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arepon

If you can't sell your flat, try askng mumsnet

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Hello from a longtime lurker ) Things are finally looking very interested and I plucked up enough courage to for a first post.

https://www.mumsnet.com/Talk/property/2951257-Anyone-else-struggling-to-sell-in-London

someone actually talking sence on MN!!!:

"If you're not going to have to pay London prices for your next move then you should consider cutting your price down to a level where you will get a quick sale. In a falling market you have to keep ahead of the direction of the tide otherwise you'll be reducing it even more drastically in 6 months time and you'll get no apologies from the EAs. Of course, if the UK gets a quick deal on a soft BREXIT and China lifts its Capital controls and there's more QE then maybe things will improve. Do some research and come to a decision you can live with if the market turns either way."

"I agree with others if no offers then the price isn't right. If you had interest at a higher price for your property a few months ago and now nothing at a lower price...that is because the market keeps falling sad the situation has gotten worse rather than better."

This is better than Netflix

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Hi and welcome to the forum! :)

That's some tasty bear food alright; it's already been posted in this epic thread though:

...so don't take it personally if you don't get a lot of responses here. Also, as nice as it is to read the tone of the responses on MN, £800k+ for a two bed that's not PCL frankly boggles my mind, I'm going to need a bit more of a crash than that before I'll be in a position to buy in London...

Edited by Rave

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Ah mis-remembered that. The concern is that people buying a two bedroom flat are likely to be earning more than £80k and a potential Labour government could be bad news for them. It's fine though, once the Brexit negotiations are all smoothed over we can get back to normality.

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2 minutes ago, Glental said:

The bit where they were hoping for some £80k salaried first-time buyers to pop up made me laugh. 

I think the minority 5% mortgaged up to their eyeballs.

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BachingMad Sun 11-Jun-17 08:18:32

Could you rent it out for a while until the market is more settled?

 

There's always one...

It's always puzzled me how it can be so viable to "just keep the old one and rent it out"? Surely, you would have to come up with a whole new deposit on the new place? Or do people just use equity in the old place? Either way, it's completely and obviously nuts unless you expect prices to rise significantly over the next few years... Surely nobody still believes that....do they?! Feels like everything is falling apart (Brexit, economy, BTL, the prospect of an old-school socialist government etc). 

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11 hours ago, arepon said:

"Of course, if the UK gets a quick deal on a soft BREXIT and China lifts its Capital controls and there's more QE then maybe things will improve.

Still doesn't actually get it though that lower housing costs are GOOD and the 'improvement' that they are referring to here is BAD.

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Another wow on a different thread. 

The London property market isn't like the market elsewhere. My sister has just bought a house in SW6 (£1.4m). She's single, mid 30s and in a public sector job earning about £45k. She's been lucky with her last 2 properties and has put all of the equity in (around £250k the first time and £400k this time). She's taken the maximum interest only mortgage she can with no intention that it will ever be paid off. The mortgage is basically rent. She rents out a room for £800 pcm. 

Eventually she'll sell and use the equity to buy 

https://www.mumsnet.com/Talk/property/2951782-How-do-people-afford-houses-in-Chelsea-Kensington?pg=1&order=

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2 minutes ago, AvoidDebt said:

Another wow on a different thread. 

The London property market isn't like the market elsewhere. My sister has just bought a house in SW6 (£1.4m). She's single, mid 30s and in a public sector job earning about £45k. She's been lucky with her last 2 properties and has put all of the equity in (around £250k the first time and £400k this time). She's taken the maximum interest only mortgage she can with no intention that it will ever be paid off. The mortgage is basically rent. She rents out a room for £800 pcm. 

Eventually she'll sell and use the equity to buy 

https://www.mumsnet.com/Talk/property/2951782-How-do-people-afford-houses-in-Chelsea-Kensington?pg=1&order=

There is no analogy here: this is a Ponzi scheme. As soon as a few people actually crystallize their gains, rather than re-investing, the whole thing falls apart.

Typical Ponzi schemes end with investors getting about 1/3 of their capital back, at best.

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2 hours ago, Rave said:

Hi and welcome to the forum! :)

That's some tasty bear food alright; it's already been posted in this epic thread though:

...so don't take it personally if you don't get a lot of responses here. Also, as nice as it is to read the tone of the responses on MN, £800k+ for a two bed that's not PCL frankly boggles my mind, I'm going to need a bit more of a crash than that before I'll be in a position to buy in London...

Aha, i missed that

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57 minutes ago, AvoidDebt said:

Another wow on a different thread. 

The London property market isn't like the market elsewhere. My sister has just bought a house in SW6 (£1.4m). She's single, mid 30s and in a public sector job earning about £45k. She's been lucky with her last 2 properties and has put all of the equity in (around £250k the first time and £400k this time). She's taken the maximum interest only mortgage she can with no intention that it will ever be paid off. The mortgage is basically rent. She rents out a room for £800 pcm. 

Eventually she'll sell and use the equity to buy 

https://www.mumsnet.com/Talk/property/2951782-How-do-people-afford-houses-in-Chelsea-Kensington?pg=1&order=

I presume she must have had a large deposit or inheritance.  She has £650k equity built up and is buying a £1.4 million house - where did the other £500k from given she earns only £45k so would barely get a £200k mortgage.

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1 hour ago, AvoidDebt said:

Another wow on a different thread. 

The London property market isn't like the market elsewhere. My sister has just bought a house in SW6 (£1.4m). She's single, mid 30s and in a public sector job earning about £45k. She's been lucky with her last 2 properties and has put all of the equity in (around £250k the first time and £400k this time). She's taken the maximum interest only mortgage she can with no intention that it will ever be paid off. The mortgage is basically rent. She rents out a room for £800 pcm. 

Eventually she'll sell and use the equity to buy 

https://www.mumsnet.com/Talk/property/2951782-How-do-people-afford-houses-in-Chelsea-Kensington?pg=1&order=

What exactly is the benefit of that life?  (Rhetorical question for this audience)

 

So she has a £1.4 million house and has to rent a room out to an absolute stranger.

 

No kids and probably can't afford them.  Also she would be totally financial screwed for life if the property market crashes.

 

Surely in the end she would be happier as a single mum on benefits in some declining Midlands/North town?

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35 minutes ago, MARTINX9 said:

I presume she must have had a large deposit or inheritance.  She has £650k equity built up and is buying a £1.4 million house - where did the other £500k from given she earns only £45k so would barely get a £200k mortgage.

Some of these mumsnet threads sound like they are made up for trolling effect.

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2 hours ago, AvoidDebt said:

Another wow on a different thread. 

The London property market isn't like the market elsewhere. My sister has just bought a house in SW6 (£1.4m). She's single, mid 30s and in a public sector job earning about £45k. She's been lucky with her last 2 properties and has put all of the equity in (around £250k the first time and £400k this time). She's taken the maximum interest only mortgage she can with no intention that it will ever be paid off. The mortgage is basically rent. She rents out a room for £800 pcm. 

Eventually she'll sell and use the equity to buy 

https://www.mumsnet.com/Talk/property/2951782-How-do-people-afford-houses-in-Chelsea-Kensington?pg=1&order=

Good thread I liked this particularly deluded post:

"I have a friends in a beautiful large house in Kensington. No inheritance or money laundering involved. Just clever ladder climbing and stretching themselves on mortgages in the early days as well as one having a highly successful business built up from nothing and the other being at a very high level in banking."

 

It starts with the old myth of "clever ladder climbing " but ends with noting that one of them has a successful business and the other one a senior banker ie the exact people you would expect to be able to afford to live in Kensington. 

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3 hours ago, reddog said:

Some of these mumsnet threads sound like they are made up for trolling effect.

Nope. Virtually everyone is this clever in London. These are real and more hilariously very normal situations.

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He, he, people discussing 850k 2 bed flats, living the dream! I suppose they themselves have a modest  job and paid only a fraction of the price they are asking, now they are expecting a unicorn greater fool to come along and take it off their hands to pass it on to a still greater fool further down the line. 

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LOL, hoping for more props to bail em out, smart cookies these mumsnetters

 

SandyDeeOoh Sat 10-Jun-17 20:01:31

If you're not going to have to pay London prices for your next move then you should consider cutting your price down to a level where you will get a quick sale. In a falling market you have to keep ahead of the direction of the tide otherwise you'll be reducing it even more drastically in 6 months time and you'll get no apologies from the EAs. Of course, if the UK gets a quick deal on a soft BREXIT and China lifts its Capital controls and there's more QE then maybe things will improve. Do some research and come to a decision you can live with if the market turns either way.

 

 

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9 hours ago, AvoidDebt said:

Another wow on a different thread. 

The London property market isn't like the market elsewhere. My sister has just bought a house in SW6 (£1.4m). She's single, mid 30s and in a public sector job earning about £45k. She's been lucky with her last 2 properties and has put all of the equity in (around £250k the first time and £400k this time). She's taken the maximum interest only mortgage she can with no intention that it will ever be paid off. The mortgage is basically rent. She rents out a room for £800 pcm. 

Eventually she'll sell and use the equity to buy 

https://www.mumsnet.com/Talk/property/2951782-How-do-people-afford-houses-in-Chelsea-Kensington?pg=1&order=

Oh dear god.

The horror. The horror. 

And I can't even buy one and I earn around that much.

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6 hours ago, MARTINX9 said:

I presume she must have had a large deposit or inheritance.  She has £650k equity built up and is buying a £1.4 million house - where did the other £500k from given she earns only £45k so would barely get a £200k mortgage.

The way I read it, she had 400k total equity, there is no way even our crazy bankers wouly lend someone on £45k, £1 million interest only.

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I would love to hear of someone whose £1.4m flat dropped to £400k. They lost ALL equity, left with a 100% mtg which they couldnt get off SVR because the LTV is too high. I'm a sadist I know.

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23 minutes ago, Grab_Some_Popcorn said:

I would love to hear of someone whose £1.4m flat dropped to £400k. They lost ALL equity, left with a 100% mtg which they couldnt get off SVR because the LTV is too high. I'm a sadist I know.

Of course, in this situation, you are best to just give it back to the bank and notch it down to experience.

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