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London...to Buy On Not To Buy


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Scandalous. Not bragging, but for comparison I got 3 a bed, 2 bathroom period flat in prime central London in Dec 05 for half the price of the flat you were looking at. With s/freehold and 1000sq ft, I thought I could live with giving it a lick of paint. You did well to walk away. Putney is a very fine part of the world to settle for a while, as I'm sure you already know.

Wow, if only I had bought then, crikey! I like Putney too, especially going for runs down by the river up to Hammersmith bridge, on a hazy mid-summer evening (eyes glaze over :)

But if I could get a nice place in Covent Garden for half the price, I'd happily trade a little extra space for getting rid of a 45 minute commute to the city.

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We have been thinking about buying a flat in London since 2002, but thought we would wait for the crash. We have waited 5 years for the predicted a crash, and what happened in the meantime? Property prices went up.

Therefore I can't help but feel , as we are entering 2007, that hopes for a crash are just wishful thinking on our part. Perhaps it is time for us to face reality.

I can afford to get on the property ladder now (nothing fancy, just a 2 bed flat). Bearing in mind that I am talking about the London market, I think it makes sense to buy for the following reasons:

1) Property prices are not going to rise at levels they have in the past. However there will be increases (albeit small , 0.6% per month, 7% p.a).

2) More immigrants are arriving and (surprisingly!) buying property. Our landlord recently sent a Bulgarian builder to fix a door at our rented flat and he had just purchased his own flat. Here we are dawdling for 5 years on whether to buy or not. This guy just walks in and takes the plunge. Stupid, I think not.

3) For the mediwum term, there will continue to be more demand than supply in London, especially with the EU now extended to Eastern Europe. Not all eastern Europeans do low level jobs, there a fair number of professionals too, and they are jumping on the property ladder, even if it only means a one bed flat.

4)Historically, housing prices have never crashed/fallen in an Olympic city. Gains are actually the norm.

As much as I would *love* to believe that there will be a crash, I think I need to stop kidding myself and buy now.

Just want to say I feel sorry for anyone who is desperate to buy. It's a tough situation at the best of times.

Some thoughts -

1. Research 'negative equity'. Understand what it is and how it happens and how quickly. I lived in London during the last crash, rented a room in a flat that someone bought right at the top (with her dad as backer). Ended up in negative equity and it's devastating and can take years to resolve.

2. Look at the graph on the front page of this site, how would you have felt if you had bought in 1989 right at that peak and then seen prices drop and drop and drop for years afterwards? You may feel it wouldn't have been a problem as prices always come up again, in which case another tick in the 'buy' box.

3. Would you need to borrow more than 3.5x your income? If so, another reason to be cautious.

4. Immigrants - I doubt if your Bulgarian has just purchased his own flat. More likely he's got a 'fairytale' mortgage on it - which is different. There has to be a likelihood that should the UK economy start to suffer and other European Zone countries do better immigration could well go into reverse overnight.

5. The Dome. Wembley Stadium. The Olympics are ALREADY billions over budget and they've only just acquired all the necessary land - haven't started building anything yet!!!! When you say prices have never fallen/crashed in an Olympic City, do you mean post Olympics or post the city winning the games? Also, bear in mind how big many Olympic cities are? Montreal is tiny compared to London, Sydney has about 60% of London's population. Would it be possible for house prices on the Olympics side of London to do well but not so well on the other side?

6. We are heading into very stormy economic/geo-political seas and I don't think any of the old rules will necessarily apply in the future.

7. I think there will be a crash/serious correction, the current situation is unsustainable for so many reasons.

Good luck.

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Have you ever been to a village? London is a sophisticated big city, villages are little places full of inbred yokels. Complete opposites. If you do go to a village, maybe you can get a job as the idiot.

You mad? Why would you want to give up your job?

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We have been thinking about buying a flat in London since 2002, but thought we would wait for the crash. We have waited 5 years for the predicted a crash, and what happened in the meantime? Property prices went up.

I think for London where house prices go will very much depend on what happens in the financial markets.

At the moment the financial markets are riding high, many are employed and there is a lot of money around. There are many risks though and at some point (who knows when) there will be a large correction.

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Wow, if only I had bought then, crikey! I like Putney too, especially going for runs down by the river up to Hammersmith bridge, on a hazy mid-summer evening (eyes glaze over :)

But if I could get a nice place in Covent Garden for half the price, I'd happily trade a little extra space for getting rid of a 45 minute commute to the city.

Bargains will come in the HPC. Till then, enjoy! :P

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wrong, security only comes if buy with no mortgage whether you rent from the landlord or the bank when you can't service the debt you know the result

As opposed to the oodles of security you get from knowing that the tenancy agreement you signed with your BTL landlord categorically prevents him/her from tossing you out on your ear with just 4 weeks' notice whether or not you've paid said "rent", discourages him/her from rocking up - anytime - with a managing agent to do an "inventory" and ensures that you, your family and your possessions aren't gonna be tipped into the street cos your landlord hasn't told his lender that he's renting their security out. <_<

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What makes you say that?

C'mon a first post stating (pretty much) buy now, as prices will keep rising. Why did this person search for "House Price Crash"

to just post that?

Also something someone on this thread said. Its a VI in the housing industry.

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Bargains will come in the HPC. Till then, enjoy! :P

I hope so - but I also hope any HPC is not at the expense of the economy in general.

The good thing is, that now instead of dumping 60k or so on a deposit, I can now take the time to make the leap from being a IT contractor to running my own software company. If I had another mortgage to pay, it would be too much to risk.

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C'mon a first post stating (pretty much) buy now, as prices will keep rising. Why did this person search for "House Price Crash"

to just post that?

Also something someone on this thread said. Its a VI in the housing industry.

You are far more observant than me. Reading it back i guess they are not asking a question to buy or not, its more of an opinion. I didn't realise (perhaps naively) that people came on here and did that. I have only come across people who have their opinions either way (i know what i like and i like what i know).

I guess there are a few EA's in disguise on here?

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You are far more observant than me. Reading it back i guess they are not asking a question to buy or not, its more of an opinion. I didn't realise (perhaps naively) that people came on here and did that. I have only come across people who have their opinions either way (i know what i like and i like what i know).

I guess there are a few EA's in disguise on here?

You have all missed it. They join, wait a few days, log on, post and immediately log off while their friends cheer standing around the monitor.

Ole! :P

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We have been thinking about buying a flat in London since 2002, but thought we would wait for the crash. We have waited 5 years for the predicted a crash, and what happened in the meantime? Property prices went up.

You and me both Sarah. I had watched London property soar between 1999 and 2002 and was convinced of a correction 5 years ago.

I've well and truly missed the boat, not in terms of making a profit on a flat, but ensuring that I have enough room to breathe when the crash/correction comes. I've stuck it out for 6 or 7 years so far and I can categorically tell you now that I am prepared (and fortunate enough to be in a position to) to stick it out for another 6 or 7 years.

I am Bomber, the last bear that turns bull! :lol:

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Shelton Street, realtively quiet, very little pedestrian traffic, and light vehicle traffic.

I think the thing is, if it has been two bigger beds, and a separate kitchen, and the living area wider than 3 metres, I would have been happy to take the risk.

The property is one of those in the list of properties to buy I just posted earlier in this thread. There are a bunch in the 'new warehouse development'. I was looking at the 700k 4th floor one at the front, the smallest, but with the most natural light, and better south facing view.

Incidentally, I see the larger one on the same floor, previously advertised last november for 850k, is now being shown as 'new' for 825k...

Nothing has changed...for 50 years you do the same sums...:

1) Do i want to live there

2) Can i afford it now..and if interest rates go up some.

3) Is my job reasonably secure..to the point where I won;t be pantsing it about my mortage every day.

If yes, yes, yes...go ahead....and don't listen to the doomsday predictors on here..They have been wrong for years....and in the long run only one thing is certain we will all be dead.

I've just bought somewhere..really enjoying it...couldn't care less if it plummets, co i'll sell it and buy a bigger one. which is why it won't happen..

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I hope so - but I also hope any HPC is not at the expense of the economy in general.

The good thing is, that now instead of dumping 60k or so on a deposit, I can now take the time to make the leap from being a IT contractor to running my own software company. If I had another mortgage to pay, it would be too much to risk.

Agreed. I want Great Britain to stay great.

As a recent FTB, I'm committed to reducing my mortgage asap, so that's my lot for the next few years. You sound like you're in a very advantageous position and are making the most of it.

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Guest cash2burn
I spy, with my little eye, some things beginning with T...

I like how anyone who comes on here discussing a potential property purchase is deemed a troll. Yes, of course we know there are no genuine people buying houses right now. That's why prices are going up :P ... The behaviour on this forum is leaving a bad taste in my mouth.

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Guest cash2burn
Nothing has changed...for 50 years you do the same sums...:

1) Do i want to live there

2) Can i afford it now..and if interest rates go up some.

3) Is my job reasonably secure..to the point where I won;t be pantsing it about my mortage every day.

If yes, yes, yes...go ahead....and don't listen to the doomsday predictors on here..They have been wrong for years....and in the long run only one thing is certain we will all be dead.

I've just bought somewhere..really enjoying it...couldn't care less if it plummets, co i'll sell it and buy a bigger one. which is why it won't happen..

amen

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I like how anyone who comes on here discussing a potential property purchase is deemed a troll. Yes, of course we know there are no genuine people buying houses right now. That's why prices are going up :P ... The behaviour on this forum is leaving a bad taste in my mouth.

Now where have I heard that before?

Right, that does it.

I'm out of here. I like the way it's okay to call people a **** on here.

Anyway, bye.

Bye <_<

Ole! :P

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Quite a find Marcos.

Here is the same flat from the links you sent

£600,000

Now £550,000

Is only one flat, but those links you sent had many similar drops.

But am not building my hopes up, been let down too many times in the last 3 years. :lol:

You have to be careful there - you'll see they are different properties - the cheaper one is on the 1st floor, the other is one floor up. They add 50k per floor.

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