£1M+ family homes

[nero120]

2 minutes ago, mynamehere said:

Define 'overpriced'. It's the market price. And you can't even blame mortgage rates

Well that's the crux of the problem isn't it? The British establishment doesn't seem to like free markets, hence all the intervention to keep asset prices high. So the "market price" as you put it, changes as the amount of implicit state-support decreases.

As I stated in the OP, 88 NEW properties listed in the last two weeks, 10 EXISTING properties marked as SSTC (we don't know for what price). That old supply/demand chestnut is gonna hurt.

[sell2rent]

4 minutes ago, mynamehere said:

Define 'overpriced'. It's the market price. And you can't even blame mortgage rates

 

 

Market price if it sells, in my search criteria for £1-2m, there are two years of supply. One is offered for £2.5m and its nearest neighbour that is almost identical (which hits the value of itself) sold for £1.6m last year. If they were all selling I'd revise my ideas on price.

[mynamehere]

3 minutes ago, nero120 said:

Well that's the crux of the problem isn't it? The British establishment doesn't seem to like free markets, hence all the intervention to keep asset prices high. So the "market price" as you put it, changes as the amount of implicit state-support decreases.

As I stated in the OP, 88 NEW properties listed in the last two weeks, 10 EXISTING properties marked as SSTC (we don't know for what price). That old supply/demand chestnut is gonna hurt.

It's the lack of intervention keeping assets high. For instance lack of taxation on wealth. CGT on primary residence being a big one

 

[winkie]

11 minutes ago, mynamehere said:

Define 'overpriced'. It's the market price. And you can't even blame mortgage rates

 

Overpriced is comparison to what can get elsewhere for the same money, what can do with the same money, what the same money can offer and how can improve life chances (not a way in earning more) and quality of life......some people would not what to live in suburbia, granite worktops and skylights, around golf players, lawns, hot tubs ,and privately educated people, or if not privately educated themselves would send their kids to special places for special privileges/opportunities ........some people would love it.......going up in the world?

To be honest good and bad people everywhere, rich and poor everywhere.....nice to live in a mixed community, friends in all places......happy to pop in from time to time, certainly would not want to live like that.

[mynamehere]

3 minutes ago, winkie said:

Overpriced is comparison to what can get elsewhere for the same money, what can do with the same money, what the same money can offer and how can improve life chances (not a way in earning more) and quality of life......some people would not what to live in suburbia, granite worktops and skylights, around golf players, lawns, hot tubs ,and privately educated people, or if not privately educated themselves would send their kids to special places for special privileges/opportunities ........some people would love it.......going up in the world?

To be honest good and bad people everywhere, rich and poor everywhere.....nice to live in a mixed community, friends in all places......happy to pop in from time to time, certainly would not want to live like that.

It depends what you value. Some people would put the additional value of moving an identical house to a different street 250m away, in the millions.

You might be see the difference as zero. 

 (most often distance from poor people)

 It doesn't mean it's overpriced. Especially at this level when price to earnings has very little to do with it. 

 

[70PC]

50 minutes ago, nero120 said:

Yes, so given that interest rates are now above 5% (basically everywhere, not just UK), the question is where is the money coming from to pay the inflated prices London-based sellers are asking for?

Definitely but my suspicion is this is a timing issue. Many believe the hype put out by VI's and transactions still happen at crazy prices. They are getting slower. If that continues, how much will a £1m London flat be worth with no buyers? What do the owners put down to buy £1m their place in the provinces?  

[nero120]

11 minutes ago, 70PC said:

Definitely but my suspicion is this is a timing issue. Many believe the hype put out by VI's and transactions still happen at crazy prices. They are getting slower. If that continues, how much will a £1m London flat be worth with no buyers? What do the owners put down to buy £1m their place in the provinces?  

Agreed, it must be getting stretched now, especially with such low volumes. You'd expect the flow of money from London property to the other regions to be slowing drastically now. Perhaps that's why Manchester has seen such a bouyant market compared to others? I.e. it's the last destination for London property money looking for "value"?

[winkie]

25 minutes ago, mynamehere said:

It depends what you value. Some people would put the additional value of moving an identical house to a different street 250m away, in the millions.

You might be see the difference as zero. 

 (most often distance from poor people)

 It doesn't mean it's overpriced. Especially at this level when price to earnings has very little to do with it. 

 

Well you said it yourself, they might not want to live near poor people, as if poorer people do not live up to their standards? What standards? Might ruin their style, be jealous, convert the stuff they have? ....living near wealthier people makes them feel better about themselves? feel safer?

 

 

Edited March 27 by winkie

[Fromage Frais]

AS posted before

Around my area there are actual 1m £ homes 300m2 big garden top finish and often in North Norfolk and in the nicer parts of south norwich.

There are also a load of homes for a million which are just bigger than average in meh areas.

Some of the above are indeed a better bargain than back in 22 but the latter are just a waste of everyone's time.

[nero120]

3 minutes ago, winkie said:

Well you said it yourself, they might not want to live near poor people, as if poorer people do not live up to their standards? What standards? Might ruin their style, be jealous, convert the stuff they have? ....living near wealthier people makes them feel better about themselves? feel safer?

Absolutely. I fully understand that truly wealthy people want to buy "prestige" properties in the best areas. Most of the properties on the OP search link are not those, so why dafuq would any genuinely wealthy individual bother buying them? I don't think they would, hence my guess that regular people with good earnings could be stretching themselves excessively to buy them, and that could explain why the transaction numbers are so low.

[nero120]

2 minutes ago, Fromage Frais said:

AS posted before

Around my area there are actual 1m £ homes 300m2 big garden top finish and often in North Norfolk and in the nicer parts of south norwich.

There are also a load of homes for a million which are just bigger than average in meh areas.

Some of the above are indeed a better bargain than back in 22 but the latter are just a waste of everyone's time.

Interesting, what's your impression on listed/SSTC ratios?

[mynamehere]

10 minutes ago, winkie said:

Well you said it yourself, they might not want to live near poor people, as if poorer people do not live up to their standards? What standards? Might ruin their style, be jealous, convert the stuff they have? ....living near wealthier people makes them feel better about themselves? feel safer?

Yeah pretty much, also  wealthier streets do tend to be quieter and more private and less crime.

It happens everywhere though. Private education for instance, you don't pay for quality of teacher. you pay for the wealth of the child sat next to yours. It's probably more complicated than that, but it seems to be the gist. 

Restaurants, golf and hotels too. Often what you really pay for is exclusivity. And this isn't just access to rich people, but it's also distance from poor people. 

  

4 minutes ago, nero120 said:

Absolutely. I fully understand that truly wealthy people want to buy "prestige" properties in the best areas. Most of the properties on the OP search link are not those, so why dafuq would any genuinely wealthy individual bother buying them? I don't think they would, hence my guess that regular people with good earnings could be stretching themselves excessively to buy them, and that could explain why the transaction numbers are so low.

 

Define 'genuinely wealthy'. The houses in the search are perhaps 5% percentile houses, and that's what the 5th percentil can afford to buy.

Obviously the top 2% are buying very different houses. And the 10% different houses still.

Your problem it seems is you dont have a clear perspective on what percentile you are?

 

Edited March 27 by mynamehere

[winkie]

7 minutes ago, mynamehere said:

Yeah pretty much, also  wealthier streets do tend to be quieter and more private and less crime.

It happens everywhere though. Private education for instance, you don't pay for quality of teacher. you pay for the wealth of the child sat next to yours. It's probably more complicated than that, but it seems to be the gist. 

 

Restaurants, golf and hotels too. Often what you really pay for is exclusivity. And this isn't just access to rich people, but it's also distance from poor poople. 

I'm not saying it has to be this way or this is good.  Plenty of wealth countries do things better. Finland schools spring to mind. 

 

 But this is how the UK works, and if you dont' factor this stuff into your assessment, it's likely to be inaccurate

 

 

Richest in the poor road or poorest in the rich road........ knowing that poor road will in time be a place the rich will want to be......has something they will in time be something they and others will want and need.

[nero120]

6 minutes ago, mynamehere said:

Define 'genuinely wealthy'. The houses in the search are perhaps 5% percentile houses, and that's what the 5th percentil can afford to buy.

Obviously the top 2% are buying very different houses. And the 10% different houses still.

Your problem it seems is you dont have a clear perspective on what percentile you are?

I think you've missed the entire point of this thread, unlike everyone else. I think the only thing that is "obvious" is that asking prices are dropping, and transactions are at their lowest level ever.

My question is who is buying these overpriced family homes (the few that are going SSTC that is). You seem incredibly defensive...

[mynamehere]

3 minutes ago, nero120 said:

I think you've missed the entire point of this thread, unlike everyone else. I think the only thing that is "obvious" is that asking prices are dropping, and transactions are at their lowest level ever.

My question is who is buying these overpriced family homes (the few that are going SSTC that is). You seem incredibly defensive...

Oh sorry, i'll try to be less defensive  

Who do you think is buying these houses then? If not those with approximately the appropriate level of wealth to buy them?

 

[nero120]

1 minute ago, mynamehere said:

Oh sorry, i'll try to be less defensive  

Who do you think is buying these houses then? If not those with approximately the appropriate level of wealth to buy them?

I mean, I've literally answered that question multiple times in that thread. Go read?

[mynamehere]

2 minutes ago, nero120 said:

I mean, I've literally answered that question multiple times in that thread. Go read?

No, you've asked the question multiple times, You havn't answered it once. That I can see

Perhaps you can reiterate your answer?

[winkie]

 

[DownwardSlopingPlateau]

49 minutes ago, nero120 said:

Perhaps that's why Manchester has seen such a bouyant market compared to others? I.e. it's the last destination for London property money looking for "value"?

Not in the £1M+ market. I used to deliver cars to customers in the rich Manchester suburbs when I was 17-19 years of age. I remember looking at houses in local EA windows back then - over 40 years ago now - and they were stratospheric compared to local wages. This has nothing to do with London money trying to find a home in 2024 - those areas have always been very, very expensive.

[PeanutButter]

3 hours ago, winkie said:

So why would they buy a £1.5 million house in Hertfordshire or anywhere else.......the inheritance must be a pretty sum for them to do that........so much more could do with the same money......imo.

Yes, the inheritances these days are large. It's because of HPI. 

[dugsbody]

4 hours ago, nero120 said:

So, what exactly is going on here I ask you? Are buyers of these properties taking on eye-watering mortgages? Why would someone wealthy enough to throw away the best part of a cool mil buy an overpriced above-average family home? What am I missing here?

Buyers of these properties are often people in their late 30s or 40s who owned property for 20 years already and have been the beneficiaries of the price boom of that time. I know people like that. They live in £1m+ houses, but neither of them has ever earned more than £70k. Both partners just bought a London flat in the 2000s and accrued enormous equity.

I doubt anyone is buying that £1m+ house as a FTBer.

 

[winkie]

4 minutes ago, PeanutButter said:

Yes, the inheritances these days are large. It's because of HPI. 

........amazing how our wealth, feel good factor, the wealth of the country is built on HPI.....house price inflation....take that away that foundation of sand what would be left standing on solid rock?......not a lot?.

[nero120]

26 minutes ago, dugsbody said:

Buyers of these properties are often people in their late 30s or 40s who owned property for 20 years already and have been the beneficiaries of the price boom of that time. I know people like that. They live in £1m+ houses, but neither of them has ever earned more than £70k. Both partners just bought a London flat in the 2000s and accrued enormous equity.

I doubt anyone is buying that £1m+ house as a FTBer.

Very likely, but then if they want to "release" that equity the earlier question applies:

4 hours ago, nero120 said:

Yes, so given that interest rates are now above 5% (basically everywhere, not just UK), the question is where is the money coming from to pay the inflated prices London-based sellers are asking for?

 

[btl_hater]

39 minutes ago, dugsbody said:

Buyers of these properties are often people in their late 30s or 40s who owned property for 20 years already and have been the beneficiaries of the price boom of that time. I know people like that. They live in £1m+ houses, but neither of them has ever earned more than £70k. Both partners just bought a London flat in the 2000s and accrued enormous equity.

I doubt anyone is buying that £1m+ house as a FTBer.

 

I know of multiple examples of this.

[Stewy]

44 minutes ago, winkie said:

........amazing how our wealth, feel good factor, the wealth of the country is built on HPI.....house price inflation....take that away that foundation of sand what would be left standing on solid rock?......not a lot?.

The improved environment..healthy fresh food from every corner of the globe..home entertainment better than anything in the past..the ability to work from the comfort of your own riverside home/garden..

Lots to be happy about ✓✓