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Links on that CITY AM piece feed through to very bearish articles on London property...

This one graph explains the horrors of London house prices

http://www.cityam.com/259600/one-graph-explains-horrors-london-house-prices-and-why

This is how far house prices have plunged in Chelsea

http://www.cityam.com/258504/far-house-prices-have-plunged-chelsea

Note the young age of the journo in the pic...

Edited by rantnrave

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So now I'm left trying to figure out what will be less depressing: buying an overpriced house soon or continuing to rent.

Will I feel worse if we buy a house now and prices fall, or elect not to buy and prices continue to escalate beyond sanity.

To be honest the second option in each case is something I probably wouldn't be able to stomach. 

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55 minutes ago, rantnrave said:

Links on that CITY AM piece feed through to very bearish articles on London property...

This one graph explains the horrors of London house prices

http://www.cityam.com/259600/one-graph-explains-horrors-london-house-prices-and-why

Quote

Some homes in central London have had their prices slashed by 30 per cent

Waiting desperately for this to ripple out to the suburbs. 

 

 

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34 minutes ago, btd1981 said:

So now I'm left trying to figure out what will be less depressing: buying an overpriced house soon or continuing to rent.

Will I feel worse if we buy a house now and prices fall, or elect not to buy and prices continue to escalate beyond sanity.

To be honest the second option in each case is something I probably wouldn't be able to stomach. 

Exactly how I feel.

There's a lot that can be taken from this:

http://www.kiplingsociety.co.uk/poems_if.htm

 

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3 hours ago, btd1981 said:

So now I'm left trying to figure out what will be less depressing: buying an overpriced house soon or continuing to rent.

Will I feel worse if we buy a house now and prices fall, or elect not to buy and prices continue to escalate beyond sanity.

To be honest the second option in each case is something I probably wouldn't be able to stomach. 

Definitely buying an over priced house.  I bought a place in 2005 and spend over 12 months trying to sell it as I really didnt like living there....was like a weight round my neck that house was.  Not once have I felt the same pain renting.

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3 hours ago, btd1981 said:

Will I feel worse if we buy a house now and prices fall, or elect not to buy and prices continue to escalate beyond sanity.

 

You recognize the prices are insane but you consider buying...that would make you....

Answers on a post card please.

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People dont sell property any more.

They rent it.

This is the problem.

Only spoke to yet another colleague who owns and is renting it put her than sell it.

Why should they? They own the one asset that rises 10% every year and pays the morgasge. Its your pension, innit.

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6 minutes ago, GreenDevil said:

People dont sell property any more.

They rent it.

This is the problem.

Only spoke to yet another colleague who owns and is renting it put her than sell it.

Why should they? They own the one asset that rises 10% every year and pays the morgasge. Its your pension, innit.

That's because they cant sell it.  No one wants it at these prices, so the loons rent it out, remortgage and buy a new house at a crazy price off the back of what their original house isn't really worth.

I know 2/3 that have done this now.

Eventually, they will need to sell.

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8 minutes ago, GreenDevil said:

People dont sell property any more.

They rent it.

This is the problem.

Only spoke to yet another colleague who owns and is renting it put her than sell it.

Why should they? They own the one asset that rises 10% every year and pays the morgasge. Its your pension, innit.

The 3% stamp duty surcharge has given people an incentive to sell. I'm not entirely clear what you're colleague is doing, but it doesn't sound typical.

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Just now, Muddlehead said:

The 3% stamp duty surcharge has given people an incentive to sell when moving, rather than becoming an "accidental landlord" on the place they move from.

 

I'm not entirely clear what you're colleague is doing, but it doesn't sound typical.

 

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7 minutes ago, Muddlehead said:

The 3% stamp duty surcharge has given people an incentive to sell. I'm not entirely clear what you're colleague is doing, but it doesn't sound typical.

You own a place with a mortgage. You are sitting on 50% equity, your mortgage has gone down to 400pm.

You have some cash in the bank for a deposit. You buy another home. You rent the current one for 1200pcm.

Simple. No Brainer really. Why should prices fall?

 

BB.jpg

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20 minutes ago, Muddlehead said:

The 3% stamp duty surcharge has given people an incentive to sell. I'm not entirely clear what you're colleague is doing, but it doesn't sound typical.

It is very typical of the people I work with who casually let slip they have a BTL. Now when one buys a house is is about rejigging finance so the old house can be let out. In the case of couples getting together some i know keep their old home as a hedge against a breakup. The 3% stamp duty surcharge is small compared to the increase in property prices over recent years and is really just a few months HPI for a Luton resident.

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Even assuming someone thinks this way, they will likely be aggrieved at the injustice of the government taking 3% in addition to the normal stamp duty. They probably are also vaguely aware that they will eventually be liable for a lot of capital gains tax.

I agree that for people who are ultra-bullish on property it still makes sense, but I think this is quite a small group. I've known chains fall through as the +3% stamp duty dawns on them and others who are desperate to sell in order to get the rebate before the deadline.

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Stamp duty is too little too late. Some one posted a chart of debt against house prices. That's the problem IMO cheap money. And there is no sign of hast changing for the next 10 years at least.

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18 minutes ago, GreenDevil said:

Stamp duty is too little too late. Some one posted a chart of debt against house prices. That's the problem IMO cheap money. And there is no sign of hast changing for the next 10 years at least.

+ Help to Rent? a £100k loan from Shark PLC - deducted from your future state pension?

 

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35 minutes ago, GreenDevil said:

Stamp duty is too little too late. Some one posted a chart of debt against house prices. That's the problem IMO cheap money. And there is no sign of hast changing for the next 10 years at least.

Even cheap money is expensive when they thing it's being used to buy is beyond affordable.

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1 hour ago, GreenDevil said:

People dont sell property any more.

They rent it.

This is the problem.

Only spoke to yet another colleague who owns and is renting it put her than sell it.

Why should they? They own the one asset that rises 10% every year and pays the morgasge. Its your pension, innit.

You also have to factor in how relentless HPI means it appears crazy to ever sell property unless you have to

Edited by Patient London FTB

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2 hours ago, TheCountOfNowhere said:

You recognize the prices are insane but you consider buying...that would make you....

Answers on a post card please.

They're not so insane here in deepest, darkest Shropshire. But they regrettably seem to be picking up on the M6 corridor/Staffs.

When living in the South East, could have bought a couple of years ago but I thought the increases would cease or reverse. If I do the same up here, and expect different results, is that not also an indication of insanity ;)

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8 hours ago, TheCountOfNowhere said:

They're handing out money that's been magiced out of thin air.


What to people expect.

Until the BoE is sorted out and the bankers regulated they'll just keep stealing from people.

Britains very own sub-prime crisis.

Totally this.

You couldn't make it up, seems no-one has learned anything.

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