nationwide down 1.9%

mitchaa

neverdespairgirl wrote: »

Living on £100k and above a chip shop would be entirely a matter of choice in London, not necessity!

Hang on with the racist stuff - aren't you from Romania? Or am I confusing you with someone else?

£100k salary doesn't go far in London, i'm sure you dont need me to tell you that NDG;) The 4 bed detached family home with front and rear gardens i was referring to is simply not achievable in London on that level of income hence my point about quality of living:D

Romania, you're having a giraffe, you know fine well i'm from Aberdeen. Nothing Romanian about me. No racism intended or even hinted at in my post.

neverdespairgirl

mitchaa wrote: »

£100k salary doesn't go far in London, i'm sure you dont need me to tell you that NDG;) The 4 bed detached family home with front and rear gardens i was referring to is simply not achievable in London on that level of income hence my point about quality of living:D

Romania, you're having a giraffe, you know fine well i'm from Aberdeen. Nothing Romanian about me. No racism intended or even hinted at in my post.

Sorry, I've confused you with someone else - I know you are from Aberdeen, but there is also a poster on MSE who lives near there who is originally from Romania, I think.

£100k salary in London seems like a lot to me - while I don't earn that myself, OH and I certainly do between us, and we feel as if we have lots of money.

You could probably not live in a 4 bed detached with gardens everywhere, true. But you could live in a perfectly nice place, not a 1 bed flat over a chip shop.

meester

mitchaa wrote: »

£100k salary doesn't go far in London, i'm sure you dont need me to tell you that NDG;) The 4 bed detached family home with front and rear gardens i was referring to is simply not achievable in London on that level of income hence my point about quality of living:D

We have 4-bed with front and rear garden, kids at private school, five foreign holidays per year, we are however a short train ride from London. £100k is plenty of money.

harbinger13

borntobefree wrote: »

Me and my OH earn £140k between us. We have a 4 bedroom house with garden, our kids go to State School, we have one foreign holiday a year, we drive an x reg scenic - we can cycle to the centre of London and we are definately NOT rolling in it. Which is why I am MSE:rotfl:(......half of our money is paying off our mortgage. In six months we will be mortgage free:j)

Congratulations! Good planning - good execution; life without debt is truly wonderful.

harbinger13

I have noticed a few postings regarding the timing of buying here - 2005 to 2007 as bad years; my comment on that is, it is difficult for us to analyze or label them as bad buys. It is only in hindsight that we conclude 2005 to 2007 were the super bubble time. If everybody had stopped buying in 2005 then 2003-2005 would have been the super bubble era...most people who (probably were earnest in buying) bought thought they were investing, they should stick on and run through this downturn, but yes those who bought for a quick gain they are in a soup and it is right they are in one.

The scary part of deciding to invest in a house, is not that you buy it and the value goes down, but if you dont buy it and then the house appreciates real quick.

So for those who saw value in the house they bought it was a fair buy, unfortunately bad timing.

dopester

harbinger13 wrote: »

If everybody had stopped buying in 2005 then 2003-2005 would have been the super bubble era...

2003-2005 was the super bubble era. 2005-2007 was the final manic phase. We are in for the greatest collapse in real property prices in British history. It won't be pretty.

Everybody was making money on land, prices were climbing to incredible heights, and those who came to scoff remained to speculate.

-Frederick Lewis Allen
on real estate in the 1920s

The manic phase of the boom lasts for several years. Properties come to sell at absurd prices on the expectation that they will appreciate to still more absurd prices. And they do. They defy gravity, moving from one lofty high to another, month after month, year after year, long enough to lure otherwise prudent people in to mortgaging their gains to reinvest in the inflated assets on margin.

Before the market can top, near enough everyone who could conceivably be drawn in must have already become a buyer. And debt levels supporting the asset prices must be many times higher than any that could conceivably be serviced out of the cash flow yielded by the investments themselves.

Then comes the bust. Just as everyone has come to count on the idea that lofty asset values are permanent, there is a crash.

justpurchased

dopester wrote: »

2003-2005 was the super bubble era. 2005-2007 was the final manic phase. We are in for the greatest collapse in real property prices in British history. It won't be pretty.

You missed in your opinion off the end.
As with all things there will be winners a loosers in a crash
there are winners and loosers in a bubble.
Again,
And again
And again
And.. you get the idea.

dopester

justpurchased wrote: »

You missed in your opinion off the end.
As with all things there will be winners a loosers in a crash
there are winners and loosers in a bubble.
Again,
And again
And again
And.. you get the idea.

There is a disclaimer at the bottom of the page - but I'm right anyway unfortunately.

And please, I'm not having a go at you, but it really infuriates so many people....

If it is loose, then tighten it. Loose rhymes with noose (rope type). You mean lose / losers.

meester

borntobefree wrote: »

Me and my OH earn £140k between us. We have a 4 bedroom house with garden, our kids go to State School, we have one foreign holiday a year, we drive an x reg scenic - we can cycle to the centre of London and we are definately NOT rolling in it. Which is why I am on MSE:rotfl:(......half of our money is paying off our mortgage. In six months we will be mortgage free:j)

But then you will be rolling in it!

Generali

justpurchased wrote: »

You missed in your opinion off the end.
As with all things there will be winners a loosers in a crash
there are winners and loosers in a bubble.
Again,
And again
And again
And.. you get the idea.

I suspect that the main winners of the bust are going to be holders of cash. At least they will be if deflation happens - a real risk IMO.