acquaintances go on about what a good investment it has been, but they fail to see that the "second step" homes are even more out of reach in London!  When I say that I'd be very happy with a fall in prices to 2013 level, and indeed less than that they look at me as though I'm insane!  I can ride out a crash, but I'm not sure how many others can.  

My solution:  I'm joining the brain drain.  London has nothing to offer those who are on comparibly good incomes once you get past the fun of youth.

Probably not the best place to post this, but just an introduction to how I see London.

Thanks for reading :-) 

I had the same experience in 2006 when I moved up the ladder.  Even when I showed how the house price inflation had been bad for me, people still didn't agree with me- even though I showed my sums

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That's what we're seeing although we're in Oxford not London. I'd prefer prices being back at 2010 levels rather than 2016 levels. The next step would be a lot closer. Even if interest rates are lower now I still don't like being in that much debt.

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On 11/24/2016 at 6:01 PM, A17 said:

Well meaning acquaintances go on about what a good investment it has been, but they fail to see that the "second step" homes are even more out of reach in London!

They can all get HPC education the hard way.  

Tired of everything offered up to support their innocence on this matter.

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I have several friends in london finding the same thing. Foot on the ladder, 1 or 2 bed flat.... Now they're having first or second kids and finding its as difficult to move up the ladder as it was to get on it - and this time BOMAD won't be able to help. 

Actually, a lot of people are extending their houses rather than moving. But of course that requires a house rather than a flat, so many won't have the option available

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On 24/11/2016 at 6:01 PM, A17 said:

Hi,

I'm a long time reader, but I've finally decided to join.  I'm not sure if this is the best place to post, but I wanted to get it straight.

I purchased a flat in London in early 2013 as a first-time buyer.  This was funded by heavy saving, a period working overseas, a period of time staying with family for reduced rent, and an inheritance.  This gave me a decent deposit (35%), which kept the mortgage down to a level I was comfortable with, and which I could cope with in the event of a property crash. Since then, Zoopla has suggested that the property has increased in 40% in price, with similar flats on the market at 65% above what I paid (extreme kite flying in my opinion).  So far, so good, people tend to think!  PM me if you'd like the actual numbers to get an idea of scale.

However, the time has come to move on.  Once again, I've been saving hard.  Well meaning acquaintances go on about what a good investment it has been, but they fail to see that the "second step" homes are even more out of reach in London!  When I say that I'd be very happy with a fall in prices to 2013 level, and indeed less than that they look at me as though I'm insane!  I can ride out a crash, but I'm not sure how many others can.  

My solution:  I'm joining the brain drain.  London has nothing to offer those who are on comparibly good incomes once you get past the fun of youth.

Probably not the best place to post this, but just an introduction to how I see London.

Thanks for reading :-) 

I dont know what  you do, or what your planning on doing.

Does you job/income exist outside of London? Most London jobs do not exist outside or London, or pay a lot less.

London  is poor hedge - the PE is too far out of historical norms you're going to get screwed.

Me? Id cash i nthe equity ASAP. The data on London flats looks terrible at the mo.

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1 hour ago, spyguy said:
On 11/24/2016 at 6:01 PM, A17 said:

My solution:  I'm joining the brain drain.  London has nothing to offer those who are on comparibly good incomes once you get past the fun of youth.

Probably not the best place to post this, but just an introduction to how I see London.

I know a number of people who telecommute, and only have to go into London once a week for meetings.

This is very much the future of working. So the idea of a braindrain might disappear with the rise of remote working. We will still be able to earn London salaries, without having to spend most of our time there. 

 

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Not really. Most people I know who work in London are only paid a lot because they work in London.

Telecommute and they are not working in London, so wont get as much money.

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35 minutes ago, spyguy said:

Not really. Most people I know who work in London are only paid a lot because they work in London.

Telecommute and they are not working in London, so wont get as much money.

I lost the London weighting, but even so my salary as a telecommuter probably puts me in the top quartile around here. 

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On 12/17/2016 at 9:43 AM, spyguy said:

Me? Id cash i nthe equity ASAP. The data on London flats looks terrible at the mo.

I am considering doing that.  It's just the concept of having a place to return to, should I ever return!

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