Charles_Darke Posted October 11, 2006 Author Share Posted October 11, 2006 On that basis, I take it that you felt you needed to buy? Wanted to settle down with GF in a place of our own. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 11, 2006 Share Posted October 11, 2006 Wanted to settle down with GF in a place of our own. Serious question. If you had been offered a Council/HA/Social equivalent place to rent (not crack den, but not Knightsbridge) on an Assured Tenancy Agreement, would you still have bought? Quote Link to comment Share on other sites More sharing options...
Guest Cletus VanDamme Posted October 11, 2006 Share Posted October 11, 2006 No, but close to it. If you put the offer in in May, then probably not. Don't forget there's another bumper round of City bonuses coming next year, which will push London prices up further. I would reckon then that by next year you'll have a nice buffer of at least 10% to protect yourself with if prices then start to come down. Quote Link to comment Share on other sites More sharing options...
Scooter Posted October 11, 2006 Share Posted October 11, 2006 If you put the offer in in May, then probably not. Don't forget there's another bumper round of City bonuses coming next year, which will push London prices up further. I would reckon then that by next year you'll have a nice buffer of at least 10% to protect yourself with if prices then start to come down. You are very optimistic. How many people do you think get significant bonuses (say £100,000+) and how does this figure in terms of the overall number of houses available in London? S. Quote Link to comment Share on other sites More sharing options...
Guest Cletus VanDamme Posted October 11, 2006 Share Posted October 11, 2006 You are very optimistic. How many people do you think get significant bonuses (say £100,000+) and how does this figure in terms of the overall number of houses available in London? S. I seem to remember reading that the figure is in the thousands (the number of staff who get these sorts of bonuses). But it's the effect on sentiment that has the bigger impact. Plus SE1 is a hotspot at the moment. Quote Link to comment Share on other sites More sharing options...
Charles_Darke Posted October 11, 2006 Author Share Posted October 11, 2006 If you had been offered a Council/HA/Social equivalent place to rent (not crack den, but not Knightsbridge) on an Assured Tenancy Agreement, would you still have bought? Yes. I don't want to live in a council house. Sorry, but for me, it has a stigma. I wouldn't buy in a council block either. But that's because most of the ones around here are depressing concrete monstrosities. If you put the offer in in May, then probably not. Don't forget there's another bumper round of City bonuses coming next year, which will push London prices up further. I would reckon then that by next year you'll have a nice buffer of at least 10% to protect yourself with if prices then start to come down. The flat in May fell through. The offer on the flat I bought was accepted mid-August. Quote Link to comment Share on other sites More sharing options...
enworb Posted October 11, 2006 Share Posted October 11, 2006 Congratulations. How much work does it need btw? Quote Link to comment Share on other sites More sharing options...
Charles_Darke Posted October 11, 2006 Author Share Posted October 11, 2006 Congratulations. How much work does it need btw? Could live in it now, but I'll be replacing bathroom and kitchen. Whole place needs going over with a paintbrush too. Carpets/curtains could do with being ripped out. Quote Link to comment Share on other sites More sharing options...
PropertyGuru Posted October 11, 2006 Share Posted October 11, 2006 bad luck, Charles. Quote Link to comment Share on other sites More sharing options...
enworb Posted October 11, 2006 Share Posted October 11, 2006 Could live in it now, but I'll be replacing bathroom and kitchen. Whole place needs going over with a paintbrush too. Carpets/curtains could do with being ripped out. I'm a bit weird in that I envy people that need to change their kitchen and bathroom. I've changed them in my place and my btl (paid bmv on both) and I can't wait to tackle the next one in a few years. I think you should count your blessings that the new build fell through Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 11, 2006 Share Posted October 11, 2006 Yes. I don't want to live in a council house. Sorry, but for me, it has a stigma. I wouldn't buy in a council block either. But that's because most of the ones around here are depressing concrete monstrosities. Well, I'm sorry if this sounds blunt, but you sound like you've got your priorities all to ****, and a bit snobbish with it too! With all due respect, if you are prepared to spunk your hard earned wages on an overpriced shoe box, and further fuel the property dash, you appear to me as someone who is more concerned at being a property owner than having an affordable and secure roof/home over your heads. I know which one is more important to me. Do not underestimate an Assured Tenancy Agreement. Quote Link to comment Share on other sites More sharing options...
adibrown Posted October 11, 2006 Share Posted October 11, 2006 Sorry to hear about your recent house purchase Charles. Lets hope falls aren't too harsh in SE1. Quote Link to comment Share on other sites More sharing options...
expatowner Posted October 12, 2006 Share Posted October 12, 2006 Dont listen to the doubters. Just repeat everyday "prices in London only go up" "prices in London only go up" "prices in London only go up" "prices in London only go up" "prices in London only go up" "prices in London only go up" "prices in London only go up" "prices in London only go up" Quote Link to comment Share on other sites More sharing options...
enworb Posted October 12, 2006 Share Posted October 12, 2006 Well, I'm sorry if this sounds blunt, but you sound like you've got your priorities all to ****, and a bit snobbish with it too! With all due respect, if you are prepared to spunk your hard earned wages on an overpriced shoe box, and further fuel the property dash, you appear to me as someone who is more concerned at being a property owner than having an affordable and secure roof/home over your heads. I know which one is more important to me. Do not underestimate an Assured Tenancy Agreement. Whether or not he has made a mistake remains to be seen. I doubt it though. Had he bought the new build then certainly it would have been 50/50. As it is, it's highly unlikely that the value of his flat will drop lowerr than his purchase price because prices ARE still on the up. I bet that him and his g/f have got a broarder smile than you this morning Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 12, 2006 Share Posted October 12, 2006 I bet that him and his g/f have got a broarder smile than you this morning I'm not sure what that's supposed to mean, do you know me or something? I'm more than happy with 'my lot' thank you very much. Quote Link to comment Share on other sites More sharing options...
Charles_Darke Posted October 12, 2006 Author Share Posted October 12, 2006 at being a property owner than having an affordable and secure roof/home over your heads. I think the two are linked. One of the key deciders for me was that the mortgage interest is cheaper than renting. It certainly will be cheaper than renting in years 25-50. Quote Link to comment Share on other sites More sharing options...
enworb Posted October 12, 2006 Share Posted October 12, 2006 I'm not sure what that's supposed to mean, do you know me or something? I'm more than happy with 'my lot' thank you very much. I just get the impression that they have achieved something that many aspire to, and that if you're a HPC member and renting you also have aspirations of buying one day. I'm not saying you aren't happy. Or that you shouldn't be for that matter. Just thay they will be very, verry happy Quote Link to comment Share on other sites More sharing options...
tenroom Posted October 12, 2006 Share Posted October 12, 2006 I agree with Charles on the council matters. There IS a stigma attached to them. They only tend to sell easily when the market is doing well and there isn't much in the way of good quality period property available for purchase. I bought an ex-LA and although it's LITERALLY quintupled in value, I have no control whatsoever over who Kensington & Chelsea throw into the block. A bloke bought the 4 bed at the end of the block and rented it out to Aussies etc but soon enough he was having voids as all the BTLers were offering nice done up period conversions for equal money. He had no choice but to get into bed with a Housing Association who have just thrown a bunch of Somalians in there. They're not noisy or anything and they keep themselves to themselves but they're not big on hygiene. Not ALL of them are bad but they've gotta be in a low rise (no more than 3 floors) and they HAVE to be well located (tubes, bars nearby etc) Quote Link to comment Share on other sites More sharing options...
Charles_Darke Posted October 12, 2006 Author Share Posted October 12, 2006 An ex-council in Kensington/Chelsea would also be quite different to one in Southwark/Lambeth Quote Link to comment Share on other sites More sharing options...
tenroom Posted October 12, 2006 Share Posted October 12, 2006 An ex-council in Kensington/Chelsea would also be quite different to one in Southwark/Lambeth You can buy it off me then ! Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 12, 2006 Share Posted October 12, 2006 .....and that if you're a HPC member and renting you also have aspirations of buying one day. And therein is the crux of the debate. One day. Personally, I believe now is NOT that day. Buying at a time with high house prices and low interest rates are not a happy mixture if they begin to go in opposite directions. Back in 1997/1998 I remember that getting a repayment mortgage was cheaper than renting because house prices were relatively cheap. That was a good time to buy. (I didn't as I was just finishing Uni) I'm not saying you aren't happy. Or that you shouldn't be for that matter. Just thay they will be very, verry happy Oh, I see, I just get a bit riled when people dismiss social housing on the grounds of 'stigma'. I'm lucky enough to live in social housing in a OK'ish area in SE London and I have the security of an assured tenancy, very low rent that affords me to make a significant saving every month. When the time is right and the house price playing field has corrected itself again, that will be the time when I'll become a FTB. I'll even have a decent deposit by then hopefully too. An ex-council in Kensington/Chelsea would also be quite different to one in Southwark/Lambeth I'm in Lambeth. Granted there are grotty parts but there are very decent parts too. Much the same as any London borough I guess. Quote Link to comment Share on other sites More sharing options...
enworb Posted October 12, 2006 Share Posted October 12, 2006 And therein is the crux of the debate. One day. Personally, I believe now is NOT that day. Buying at a time with high house prices and low interest rates are not a happy mixture if they begin to go in opposite directions. Back in 1997/1998 I remember that getting a repayment mortgage was cheaper than renting because house prices were relatively cheap. That was a good time to buy. (I didn't as I was just finishing Uni) Oh, I see, I just get a bit riled when people dismiss social housing on the grounds of 'stigma'. I'm lucky enough to live in social housing in a OK'ish area in SE London and I have the security of an assured tenancy, very low rent that affords me to make a significant saving every month. When the time is right and the house price playing field has corrected itself again, that will be the time when I'll become a FTB. I'll even have a decent deposit by then hopefully too. I'm in Lambeth. Granted there are grotty parts but there are very decent parts too. Much the same as any London borough I guess. But this guy was fed up with constantly moving. He did not have the good fortue that you have of an AST. This would not encourage him to continue renting which is why he originally started loking for a home to buy. And so his target has been achieved. I've nothing against renting if the figures stack up. Why pay more with an IO mortgage if you can rent for far less. But for me it would need to be far less but that's because I'd only buy where I was sure house prices were unlikely to fall, and that require a great deal of work. London is such a place which is why he should be happy with his purchase. Don't forget that not everyone sees buying as an investemnt. It's often as simple as "I can afford the repayments for a home I can call mine", in which case they often take out a long term fixed rate mortgage. Well I did and plenty of people I know did too. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 12, 2006 Share Posted October 12, 2006 He did not have the good fortune that you have of an AST. By his own account, it wasn't even going to be an option he was prepared to consider. Case closed. 'Another one bites the dust' Quote Link to comment Share on other sites More sharing options...
Charles_Darke Posted October 12, 2006 Author Share Posted October 12, 2006 But this guy was fed up with constantly moving. He did not have the good fortue that you have of an AST. This would not encourage him to continue renting which is why he originally started loking for a home to buy. And so his target has been achieved. I've nothing against renting if the figures stack up. Why pay more with an IO mortgage if you can rent for far less. But for me it would need to be far less but that's because I'd only buy where I was sure house prices were unlikely to fall, and that require a great deal of work. London is such a place which is why he should be happy with his purchase. Don't forget that not everyone sees buying as an investemnt. It's often as simple as "I can afford the repayments for a home I can call mine", in which case they often take out a long term fixed rate mortgage. Well I did and plenty of people I know did too. Yes. I'm glad the new build fell through. I was so stressed out in my current flat that at the time, I would have bought pretty much anything I could afford to get out of there. On the financial side, if I continue to pay what I'm currently renting for, then I will pay off my mortgage in 20 years. Service charges mean that in reality it will take 25 years. True if prices do drop, then I might be able to have bought a place for cheaper in say a year's time or more, but conversely, if they go up, I would have to pay more and also would have waited pointlessly. There's risks either way so you just have to make your choice. I'm a bit weird in that I envy people that need to change their kitchen and bathroom. I've changed them in my place and my btl (paid bmv on both) and I can't wait to tackle the next one in a few years. I might get some tips off you then Need a good plumber to do the bathroom. I hate how inefficient the UK is: 12 weeks waiting list to get someone to do a bathroom! Quote Link to comment Share on other sites More sharing options...
Bungalow Builder Posted October 12, 2006 Share Posted October 12, 2006 You can buy it off me then ! Is it one of those tall ones at World's end? Quote Link to comment Share on other sites More sharing options...
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