£100K homes return to London

neverdespairgirl

Yoshua wrote: »

You say there are flats like this for 300K but thats what they used to be worth, now only a fool will pay that sort of money for a flat in London. Even houses in the city are coming down less than that.

Depends what type of flat, and where in London.

You can pay many times 300k for some flats, up to 20 or 30 times that amount, if you wish.

RDB

it will fail,the amount being put in is just a number and the probability of the money ever existing in the real world is diminishing daily.the government have in my opinion got completely the wrong idea of how to deal with this,i would say if the banks go bust so be it,when the **** really hits the fan the government will have no money left to support the people of this country,sterling will lose all value,public services will grind to a halt and there will be complete anarchy,may seem farfethced but when it goes it will go with a bang,and it will happen in weeks rather than months.

novazombie

Any more examples of 100K homes sold in London?

Asking prices are still way over 100K.

But with unemployment soon going to be the highest ever, the few jobs still available will be less pay because of the extreme resession. So if house prices do go back to 3 times earnings will this be about 100K in London?

33K a year is still a good wage even in the city, but what will be average earnings next year when all these companies are laying everyone off?

crazygaijin

So do you really think that an average say teraced house in London will be 100K in the future? At the moment they are being advertised still over 200K but selling for way under the 200K mark.

So if London prices are averageing 100K other parts of the country will be a lot less. But I supose this is in line with 3 times earnings.

RDB

crazygaijin wrote: »

So do you really think that an average say teraced house in London will be 100K in the future? At the moment they are being advertised still over 200K but selling for way under the 200K mark.

So if London prices are averageing 100K other parts of the country will be a lot less. But I supose this is in line with 3 times earnings.

Everyone including the PM is talking about depression.

So yes the average price in London could be under 100K soon. What this will mean for the rest of the country will remain to be seen.

If we are talking about lending being 3x earnings then London will be slightly more.

daveb975

crazygaijin wrote: »

So do you really think that an average say teraced house in London will be 100K in the future? At the moment they are being advertised still over 200K but selling for way under the 200K mark.

So if London prices are averageing 100K other parts of the country will be a lot less. But I supose this is in line with 3 times earnings.

As RDB says, anything could happen in a full on depression. Even with London houses at £100k, though, the only people that will be able to buy one will be those with £100k savings, or one of the few that still has a job.

Not sure what part of London you are seeing terraced houses selling for below £200k, though. They are still a lot more than that in my area, and that is all the way out in zone 6. They have come down at least 25% so far, though.

chucky

RDB wrote: »

Everyone including the PM is talking about depression.

So yes the average price in London could be under 100K soon. What this will mean for the rest of the country will remain to be seen.

If we are talking about lending being 3x earnings then London will be slightly more.

i see a tiny flaw in your logic above.

you say that London could be under 100k but then you mention 3x earnings.

average London earnings are probably around £40k, so 3 times this will be minimum £120k. if you want to look at joint salaries that goes even higher to around £200k.

daveb975

chucky wrote: »

i see a tiny flaw in your logic above.

you say that London could be under 100k but then you mention 3x earnings.

average London earnings are probably around £40k, so 3 times this will be minimum £120k. if you want to look at joint salaries that goes even higher to around £200k.

I don't think that the logic is flawed. I think that everyone agrees that for the average London house price to come down to £100k we are going to have to enter the depression to end them all.

If this happens, the average salary will fall far below £40k, and there will not be that many people working in well paid jobs at all. This is what will stop a lot of people piling in to buy all of these houses that only cost 20% of what they did in 2007.

botchjob

RDB wrote: »

So yes the average price in London could be under 100K soon.

What planet are you on?

Thrugelmir

GDB2222 wrote: »

Actually, the 3-bedder in Brixton for £79k was a good buy - bought by a BTL investor. I am not sure what the local reference rent is for 3 beds, but say £250 per week as a guess? So, the gross yield is around 16%. OK!

So why pay a £1,000 a month in rent? If prices are falling this far then a FTB might as well buy a property. As FTB's buy rather than rent this will then squeeze rental yields downwards.

Maybe auction prices are more representatative of the real value of property than head line prices in EA's.