How far will prices fall in London?

mewbie_2

StevieJ wrote: »

At 1992 wages?

Don't try to change the rules.

StevieJ

fc123 wrote: »

We had a mortgae of 60k from 1990 - 1996...I remember paying £670 pm at one point..but not for too long...I remember it as it was such a struggle.
By 1996, it was around £430 ish?

Those houses now sell for, very roughly, £170k - £220k. I don't know what a repayment mortgage would be on the current values.

Based on my mortage rate 195k value that would be 642 IO and 1024 Repayment.
Applying RPI to your original payment would be 1152.

At the 1996 rate applying RPI would be 611.

fc123

StevieJ wrote: »

Based on my mortage rate 195k value that would be 642 IO and 1024 Repayment.
Applying RPI to your original payment would be 1152.

At the 1996 rate applying RPI would be 611.

So it wasn't easier then afterall;) ...it didn't feel like it at the time.

If we had bought the same house in 1996 (in same condition, would have costed 15k less). How many moments in time are there when one can buy at lower prices coupled with fairly low interest rates?

Having said that, most mortgages are 20 - 25 years...unlikely that interest rates would stay the same over the whole term but the capital gets paid down over time....done the old fashioned way that is.

StevieJ

fc123 wrote: »

So it wasn't easier then afterall;) ...it didn't feel like it at the time.

If we had bought the same house in 1996 (in same condition, would have costed 15k less). How many moments in time are there when one can buy at lower prices coupled with fairly low interest rates?

Having said that, most mortgages are 20 - 25 years...unlikely that interest rates would stay the same over the whole term but the capital gets paid down over time....done the old fashioned way that is.

I used RPI, wages/salaries tend to increase more than RPI, on the other hand interest rates have only just come down.

Austin_Allegro

The key price drivers of the London market have gone: loose lending, city bonuses, BTL, and even the international super rich, onyx-marble brigade have been affected by the crunch.

This will have a knock on effect on all sectors of the London economy.

I think it's quite possible we'll see 40-50% falls from peak in London. This is roughly what is required to bring things anywhere close to affordability now that the key drivers have gone.

Do I think it will happen? Who knows. The stalemate has lasted so long that I am beginning to wonder if the whole housing market is going to freeze up and effectively become some kind of state-run dinosaur - a sort of housing market version of British Leyland - so that we never really see any price falls.

ixwood

At least 50% falls from peak for London IMHO. Maybe more. Being saying it for ages.

napoleon

London house price falls have been accelerating in recent weeks. They'd been a bit stubborn up until then

RDB

90's Japan here we come.........

Kenny4315

drc wrote: »

How far, if at all, do you think prices in London will fall?

AUSTRALIA

Kenny4315

London is simply one of the most over-priced and over-rated places in the world.

Option 1 ... buy a shoe box in LONDON for and work the rest of your life.
Option 2 ... buy somewhere else and have a decent work/life balance