How far will prices fall in London?

laughing_cow

Really2 wrote: »

So from this london look like it is in denial.

You live on top of each other, you don't want children (can't afford or do not have the space without leaving the city) but its ok to spend £500K for the priviladge.:eek:

It a 3 bedroom house with a garden is seen as far over the norm. It shows the south have been spoon fed dreams that the rest of the country enjoy without the stress.

London must be in for massive falls

Not everyone wants the same though and some of us don't mind living on top of one another, which is the case in most large cities.

I was raised up north in a very rural area, I've lived by the seaside, in a picturesque town, and also in the USA. I've been in London for 17 years now and I still love the place and don't want to live anywhere else. The only downside to me is the British weather and it's not near enough to the sea so if I win the lottery I will divide my time 50/50 between London and Sydney Seriously though, my family live in the sticks where I was born and whilst it's beautiful to visit, it drives me mad after a few days. Likewise, a 3 bed semi in suburbia might be the idyll for many but it's my idea of hell.

Getting back to the prices - I'm in an area of north London close to Camden and there's very little on the market near me - very few 'for sale' boards around. Having said that my neighbour has just completed on his flat and managed to sell it at 2007 prices, so there are still some people around who seem to be unaware that the market is changing!

neverdespairgirl

Really2 wrote: »

But in all seriousness how much would you nead to earn to have a 3 bed semi and be able to save in london (good area good school etc)?

don't know - I'll try to work it out.

neverdespairgirl

Really2 wrote: »

But i do think it is really relevent to how far London prices will fall if someone could tell me what wage you would need to purchase a:
3 bed semi (in a good area with decent school) Live, put by half a mortgage payment a month, run a car etc.

At the moment, buying seems unwise, so I'm going to do it via renting.

You can rent a 3 bed place in Blackheath for £1,000 a month, Definintely a "nice area".

So you'd want, perhaps:

Rent - £1,000
Bills - £300
Grub - £300
kids - £200
transport - £300
fun - £200
savings - £400

So with a couple, they'd need to earn about £26k per month each.

The above figures aren't exactly tight, though.

mitchaa

neverdespairgirl wrote: »

So with a couple, they'd need to earn about £26k per month each.

Yes as i thought, the pair of them need to earn £520k pa each

ad44downey

This is a useful site for average london house prices/rentals for each postcode:

http://www.londonpropertywatch.co.uk/avg_prices.html

penguine

In my non-trendy London suburb, prices need to fall at least 50% from their peak to be at what I would consider a reasonable level in relation to average income. According to that website linked from this forum a few weeks back, the average house price around here was 9x average salary in 2006 or 07.

Really2

neverdespairgirl wrote: »

At the moment, buying seems unwise, so I'm going to do it via renting.

You can rent a 3 bed place in Blackheath for £1,000 a month, Definintely a "nice area".

So you'd want, perhaps:

Rent - £1,000
Bills - £300
Grub - £300
kids - £200
transport - £300
fun - £200
savings - £400

So with a couple, they'd need to earn about £26k per month each.

The above figures aren't exactly tight, though.

Thanks,
I know buying may be unwise but to get an idea how far prices need to fall how much would a thre bed flat be (is that average?)

£300 month food may be a bit tight for a family.

neverdespairgirl

Really2 wrote: »

Thanks,
I know buying may be unwise but to get an idea how far prices need to fall how much would a thre bed flat be (is that average?)

.

£250k to £300k in Blackheath, I think

dopester

Originally Posted by mitchaa View Post

I personally thought the place was a sh*thole, over run by immigrants and foreigners. .

My, you sound positively charming.
botchjob is offline Report Post Reply With Quote
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Oops I didn't mean to thank mitchaa's post there. I like London, but property prices there are going to crash so hard. Welcome to deflationary depression.

stevetodd

neverdespairgirl wrote: »

At the moment, buying seems unwise, so I'm going to do it via renting.

You can rent a 3 bed place in Blackheath for £1,000 a month, Definintely a "nice area".

So you'd want, perhaps:

Rent - £1,000
Bills - £300
Grub - £300
kids - £200
transport - £300
fun - £200
savings - £400

So with a couple, they'd need to earn about £26k per month each.

The above figures aren't exactly tight, though.

I am waiting to buy (after further falls) investment property so no rush obvioulsy and I think it's the same for ftb's, with no sign of the end of the recession, renters are in a very good position. I'm sure when we get nearer to the bottom of the housing market, mortgages with smaller (than 30%)deposits will become more readily available, although I think the more you can put down the better % deal ftb's would get. It's just a case of being patient and keeping an eye on the market, although nothing is going to happen too quickly.

Of course that might change for renters if mortgage rates get really low and look like they will stay low for a while? It will be interesting to see what the boe do next week.