House Prices Do Not Matter

[jefefelipe]

A good read, basically house price surveys don't matter, obviously the real price is what someone is prepared to pay, and all these surveys are from vested interests with a PR angle to push.

http://www.iii.co.uk/markets/?type=editorial&id=33876

Been lurking here for a while, I'm currently working in Vancouver, I may return at the end of the year if life becomes more affordable in London. Although it's all swings & roundabouts; there's big property inflation going on in Vancouver at the moment.

The big difference is that whilst I wouldn't pay the prices over here to buy a property, is that renters aren't obliged to shoulder as many costs as in England. Rental deposits are only for half a month (compared to 1 month or, even 6 weeks seemed to be coming into vogue in the UK). Also renters don't directly pay the property tax (council tax in the UK) which adds on a big chunk to a renter's annual costs in the UK.

Edited May 24, 2005 by jefefelipe

[Time to raise the rents.]

http://www.iii.co.uk/markets/?type=editorial&id=33876

Been lurking here for a while,  I'm currently sitting this all out in Vancouver, I may return at the end of the year if life becomes more affordable in London.  Although it's all swings & roundabouts; there's big property inflation going on in Vancouver at the moment.

The big difference is that whilst I wouldn't pay the prices over here to buy a property, is that renters aren't obliged to shoulder as many costs as in England.  Rental deposits are only for half a month (compared to 1 monthor, even 6 weeks seemed to be coming into vogue in the UK).  Also renters don't directly pay the property tax (council tax in the UK) which adds on a big chunk to a renter's annual costs in the UK.

<{POST_SNAPBACK}>

It's always good to get an international perspective to remind us that the UK is still a great market for landlords compared to other countries!

Thanks

[jefefelipe]

It's always good to get an international perspective to remind us that the UK is still a great market for landlords compared to other countries!

Thanks

<{POST_SNAPBACK}>

I did calculate it prior to moving here; although it is difficult to make comparisons.

After a cost of living adjustment to my UK salary (internal company transfer); a direct comparison can be made by translating my old UK salary directly into Canadian $, & then comparing it to my actual adjusted CA salary = an approx 30% reduction.

But even after that reduction, if I make a comparison on my gross salaries versus my cost of renting (I can't remember what they are net of tax, but I don't think there is a significant tax differential between the 2 countries, could be slightly higher in BC, Canada) :

I paid about 28% of my gross montly UK salary on rent, c.tax & water for a 1 bedroom + garage in Ealing 10/15 mins walk from the tube.

In Vancouver I pay approx 23% of my gross monthly CA salary on rent, (no c.tax or water charges) for a 1 bedroom + u/ground parking in the city centre

Roughly a 5% reduction in cost of renting without making it too complicated

Most rentals here are unfurnished, you'd pay a premium for a furnished rental; whereas in the UK you can struggle to find a rental that doesn't have nasty old (mis/matching?) furniture in it, that depending on your landlord, is apparently impervious to the effects of wear & tear.

I'll stop now, as I'm turning my initial post into a mix of renting, emigration & overseas market topics.

Edited May 25, 2005 by jefefelipe

[gone west]

I was under the impression that things are starting to cool a little here (Vancouver) transactions wise. No doubt the next 6-8 months will bring some more rate rises and fewer American buyers.

[lostinrent]

Surely the Vancouver winter heating bills will damage any gains you may make in renting cheaply.

[SittingBull]

Surely the Vancouver winter heating bills will damage any gains you may make in renting cheaply.

<{POST_SNAPBACK}>

Compared to where? Average temperatures in Vancouver aren't much different than London in the winter. They both average 4 degrees celsius in February. For January it's 3 degrees in Vancouver to London's 4 degrees.

Source: http://www.eurometeo.com/english/climate/c...couver%20canada

[jefefelipe]

Compared to where?  Average temperatures in Vancouver aren't much different than London in the winter. They both average 4 degrees celsius in February. For January it's 3 degrees in Vancouver to London's 4 degrees.

Source: http://www.eurometeo.com/english/climate/c...couver%20canada

<{POST_SNAPBACK}>

GW re. property prices in Vancouver, it seems that I'd need the same mad income multiples for a mortgage, here as I would back in the UK.

lir. yes as SB says Vancouver city temp. is more/less same as London (everywhere else in Canada has the extreme winter cold) + 1 bedroom flats/apartments don't require much heating in either city.

I wouldn't say I'm making much in the way of financial gains by being here instead of London. I was really trying to make a point re. the costs of renting in London are a high % of salary earned compared to many other locations.

Although it had nothing to do with the original article link I posted...but... to bring it back around...they do love a housing activity report just as much here in BC, preferably written by a realtor or financial advisor.

Edited May 25, 2005 by jefefelipe