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What Kind Of Discount Would You Want To See To Buy This Place?


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I think you have got that number of Universities about right generally, but I know quite a lot of people who have done very well in City careers with degrees from ex-Polys. It is possible, you are just a lot less likely to get the opportunity.

Sure, it's not unheard of but the odds are against you. If you have the right contacts, a good aura about you and a lot of confidence then anything is possible. But you'd be one of the lucky ones. My wife is one of those :) American studies I ask you. What good is that to anyone but she somehow managed to find a decent job :)

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1. Young City workers on a £200k++ joint income.

You hardly need that kind of income, assume that with deposits / discount to the price etc they're looking at 500 / 550 or so, that's only about 3k / month on a 25 year repayment. Say a further 2k / month for other bills & socialising between them, you'd only need about 40k a year each to make that. No shortage of people in London on those kind of salaries.

Edited by Benedict
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With regard to high graduate salaries - there are of course those of us who got excellent results on niche courses (mine being one of the best music and audio engineering courses in the world) but whose salaries are simply average because we are working in relatively low-paid industries. You do the course to get into the industry, not to get a high salary. Life is about more than the number of zeros on your payslip.

Of course, the people who say life is about more than money tend to be those who don't earn very much money. The irony is not lost on me.

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Wow, this really has been an interesting thread.

Basically, what I see is that people outside London can't believe how much the houses are near London (wait until you see how much they are IN London), people outside London can't believe how much people get paid.

just to add perspective, Secrataries at my work get paid £28k and all they do is handle our blackberry bills/expenses and print out stuff, buy stuff off ebay and go on Facebook.

and for people outside London who feel jealous. Don't be. Our rents are at least £1000 for 1 bed shoe box in a decent area, the tube sucks ass, everyone is rude and it costs £3.50 for a friggin BLT sandwhich!

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Wrong.

I went to a get together in Greenwich which contained people from large law firms SJ Berwin, Linklaters, Norton Rose, Olswang, Clifford Chance etc and they are losing business hand over fist. For a start corporate acquisitions have dropped dramatically. Big commercial property deals have fallen off a cliff. Large media clients at Olswang for example have halved legal expenditure. Large Advertising agencies have done the same. One law firm I know quite well rely almost entirely on large property clients, they have ditched half of their lawyers this Summer (410). I chatted to one such lawyer who told me he has no chance of getting another position because of his area of expertise. He has 2 kids in private school (was earning £210k) and a large mortgage on a house in Leicestershire. Luckily he only rents his London flat but he told me lots of his colleagues had bought city centre apartments recently and were now deep in the poo poo.

Its a scary situation. I think many have got their head in the sand. Brother in Law is an equity partner for a well known firm. He admits that the number of lawyers in London has doubled in 10 years and is now set to half. HALF !!!! Graduate recruitment has stopped at a number of firms and he tells me that the salary for a trainee lawyer at his firm is around £30 - £35k.

Imagine if half of all £100k earners in London were made redundant. Pretty scary how quickly £500k terraced house suddenly get seen for what they are.

I was involved in the dot com boom. I saw Marketing Graduates with Digital Media specialisms getting £65k jobs at entry level. I saw one ASP Developer get £180k a year and he was 24 yrs old. We all thought it would never end, we thought it would go on for ever. At a recent get together the ASP guy was now working as a Network Programmer at a games studio in Brighton and earning £35k. How we laughed when we realised just how disillusioned we were in those crazy days. I get that same feeling when people talk of 20,000 people earning over £250k in the city. Those Essex boys will be getting together in 5 years time up in Chelmsford as Hairdressers, mechanics, till supervisors and talking of their days in the city riding the wave of easy money.

In the meantime house prices in London will have halved if not dropped even further.

Good sensible reality check this post. Please post more sense and waken a few idiots up.

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Wow, this really has been an interesting thread.

Basically, what I see is that people outside London can't believe how much the houses are near London (wait until you see how much they are IN London), people outside London can't believe how much people get paid.

just to add perspective, Secrataries at my work get paid £28k and all they do is handle our blackberry bills/expenses and print out stuff, buy stuff off ebay and go on Facebook.

and for people outside London who feel jealous. Don't be. Our rents are at least £1000 for 1 bed shoe box in a decent area, the tube sucks ass, everyone is rude and it costs £3.50 for a friggin BLT sandwhich!

Yes, but thats the BOOM time, the nice decade. Do you think this is sustainable? and more importantly, do the secretaries?

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I guess that was my point, if you do have a good degree from a good Uni then you would end up in the city hence those grads get good wages. Where I think the results are skewed is by grads that did a course like sociology at Humberside University or Leeds Met. Those grads are of course going to be struggling to get a wage above £25k. It brings into question why on earth one would do a degree. My brother failed his A Levels and went to work for ASDA. He's now on £30k working for another large department store. He's 24. Why bother going to Uni, earning less than £30k ten years later and coming out with £15k debt?

Uni has recently been described as "the new YTS" i.e you take young troublesome thickos and send them to uni to get some watermarked piece of paper which they have been brainwashed to think is the key to the world, and you make them pay for the priveledge (YTS never did this). What is your take on this?

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You hardly need that kind of income, assume that with deposits / discount to the price etc they're looking at 500 / 550 or so, that's only about 3k / month on a 25 year repayment. Say a further 2k / month for other bills & socialising between them, you'd only need about 40k a year each to make that. No shortage of people in London on those kind of salaries.

True, but where do you borrow the £4-500k these days on an £80k joint income? I imagine you would get £250k max with a good deposit, and this would put you into the £350k price bracket, not £500k.

You would also find yourself in a very difficult situation if one partner lost their job and you had a £3k per month mortgage to service on a £40k salary!

To buy a house at £500k (with a £50k deposit), both partners would need to be earning £90k if they wanted to keep to a 2.5x joint income multiple. This is possible with non-City earners, but people earning this type of money outside of the City are likely to be older and favour a move further out of London than Wimbledon.

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You can keep pointing it out all you like, I'll keep answering it the same way. I am not investing in property, I am looking for a family home.

Ah, the old property devotee chestnut:

Q: Why does a property investment only ever make you money and never lose you money?

A : Simple :

When a home makes you money it's an investment.

When an investment loses you money it's a home.

Now just when was it I first heard that one ...? Ah yes ..., those were the days ....

:lol:

Edited by Sledgehead
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Guest DissipatedYouthIsValuable

Of course, none of this affects me. I inherited the family herring business and several of granfather's houses when he died. I do like to work in public relations, but mainly for the chance to steal celebrities' underwear.

I live in London.

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Uni has recently been described as "the new YTS" i.e you take young troublesome thickos and send them to uni to get some watermarked piece of paper which they have been brainwashed to think is the key to the world, and you make them pay for the priveledge (YTS never did this). What is your take on this?

I'd say I agree that this is exactly what's happening. There are simply too many people at university and as a result the standard has declined. You can now get into university with two E grades, what the point of that is I don't know. The result? Millions of young people believing that they have somehow earned the right to be paid big money. The fact is that for most of them they would have been better off learning outside of uni already on a career path with money in their pockets. How many jobs really require a degree in psychology? Or sociology? Sure if you're looking at it vocationally but very few do end up in the relevant field. I would sometimes prefer a young, motivated kid to come in at 18 and start learning than go off to Uni, come back 4 years later after having learned absolutely nothing relevant not being tested at all because he went to some crappy uni and read some easy subject. My child will go to uni only if it makes sense for him to do so.

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I'm interested in purchasing this place:

http://www.rightmove.co.uk/viewdetails-18737575.rsp

Assuming you are renting, would like to buy a new house and have the deposit you need, what kind of price drop would you need to see to make this a worthwhile purchase? Would a 10% drop make you feel happy about buying and not getting into trouble at a later stage? Or 20%? Maybe only 5%? I'm thinking that an offer of £520k in the current climate would be fair but am interested in what others think. Am I being a bit ambitious at thinking about such a drop?

1060 sqft property is tiny , no where to park apart from the road.

do people actually pay 600k plus for these ?

Would you not be better to buy a repossed flat from some BTL chump in wimbledon since it`s about the size of a small 2 bedder.

Edited by calamityjames
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all this my degree is better than yours, misses the point that you can get by without a degree. friend of mine left education after A Levels at 18. Went to work in the city for peanuts, loved the work, was good at it and now earns six figure salary with bonus on top (maybe not this year). What happened to study for the sake of it/enjoyment?

And to the OP. I know most of south london like the back of my hand. If you want to pay half a million plus for a two up two down (with chavtastic extension and room in roof), crack on, but your a mug if you do. ;)

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Uni has recently been described as "the new YTS" i.e you take young troublesome thickos and send them to uni to get some watermarked piece of paper which they have been brainwashed to think is the key to the world, and you make them pay for the priveledge (YTS never did this). What is your take on this?

Labour twigged that one way of cutting the number of unemployed was to encourage people to go to University rather than leave school and sign on, charge them fees for the privilege and give them a loan to con them into thinking it was a good idea.

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1060 sqft property is tiny , no where to park apart from the road.

do people actually pay 600k plus for these ?

Would you not be better to buy a repossed flat from some BTL chump in wimbledon since it`s about the size of a small 2 bedder.

This is a good point. My area of interest is just down the road in Surbiton. The market is structured in the same way, just quite a lot cheaper.

For £375k (asking price) you can get an 1100 sqft flat with river views and a garage (admittedly in a block). For the same price you can get the tiniest little 800 sqft victorian terraced house with no garden and no parking. Up until recently, these houses were selling very quickly wheras the flats always stayed on the market longer because they are quite a way above the regular ceiling price for flats in the area. If you look at each, though, you get a lot more for your money with the flat.

Further up the price range I can understand it a bit more - a house with parking and a decent private garden is much more suitable for a family than a flat even if the square footage is the same.

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  • 1 month later...
4500 people in the city were paid over £1m in 2006/07. The average remuneration in the square mile for a male is over £100k. nearly 20,000 people in the city were paid over £250,000 in 2007.

Therefore provided the city retains that advantage of being the premier player in the financial markets then prices in the suburbs of the city can be expected to hold some of their value. I am sure that houses in Clapham Dulwich will fall but wont collapse to some of the figures suggested by various posters to this thread.

Perhaps if we could reduce that number in the SquareMile/Canary wharf by around 75% then London can once again be a city for the people, that is the other 6.75 million within the defined zone known as London. If we reversed the so called BigBang thingy that happened back in the 80's then maybe lots of these Mayfair overspill areas (Notting Hill and surrounds, Clapham, Islington etc etc) will revert back to what they were, just normal suburbs with prices attached to normal wages (Couple on £20 - £40K maybe?) and prices of £50 - £100K. This in fact is very possible, as the concept of banking and the City of London financial firms could in fact be a completely different animal within a very few short years, affecting of course many of the hang-on buisnesses that have also thrived.

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It's not all that much money you know. Graduate starting wages (from a good Uni that it is) must be averaging at about £35k. I just had a quick look at jobs over £60k on Michael Page added in the last 7 days and there are more than 250 of them: http://*******.com/5gsykw

What I think you are missing though is while there might be plenty of people out there earning enough to pay £600k for a place like that I would imagine the sort of profile we are talking about wouldn't be too happy living in a terraced place in Wimbeldon. While Wimbeldon is pleasant enough it nothing special in London terms.

I grew up in a house not too dissimilar to that and my parents were proper working class, my father a leather worker and mother a house wife. In the area we lived people with the sort of jobs with a £60k pa as in the link you provide were living in massive places not a 3 bed terrace.

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What I think you are missing though is while there might be plenty of people out there earning enough to pay £600k for a place like that I would imagine the sort of profile we are talking about wouldn't be too happy living in a terraced place in Wimbeldon. While Wimbeldon is pleasant enough it nothing special in London terms.

I grew up in a house not too dissimilar to that and my parents were proper working class, my father a leather worker and mother a house wife. In the area we lived people with the sort of jobs with a £60k pa as in the link you provide were living in massive places not a 3 bed terrace.

Wimbledon :P

Incidentally, that place is now under offer.

As for Wimbledon, it's a great place, sure parts of SW19 are a bit grotty but I've not found many places with a nicer atmosphere and easy access to greenery like the common. Very good private and state schools, it's a great place for families, one of the best places in London I think. That view is backed up by the Wimbledon 'house price bubble' which is still very apparent. It will decrease I think but there's a reason prices are so high, it's a very desirable area.

That house actually looks like a good deal compared to say this: http://www.rightmove.co.uk/viewdetails-9627222.rsp or this: http://www.rightmove.co.uk/viewdetails-22448441.rsp :)

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You might find this link helpful....

http://www.houseprices.co.uk/e.php?q=Clare...d+sw19&n=10

Edit: Corrected gibberish

2002 price 320->400k

look what 650k gets you birmingham

http://www.rightmove.co.uk/viewdetails-767...=1&tr_t=buy

50341_JHB386alcester_IMG_17_0000.jpg

or bromsgrove

http://www.rightmove.co.uk/viewdetails-200...=1&tr_t=buy

12911_29277A_agb1314_IMG_00_0000.jpg

or kidderminster

http://www.rightmove.co.uk/viewdetails-187...=5&tr_t=buy

15062_hillgrovepl1_IMG_00_0000.jpg

Edited by moosetea
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I grew up in a house not too dissimilar to that and my parents were proper working class, my father a leather worker and mother a house wife. In the area we lived people with the sort of jobs with a £60k pa as in the link you provide were living in massive places not a 3 bed terrace.

I am not sure that this price crash will change that too much. Places like Wimbledon will become a lot cheaper than they are now, but they will remain comparatively expensive.

People are obviously prepared to pay £500k+ for this type of house in Wimbledon when they could get something much bigger and better in Woking or Guildford, and I don't think that will change when the price for both goes down to £300k.

The other factor is that £60k pa is really not a massive salary in London. I know it is way above the 'average', but most people I know that earn this sort of figure do not really consider themselves big earners, and don't expect to live in anything bigger than a flat or small house just because they earn that much.

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£615k for that! My friend sold a similar sized house for £450k in Chiswick 2 years ago, and I would have thought they were comparable areas? My guess would be £400k - £450k tops but waiting is the best option, if you can. PS Moosetea - there are also nice places, not well known, near London, where £615k will get you a heck of a lot more house than that. If we don't emigrate then will move to one such place in 2 years time when this mess has been sorted.

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£615k for that! My friend sold a similar sized house for £450k in Chiswick 2 years ago, and I would have thought they were comparable areas? My guess would be £400k - £450k tops but waiting is the best option, if you can. PS Moosetea - there are also nice places, not well known, near London, where £615k will get you a heck of a lot more house than that. If we don't emigrate then will move to one such place in 2 years time when this mess has been sorted.

totally agree :P Personally I would quite like a second 2BR city centre flat in London as a bolt hole, my target price is 140-180k....

Edited by moosetea
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£615k for that! My friend sold a similar sized house for £450k in Chiswick 2 years ago, and I would have thought they were comparable areas? My guess would be £400k - £450k tops but waiting is the best option, if you can. PS Moosetea - there are also nice places, not well known, near London, where £615k will get you a heck of a lot more house than that. If we don't emigrate then will move to one such place in 2 years time when this mess has been sorted.

Actually, £615k will buy you a lot more house than that virtually anywhere near London. As long as you avoid the super expensive places (Weybridge, Esher, Sevenoaks etc) £615k should get you a 4 bed detached in a good part of town with a good plot.

There are threads on here about Woking and Guildford - well known places where this sort of money will get you a great house.

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